Analyzing the General Environment
Select three categories to analyze, from the list of the major forces that comprise the macro/general environment.
Macro environment are external factors that have a direct impact on the organizations strategy and decision making. Those factors are uncontrollable. For example, some of those factors are: change in interest rates, change in cultural tastes, government regulations, social condition, technological changes, and natural forces. Those factors are usually changing extremely slowly. The companies should be attentive and pay a lot of attention on the following 6 factors in order to succeed in the business: demographics, sociological, economic, environmental, policy, political/legal. Demographic factors are related to personal characteristics such as age, gender, and social class, level of education, family, or race. Since those factors gradually change in the environment, companies must be prepared to adjust to the changes and adapt new strategies that will keep their company alive in the corporate world. For businessman, it is crucial to understand those factors in order to decide exactly what their product and services mixes will include, as well as pricing and packaging. For example, nowadays people tend to live longer and businesses need to pay attention on this kind of trend and adjust their strategies the way that will benefit them. Sociological forces are the most difficult and uncontrollable variables to predict. Sociological forces have to do with people’s taste and preferences or choices they make in how they live their lives, such as their values, beliefs, and lifestyles. These choices affect a company's ability to serve its customers or sell its goods and services. It is very important to figure out what is your company’s target market and then do a research about your customers’ lifestyles, their beliefs and values. Without knowing all those factors about your customers it is impossible to do a...
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