Human Resources
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In order to explore the factors that affect the macro environment of the company we must first understand what macro environment is. A macro environment is the major external factors that influence an organizations decision making. The decisions these companies make will affect its performance and strategies so these choices must be made very carefully. There are many factors that can affect this macro environment such as economic, social, legal, technological, and even natural forces. Any one of these factors can mean the demise or success of a company.
The economic environment of the country in which the company chooses to operate is important because they will have relation with the government, capital market, and the household and global sectors. These are the factors that influence the trends and structure of the economy. A market boom, depression, or growing inflation problem can all change the way an organization strategizes for the future and functions in the present. Economic factors are often difficult to evaluate, since economic predictions and analyses vary widely depending on the expert. Unemployment levels, relative foreign exchange rates, and the state of the global economy can all help or hurt a business ability to get needed components and maintain a continuous profit margin.
Legal factors can also limit or change how a business operates in other countries. For instance, they may have to hire added supervisory staff or may have to purchase safety equipment after a new health and safety law is passed in that country. The Child labor laws often limit the hours a minor can work and require set break periods. If an organization employs minors, it might have to hire more help to cover the hours when the minors cannot work legally. Legal factors are determined by both local legislation and regional, and national laws. In certain cases, organizations that do business internationally are also affected by international laws.
The mood and demographics of the population of a country make up the social extent of macro environment factors. For example, a culture that places an importance on self-guided jobs with room for creativity may cause some companies to redefine job descriptions and adapt the model of the workplace to attract workers. Social trends, like a preference for on-demand mobile media devices, can also affect which products a company manufacturers and where and how it chooses to spend advertising dollars. Technological macro environment factors can change how a company does business. A new type of equipment, microchip, or product created through research and development can help a company stay efficient and ahead of the market bend. Owners must be able to accurately identify which new developments will be truly useful, and which are just trends.
Corporations main goal is to make profits. They operate and rely on societies resources