Similarly, the legal framework in the country and the environmental norms that affect the industry in the country will also be a major consideration. For the company to be able to formulate an effective expansion strategy, the overall political, economic, and social environments and their influence on that industry will be a major consideration. Let’s say a company has to expand into a new market in one of the emerging markets. To further explain, when organizations undertake strategic planning in terms of expansion to new markets or other business objectives, the external environment has a massive role to play. For instance, when the top management at Apple will be conducting a macro environment analysis, it will look into external factors with respect to a country or location that affects the entire consumer electronics industry. Here, it is imperative to note that a macro environment is always external to the organization and looks at the set of overall external factors that affect the entire industry. In simpler terms, the macro environment takes into account the broader picture with respect to the state of the external environment. To discuss further, the macro environment with respect to a country or specific geographical area including political, economic, social, technological, legal, and environmental factors that can have a direct or indirect influence on industries. What is Macro EnvironmentĪ macro environment can be understood as the mix of external factors that affect decision-making, strategic planning, and operational strategies at organizational levels. So, let us get started without further ado. The blog elaborates on the macro environment definition, macro environment factors, and its applicability for businesses. In this blog, we shed light on what the macro environment is with respect to business planning and marketing. To explain, micro and macro environment are the two major bifurcations of business environment and marketing environment. Further, it is important for you to know that both the business environment and marketing environment are broadly categorized into two classifications.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |