Macro
environment can be said to be the major external factors and all uncontrollable
factors, which influence the decision making process of an organization and
also affects its strategies and overall levels of performance. Some of the
factors which affect the organization include economic factors, legal, social,
political, technological changes, demographics and natural forces. It is also
important to indicate that there are factors that influence these happenings.
They include competitors, disastrous weather, governments’ regulations, and
change of tastes among others. Macro environment is different from the
competitive environment because a competitive environment involves the dynamic
system in which this organization competes with. The company must always stay
ahead of all competitors whether direct or indirect. Some factors that might lead
to competition include the market structure, labor provision, and supply of raw
materials among other factors.
Macro
environment factors have impacted my organization. For instance, the previous
floods destroyed most of the company’s equipments, leading to unnecessary
repair costs. Increase in taxes has also been another issue, forcing this
company to reduce its rate of investment and retrenched some of its employees.
Competitive has also affected this company in a way that many companies have
come up with the latest technology, therefore forcing this company to also make
a step to acquiring them. This leads to costs since most of these technologies
are expensive. The company has also been forced to invest in marketing
strategies to make sure that it maintains its market dominance and even
attracts more customers.
Reference
Stan,
M. (2013) Difference between Competitive Environment and Macro environment
Available at < http://smallbusiness.chron.com/meaning-competitive-environment-24981.html>
[Accessed on April 18, 2013]
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