Macro Environment Essay

Introduction

Macro environment comprised of the larger forces that affect the microenvironment such as demographics, natural, technological, economic, political and cultural forces (Kotler and Armstrong, 2014). The changing forces in the macro environment can be often turbulent to companies as it pose threats and shape opportunities. Some can be anticipated and handled through skilful management. However, others are uncontrollable and unforeseeable. Hence, to survive in the midst of ever-changing business world, firms should recognize the underlying importance of environmental scanning and take into account relevant environmental impacts in the decision-making processes. With proper environmental assessment, organisations able to make optimum

It now appears as though this might become reality as GST, the replacement of Sale and Service Tax (SST) was implemented with a standard rate of 6% and was effective from 1st April 2015. The implementation of GST aims to strengthen tax compliance, through simpler and more transparent tax system to increase the efficiency of current taxation system. On top of that, government is looking ways to rein back national budget deficit by diversifying its source of income and less dependence on oil revenue. GST would have profound impact on low and middle income households than high income households. For families in lowest earning group, their monthly income are RM605 and contribute 2.62% of GSTI. Simultaneously, highest income groups who earn RM30815 per month pay the lowest GSTI AT 1.56%. Even though upper and upper middle income earners contribute the most GST tax revenue, they enjoy the lowest proportion income on GST payable with an amount of 2.56% to 2.67 %. Daiso stores react to GST by raising their price to RM5.30 after GST implemented. Previously, consumers can obtained the product at a comparatively cheaper price, RM5.00. Consequently, it would affect purchasing power of consumers, especially the low income earners which they are likely to hold back on spending while adjusting to GST. However, some customers will still purchase the goods with prudent