Introduction

Macro environment is outside the business. As a result, it forms part of external environment.
Macro environment refers to factor or variables where the business has no control over it( Cant,
2020:37). In other words, All business has no control over Macro environment. Therefore, it is
important for business managers to understand dynamics presented by macro environment to
the business (Cunningham, 2018:22). Macro environments consist of six factors (Variables) that
affects business operations. In this section we are going discus all of these six factors namely:
Technology; Economic; Social; Demographics; International and Legal/Government.
 1. Technology environment: (What are technological
development that can affect the business operation).
Technology can be defined as the focused applications of information and tools in the design, production and
utilisation of goods and services to solve problems and perfume tasks more efficiently (Wiid et al., 2020:17). Most of
businesses affected by this environment is the cell phone industry as many brands keeps on producing new models
known as smartphones with new features and applications (Cant, 2020: 38). If the business is not responding quick
to this environment might lose its market shares. For example, Nokia was the market leader in the cell phone market
and lost its market share because of late response to this environment.
 2. Economic environment: (What are the economic prospect and
inflation in the country where the business operates)
Economic environment refers to the financial state of the country. These includes
economic growth; unemployment, inflation; interest rate. Economic environment may
affect business negatively. For example, the spread of Covid-19 many financial institutions
had to offer lowest interest rate to 7% as instructed by the reserve bank. This was good
for buyers as it was the first ever lowest interest rate in South African history.
 3. Social environment (What are the current lifestyle trending in the market)
Social environment is referred to the consumer behaviour that include consumer needs and
purchasing decision. Consumer lifestyle is defined by his/her activities, interest and opinions.
For example, consumers living healthy lifestyle such as eating healthy food and exercising
regularly. Such consumers have unique needs, therefore, marketers must understand their
needs and able to meet those needs successfully. In doing so, consumer purchasing decision
will be motivated.
4. Demographic environment:( What are the trends that will affect the market)
Demographic refers to the study of people such as age, gender, race; location act
(Cunningham, 2018:23). These peoples are consumers of the market which the goods and
services are sold. Marketers need to study this environment careful about segmentation and
targeting, thereafter, leads to successful product positioning. For example, if Samsung is
planning to introduce a new improved smartphone, the company must focus on Generation
Y and Generation Z as these two Generations are known for being comfortable with
technology and net generation.
 5.International environment (What international trends that will affect business
operation)
International environment is referred to events occurs international that present challenges
to business operations. Business operating international find them selves in in difficult
situation when there is an international event blocking business operation. For example, the
spread of Covid-19 forced many businesses to close down such as Airlines companies.
Similarly, the war between Russia and Ukraine making it difficult for business to do import
and experts.
 6. Legal/Government environment (What are the political risk in operating in
country selected by to do business)
Legal/Government environment refers to the influence and the impact from the leader of
the country where the business is operating (Joste et al., 2018:37). Managers must be aware
of international and regulations that regulate the business and comply with (Cant, 2020;37).
For example, The Government of South Africa imposed Sugar Tax to beverage companies
( Cunningham, 2018:29). Business managers prefers to operate in a country with stable
political environment to plan and execute operations easily.
 Activity
Macro/External environment affects business operations, and the business has no control
over it. This environment consists of a certain factor/variables. As marketing student discuss
these factors affecting the Coca-Cola company. Please use examples in your discussion.
Thank you!!!!!!