Macro Environment

1114 Words Jul 16th, 2011 5 Pages
As an entrepreneur, they need to evaluate the environment not only prior to the start-up of their business but also during the growth stage of ventures. The environment means the situation where the company business ventures operate. As we know, ventures environment can be divided into two sections that are External environment and Internal environment. And the external environment also divided into two parts, which are Macro environment and Micro environment. But in this section, I just discuss about Macro environment. The elements of macro environment can affect business decision-making in the long term and unstoppable. Macro environment contains of four elements, such as Politic and legislation, Economy,
…show more content…
The demographic environment is of major interest to entrepreneur because it involves people, and people make up market. Among the topics of curiosity to demographers are the age structure of a country, the geographic distribution of its population, the balance between male and females, and the likely future size of the population and its characteristics. Changes in the size and age structure of the population are critical to many firms ' marketing. Most countries are experiencing an increase in the percentage of elderly people and companies who have observed this trend responded with the development of residential homes, cruise holidays, and financial portfolio management services aimed at meeting this group 's needs. At the other end of the age spectrum, the birth rate of most countries is cyclical resulting in a cyclical pattern of demand for age-related products such as baby products, fashion clothing, and family cars. Next aspect is cultural trends. The cultural environment is made up of institutions and other forces that affect a society’s basic values, perceptions, preferences and behaviors. It is critical for entrepreneurs to appreciate fully the cultural values of a society, especially where an organization is seeking to do business in a country, which is quite different from its own. Attitudes to specific products change through time and at any one time

More about Macro Environment

Open Document