Macro environment encompasses the broad environmental context in which a company is situated and it is comprised of six principal components: political factors, economic conditions, sociocultural forces, technological factors, environmental factors, and legal/regulatory conditions. Another name for these components is the PESTEL analysis: and this analysis can be used to assess the strategic relevance of the six principal components. The six components listed above are also the strategically relevant components of the macro-environment in which companies operate.
