MACRO ENVIORNMENT

Every business is affected by a many of factors It is a part of a larger entity is known as the
business environment. In broad terms, this environment can be divided into two categories. The
first one is the micro-environment. This category influences the functionality of a particular
business itself. The latter one is the macro-environment which affects the operation of all
existing business entities out there. Macro economic factors affecting periyar industries as
follows:

1.Economic Factors
Every environment of the economy can have an effect on two essential aspects that are
company’s levels of production and the decision-making process of your customers. The major
economic factors affecting peryar industry are tax rates, exchange rates ,inflation, recession in
the country,interest rates and demand and supply .

2.Technological factors
These factors are related to skills and ability that are implemented into production, as well as all
the materials and technology that a particular product requires to be made. They are essential and
can have a big impact on how well your business is running. It boils down to even the most basic
factors, such as what kind of maintenance trolleys you use in order to preserve tools and
equipment for as long as you possibly can.

Periyar industries have good machines to make their products and also they are using latest
technology machines . And their technology is very effective that is implemented and they also
implanted modern technology.Major technologies used are boiler, sorting machine ,milling etc.

3.Natural and physical

The natural and physical factors include Climate change ,Pollution, Weather, Availability of
both non-renewable and renewable resources, Laws that regulate the environment, Survival of
particular biological species etc. The company was adversely affected with flood during 2018
anPolitical and legal forces

The market develops according to the political and legal environment in various areas. This
means that every business needs to be up to date with such forces worldwide in order to be able
to make the right decisionsd 2019.The company eliminate pollution by using waste as fertilizer.
4. Political and legal forces
The market develops according to the political and legal environment in various areas. This
means that every business needs to be up to date with such forces worldwide in order to be able
to make the right decisions.

The company never put any political pressure on any other. They always try to follow the rules
and regulations. But still they have to change their strategies as per change in the political
environment. Especially when GST was introduced it become difficult to manage the financial
activities.

5. Social and cultural forces

Periyar industries is not affect with social and cultural forces . Socio and cultural factors
Purchasing habits, Level of education, Religion and beliefs, Consciousness about health issues,
Social classes, Structure and size of a family, Growth rate of the population, Emigration and
immigration rates, Life expectancy rates and age distribution, Different lifestyles include .