Macro Environment Components

Question 1

Physical/Natural Environment

Answer 1

Refers to the forces present in the natural environment (e.g., weather, climate, resources).

Question 2

Economic Environment

Answer 2

Refers to factors that affect financial matters (e.g., interest rates, inflation, economic growth).

Question 3

Social/Cultural

Answer 3

Languages, values, cultural norms, preferences, religions, beliefs, and social issues.

Question 4

Demographic

Answer 4

The composition of a country’s inhabitants (e.g., age, gender distribution).

Question 5

Technological Environment

Answer 5

Refers to the development of new technological products and services.

Question 6

Legal Environment

Answer 6

The legislation that has been passed and the court system that oversees employment, tax, and property rights.

Question 7

Political Environment

Answer 7

The role of the government in developing policies and the stability of the government.

Question 8

International/Global Environment

Answer 8

Refers to globalisation and forces/events outside of the home country.

Question 9

Institutional Environment

Answer 9

Refers to the three spheres of government: local, provincial, and national.