INFLUENCE OF MACRO-ENVIRONMENTAL FACTORS TO THE PROCESS OF INTEGRATING A FOREIGN BUSINESS ENTITY Helmut Birnleitner, Doctorate Student, University of Applied Sciences Kufstein, Austria; University of Latvia, Latvia helmut.birnleitner@gmx.at ABSTRACT Multinational companies and firms who are going to establish subsidiaries and business entities in foreign countries or on international … Such factors are not a part of the firm’s immediate surroundings and cannot be controlled by them. This will help them understand the dynamic nature of the macro environment. Let us have a look. Macro environment refers to certain external factors that affect a firm and its business. The major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies. macro environment: 1. Macro-environment trends are external factors over which the industry has no control that might affect its performance and strategies.

Let us look at most important factors of the macro environment. Factors Affecting the Macro Environment The macro environment refers to the broader business environment as a whole.

It comprises of the elements which are uncontrollable, dynamic and unpredictable.

The Macro Environment consists of 6 different forces. While this can include political, technological, and other factors, the most relevant ones are all economic. This can easily be remembered: the DESTEP model, also called DEPEST model, helps to consider the different factors of the Macro Environment. It also helps them adapt to the constant changes in the environment. Macro Environment is the type of external business environment in which the firm and its micro-environmental forces exist which gives opportunities or pose threats to the firm. These are: Demographic, Economic, Political, Ecological, Socio-Cultural, and Technological forces. One such type of macro factor is the economic environment in which the business operates. A simple mnemonic to remember these factors is STEEP. Primarily the company has to closely monitor the various elements of macro environment. These factors include the economic factors; demographics; legal, political, and social conditions; technological changes; and natural forces. Macro Environment: A macro environment is the condition that exists in the economy as a whole, rather than in a particular sector or region. Amazon’s Micro and Macro Environment Case Solution,Amazon’s Micro and Macro Environment Case Analysis, Amazon’s Micro and Macro Environment Case Study Solution, Amazon Amazon, founded as an online bookstore in 1994, is one of the largest retailer and online shopping site …