Environment is sum of several external and internal forces that affect the functioning of business. Businesses function as a part of broader environment. The inputs in the form of human, physical, financial and other related resources are drawn from the environment. The business converts these resources through various processes into outputs of products and/or services.

The latter are partly exchanged with the external client groups, say customers. The extent to which the business thrives depends on the manner in which it interacts with its environment. Macro environment is explained as one which is largely external to the enterprise and thus beyond the direct influence and control of the organization, but which exerts powerful influence over its functioning.

Important elements of macro environment are:

1. Demographic environment.
2. Economic environment.
3. Political-Legal Environment.
4. Socio-Cultural environment.
5. Technological environment.
6. Global environment.