Which of the following is an example of a key force in a firms broader, less immediate environment

1. The three principal levels of hierarchies within a business organization are:

senior management, knowledge workers, and service workers.

senior management, middle management, and operational management.

senior management, data workers, and operational management.

senior management, operational management, and workers.

senior management, operational management, and data workers.

A macro environment refers to the set of conditions that exist in the economy as a whole, rather than in a particular sector or region. In general, the macro environment includes trends in the gross domestic product (GDP), inflation, employment, spending, and monetary and fiscal policy. The macro-environment is closely linked to the general business cycle as opposed to the performance of an individual business sector.

• The macro-environment refers to the broader condition of an economy as opposed to specific markets.
• The macro-environment can be affected by GDP, fiscal policy, monetary policy, inflation, employment rates, and consumer spending.
• The state of the macro environment affects business decisions on things such as spending, borrowing, and investing.

The macro-environment refers to how the macroeconomic conditions in which a company or sector operates influence its performance. Macroeconomicsdeals with aggregate production, spending, and the price level in an economy as opposed to individual industries and markets.

The amount of the macro environment's influence depends on how much of a company's business is dependent on the health of the overall economy. Cyclical industries are heavily influenced by the macro environment, while basic staple industries are less influenced. Industries that are highly dependent on credit to finance purchases and business investments are strongly influenced by changes in interest rates and global financial markets.

The macro-environment can also directly affect consumers’ ability and willingness to spend. Luxury goods industries and big-ticket consumer goods can be highly impacted by fluctuations in consumer spending. Consumers’ reactions to the broad macro-environment are closely monitored by businesses and economists as a gauge for an economy’s health.

Analyzing the macro environment is an important part of strategic management. Business analysts often conduct a PEST (political, economic, socio-cultural, and technological) analysis to identify macro-economic factors that currently affect or in the future may affect business. Some of the key factors composing the macro environment include the following:

Gross Domestic Product (GDP) is a measure of a country’s output and production of goods and services. The Bureau of Economic Analysis releases a quarterly report on GDP growth that provides a broad overview of the output of goods and services across all sectors. An especially influential aspect of GDP is corporate profits for the economy, which is another measure of an economy’s comprehensive productivity.

Inflation is a key factor watched by economists, investors, and consumers. It affects the purchasing power of the US dollar and is closely watched by the Federal Reserve. The target rate for annual inflation from the Federal Reserve is 2%. Inflation higher than 2% significantly diminishes the purchasing power of the dollar, making each unit less valuable as inflation rises.

Employment levels in the United States are measured by the Bureau of Labor Statistics, which releases a monthly report on business payrolls and the status of the unemployment rate. The Federal Reserve also seeks to regulate employment levels through monetary policy stimulus and credit measures. These policies can ease borrowing rates for businesses to help improve capital spending and business growth, resulting in employment growth.

Consumer spending made up 54% of the U.S. GDP in the second quarter of 2021 and is widely considered to be an important indicator of macroeconomic performance. Slow growth or decline in consumer spending suggests a decline in aggregate demand, which economists consider to be a symptom or even a cause of macroeconomic downturns and recessions. 

The Federal Reserve’s monetary policy initiatives are a key factor influencing the macro environment in the United States. Monetary policy measures are typically centered around interest rates and access to credit. Federal interest rate limits are one of the main levers of the Federal Reserve’s monetary policy tools. The Federal Reserve sets a federal funds rate for which federal banks borrow from each other, and this rate is used as a base rate for all credit rates in the broader market. The tightening of monetary policy indicates rates are rising, making borrowing more costly and less affordable.

Fiscal policy refers to government policy around taxation, borrowing, and spending. High tax rates can reduce individual and business incentives to work, invest, and save. The size of a government’s annual deficits and total debt can influence market expectations regarding future tax rates, inflation, and overall macroeconomic stability. Government spending drives borrowing and taxation; it is also widely used as a policy tool to try to stimulate economic activity during slow times and make up for sluggish, consumer spending and business investment during recessions.

The micro environment refers to the factors within a company that impact its ability to do business. Micro environmental factors are specific to a company and can influence the operation of a company and management's ability to meet the goals of the business. Examples of these factors include the company's suppliers, resellers, customers, and competition.

