Positive and negative impacts the macro environment
There are two types of business environment available. One is internal environment and the other one is external environment. The external environment also can be classified into two, which is micro environment and the other one is macro environment. The major and uncontrollable elements that affects the business positively or negatively are called macro environment. There are six factors in macro environment. All their impacts on business are described below-
Political factor: A political party impacts a lot in a business. To start a business a businessman needs to get permission by running political party. Government also provides many opportunities for businesses. GM Motors needs to run their business under the business law made by the government. Changing of government also puts impact to business as changing of business means changing of law and regulations. Political issues such as strike, curfew also puts a negative effect to GM Motors.
Economic factor: A country’s economic condition depends on business and also business depends on economic condition. If the economic condition is not good then the product and service price of GM Motors will increase and if the economic condition is good then the product and service will decrease.
Demography factor: A business needs to make products and services for the people of the country. They needs to do marketing to the targeted people. Population growth rate, changes in demographic structure also impacts on business. A business needs to survey according to the size, age, gender, height, weight etc. of the people and make product. GM Motors needs to make products for middle class and high class family also. So demography also impacts a lot in business.
Natural factor: Nature is uncontrollable. Natural disasters like flood, earthquake, cyclone etc. can impacts heavily. GM Motor’s many deals and contracts get postponed for natural issues. Also some businesses like hotel industry runs seasonally as in some places some tourist comes in a certain season.
Technological factor: At the current era, technology has made our task very easier. And GM motors has the most effect of technological factors as it is a vehicle manufacturer company. Though use of technology is costly but by using technology they can do their work perfectly, quickly and professionally.
Cultural factor: Every business needs to respect every culture. GM motor needs to manufacture their cars according to the culture of the country. Their products should not harm anyone’s regional feelings. They should not make products which makes discriminate on gender, clan and culture.
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