Strategic management

A macro environment is the major uncontrollable and external factors influencing decision making and affects the strategies and performance of an organization. Factors that are included economic, legal, political, demographics, social conditions, natural forces, and technological changes. Some examples are competitors, disastrous weather, change in interest rates, and government regulations.

They may be general forces within the macro or remote environment, which consists of political-legal, economic, socio-cultural, technological forces – usually called PEST. Political-legal force influences strategy formulation through government and law intervention. For example, the environment law requires the world’s automobile manufacturers to reduce emission of green house gasses, and therefore these manufacturers have to reformulate their product strategy. Economic force influences strategy formulation through economic growth, interest rates, exchange rates and the inflation rate.
 for eg : Socio-cultural force is about the cultural aspects, health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety.

Hope u got the point. feel free to ask further more queries..

Regards,

Harish Ragav

Oh! Great!! Thank you so so much!!!

Have  great day ahead!!!!

Special thanks for examples!!!!!