The Macro Environment

The Macro Environment includes the major forces that act not only on the firm itself, but also on its competitors and on elements in the micro-environment. The macro-environment tends to be harder to influence than does the micro-environment, but this does not mean that firms must simply remain passive; the inability to control does not imply an inability to influence. Often the macro-environment can be influenced by good public relations activities. The main elements of the macro-environment are:

Demographic factors; Economic factors; Political factors; Legal factors; Socio-cultural factors; Ecological and geographical factors; Technological factors. Demographic factors
Natural Environment International Environment.

Demographic changes can have major effects on companies: the declining birth rate in most Western countries has an obvious effect on sales of baby products, but will eventually have an effect on the provision of state pensions as the retired have to be supported by an evershrinking number of people of working age. Likewise, changes in the ethnic composition of cities, or in the population concentration (with few people living in the city centres of large cities) cause changes in the demand for local services and retailers, and (more subtly) changes in the type of goods and services demanded. Economic factors - Economic factors encopass such areas as the boom/bust cycle, and the growth in unemployment in some parts of the country as a result of the closing of traditional industries. Macro-economic factors deal with the management of demand in the economy; the main mechanisms governments use for this are interest rate controls, taxation policy and government expenditure. If the government increases expenditure (or reduces taxation), there will be more money in the economy and demand will rise; if taxation is increased (or expenditure cut), there will be less money for consumers to spend, so demand will shrink. Rises in interest rates tend to reduce demand, as home loans become more expensive and credit card charges rise.

Micro-economic factors are to do with the way people spend their incomes. As incomes have risen over the past 40 years or so, the average standard of living has risen, and spending patterns have altered drastically. The proportion of income spent on food and housing has fallen, whereas the proportion spent on entertainment and clothing has risen. Information on the economy is widely publicised, and marketers make use of this information to predict what is likely to happen to their customers and to demand for their products.

Political factors - Political factors often impact on business: recent examples are the worldwide movement towards privatisation of former government-owned utilities and businesses, and the shift away from protection of workers rights. Firms need to be able to respond to the prevailing political climate, and adjust the marketing policy accordingly. For example, British Telecom, Deutsche Telekom and Telstra of Australia have all had to make major readjustments to their marketing approaches since being privatised, and in particular since seeing an upswing in competitive levels. Almost all the firms activities have been affected, from cutting the lead time between ordering and obtaining a new telephone, through to price competition in response to competitors cut-price long-distance and international calls. British Telecom was the UKs fifth biggest spender on advertising during 2003. Legal factors - Legal factors follow on from political factors, in that governments often pass laws which affect business. For example, Table 2.4 shows some of the legislation on marketing issues currently in force in various countries.

Sometimes judges decide cases in a way that re-interprets legislation, however, and this in itself can affect the business position. A further complication within Europe arises as a result of EU legislation, which takes precedence over national law, and which can seriously affect the way firms do business in Europe. Case law and EU law are not dependent on the politics of the national governments, and are therefore less easy to predict. Clearly businesses must stay within the law, but it is increasingly difficult to be sure what the law says, and to know what changes in the law might be imminent. Socio-cultural factors - Socio-cultural factors are those areas that involve the shared beliefs and attitudes of the population. People learn to behave in particular ways as a result of feedback from the rest of society; behaviour and attitudes that are regarded as inappropriate or rude are quickly modified, and also people develop expectations about how other people should behave. In the marketing context, people come to believe (for example) that shop assistants should be polite and helpful, that fastfood restaurants should be brightly lit and clean, that shops should have advertised items in stock. These beliefs are not laws of nature, but merely a consensus view of what should happen. There have certainly been many times (and many countries) where these standards have not applied. These prevailing beliefs and attitudes change over a period of time owing to changes in the world environment, changes in ethnic mix and changes in technology. These changes usually happen over fairly long periods of time. Since 1970 in most Western countries there has been a development towards a more diverse, individualistic society; a large increase in the number of couples living together without being married; and a marked increase in the acceptance (and frequency)of single-parent families.

Cultural changes over the same period include a major change in eating habits due to an increase in tourism and world travel, and greater globalisation of food markets. A very few cultural changes come about as the result of marketing activities: a recent example in the UK is the gradual replacement of Guy Fawkes night (at least as a family occasion) with Halloween, an American import which has children dressing up in costumes and going from house to house trick or treat-ing. Part of the thrust for this change has come about because Guy Fawkes celebrations involve letting off fireworks, which is a dangerous activity for amateurs, but much of the change has been driven by a desire by marketers to sell costumes, and by the influx of US-made films and TV programmes which show Halloween celebrations.

