Elements Of Macro Environment

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Macroeconomics is the part of economics that studies the mechanisms of operation of the overall economy. Thus the causal relationships studied in macroeconomics, in essence, is the relationship between aggregate economic variables (as a whole), such as the level of national income, the level of employment, household consumption expenditure, saving (savings), the national investment, interest rates, the money supply, balance of payments, national capital stock, government debt and so on. Macro environment can influence business decisions made for a long time and it is an element or elements which can not be controlled (Armstrong & Kotler, 2011). Understanding the macro environment or external environment in managing a business or organization…show more content…
The economic environment is reflected in the factors that affect consumer purchasing power and spending patterns (Kotler et al, 2011). Marketers should keep an eye on the main pattern of income and changes in consumer spending patterns. Any changes either in the form of positive and negative in the main economic variables such as interest rates, the revenue, cost of living, savings and loans will affect the market (Azianlin, 2007). Consumer purchasing power depends on the price, current income, credit and savings. Elements of the macro environment is technology. Many new technologies have been created to replace the old technology. The rate of technological change is rapid and fast nowadays. Through this technological innovation and change, more opportunities and new markets can be created (Azianlin,…show more content…
This environment consists of institutions and other influences which affect the fundamental, perceptions, preferences and behavior of a society. Individuals who grew up in the community to form their values and beliefs based on the norms of the society. Social and cultural aspects, which consists of two aspects of demographic and cultural trends in society. Demography is closely related to population data such as size, density, location, age, gender, race, employment, migration, population and other statistics relating to the population (Mily, 2011). The demographic statistics are easily available as it is the data on the government and it can be used either directly or indirectly. The study and monitoring of the company in important demographic because establishing a market population (Azianlin,

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