Essay On Macro Environment

Part 1

Introduction to Macro & Micro frameworks: The Business firm consist of a set of internal factors and is confronted with a set of external factors (i.e., Environment). This is the relation between a firm and its environment. Business environment (external factors) is classified as

(1) Micro Environment

(2) Macro Environment

Micro Environment: The micro environment consists of the factor of the firm’s immediate environment, i.e.

a) Suppliers

b) Marketing intermediaries

c) Competitors

d) Customers and the public

Macro Environment: The macro environment consists of larger societal forces that affect all the factors in the company’s micro environment. Examples of Macro-environment are

a) Demographic

b) Market globalisation

c) Economic, “credit crunch” and economic recession

d) Natural disaster and International terrorism

e) Technological, Internet

f) Political and Cultural forces

Each is both an opportunity and a threat e.g.: terrorism is a threat to the airline industry but an opportunity to the security industry.

PESTE Analysis: MACRO factors that are outside the control of the firm and are considered as threats and opportunities can differ per continent, country or even region, so normally a PESTE analysis should be performed per country. Factors of PESTE analysis,

 Political/Legal Factors

 Economic Factors

 Social/Cultural Factors

 Technological Factors

 Environmental-Ecological Factors

Selection of an Organisation: With reference to the task given in the module we have to select an organization and start our assessment, analysis & evaluation considering the sam...

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...iving festival discount or introducing some installment scheme etc.

• The second is the product form completion if once the customer decide to by a TV. Product from competition implies, whether the customer should go for LCD or LED. Should he buy TV with home theatre or without home theatre? Should he buy a 32” TV or 42” TV? The Firm ‘A’ may or may not be making all these models. So it has to attract, by its advertisement, the attention of the customers to go for a model being manufactured by them.

• The third is the brand competition i.e. the competition between the different brands of the same product form. For example, there are a number of TV makes in the market such as Onida, BPL, Videocon, Crown, Texla etc.

Sony should work to create primary and selective demand for his TV sets, by alluring the customers by enchanting advertisements and attractive schemes.