What Are the Elements of Macro Environment?
Macro environmental elements include technological, legal-political, economic, sociocultural and international variables. Macro environmental elements occur outside of an organization, thereby making them difficult to control within the organization itself, according to the Encyclopedia for Business.
Examples of outside technological factors that impact organizations include changes to market demand and production processes spurred on by technological advances. Sociocultural forces, such as population changes, rising educational levels, shifts in social norms and values, and expectations of business’s social responsibilities, also have an influence on how an organization does business.
International variables that impact an organization include the actions of other countries or groups of countries, such as international economic associations and intergovernmental relations. International cultural differences in attitudes, beliefs, motivation and morality are also a part of international macro environmental elements, as stated by the Encyclopedia for Business.
Political factors that impact an organization are tax policy, overall government stability, trade control, import restrictions and laws that impact businesses directly, such as environmental law, anti-trust law, employment law, discrimination law and intellectual property law. Economic variables, such as growth, exchange, interest and inflation rates, monetary policies, employment trends, labor costs, credit availability and stock market trends, are also part of the macro environmental elements, says Strategic Management Insight.
