Macro Environment Final

(GROUP – V)
Political Jhimboy P. Aguilar

Economic Chary Grace C. Catubag
Socio Raphael R. Aduna
Demographic Rommel Salagubang
Technological Sienna Marie V. Evangelista
Legal Jan Michael C. Murla
Ecological/Environmental Jhenalene A. Roasa
MACRO ENVIRONMENT
Macro environment is largely external to the business enterprise.

Macro environment factors are uncontrollable factors and beyond the direct
influence and control of the organization. Its factors are powerfully
influence to its functions. It establishes with interaction and
interdependent relations in form of conducts business transitions. Proper
designing and administration of macro environment enable appropriate
strategies and policies to cope with and make changes.
POLITICAL ENVIRONMENT
REPORTER WILL BE ABSENT – Jhimboy P. Aguilar
ECONOMIC ENVIRONMENT
The Economic forces relate to factors that affect consumer purchasing power
and spending patterns.
Important criteria are:
 GDP
 Interest rate
 Currency exchange rates
 Import duty rate and sales tax/VAT
 Unemployment
 Inflation
 Disposable personal income and spending patterns.
 Recession
The business sector has economic relations with the government, capital
market, and household sector. These different sectors together influence
the trends and structure of the economy.
 If interest rates are too high, the cost of borrowing may not permit a
business to expand.
 If the unemployment rate is high, business can obtain labor at cheaper
costs.
 If the unemployment is too high, this may result in a recession and
less discretionary consumer spending insufficient sales to keep the
business going.
 Tax rates will take a chunk of your income and currency exchange rates
can either help or hurt the exporting of your products to specific
foreign markets.
SOCIAL ENVIRONMENT
Report not sent yet by the reporter, to follow – Raphael R. Aduna
DEMOGRAPHIC ENVIRONMENT
Definition of Demography
The science of population, is basically concerned with the study of
the size, distribution, characteristics, growth and structure of population
over time.
 Birth
 Migration
 Four Areas
 Importance of Demography
 Advantage and Disadvantage
TECHNOLOGICAL ENVIRONMENT
WHAT IS TECHNOLOGY?
It is the collection of techniques, skills, methods and
processes used in the production of goods or services or in the
accomplishment of objectives, such as scientific investigation
Technological factors affect marketing and the management thereof in three

distinct ways:
 New ways of producing goods and services

 New ways of distributing goods and services
 New ways of communicating with target markets
New ways of producing goods and services
 Technology does support and drive innovation. Technological

advancements can allow manufacturers to create higher quality goods
faster than before; with less expense and help them realize more
efficient operations to become more competitive.
New ways of distributing goods and services
 The modern communications technology permits many services to be

performed at a distance which previously required face to face
consultations.
New ways of communicating with target markets
 Perhaps one of the most important change technology has allowed

businesses is to connect to your customers in a new approach mostly
using social media platforms like LinkedIn, Twitter and Instagram. For
instance, via LinkedIn, organizations can connect to different
business networks and try to generate new revenue streams. Via
Instagram and Twitter businesses can stay relevant in a customer’s
mind and help to solve their problems in their business interactions
with the organization.
Advantages of Technology
 Increases production and saves time
 Improves communication through communication technology
 Improves financial management
 Improves on business competitive advantage
Disadvantages of Technology
 Implementation Expenses
 Job Elimination
 Security Breaches
Conclusion
It can come as an important tool within the company, improving the
operations and functions or it can be the very reason why a company exists.
Such is the scale of impact of technology on business. Heads of companies
are on constant lookout for updates and developments in the technological
environment. This helps them not just to improve the efficiency of the way
the organization works but to be aware of the transformational phase and
come up with groundbreaking strategies to drive growth. Management students
during their academic course are thought how technological environment can
influence business environment. Finally, technology is changing so rapidly
for organizations and the ability to adopt new technologies is becoming a
vital mechanism. This is certainly true in the world of global business.
The coming years will definitely show up new technologies that will surely
continue to change the way we do business even one step further.
LEGAL ENVIRONMENT
Definition of Legal:
• Of or relating to the law
• Recognized or made effective by a court of law as distinguished from a

court of equity
• Having a formal status derived from law often without a basis in
actual fact
The Most Common Legal Issues for Businesses

