Question

1) Explain about Macro environment and how its effect on travel agency recent Covid 19 pandemic.

2) how to improve and manage by company macro environment effect ?

Answer 1

(1) A macro environment is the condition that exists 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 how the macroeconomic conditions in which a company or sector operates influences its performance. Macroeconomics deals 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. The tourism economy has been heavily hit by the coronavirus (COVID-19) pandemic, and measures introduced to contain its spread. Depending on the duration of the crisis, revised scenarios indicate that the potential shock could range between a 60-80% decline in the international tourism economy in 2020. Beyond immediate measures to support the tourism sector, countries are also shifting to develop recovery measures. These include considerations on lifting travel restrictions, restoring traveller confidence and rethinking the tourism sector for the future.Tourism is a significant part of many national economies, and the immediate and immense shock to the tourism sector resulting from the coronavirus pandemic is affecting the wider economy. As governments around the world have introduced unprecedented measures to contain the virus, restrictions on travel, business operations and people-to-people interactions have brought the tourism economy to a standstill. Many countries are now entering a new phase in fighting the virus while at the same time managing the re-opening of the tourism economy. This is a complex and challenging task, and quantifying the impact on the tourism economy is difficult.The global pandemic of novel Corona has not only brought entire socio-economic structures in to a standstill but has challenged the globalization and global operations of enterprises. Paradoxically, potential repercussions and alternative way outs are yet volatile. However, for a speedy recovery and regain of the economy, employment and business functions a sustainable and fresh beginning is necessary in most of the worsened economic sectors. Conventionally, an infection used to attack the vulnerable groups with food, health care insecurity in their lifestyle and they normally used to be the poor of the society. Ironically, novel Corona infection first attacked the international travellers and the pandemic was caused through the travel and thus has confronted mainly the affluent social class globally.

(2) Every business is affected by a myriad of factors. In other words, an organization as such can never exist and operate “in a vacuum”. It is a part of a larger entity known as the business environment. In broad terms, this environment can be divided into two categories. The first one is the micro-environment. This category influences the functionality of a particular business itself. The latter one is the macro-environment which affects the operation of all existing business entities out there.The two categories may be different, but both are essential to understand in order to truly see your business in its full context. You have to be knowledgeable about the business environment in order to be able to track and comprehend how various factors affect your company.Multinational companies and firms who are going to establish subsidiaries and business entities in foreign countries or on international markets have to deal with many different influencing factors during the integration process of the subsidiary to the origin company. Macro-economic factors as well as intercultural dimensions have to be considered in such a complex venture. This research project focuses on the influence of macroeconomic factors and the intercultural differences to the integration process. The aim of the research project is how macro-economic factors and intercultural differences influence the integration process of a new foreign business entity to the origin company and which preventive actions can be derived from correlations which occur from the empirical model to increase the efficiency of the integration process. Three main dimensions in this research project are going to be interlinked: The macro-economic factors, the intercultural dimensions and the integration process. Macro environment factors affect a business in a many ways. The macro environment is a dynamic factor and keeps changing drastically, leading to an increase in avenues, competition and complexity. Efficient financial management calls for better financial decisions. This is only possible when every factor is reviewed which can affect the decision in any way and macro environment is one of the most important factors. This has made financial management more critical and sensitive for any business.Effective evaluation of projects and other situations is very critical in financial decisions. The evaluation calls for an analysis of various factors belonging to both macro as well as the micro environment. Financial management; a specialized field of general management is affected to a large extent by macro situations. We have to make various decisions related to finance; broadly such decisions include capital budgeting, capital structure & working capital decisions. Capital budgeting facilitates investment decisions, the capital structure takes care of decisions relating to a mix of sources of funds and, working capital assesses the day to day needs of business.