Ecological and geographical factors - Ecological and geographical factors have come to the forefront of thinking in the past fifteen years or so. The increasing scarcity of raw materials, the problems of disposing of waste materials, and the difficulty of finding appropriate locations for industrial complexes (particularly those with a major environmental impact) are all factors that are seriously affecting the business decision-making framework. In a marketing context, firms are having to take account of public views on these issues and are often subjected to pressure from organized groups as well as individuals. Often the most effective way to deal with these issues is to begin by consulting the pressure groups concerned, so that disagreements can be resolved before the company has committed too many resources; firms adopting the societal marketing concept would do this as a matter of course. Technological factors - Technological advances in recent years have been rapid, and have affected almost all areas of life. Whole new industries have appeared: for example, satellite TV stations, cable networks, the Internet, CD recordings and virtual reality, and computer- aided design systems. All of these industries were unknown even twenty years ago. It seems likely that technological change will continue to increase, and that more new industries will appear in future. The corollary, of course, is that some old industries will disappear, or at the very least will face competition from entirely unexpected directions. Identifying these trends in advance is extremely difficult, but not impossible.

The macro-environment also contains the remainder of the organisations publics. Governmental publics are the local, national and international agencies that restrict the companys activities by passing legislation, setting interest rates, and fixing exchange rates. Governmental publics can be influenced by lobbying and by trade associations. Media publics: Press, television, and radio services carry news, features and advertising that can aid the firms marketing, or conversely can damage a firms reputation. Public relations departments go to great lengths to ensure that positive images of the firm are conveyed to (and by) the media publics. For example, a company might issue a press release to publicize its sponsorship of a major sporting event. This could generate positive responses from the public, and a positive image of the company when the sporting event is broadcast. Citizen action publics are the pressure groups such as Greenpeace or consumers rights groups who lobby manufacturers and others in order to improve life for the public at large. Some pressure groups are informally organized; recent years have seen an upsurge in local pressure groups and protesters . 1. Economic Environment: - Economic environment of business has reference to the board
characteristics of the economic system in which the business operates. The business sector has economic relation with the government, capital market; household sector and global sector. These sectors together influence the trends and structure of the economy. The form and functioning of the economy vary widely. The importance external factors that affect the economic environment of a business are; (i) Economic Conditions: - The general Economic conditions prevailing in the country viz. national income, per capita income, economic resources, distribution of income and assets, economic development etc. are important determinants of the business strategies. Business cycles and economic growth of the economy are important factors defining the economic environment. (ii) The economic system operating in the country also affects the business enterprise to a very great extent. The economic system of a country may be capitalist, socialist, communist or mixed. (iii) Economic Policies: The government decides the economic environment of business through Budges, Industrial regulations, Economic planning, Import and Export regulations, Business laws, Industrial policy, Control on prices and wages, Trade and transport policies, the size of the national

Income, Demand & supply of various goods etc. (iv) Economic Growth: - The stage of economic growth of the economy has direct impact on the business strategies. Increased economic growth rate and increase in consumption expenditure, lower the general pressure within an industry and offers more opportunities then threats. (v) The rate of interest affects the demand for the products in the economy, particularly when general goods are to be purchased through borrowed finance. Low interest rated provides opportunities to the industries to expand whereas rising interest rates pose a threat to these institutions. (vi) Currency Exchange: - Current exchange rates have direct impact on the business environment. When the rupee was devalued in 1991, it was to make Indian products cheaper in the world market and consequently boost India's exports. 2. Political and Governmental Environment: - Political environment refers to the influence exerted by the three political institutions they are; Legislature, Executive, Judiciary etc. The legislature decides on a particular course of action. Government is the executive and its job is to implement whatever was decided by parliament. The judiciary has ensure that both the legislature and executive function in public interest and within the boundaries of constitution. Legal and political environment provides a framework within the business is to function and its existence depends on the success with which it can face the various challenges constructed out of political and legal framework. 3. Socio-cultural Environment: - Changes in social trends can impact on the demand for a firm's products and the availability and willingness of individuals to work. Social class and caste of a person goes a long way in deciding the business activities in relation to its production and marketing activities. Tradition, customs and social attitudes have changed the attitude and beliefs of the persons which have their effect on organizational environment. Class and caste are influencing the purchasing pattern. Socio-cultural environment may include expectations of the society from business, attitudes of society towards business and its management, views towards achievement of work, views towards structure, responsibility and organizational positions, views towards customs, traditional and conventional, class structure and labour mobility and level of education. 4. Natural Environment: - Environmental factors include the weather and climate change. Changes in temperature can impact on many industries including farming, tourism and insurance. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider. The growing desire to protect the environment is having an impact on many industries such as the travel and transportation industries (for example, more taxes being placed on air travel and the success of hybrid cars) and the general move towards more environmentally friendly products and processes is affecting demand patterns and creating business opportunities. 5. Demographic Environment: - Demographic factor include Size, growth rate, age composition, sex composition etc. of population, Family size, Economic stratification of population, Educational level, Caste, religion etc. All these demographic factors are relevant to business. These factors affect the demand for goods and services. High population growth rate indicates an enormous increase in labour supply. Population with varied tastes, preferences, beliefs, temperaments etc. gives rise to differing demand pattern and calls for different marketing strategies. 6. Technological Environment: In order to survive in today's competitive world, a business has to adopt technological changes from time to time. New technologies create new products and new processes. Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as the organizations providing the products. MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances. Online shopping, bar coding and computer aided design are all improvements to the way we do business as a result of better technology. 7. International Environment: - Another environmental factor which is fast emerging as the force to reckon with is the international environment. Implications of global or international environment are; (i) Due to liberalization, Indian companies are forced to view business issues from the global perspective. (ii) Safe and protected markets are no longer there. World is becoming small in size due to advanced means of transport and communication facilities. (iii) Learning of foreign languages is must for every business manager. (iv) Acquiring familiarity with foreign currencies is also must. (v) Facing political and legal uncertainties is inevitable.

