The macro-environment is in more general, it is the environment in the economy
itself. It has an effect on how all of the business groups operate, perform, make decisions, and form strategies . The companies are not alone in its business environment. It is surrounded by and operates in a larger context. It can also directly affect the consumers’ ability and willingness to spend. Consumers’ reactions to the macro-environment are closely monitored by businesses and economists as a gauge for an economy’s health. The factors that make up the macro-environment are economic factors, demographic forces, technological factors, natural and physical forces, political and legal forces, and social and cultural forces. One of such factors that make up the macro-environment is the Economic forces. Economic is the factor that help us to determine the competitiveness of the environment in which the firm operates. The economic is the very environment of the economy, it can have an effect on two essential aspects, the company’s levels of production and the decision-making process of your customers. It refers to all the external economic factors that influence buying habits of consumers and businesses and therefore affect the performance of a company. These factors are often beyond a company’s control. The inflation is one of the economic factors that affects the business. Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling. Another factors is employment, it is when all available labor resources are being used in the most efficient way possible. Another factor is the Disposable income, also known as disposable personal income (DPI), it is the amount of money that households have available for spending and saving after income taxes have been accounted for. DPI is often monitored as one of the many key economic indicators used to gauge the overall state of the economy. Next factor is the business cycle, also known as the economic cycle or trade cycle, is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend. The last factor is the energy availability and cost. These are the once that forces motivating firms and consumers to supply, convert, transport, use energy resources, and to dispose of residuals; market structures and regulatory structures; distributional and environmental consequences; economically efficient use. These factors determine an enterprise’s volume of demand for its product and affect its marketing strategies and activities.