Elements Of Macro Environment

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One of the elements of macro environment that can affect the organization is political and legal factors. First of all, government influence is quite important to an organization as the organization needs to comply with laws and regulations, taxation, incentives. For instance, government declares GST (Goods and Service Tax) on 1st of April, 2015 as this means that all the goods will become more expensive and this will affect all organization business activity. Other than that, all organization needs to pay tax according to the profit and collect 6% of GST on behalf of government. If the organization does not comply with it, then there will be a penalty towards the organization. For instance, penalties for incorrect returns are fine not exceeding …show more content…
Besides, organization needs to follow the rules of employment law set by the government. The objective of employment law is to protect employees from abuse by the employer. For example, employer must provide their employees a good health and safety working environment and condition, holiday entitlement and so on. The consequences of non compliance are organization might lost of operating licenses, monetary and reception loss, and employees can report their employer at the government department if the employer did not protect them. To sum up, AEON Company Limited will be affected by these political and legal factors as the legal environment serves to define what organizations can and cannot do at a particular point in …show more content…
Demographics is the composition of the population in any given area, whether a country or an area within the country. AEON needs to study demographics, social trend and how social and demographic changes shaped by government policy of Malaysia as demographics have separate feature that can be used to determine product demand or preferences of consumers. AEON needs to targets consumers with like characteristics in their advertisements and promotions. Once the business target the wrong demographic characteristics, sales will drop for a short or long period depends on the business target based on monthly or yearly. For example, AEON can target by knowing the population size, population composition, population location, wealth, education level, social structure, average income earn by consumers and values of Malaysia. In addition, the society is repeatedly varying. This means that consumers’ tastes and fashions are not fixed. One of the most significant differences is the growing popularity of social media. Social networking sites like Facebook, Twitter, and Instagram have become very popular among the younger people. The young generations prefer to use digital technology to shop online instead of buy at the shop as they have grown to use mobile phones and computers. Adverse, older generation will perhaps stick to their traditional methods like going to
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