Macro environment Flashcards
(22 cards)
Define the cultural environment
The cultural environment affecting businesses includes religion ,customs, and traditions which influence actions and decisions
What is the economic environment
Refers to all the external economic factors that influence buying habits of consumers and businesses
What is the meaning of the macro environment
It includes all the forces/events and circumstances that affects the business and its market environment
What is the global environment
It refers to the international interactions that influence how businesses operate
What is the legal environment
The laws passed by the government in which businesses operate
What is the physical / natural environment
Refers to the natural and man– made variables that surround businesses
What is the technological environment
Refers to the development in the field of technology with new and innovative knowledge, new inventions ,and other improvements in techniques that affect business
Finally what does the institutional environment refer to
It refers to the three levels of government in South Africa.
What are the components of the macro environment that can impact the micro environment?
Economic, social, technological, political, legal, and environmental factors.
True or False: Changes in the political environment can affect consumer behavior.
True
Fill in the blank: The ________ environment includes factors like inflation rates and employment levels that influence business operations.
economic
Which macro environmental component focuses on societal trends and demographics?
Social environment
How can technological advancements in the macro environment impact the micro environment?
By altering production processes, improving efficiency, and creating new market opportunities.
True or False: The micro environment consists only of internal factors within an organization.
True
Fill in the blank: Changes in the _____ environment can significantly impact the micro environment by altering market conditions and consumer behavior.
macro
Which of the following is NOT a component of the macro environment? A) Economic B) Competitive C) Political D) Social
B) Competitive
How does the macro environment influence strategic planning in the micro environment?
The macro environment provides context and insights that help organizations in the micro environment make informed strategic decisions and adapt to external changes.
What are the main components of the macro environment?
The main components of the macro environment include political, economic, social, technological, environmental, and legal factors.
True or False: Changes in the economic environment can directly affect the social environment.
True
Fill in the blank: The _____ environment can influence technological advancements by shaping regulations and funding opportunities.
political
How can social trends impact the economic environment?
Social trends can influence consumer behavior and demand, which in turn affects economic growth and stability.
Which component of the macro environment is primarily concerned with climate change and sustainability?
The environmental component.
