Impacts of Macro Environment on Business

BUSINESS
ENVIRONMNET

Introduction
Performance of the business plays very important role to compete
in the market. It helps to business organisation to maintain its
stability in the market. There are different types of organizations
which runs to earn profit maximization. In this present files it
explains the types and scope of organization like there are three
types of organization private, public. And voluntary organisation

Impacts of macro environment
Macro environment factors are impact
on the entire business. Macro factors are
the external factors includes political,
economical, social, technological,
environmental. These all factors
influenced the working of the business.
Company has to control on these factors
to minimize the future risk. Macro
environment either give positive or
negative impacts too.

Political factors
Political factors impacts on business growth in great extent.
Political factors are the external factors controlled by
government. These factors may affects from increase or decrease
the tax rates(Steurer, 2013). These political factors is predictable
because of the changes in political parties. Political factors
includes the population ratio, demographic factors. These all
factors affect the company negatively or positively.

Positive impacts
• It helps to minimize the future risk.
• Political factors helps to decide the product expansion strategies.
• It aids to improvise in business ethics.
• It mange the working environment by giving quality services to
the customers.
• Government also helps to develop new industries in the market.

Negative impacts
• It may decrease the purchasing power of the customers.
• Due to high interest rates customers are not able to
purchase costly services.
• It gives low productivity in the organisation.
• It decreases the business expansion scope.