Macro Environment Persuasive Essay Example

organizations prepare for the launch of another brand before the fall in utility and sales is experienced. The launch of new brand, ensures that the revenue trend of the business does not fall. Diminishing utility is among the external factors affecting business. You may also read more on diminishing marginal utility.

Money and Banking Banking facilitates monetary and fiscal policies that affect business and also the customers of the business.

Money in circulation dictates the paying power or rather the demand of the consumers and the banking facility dictates the borrowing capacity of individuals as well as the business. Economic Growth and Development Economic growth dictates the amount of finances that the society at large is earning and development indicates the volume of money that is being invested into channels of long term up-gradation.

Among all the economic factors affecting business environment, development is the most important one, as the business has to cater to the demand of an economically dynamic society. Income and Employment Another very important aspect of the economy that affects the working of the business, is the level of employment and rate of income.

The per capita income and density of employment dictates the rate of demand, density of demand and also the purchasing power of the people. General Price Level

Another very important aspect of the economy, that affects the business is the general price levels of the commodities that also affect the sales of the business. Costs of raw materials, paying power of people, cost of production and finally, cost of transport are some of the important components that determine the general price level and also, the sales of

the firm. Trade Cycles Trade cycles are the fluctuating costs of goods and commodities in an economy. Rise, stability, continuity and fall are some of the important cycles that affect the prices off all goods such as raw material, credit, final goods, etc.

Trade cycles also many a times affect the general price level. To know more about business and economics, you may also read on: Business Competition Business Growth Strategies Every changing factor in an economy affects any business, from a simple Christmas day celebration to a bankrupt multi-billion corporation, every incident and factor affects the working of a particular business. This is the very reason why businessmen are always on the look out for incidents and economic factors affecting business. Good Luck!