• Business Entity Registration
• Business Name Registration
• Business License/Permit
• Registering with the Bureau of Internal Revenue (BIR)
• Other Registration Requirements
Types of Business Taxes in the Philippines
Common Laws in the Philippines Affecting Business
ECOLOGICAL/NATURAL ENVIRONMENT
The last Macro environment factor is the ecological environment which
involves the natural resources needed as inputs to businesses. For example,
here in the Philippines, we have rich agricultural land, forests, mines,
fishing spots and many others. In other countries such as in the Middle
East, are rich in oil, crude and petroleum. Ecological environment also
refers to variables regarding physical environment that affects business.
For example, the geographical features of a certain country.
Here are some trends in ecological environment that business owners
should be aware of. This includes growing shortages of raw materials,
pollution and increased government intervention. The first trend is the
growing shortages of raw materials. Some people think that resources are
infinite but in reality, it reached the dangerous level. In Philippines,

agricultural soil is now a problem because as time passes by, population is
growing which leads to more houses that decrease the area of soil or land.
Electricity is also a problem in our country. We are not that rich enough
to have large nuclear power plants. Windmills and dams are examples of
structures that can provide electricity but these are not enough to supply
electricity in the Philippines. Firms making products that require these
resources face large cost increase even if the materials remain available
which leads to price increase. Second trend is the pollution. As our
country rush towards industrialization and economic growth, environmental
issues become more apparent. The problems are mostly byproducts of
processes that have contributed significantly to economic development and
improved lifestyles. So, environmental protection is not an optional extra,
it is an essential part in doing business. The issue that concerns everyone
is whether economic development and environmental protection can co-exist.
More and more companies are now embracing the idea of sustainable
development-which is an approach in economic growth, wise resource
management and the reduction of negative effects on people and environment.
Responsibility for protecting the environment does not rest solely with
governments and businesses however; each citizen has a social and moral
responsibility in protecting the environment. Last trend is the increased
government intervention. The governments of different countries vary in
their concern and efforts to promote clean environment. Here in our
country, we have environmental laws to be followed just like the National
Pollution Control, Water Code of the Philippines, Philippine Environment
Code and many others. But nowadays, as you can observe, many businesses are
now in support for a clean and green environment as part of their Corporate
Social Responsibility or Public Relations and most of the time, this serves
as a competitive advantage over the other competing businesses.

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(GROUP – V)

Political Jhimboy P. Aguilar

Macro environment is largely external to the business enterprise.

REPORTER WILL BE ABSENT – Jhimboy P. Aguilar

Report not sent yet by the reporter, to follow – Raphael R. Aduna

Technological factors affect marketing and the management thereof in three

 New ways of producing goods and services

New ways of producing goods and services

 Technology does support and drive innovation. Technological

 The modern communications technology permits many services to be

New ways of communicating with target markets

 Perhaps one of the most important change technology has allowed

 Increases production and saves time

 Improves communication through communication technology

 Improves financial management

 Improves on business competitive advantage

• Recognized or made effective by a court of law as distinguished from a

The Most Common Legal Issues for Businesses

• Business Name Registration

• Registering with the Bureau of Internal Revenue (BIR)

• Other Registration Requirements

Types of Business Taxes in the Philippines

Common Laws in the Philippines Affecting Business

The last Macro environment factor is the ecological environment which

involves the natural resources needed as inputs to businesses. For example,

here in the Philippines, we have rich agricultural land, forests, mines,

refers to variables regarding physical environment that affects business.

For example, the geographical features of a certain country.

Here are some trends in ecological environment that business owners

should be aware of. This includes growing shortages of raw materials,

pollution and increased government intervention. The first trend is the

infinite but in reality, it reached the dangerous level. In Philippines,

electricity in the Philippines. Firms making products that require these

which leads to price increase. Second trend is the pollution. As our

country rush towards industrialization and economic growth, environmental

issues become more apparent. The problems are mostly byproducts of

processes that have contributed significantly to economic development and

improved lifestyles. So, environmental protection is not an optional extra,

it is an essential part in doing business. The issue that concerns everyone

is whether economic development and environmental protection can co-exist.

development-which is an approach in economic growth, wise resource

management and the reduction of negative effects on people and environment.

responsibility in protecting the environment. Last trend is the increased

government intervention. The governments of different countries vary in

their concern and efforts to promote clean environment. Here in our

country, we have environmental laws to be followed just like the National

Pollution Control, Water Code of the Philippines, Philippine Environment

as a competitive advantage over the other competing businesses.

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