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The word “macro” meaning large in Greek, the term macro-environment therefore refers to the global environment in which the company operates. The macro-environment is composed of several factors that can significantly affect the company. These factors are of various kinds. For example, demographic factors refer to the number of the population, the evolution of the age pyramid, etc.

Sociological factors also influence the overall business environment. These include the increasing number of large and single-parent families, for example, as well as the level of education. Economic factors include the unemployment rate and the amount of the minimum wage. Legal factors include the introduction of new regulations and taxes on certain products. Continuous technological innovations are technological factors.

The company has no power over its macro-environment. It must act and adapt its strategy according to the opportunities and constraints that arise.