Page 2 - Lesson Note 10

3. Macro Level: It comprise of all the factors and institutions with which

business has to interact with while doing business. This comprise of all
external factors and includes:
(i) Demographic: It refers to human population in terms of its

size, density, location, age, gender, race and occupation.
(ii) Economic: It consists of GDP, national income, per capita

income, monetary and fiscal policy of the government etc.
(iii) Technological: It refers to changes taking place in the method
of production, use of new equipment and machineries to

improve the quality of product.
(iv) Political: It includes the entire factor related to government

affairs such as type of government in power, attitude of
government towards different groups of societies.
(v) Natural: Changes in nature and environment causing pollution

of environment.
(vi) Cultural: It consists of the customs and traditions of the society

in which business exist.