The micro environment is specific to a business or the immediate location or sector in which it operates. In contrast, the macro environment refers to broader factors that can affect a business. Examples of these factors include demographic, ecological, political, economic, socio-cultural, and technological factors.

Macro environment analysis is part of a company's strategic management that enables it to analyze and identify potential opportunities and hazards that might impact the business. The goal is to prepare management in advance with information that assists them in making operational decisions.

Some companies will employ analysts trained to evaluate macro-environmental factors and provide recommendations based on their research. These analysts will review broad macro-environmental forces related to such factors as politics, the economy, demographics, and technology.

Political factors are an example of a macro-environmental force that can impact a business. These include laws or government regulations governing companies or the industry in which they operate.

For example, a government can enact tariffs that increase the cost of an imported good a company needs to manufacture its products. Rather than paying the tariff, the company can look for a domestic source for these goods that is cheaper than the imported good. If they can't find a domestic source, they will have to purchase the more expensive imported goods. In many cases, the company will need to pass the additional cost on to the consumer in the form of increased product prices. This could reduce the company's revenue if sales decrease because of the company's higher prices.

74 Questions | Total Attempts: 1499

• A POS system, such as the one selected by Johnny's Lunch in the chapter case study, falls into which category of information system?

• Executive support systems are information systems that support the:

  • Knowledge and data workers in an organization.

  • Long-range planning activities of senior management.

  • Day-to-day processes of production.

  • Decision-making and administrative activities of middle managers.

• The term "management information systems" designates a specific category of information systems serving:

  • Integrated data processing throughout the firm.

  • Transaction process reporting.

  • Middle management functions.

• A(n) ________ collects data from various key business processes and stores the data in a single comprehensive data repository, usable by other parts of the business.

  • Transaction processing system

  • Management information system

  • Automatic reporting system

• Which of the following is an example of a key force in a firm's broader, less immediate environment?

• These systems are especially suited to situations in which the procedure for arriving at a solution may not be fully predefined in advance.

  • Management information systems

  • Knowledge management systems

  • Transaction processing systems

• Checking for product quality is an activity associated with the ________ function.

  • Manufacturing and production

• Which type of system would you use to determine what trends in your supplier's industry will affect your firm the most in five years?

• Development and support services for a firm's business systems are provided by:

  • Application software services.

• Policies that determine which information technology will be used, when, and how are provided by:

  • Application software services.

• Decision-support systems are also referred to as:

  • Executive support systems.

  • Business intelligence systems.

  • Business information systems.

• You work for a highly successful advertiser that is just about to expand nationally. Of utmost importance will be finding a way to store and disseminate their client's frequently updated branding and style guides to all of their branches. The guides include multiple image files and text documents. What system will best serve these needs?

  • An ESS with collaboration capabilities

  • An extranet with KMS capabilities

  • A TPS with KMS capabilities

• Engineers and architects are examples of:

• A computerized system that performs and records the daily dealings necessary to conduct business is classified as a(n):

  • Transaction-processing system.

  • Executive support system.

• ________ systems often deliver information to senior executives through a portal.
• • Web site designed for collaborative writing and editing.

• ESS are specifically designed to serve the ________ level of the organization.

• Key forces in a business's immediate environment include:

• A relocation control system that reports summaries on the total moving, house-hunting, and home financing costs for employees in all company divisions would fall into the category of:

  • Executive-support systems.

  • Transaction support systems.

  • Knowledge management systems.

  • Management information systems.

• The most widely used collaboration software tool used by very large firms is:

• The ________ is responsible for ensuring that the company complies with existing data privacy laws.

• Which type of information system would an intranet be most easily adapted to?

• Interaction jobs are those jobs which:

  • Are performed typically by operational-level employees.

  • Involve knowledge that can't be put into an information system.

  • Are in the service sector and require close coordination, and collaboration.

  • Require intense levels of interaction with clients.

• In a business environment, the focus of collaboration is to:

  • Foster better communication.

  • Provide a sense of community.

  • Prevent miscommunication.

  • Accomplish the task at hand.

• The principal liaison between the information systems groups and the rest of the organization is a(n):

  • Information systems manager.

• Web Development
• Information
• Web

Which of the following is an example of a key force?

Which of the following types of systems could be used to enable different firms to work collaboratively on a product?

What are the three main activities of an information system?

Are the five basic components with which businesses must deal?