Macro Environment and the Forces Affecting a Business

Macro Environment
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Macro environment
In the current competitive business environment, it is important for a business to analyze the macro-environment. This analysis helps an organization identify possible opportunities and threats outside the control of a business that affects its growth. The macro-environment forces, including technological, economic, demographic, ecological, socio-cultural, and political factors, affect every business differently (Alexanda et al., 2017). However, some factors, such as the economy, affects all business. For example, the severe impacts of the Covid-19 pandemic to global economies have negatively affected many businesses. Nevertheless, organizations that have been facing economic collapse and bankruptcy have been substantially hurt than successful ones.
The economic forces that affect business include taxes, inflation, recession, and unemployment. Although many businesses master these trends and implement planning, many organizations are not recession-proof. On the other hand, political factors consist of legislation bills, health and safety laws, tax policies, and other policies created by the government and affect a business. For example, a policy that increases taxes affects the profitability and performance of a business (Alexanda et al., 2017). Although not all businesses are affected by a specific policy, any business must align itself with any policies, laws, and regulations. Also, the social factors entail influences that affect consumers buying decisions. Usually, consumers play a vital role in the growth of any business. Consumer buying behavior is influenced by many factors, including lifestyle changes and trends, social status, demographic location, ethnic background (Guan et al., 2019). For instance, an employed professor's needs and buying behavior are different from undergraduate students who depend on parents for upkeep.
Today, technological forces affect...