What Is Macro Environment?
The major external and uncontrollable factors that influence an organization’s decision making, and affect its performance strategies. These factor includes the economic factors; demographics; legal; political, and social conditions; technological changes; and natural forces.
Macro environment factors are beyond the control of an organization. This is because those factors are positioned outside the organizational system. Those forces are the prime factors in corporate strategies i.e. determining the objectives of an organization, its drive for profits, its projection for future sales as well as a protection step in preventing any losses or problems. Specific examples of macro environment influences includes competitors changes in interest rates, changes in cultural tastes, disastrous weather, or government regulations.
Macro-environment factors that affects hotel industry
Social - Cultural Factors
The socio-cultural dimensions of the environment consist of lifestyles, and values that characterize the society in which the firm operates. Socio – cultural components of the environment influence the ability of the firm to obtain resources, make its goods and services, and function within the society. Socio – cultural factors include anything within the context of society that has the potential to affect an organization. Population demographics, rising educational levels, norms and values, and attitude toward social responsibility are examples social-cultural
Technology is another aspect of the environment a firm should consider in developing strategic plans. Changing technology may affect the demand for a firm's products and services, its production processes, and raw materials. Technological changes may create new opportunities for the firm, or threaten the survival of a product, firm, or industry. Technological innovation continues to move at an increasingly rapid rate....
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