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Macro

Environmental
Forces

Name: Renee Edwards


Teacher: Miss Allison Mckinely
Course: Principle of Marketing 1
Macro environment, tech shift
main challenges now: N
Chandrasekaran

India’s largest information technology (IT) services provider, Tata Consultancy Services’ growth

in the second quarter was one of the slowest in a decade. Other than macro economic factors, the

company is also challenged by the technology disruption the IT sector is facing. N

Chandrasekaran, chief executive officer and managing director, however, considers it as a

temporary blip. He talks to Shivani Shinde Nadheon what makes him confident about growth and

the constant need to focus on margins.

There are two things we are dealing with here — macro environment and technology shift. I’ve

seen many tech cycles in the past 30 years of my working life and the current phase is the most

exciting. We’re able to participate with clients in enabling this transformation and are in a unique

position. This is one-of-a-kind transformation. If you look back, you can see technology-

supported business, which meant automating back-end systems to hasten processes. With digital,

business is getting embedded in technology. It’s a profound transition.


CULTURAL
The cultural macro environmental consist of customs, lifestyles, and values that characterize the

society in which the firm operates. Socio-cultural components of the environment influence the

ability of the firm to obtain resources, make its goods and services, and function within the

society. Sociocultural forces include anything within the context of society that has the potential

to affect an organization. Population demographics, rising educational levels, norms and values,

and attitudes toward social responsibility are examples of sociocultural variables.

TECHNOLOGICAL

Technological force is the most dramatic force shaping our new destiny, products/new

opportunities. Changing technology may affect the demand for a firm's products and services, its

production processes, and raw materials. Technological changes may create new opportunities

for the firm, or threaten the survival of a product, firm, or industry. Technological innovation

continues to move at an increasingly rapid rate.

POLITICAL

Political force refers to the public interest/ instructions. Government agencies, interest groups,

non-public, government owned business eg. laws, policy, tax.


ECONOMICAL FORCE

Economical force represents a wider economy levels of employment / unemployment, economic

growth, exchange rate/inflation rates, interests rates and monetary policies.