Entrepreneur - Macro Environmental Influence

 The

legal environment plays a very important role. The laws of the country, the judicial system, and the laws which effect business are important.  The political/legal environment includes : Local Issues : Global Issues: - Regulatory - Trade Agreement - Taxes - Political Issues

 Economics

environment consists some of economics interactions element – demand dynamics, supply situation, pricing factors, degree of competitiveness, and impact of profitability. The economics environment includes: -Microeconomics -Macroeconomics



A branch of economics that studies how individuals, household, and firms makes decisions to allocate limited resources, typically in markets where goods or services are being bought and sold



Microeconomics examines how these decisions and behaviour affect supply and demand for goods and services, which determine the supply and demand of goods and services.

 Is

a branch of economics that deals with the performance, structure, and behaviour of a national or regional economy as a whole.

 Macroeconomists

develop models that explain the relationship between :

Y = C + I + G + (X M) Y C I G X M

= = = = = =

national income public consumption private investment government expenditure export import

 Relating

to both social and cultural matters. The sociocultural environment includes ; Demographic Trends : Describe the changes in demographic in a population over time such as : -

Race Age Income Disabilities Mobility

-

Educational Background Home ownership Employment Location

 Movement

of an individual or group one class or social status to another.

 Usually,

the points of reference is an individual’s class or status of social origin and social mobility occurs when later class or status position differ from those of origin

 Technology

is a consequences of science and engineering. Technology is a term with origins in the Greek “technologia” and “logia”. However, a strict definition is elusive; “technology” can refer to material objects of use to humanity, such as machines, hardware or utensils, but can also encompass broader themes, includings systems, methods or organization, and techniques .

The technological environment includes;  Innovation – the introduction of something new  Imitation – individual observes and replicates another’s.