Lesson 5 - Macro Fators

Question 1

Macro factors

Answer 1

Influences in an external environment which the business has no control over

Question 2

4 Macro factors

Answer 2

Legal and government regulations
Societal behaviours an attitudes
economic conditions
Technological issues

Question 3

Legal and government regulations

Answer 3

Refers to the business related legislation passed by local councils, state and federal governments, as wells as decisions made by the courts, that protect consumers, the community and the environment while encouraging fair trade and competition.
E.g Privacy Act 1988

Question 4

Societal attitudes and behaviour

Answer 4

Includes external and internal customers values, beliefs and customer trends. It included what people currently think about ways of working, how business should be operating and purchasing patterns.
Positive impacts:
Adapting to social change means the business is constantly up to sate and can offer products in line with customer wants and needs.
Can create new profit generating opportunities for the business
Negative Impacts:
Social changes occur frequently it may no be possible for the business always to respond, this could be a disaster in competitive industries

Question 5

Economic Conditions

Answer 5

Includes all things financial, meaning when planning, business must take into account interest rates, tax rates, business confidence and consumer confidence levels.
Positive Impacts:
Strong economic growth > expands customer base > increased sales/ revenue/ profit
Increased consumer confidence
Negative Impact:
Weak economic growth > decreased customer base > damages sales
Economic sanctions e.g restrictions > increased cost
Increased unemployment, Increases inflation, increased interest rates can all affect demand

Question 6

Examples of economic conditions

Answer 6

Interest rates - amount lender charges to borrower and is a percentage for the principal. Refers to the amount earned on savings ad investments

Inflation - general increase in prices of g/s over a period of time - decrease in purchasing power

Unemployment - aged 15 and over who is actively seeking for employment but is unable to find work