![]() However, we must understand that not all the industries are affected negatively with the changes in economy. Economic factors include inflation rate, currency exchange rate etc.ĭuring bad times most of the consumers do not buy new cars, avoid eating out or building a new house for them and vice-versa. Economic CyclesĬompanies are enormously sensitive to occurrence of changes in an economy. Despite the fact that policies being made are to benefit an industry by realization of higher profits, the same could impact negatively on the nation. The American firms will find it more difficult to export goods due to the stringent laws that are being put in place to avoid aiding the enemy. The tobacco industry has been receiving too much attention from the government albeit on a negative note which makes it the next target. More stringent measures are to be made regarding car leases through the consumer lobby group in congress. It will help to know the threats and opportunities and take precautionary measures as desired. The only solution is to conduct environmental analysis. Political factors that affect business are uncontrollable like political stability, current and impending legislation. Change in political situation can be a very sensitive issue to a company. In external environment, political factors are Government actions, rules and regulation. Once understand the outcome, marketers can utilize opportunities and minimize threats. PESTLE Analysis tool is widely used in the business community to find out opportunities and threats. There are many strategic analysis tools (PEST, SWOT, Porter’s 5 Forces) to assess these macro environmental factors. Marketers must assess macro factors for developing sound marketing strategy. There are 6 macro factors that affect business environment positively or negatively. How Macro Environment Factors affect Business These factors are uncountable by the business organizations. The wider and broader set of economical conditions is known as macro environment. Macro Environment is the external environment factors greatly influenced the business success, strategies and decision making. How Macro Environment Factors affect Business.
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