Shaposhnikova D.V., Usicov V.A.

Donetsk National University of Economics and Trade named

after Mykhailo Tugan-Baranovsky, Ukraine

Ways to Business Success via Analyzing

Subjects of any economic system are linked with many structures, institutions and relations, which belong to other complexes. With the long-run trend toward a more sophisticated, highly integrated economic system, it is becoming increasingly important for an individual decision maker to be aware of the macroeconomic environment.

Macro environment is the network of systems composed of culture, political and economic forces, technology, skill, mixes-and consumer groups. Widely speaking it’s a set of interdependent systems which makes a region more or less suitable for a particular way of economic activity. Macro environment is a source of opportunities, prospects and constraints for organizations and consumers. Once the organization has launched its product or defined its service, it must distribute it to consumer client groups who have wants and needs that they attempt to satisfy through the consumption of such products and services. Every organization exists within an extensive and complex environmental network. Organizational environment refers to all groups, norms, and conditions with which an organization must deal. It includes such things as the political, cultural, economic, religious, educational, and like systems that affect an organization and which in turn affected by it.

Culture, composed of values, norms, artifacts, and accepted behavior patterns, affects the way the organization is formed and how it operates once in existence. Indeed, one must recognize that all of the decisions made in an organization are culture bound, which means, they are a reflection of all these components of culture. Societal norms are those standards that mold behavior, attitudes, and values of those members who constitute a society. They come from laws customs, religious teachings, and common practice. They are standards because members lake them into account in their decisions and behavior. Dress, speech, what is considered to be in good taste, and the general understanding of what is right and wrong are all affected by societal norms. At the same time, almost every institution in a society is capable of transfusing some of its values, norms, and behavior patterns into its environment. Organizations can hardly afford to ignore such a vital ingredient in its macro environment. It seems ridiculous to sell ultra-fashionable women’s clothes in a Muslim country or to establish a network of beefsteak shops in India, where most people don’t consume meat due to religious reasons. Modern multinational companies take it into consideration and organize their marketing policy in the way which better corresponds to cultural and ethical traditions.

Political forces are classified as the form and role of government in a society. The source of law and other regulations that restrict or at least affect the organization, the political system also is the source of a rich variety of services for the organization. These services range from fire and police protection to the provision of recreational areas. When one thinks of the governmental sector, one might be likely to think of its negative connotation and red tape. Although there is an element of restriction originating from the political sector, it is by no means dominant in most countries. The experience of the Soviet Union and other controlled economies has revealed that excessive governmental interference inevitably leads to economic collapse.

The political system is coupled with the economic system. The type of economy a society can range from private enterprise to planned economy. Whatever its form, the economic system is concerned with the allocation of scarce resources and (lie provision of some form of distribution. It is, in practice, quite difficult to separate the political and economic systems from each other. Large corporations often influence political leaders and give a push to the most profitable economic solutions. Politicians also interfere with the economic system in order to achieve best good for the society. Scientists speak about so-called state-monopoly capitalism, meaning that state is an integrate part of modern economies.

The macro environment is also the source of technology – the machines, techniques, and methods required for production and distribution. To be able to compete successfully, organizations must have access to modern technology. It is simply not feasible or an organization to compete unless an adequate level of technology is available to it. It can be safely stated that organization success is measured by the ability of the organization to adjust to and to employ technological innovations.

Among their responsibilities, managers today must take into account the obligation to maintain a spirit of creativity and ingenuity among members so that continued progress on the technological front can be made. The ever-growing shortages of resources of all types are but one indication of the seriousness of this obligation. Of course, technological improvements require financial infusions, but in most cases it is the only way to achieve manufacturing efficiency and protect your position on the market.

Skill mix in the labor force is likewise an important facet of an organization's macro environment. All organizations depend to some extent on a supply of labor that possesses the skill and ability to perform the work necessary to attain objectives. Consequently, labor market conditions and skill mixes are crucial to success. Many western businesses allocate their industries in the 3^rd world countries, where they have an access to cheaper labor force. The others believe in quality and image and employ qualified specialists. The decision strongly depends on the style of management.

The consumers are the ultimate arbiters of the organization's success, for it is they who make the critical choices to consume or not to consume an organization's output. Without the income (in whatever form) that results from this consumption, the organization is doomed to a relatively short life. This means that managers must be more aware of and sensitive to the total environmental complex of their organization in order to develop and implement plans for successfully coping with it.

Otherwise, there is little chance for success, for no longer will yesterday's methods based on a placid environment serve in today's turbulent outside world.