Macro environmental factors are external factors that influence an organization positively or negatively but which the organization has very little or no control over (Lusch, and Laczniak, 1989). Three most important macro-environmental issues affecting IRS department include, political, economic and technological factors. Political environment is considered the least predictable element in. Several aspects of government interventions can affect the organization in different ways. Some of this political factors include, bureaucracy, corruption, tariffs, comp etition regulation, government stability, employment law, regulations and deregulations. The second factor is the economic factors which are connected with goods, services and money. Economic factors are variables influencing financial state of the economy on a higher level. Some of the economic factor affecting IRS department are, changes in interest rates, inflation, taxes and the market forces. The third factor is the technological issues, they are variables concerned with availability and advancement of technology. They can be global or local and they include, existence of 3D technology, computer power, internet connectivity, automation and security in cryptography.
The mentioned three factors can all be an opportunity or a threat to the IRS department depending on the decision making process of the organization. Political factors, for instance can be an opportunity in various ways for example, government stability, fare tariff rates, reduction of taxes and considerable regulation that can promote productivity in the organization (Ginter, & Duncan, 1990). However, some of the political variables such as political instability and increase in taxes can pose a threat to the organization and result into losses. Economic factors can also create opportunity to the organization like, positive changes within the market, advances in technology, new production methods and good customer lifestyle can lead to increase of revenue in the organization. There are also threats associated with economic factors for example, changes in consumer behavior like low demand of services offered by the organization and inflation . Technological factors also create an opportunity when adopted well by IRS. The opportunities that can result into efficiency and effectiveness in IRS department include, 3D production which is more appealing to clients, enhanced and effective communication, advanced battery technology, human enhancement and increased productivity. There are also threats associated with technology for example, frequent cyber-attacks, inappropriate hardware disposal, obsolesce of technological appliances and unforeseen outrages of technology.
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Addressing these factors to improve organization effectiveness will solely depend on the decisions made by the management. Political factors can be addressed by following the laid down policies and laws imposed by the government, so as to eliminate fines from the government. IRS can also set aside some funds that maybe used to curb the negative effect of political stability. Addressing economic factors would entail, advocating for fair interest rates, producing goods and services while considering the possible change of demand and supply within the market. Knowing consumer purchasing power would also contribute to the addressing the economic factors. When addressing technological factors, IRS should ensure that they acquire the right technology that would aid in efficiency. The organization should also adopt quality communication networks and channels that would promote positive communication. Another way of addressing technology, is the use of artificial intelligence in the organization. IRS can also adopt automation methods of production within their system.
In conclusion, management should be aware of the macro-environmental factors within the organizations. These factors are external and the organization usually have limited power while dealing with them. However, organization should ensure that they take advantage of the possible opportunities. created by the external factors. They should also try to minimize the threats that may come about as a result of these macro-environmental variables.
References
https://youtu.be/Bjuzq5ZK39U
https://youtu.be/J94LKzvPDQc
https://youtu.be/-JVA8Ng78UU
Lusch, R. F., &Laczniak, G. R. (1989).Macroenvironmental forces, marketing strategy and business performance: A futures research approach. Journal of the academy science, 17(4), 283-295
Ginter, P. M., & Duncan, W. J. (1990) Macroenvironmental analysis for strategic management. Long Range Planning, 23(6), 91-100
