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Summarise the macro-environment variables a company needs to monitor when

operating an e-commerce site.
answer

Introduction:

i. Every organization operates in an environment that affects how business is run.

ii. Strategic formulation is strongly influenced by considering the environment in
which the business operates.

Macro environment:

i. The main external and uncontrollable factors that influence an organization's

decision making and influence its outcomes and strategies are called the macro
environment.
ii. The macro environment can be better considered using the SLEPT factor.
iii. SLEPT Factors:

A. Social Factors: Social factors include the impact of consumer perceptions that
determine the use of the Internet for a variety of activities. Social factors include
cultural aspects, including health awareness, population growth, age distribution,
occupational attitudes and safety emphasis. Trends in social factors influence the
demand for a company's products and the way the company operates. For example, an
aging population can mean a smaller workforce and a weaker will (thus increasing
labor costs). Companies can also change various business strategies to adapt to these
social trends (such as hiring older people).
B. Legal and ethical factors: The legal factors determine how a product is promoted and
sold online. Government pursues personal privacy on behalf of society. Legal factors
include discrimination law, consumer law, antitrust law, labor law, health and safety
law. These factors can affect how a business operates, its costs, and the demand for its
products.
C. Economic Factors: Fluctuations in economic outcomes by country or region affect
spending patterns and international trade. Economic factors include economic growth,
interest rates, exchange rates and inflation. These factors have a significant impact on
the way we do business and make decisions. For example, interest rates affect a
company's cost of capital, which in turn affects the extent to which a business grows
and expands. Exchange rates affect the cost of exporting goods in the economy and
the supply and price of imported goods.
D. Political Factors: Organizations of dealings with governments play an important role
in determining future recruitment and control over which the Internet applies. The
 political factor is basically how much the government intervenes in the economy.
Specifically, political factors include areas such as tax policy, labor law,
environmental law, trade restrictions, tariffs and political stability. Political factors
may include goods or services that the government provides or intends to provide and
products or services that the government does not want to provide. Governments also
have a significant impact on national health, education and infrastructure.

E. Technology Actors: Technology Changes offer new possibilities for products to be

sold on the market. Technology actuators include technological aspects such as R &
D, automation, technology incentives and technological changes. You can identify
barriers for occurrence, minimum production levels and influence the processing
decisions. In addition, CA technology can lead costs, quality and innovation. .