Question

Discuss and analyze and the Macro Environment of a company. Discuss the factors that affect the environment. Also, discuss the immediate Industry and Competitive environment. Analyze why all of these are important for a company to know. Provide “real” world examples

Answer 1

The company that we would be considering here is Google. The macro environment factors for this company are Economic, political, Legal and Technological.

• Legal factors are the major ones that some countries do not allow Google as per the legal rules to show all information to the users rather the country controls Google and this hampers net neutrality.
• Economic factors are hit badly as Google gets constrained to show only some information which impacts the overall revenue for the organization but they have to agree on to as they have to conduct business in that country.
• Some geographical locations don't have good technological infrastructure because of which Google business takes a hit and lastly political conditions hamper the free internet to people.

The competitive environment is not that huge because Google has taken a head start so all the competitors are not even near it. Yahoo is building that sort of infrastructure that can actually beat Google in the next 5 years. These factors are important for an organization so that they can decide and freeze their long term and short term objectives keeping in mind the sales target for each financial year.