Introduction
At present there are 82 public and private universities in Bangladesh. The numbers of public universities are 31 while private universities are 51. The first public university is The University of Dhaka, established in 1921. The establishment of private university is relatively a new phenomenon in this country. In early 1990s, private sector came forward to establish universities. Since then country experienced a spectacular growth in private universities they were mostly in and around Dhaka. After deregulation program, private sector participation is increasing significantly in Bangladesh, especially in some area of service sector. As a reform initiative of public sector management, government shifted its policy in early 1990s in higher education sector. This program makes a pressure to public university and creates a competitive environment in country higher education. Though 81 universities are (including National University and Open University) providing higher education but it is widely saying that the quality of higher education has declined steadily. Public university is the best options of the students for higher education and then comes private university. With a few exceptions, public universities are failing to meet the market demand and suffering from low governance. Private university emerged as an alternative to cope up with the expanded demand of higher education. Only a few of them are maintaining standard but a huge allegation are being raised against the rests. It was hoped that Higher Education Quality (HEQ) will be ensured with the competition of both

the sectors. But it is commonly saying that the quality of higher education is declining rapidly, in some areas quite alarmingly. According to academicians, researchers, various committee (UGCled High Powered Committee, 2003) or commissions report (UGC, PSC), newspapers report and public perception, are the quality of education of the private university is deteriorating sharply. 2 Bundle of allegations are there against them; universities are being blamed for making higher education toy and degrees are easy-to-get. Job providers are also raising the same question. It is commonly saying that Private universities are commercializing higher education rather than providing service. Even these institutions dont bother to maintain or abide respective Law and guidelines also. On the other side, some other research (IIEP, UNESCO, 2007) showed, of some private higher educational institutions are providing quality education and their degrees at international standard. In this context, this study has been initiated to explore the quality of education of private universities that are provided by them. In this study, teachers quality and infrastructure facilities will be analyzed to explore the quality of education in Private Universities. To conduct the study six private universities have taken by using specific criteria. Primary data have been collected from questionnaire survey and interview. There are also secondary source was used. In this context, an attempt has taken to explore the quality of education of private universities in broad perspective. Within this broader area, study will explore the teaching quality, faculty selection method, faculty motivation level, research activities, and library, classroom and campus facilities. With these issues, we tried to search the employability and recognition of the degree.

1.8 Limitations of the Study

This study was conducted to assess the education quality of Private University of Bangladesh, to know the quality; six universities have been taken. But the question is whether only six universities can represent the whole sub-sector. This is the major limitations of the study. Among the Private Universities there are differences in terms of size, enrolment, courses offered, teaching quality, budget, some are new and some are old comparatively. So, it is tough to draw a line whether ones quality of education represents others. Out of 51, there are 9 universities located outside the capital city, six in Chittagong and three in Sylhet. I have taken six universities. Among them the campus of 5 universities are located in Dhaka and one in Chittagong. It would be better to choose any one from Sylhet. But due to resource constraints I have to limit it. This may be another limitation of this study.