Essay about Macro Environment of an Organization

1073 Words May 30th, 2013 5 Pages
1. Macro environment

External environment is the uncontrollable factors, forces, situations, and events outside the organization that affect its performance and strategies. As shown in below figure, the examples of macro environment of an organisation is include factors such as social cultural, political and legal, globalisation, economy, demographical and also technology. Detailed definition of macro environment factors mentioned and the description showed as below.

Figure 1: Component of external environment

2. Definition of factors of the macro environment of an organisation:

Social cultural

The sociocultural component is concerned with societal and cultural factors such as values, attitudes, trends, traditions,
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Another economic factor is the continuous change for past few decades in American work structure which is the shift from manufacturing economy to service economy. This will only lead to the increase in demand and challenge for the nursing sector.

Figure 2: Increase in the service economy in USA.

The negative side of the increase in service sectors in America is decrease in manufacturing economies will cause decrease of middle class jobs. Manufacturing sector is also can create more jobs compare to service sector. High income gap between low/average class people in service sector is not healthy.


The demographic component includes trends in population characteristics such as age, race, gender, education level, geographic location, income, and family composition.

As member of baby boomers become senior citizens, the need of skilled nursing care can only be increased. With more patients nowadays also come with higher educational background, more skilled nursing work force will be needed. Grooming process for the leaders in this industry must be consistent to maintain the competency in service quality.

When come to decision making on choosing the location to establish new nursing house, it was advised to choose the location that is away from polluted environment such as industrial factory.


The technological component focuses on scientific and

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