This is the general or overall environment in which the business operates. The success of a business is dependent on its ability to adapt to the macro environment.
Role of Macro-environment:
- The business is an integral part of the economic system prevalent in a nation.
- Business is a part of the society. Social environment refers to the sum total of factors of the society in which the business is located.
- The success of a business lies in its ability to adapt and sustain to political and legal changes. The legislative, executive and judiciary are the three political institutions which directs and influences a business.
- The natural, geographical and ecological factors have a bearing on the business.
