Question : Which environment includes the forces and institutions outside the organization that affect its performance
Option 1: Internal environment
Option 2: Macro environment
Option 3: Micro environment
Option 4: Competitive environment
Correct Answer:
Macro environment
Solution : The correct answer is (B) Macro environment
The macro environment refers to the external factors and forces that are beyond the control of the organization but have a significant impact on its operations, performance, and decision-making. This environment consists of broad societal, economic, technological, political, and cultural factors that influence the organization's activities. Examples of macro environmental factors include economic conditions, government regulations, technological advancements, demographic trends, social values, and environmental factors. These factors shape the overall business landscape and can create opportunities or present challenges for the organization.