The Positive Impacts Of The Macro Environment Of IKEA

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Introduction

Macro environment consist of the external environment in which a business of a company operates. The external environment for the organisations includes the factors like economical, social, political and technological factors. The changes in these factors directly affect the growth and success of the business. In an organisation such as IKEA for example, which is a company dealing in the industry of manufacturing of furniture is also affected by these macro environmental factors.

Positive impacts: The positive impacts that the macro environment can have on the business of IKEA can be related to the positive changes in the tax rates, laws and legislation as applied on the company. The social factors such as customer satisfaction can bring positive impacts on the company.
Negative impacts: The negative impacts of the macro environment on the business of the company can be rapid changes in the technological advances, economical factors like changes in the rate of taxes, social factors like changes in the trends and change in the government policies which are included in the political factors of the macro environment.

Economic-The performance of the IKEA will also depend on the performance of the economy where the company is running its business and also have a long term effect on the business. For example due to sudden rise in inflation in the economy the purchasing power of the customer will increase and will reduce the demand of the product in the market. Positive Economic- On the other hand certain reduction in the import rate will help the IKEA to buy the resources at the low cost and thus will helps the company in delivering the product at the lower cost to the customer.
Social- The business is also affected by the change in the preference of the customer in the society. The social environment which generally affect the business are cultural trend, demographic, population analytics etc. The company needs to regularly analyse the preference of the customer and needs to develop the company product as per the preference of the customer. For example there may be rise of furniture demand if the company manufacture product as per the preference of the customer.
Political–The political factor of

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