Impact of External Macro Level Factors on Social Networking Industry

1005 Words4 Pages
Funder Mifflin Inc. Internal Memorandum Funder Mifflin Inc. Level 6, Juvenile House, 12 Independent Street, Adelaide Telephone: (07) 239-78-577 Facsimile: 323-7895 Date of Memo: 11th September 2012 To: The Manager, John Atkins From: Rudolf Kevin Subject: Impact of External Macro level Factors on Social Networking Industry Macro Level Environment Factors Macro environment factors are uncontrollable external forces that affect the normal operation of a business. These external and uncontrollable factors influence organization's decision making as well as performance and strategies (Weon & Eunkyu, 2010). In addition, these factors often require changes in operating, management, production, as well as marketing strategies. These factors range from economic, demographic, legal, political, social conditions, technological changes as well as natural occurrences. Examples of the macro environment include competitors, changes in interest rates, changes in cultural preferences, and government regulations. These factors are always categorized using the acronyms PEST or PESTEL; standing for political, economic, social, and technological concerns and also includes environmental and legal factors. PEST Analysis Political There are several political factors that may affect business operations. These factors include taxation policies, government-issued safety regulations, the availability of government contracts, and shifts in the controlling political party. Other factors
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