Impact of External Macro Level Factors on Social Networking Industry

1005 Words Feb 5th, 2018 4 Pages
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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