Macro Environment

The Macroenvironment includes all factors that influence an organization but are out of its direct control. Your market or environment is continuously changing, and the company must be able to adapt. There may be aggressive competition or rivalries in a market. The trend towards globalization means that there is always the threat of substitute products and new entrants. The wider the environment is for your product, the more you need to compensate for changes in culture, politics, economics and technology.

Cultural changes account for people's core beliefs or values. How people view themselves, others, organizations, society, nature, and the universe all play a part in shaping one's culture. Companies need to take these principles into consideration when working in the market place.

The Political environment consists of laws, regulations, and government policies that may influence or limit various companies or organizations in the market. The government puts limits and regulations on companies for the good of society; ensuring