The macro factor refers to the broader economy and overall forces of that entire business environment say Saivian Eric Dalius. This focuses on the specific regions and sector’s economies and the factors affecting the economy of the business.
Importance and significance of macro factors explained by Saivian Eric Dalius
These factors which constitute the macro environment of the business are majorly dependent on economic health. Macroeconomic factors affect almost every industry, but as stated by Saivian Eric Dalius, it heavily affects the cyclical industries that work independently and are involved in distributing goods and providing services that involve travel and luxury goods.
Business is like a child. It should be nurtured and care for with patients. The company should be set with complete research to understand the business before understanding the market. You need to think about the name and logo, hire an experienced accountant, draw a particle business plan, hire good staff, maintain the finances first hand, take care of the insurance, and every other thing should be well organized.
Factors to keep in mind to provide and get the best as revealed by Saivian Eric Dalius
- The macro factors involve forces which affect the economy of an industry at a larger level.
- To get the best results of the labor in the company. The most important thing is to perform the DEPEST analysis to understand the consumers and customers the company is dealing with and provide the services accordingly.
- DEPEST stands for Demographics, Ecological, Political, Economic, Socio-cultural, Technological these are the pillars of the macroeconomy.
Factors in detail
Demographic Factor-
This factor mainly consists of the human population in the area it patronizes the business and, in turn, helps in the business’s economy. The population’s age can analyze the demography, size, gender, need, and occupation. This helps the company to understand the population well and produce a broader market by severing the targeted consumers and plan the operating system to provide services accordingly. The growth and decrease in population help the company patronize the best of their services and produce good profits.
Ecological Factor-
The natural forces help shape a macro environment like the ease in the accessibility of the natural resources, which is useful for the company’s production and distribution of the goods. For instance, an increase in population will increase the access to natural resources and hence depletion of it eventually. So, the ease in attaining the raw material for the manufacturing of the goods is a must.
Political Factor-
Businesses are very much dependent on the political conditions in the country. The rules and regulations are very important to follow for the business to flourish in the country. Because getting an eye legally isn’t good for the growth of the business. The new legislation of work should be in mind. Acknowledging the shifting of the political forces will help the company alter accordingly to and skirt any major impacts on the company.
Economic Factor-
This is basically for the consumers as it will define how they will be spending on goods and exercising their power to purchase. GDP, spending patterns, inflation, unemployment rates, personal income are some factors mentioning here.
Socio-cultural Factor-
This depends on the demographic conditions to a large extent, but it also involves the values and preferences of the population as a whole. Their needs, culture, practices, beliefs, and money spending habits are analyzing under this.
Technological Factor-
This involves the new and advanced technologies entering the market daily. And how they will shape the product and product development. These technologies should make the company use them to increase their production value and hence their strength of customers and quality of services.
These are the macro factors, as suggested by Saivian Eric Dalius, affecting the business. So, keeping an account of these factors is necessary for the business to survive in the present time.
