2.0 MACROENVIRONMENT ELEMENTS
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, Socio-cultural and Technology.
2.1 POLITICAL AND LEGISLATION
The first element is Politic and legislation. The political environment consists of laws, government agencies, and pressure groups that influence and limit various organization and individuals in a given society. This element can be one of unsurprising elements in a company. Entrepreneurs need to monitor the changing political environment because this can extremely affect a firm’s marketing. The durability of the political system affects the appealing of a particular national market. Next, government passes legislation, which directly and indirectly affects firm’s business chance. Legislation affecting business around the world has increased steadily over the year. For example, laws giving buyers rights against the seller of damaged goods. And the government is responsible for defending the public interest at large. For example controls on pollution, which may make a firm uncompetitive in international markets on account of its increased costs. This element is hardly influenced by the react of politicians. The government is responsible for formulating plans which can influence the rate of growth in the economy and hence the total amount of spending power. It is also...
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