Fundamentals of Business

An enterprise and the macro macro-environment

Major external and uncontrollable factors that influence an organisation's decision making, and affect its performance and strategies, factors outside and enterprises control.
These factors include the economic, demographics, legal, political, and social conditions, technological changes, and natural forces.

7.1. Social and demographic environment

is concerned with society as a whole; it covers health, media, education, minorities, women, organised labour, legal system and demographics.
The biggest challenge to firms is the society's changing demands.

7.1.1 Health

As defined by World Health Organization (WHO), it is a "State of complete physical, mental, and social well being, and not merely the absence of disease or infirmity". Health is a dynamic condition resulting from a body's constant adjustment and adaptation in response to stresses and changes in the environment for maintaining an inner equilibrium called homeostasis.
My aim is not to discuss health but the impact it has on organisations.

Example on how changes in social environment can affect a business
Extract from bbc·co·uk
'It's our human right to smoke'
By Tom Warren
BBC News, Birmingham

Takings at Stechford Working Men's Club have slumped by £20,000 since the smoking ban came into force. Just before July last year members at the long established Birmingham club began working hard to improve the venue to try to retain trade from smokers. They painted the walls, laid new carpets and installed a partially covered smoking shelter equipped with heaters. But since new smoking laws came into force across England, smokers have deserted the club in droves, preferring to light up at home. 'Desperate' situation

Treasurer Ray Guest, who has been a member for 23 years, said nothing had prepared the club for the huge drop in trade which he blames directly on the ban ban.

7.1.2 Media

Communication channels through which news, entertainment, education, data, or promotional messages are disseminated. Media includes every broadcasting and narrowcasting medium such as newspapers, magazines, TV, radio, billboards, direct mail, telephone, fax, and internet.

Media usage
Media (the plural of "medium") is a term referring to those organized means of dissemination of fact, opinion, entertainment, and other information, such as newspapers, magazines, out-of-home advertising, cinema films, radio, television, the World Wide Web, books, CDs, DVDs, videocassettes, video games and other forms of publishing.