The document analyzes the macro environment factors that affect businesses. It discusses the six main factors: demographic forces like population size and age mix; political forces such as government policies; technological forces including new technologies; natural factors like climate and weather; economic forces like income levels and purchasing power; and socio-cultural forces such as cultural values and lifestyles. Understanding how these macro environment factors impact the external remote environment is important for companies to adapt to changes and ensure business success.

1. ANALYSIS OF
MACRO
ENVIRONMENT
BY
M MANIVARDHANREDDY
19091

2. MACRO ENVIRONMENT
 Macro environment is the remote environment of the firm, I.e the external
environment in which it exists. As a rule this environment is not
controllable by the firm, it is to huge and to unpredictable to control.
 Hence the success of the company, to a large extent will depend on the
company’s ability to adapt and react to the changes in the macro
environment.
 Primarily the company has to closely monitor the various elements of
macro environment. This will help them understand the dynamic nature of
the macro environment. It also helps them adapt to the constant changes
in the environment.

3. COMPANY
Demographic
Political
Technological
Natural
Economic
Cultural
Factors of macro environment

4. DEMOGRAPHIC FORCES
 It is related to the physical attributes of the population of the targeted
region (size, age, gender, occupation, density), population growth rate,
migration trends (inter-migration or intra-migration), changes
in demographic structure, nature and characteristics of communities,
among others.
For example, if the region is dominated by matured and senior adults like that
in a nation , marketers will never try to sell any youth-centric product over
there. Instead, they will either think of some commodity that will appeal to
the majority of the demography or move out from the place. At the same
time, if the region is flooded with youths, the same heads will think of
attracting the population towards their product.

5. political
factors
 the most important of all external agents,
political forces of a country is not just
restricted to the government and its
policies and laws.
 Even before thinking of any business, an
organization always observes the political
and legal situation of a nation. It is
because the unstable government or
political tensions will act as a barrier to
implementing the marketing strategies.

6. Technological Forces
 Before investing in marketing activities, an organization must conduct a
thorough research on the spread and use of technology in the targeted areas.
They need to understand the technology penetration and user-technology
interface of the region and accordingly make plans to use technology for their
campaigns and communication.
 For example, if they find that almost every product used by the consumers is
technology oriented, they can easily make technology a strong tool for their
product like Titan Watches of the Tata Group has came in market after the
downfall of hmt watches ltd .it was govt incorporated It ruled Indian market
for decades but it was not unable to adapt to the new technology at the the
titan took the place

7. Natural FACTORS
 This includes the geographical location, the presence of ecology and
biodiversity, temperature, weather and climate and predominant seasons.
By having a concrete understanding of all these features, marketers will
know where to sell what kind of products.
 For example, products like heaters and electric blankets will never be of
any use to equatorial and tropical regions; although these are the highly
populated zones in the world. Again, air conditioners or coolers will never
appeal to the Western countries, living in the temperate zone. Therefore,
before launching a product, successful companies study the environment
and ecology of a place to know about the needs and demands of its
inhabitants.

8. economic forces
 The economic conditions of the economy
and the performance of a business have
a very close relationship. A business
depends on the economy for all its inputs
and factors of production. It also sells its
products and services in the same
market.
 The economic environment consist of
factors affecting consumers purchasing
power and spending patterns both across
and within their world markets.

9. Socio- cultural
forces
 The social values and culture of an
environment play a huge role in the
functioning of the company. So when the
social environment changes it can have a
direct or indirect effect on the company.
 Social factors are related with the society.
How the society behaves and thinks
about any things. Firm has to do its
business than it must have to give more
important or focus on social factors. Like
religious culture , fashion , belief .

10. Conclusion
Demographic forces
• Population size
• Population growth
• Age mix
• Urbanization
• migration
political
• Stable political
environment
• Tax and labour
policy’s
• Economic policy
Technological
• New technology
• New product
• Market
opportunities

11. Natural
• Bio diversity
• Climate
• Season
• weather
Economic
• Level of
Income
• Purchasing
power
• Buying pattern
Socio/cultural
• Sociological
factors
• Religious
factors
• Life style of
people
• Fashion