Answer to Question #237615 in Economics for Vadin

Question #237615
Factors of macro environment
1
Expert's answer
2021-09-15T16:17:34-0400

Macroenvironment is a complex of factors, both external and internal, affecting a company. Unfortunately, the company's management, as a rule, cannot influence them, but must take them into account. Do not forget that the main forces of the macroenvironment affect both the firm itself and its competitors, as well as the elements of the microenvironment. The macro environment is usually more difficult to influence than the micro environment, but this does not mean that firms should remain passive; inability to control does not imply inability to influence.

Demographic environment

Its main characteristics are the size and density of the population. For marketers, demographics are of interest because markets are made up of people.


Economic environment

This is the general purchasing power of the population, which is related to the level of current income, prices, savings and availability of credit, and the level of unemployment.


Natural environment

Changes in the environment also affect the goods that enterprises produce and offer to the market. The activity of the enterprise depends on the conditions that the natural environment presents, namely:


Deficiency of certain types of resources and raw materials. Water and air may seem like inexhaustible natural resources, but there is a serious threat of pollution. Food supply can be a major issue as farmland is limited. The use of renewable resources such as forests and food requires attention. Acute problems arise in connection with the depletion of non-renewable resources, for example, deposits of metal ores (platinum, zinc, copper, lead, silver).


The growth of environmental pollution. Industrial activity almost always harms the state of the natural environment. There are problems of dangerous levels of chemical pollutants in soil and food, radioactive contamination, and contamination with non-biodegradable packaging materials. As an alternative to negative development trends, a market for pollution control products is being created.


State intervention in the process of rational use and reproduction of natural resources. Entrepreneurial activity is under the control of both government agencies and influential groups in the public. Businesses should participate in finding solutions to the problems of providing the economy with material resources and preventing environmental pollution.


Scientific and technical environment

The development of science and technology is the main factor in economic growth. The new technology replaces the old one, from which it differs in the reduction of the unit costs of labor, materials, and energy, as well as capital. The main trends in the development of the scientific and technological environment include the acceleration of scientific and technological progress, an increase in allocations for research and development, the spread of a strategy of small improvements, and a tightening of state control.


Acceleration of scientific and technological progress. Modern technology is a set of automatic machines controlled by computers. It is being replaced by robots and robotic systems with artificial intelligence.


Increased allocations for research and development. At present, in the most developed countries, their value is at least 2-2.5% of GDP. Enterprises operating in knowledge-intensive sectors of the economy spend on research and development on average up to 15-25% of the proceeds from the sale of goods and services.


Spreading a small improvement strategy. This is the introduction of small improvements in existing products. Instead of taking risks with major innovations, many businesses are engaged in minor improvements to the products they produce. They also buy licenses and practically copy competitors' products.


Tightening of state control over the quality and safety of goods. State supervisory authorities examine products and prohibit those that may be potentially hazardous. The quality control of food products, medicines are being monitored, requirements for the safety of goods in the automotive industry, in the production of clothing, electrical household appliances, and in construction are being tightened.


Political environment

These are laws, regulations of government agencies, demands of public groups that influence various organizations and individuals and restrict their freedom of action. The number of legal acts regulating entrepreneurial activity is growing rapidly in Russia. They are based on the Constitution of the Russian Federation and the Civil Code. An important reason for government regulation is the need to protect consumers from unfair business practices. Business leaders need to be familiar with the federal and local laws that govern marketing activities in a given region.


Cultural environment

These are the main views, cultural values ​​, and norms of behavior that determine the relationship of people with each other.


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