Ways in which businesses can be involved in the macro environment

Business Studies Grade 11 Business environments and extent of control:

Reasons why businesses has more control over the micro environment/less control over market environment and less control over macro environment 

Micro environment 

  • Business owners and managers have a great deal of control over the internal/micro environment of business, which covers day-to-day decisions. 
  • They choose the suppliers they purchase/which employees they hire/the products they sell, and where they sell those products. 
  • They use their skills and resources to create goods and services that will satisfy existing and prospective customers. 

Market environment 

  • Market environment for a business includes company related influences 
  • The market environment refers to influences that have an impact on the success in forming and keeping a sustainable business such as competition and suppliers. 
  • Businesses can influence their competitors by increasing the quality of their products in relation with competitor prices. 
  • The opposite can also be that suppliers’ raw materials can influence the quality of business products 

Macro environment 

  • The market environment refers to the major external and uncontrollable factors that influence an organization’s decision making. 
  • These factors include the economic/demographics/legal/political/social conditions/technological changes and natural forces. 
  • The above mentioned factors affect business performance and strategies. 
  • The external environmental conditions that affect a business are generally beyond the control of management and change constantly. 

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