Organizations that are affected by and that affect their environment are called macro environment.
- What is macro environment?
A macro environment is the process that occurs when certain factors affect the environment of a work place as well as the organization itself. External factors are out of their control but will still affect the organization as a whole. This is something that has the ability to affect a number of organizations without them having the chance to stop them. The majority of these external factors include economic issues, political changes and social aspects.
- What can cause a macro environment?
The majority of organizations will take into consideration the PESTEL analysis which stands for political, economic, social, technological, environmental and legal. These are the six main issues that can affect the environment of a business without them initiating it. In order to understand how these six issues can affect an organization, you need to understand each of them.
The aspects of the political factor that can affect an organization include the stability of the government as well as the current policy on unemployment. Moreover they need to take into account the rules on taxation and the trade regulations.
- Economic and Technological
With regard to changes in the economy, organizations can be affected by inflation rate, the rules on pensions and the limits on spending within the company. For technological factors, they will have to consider the constant changes and adaptations in technology as well as the state of communication through technology.
When considering the environmental issues that may arise, it is important to keep up to date with the laws regarding environment as well as the policy on waste disposal. Legal issues such as health and safety and regulations on advertising need to be considered.
