Essay On Macro Environment
explanatory Essay
798 words
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...
... middle of paper ...
...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.
In this essay, the author
- Introduces macro & micro frameworks and explains the relationship between a firm and its environment.
- Explains that the micro environment consists of the firm's immediate environment, i.e.
- Explains that macro-environment consists of larger societal forces that affect all the factors in the company's micro environment.
- Explains that a company can affect by external factors, starting with micro external environment factors followed by macro external environmental factors.
- Explains the primary task of sony is to influence the basic desire of the customer to buy only tv and no other product.
- Explains that the product from competition implies, whether the customer should go for lcd or led. firm ‘a’ may or may not be making all these models.
- Explains that terrorism is a threat to the airline industry, while security is an opportunity. macro factors that are outside the control of the firm are considered as threats and opportunities.
- Explains that sony corporation is the electronics business unit and the parent company of the sony group, which is engaged in business through its four operating segments – electronics, motion pictures, music and financial services.
- Explains that suppliers are firms that supply inputs like new materials, certain parts, etc. to the company. quality and reliability are a must for the smooth functioning of the business.
- Opines that sony should create primary and selective demand for its tv sets by alluring the customers by enchanting advertisements and attractive schemes.
Related
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In this essay, the author
- Explains that save britain money (sbm) is a registered company based in wales. neville wilshire has adopted various strategies to ensure that the company achieves its objectives.
- Explains that firms are using microenvironment and macroenvironmental factors to remain competitive in the local and international markets. save britain money is influenced by external factors.
- Explains that save britain money is a registered welsh company whose responsibility is to provide the services of saving money for the uk residents.
- Explains that save britain money aims at providing excellent money saving services in order to improve household incomes as well as the national economy.
- Explains that save britain money's success is a result of social aspects adopted by the company, such as nes surveyors visiting customers in their homes, and an active work force with less than 34 years.
- Concludes that the macroenvironment factors including political, economic, social and technological factors have positive impact on the operations of save britain money. the company should ensure that it continues to operate in line with government policies while creating quality brands.
- Explains andreas and haenlein's perspectives on the challenges and opportunities of social media.
- Explains hochbaum, d et al. 2011, rating customers according to their promptness to adopt new products, operations research.
- Describes the sunday times 100 best companies.
- Recommends that sbm emulates technology in order to provide services that meet the needs of its customers.
- Recommends that sbm establish research centers in various locations to ensure that it produces products that are in line with the needs of local communities.
- Explains kremer, lardi, and fuchs' social media strategy, a step-by-step guide to building your social business.
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In this essay, the author
- Summarizes mujtaba, johnson, and weinstein's case 5: publix super markets--achieving customer intimacy.
- Explains that publix super markets, inc. is a florida-based grocery chain that has flourished since its inception in 1930 and boasts over $25 billion in sales annually.
- Analyzes how publix's focus is on customer value, societal, psychographic, economic, and technological factors, such as air-conditioning, electric-eye doors, muzak and fluorescent lighting.
- Analyzes how competition, suppliers, and collaboration can mark the difference between failure and success.
1316 wordsRead More - How Does Economics Affect Macroeconomicscomparative essayThis paper aimed to show how both macroeconomics and microeconomics plays a role in the overall success of an organization. The key decisions confronting the firm right from inception to operation to growth are themes business, economics can explore and which are useful for entrepreneurs and business leaders. With increasing globalization, the fact that firms now operate in a global arena means that they must have the knowledge of how macroeconomic trends affect macroeconomic decisions.
In this essay, the author
- Explains that business, economics, and macroeconomics play a role in the overall success of an organization.
- Explains that in economics, demand refers to the product, which an individual is willing to purchase for a specific amount of money.
- Explains that elasticity is important because it shows the relationship between the price of the good and the demand.
- Explains the purpose of aggregate demand, is to improve the economic growth, therefore growth will drive demand.
- Defines production as combing inputs to make outputs. cost is important in decision-making because it determines if the price need to be adjusted or presented later.
- Explains that macroeconomics focuses on economies, and function. it examines the characteristics of the economy output, employment, inflation and the interest rate.
- Concludes that the research in economics, both macroeconomics and microeconomic, has a role to play in helping an organization to be successful.
933 wordsRead More - PESTLE Analysis of aSports Clubexplanatory essayIt is important to recognise the main features that affect a business in view of the macro and micro-environmental factors.
In this essay, the author
- Explains that political factors that may impact on the business, as a sports club, would mainly include transportation.
- Explains that transport is a political factor as it is controlled and affected by legislation. the price of transportation will also affect the mode of transport that these groups of people may use.
- Explains that the power of the supplier is very small for a small segment of business i.e. the merchandise/food and drink.
- Explains that the power of the buyer in the case of this business is huge. the number of customers has a major affect on the business and success is price sensitive.
- Explains that the threat of competitive rivalry has been outlined and explained. the substitutes would fall under the same category as rivals.
- Argues that the threat of new entry is small as customers will based their decision around team loyalty and locality to stadiums.
- Explains that the most suitable target market for the business would be families, who are likely to respond and adapt in a positive way.
- Opines that a business should focus on the 16-24-age bracket, as they are more likely to spend money on healthy living, despite their low annual income.
- Explains the impact of the recession on consumers' leisure habits.
- Opines that consumer spending is on the rise, citing mintel.
- Explains that halfords reports boost in q2 revenue.
- Explains that family ties are key for children's sport.
- Explains that teen athletes are more likely to drink and less to use drugs.
- Explains that 91.4% of trains on time in january 2012.
- Explains that it is important to recognise the main features that affect a business in view of the macro and micro-environmental factors.
- Describes the environmental factors that may impact on the business, such as weather and fuel.
- Explains how the media portrays basketball or sport in general, and the amount of tourism occurring in the surrounding areas may affect the business.
- Opines that technological factors that may impact on the business would include the impact of newly invented sports equipment, advances in mobile phone applications, and ease of internet access.
- Opines that the worcester royals are less likely to experience this type of legal problem than a professional league team.
- Explains the economic factors that may impact on the business would include the general economic state, taxation, expendable income, and other factors.
- Explains that there are only 12 professional/semi-professional basketball teams in the british league, so there is little competition. the business would have to spend a lot of money on advertising to attract custom away from these sports.
- Explains the importance of creating goals for a business to achieve, such as increasing the turnout and revenue for games by 10% (up to 70% capacity utilization) within the next 2 years.
- Explains that the business would take on a part functional structure for its organisation. this will allow greater efficiency, as specialists will be working in their particular area.
1987 wordsRead More - Brewing Change at Breckenridge Breweryexplanatory essayA firm?s external environment is divided into three major areas : the general, industry and competitor environments. Below is an elaboration in further detail regarding the firm?s opportunities and threats in these three environments.
In this essay, the author
- Explains that a firm's external environment is divided into three major areas — the general, industry and competitor environments.
- Opines that as the craft beer industry is still growing, there is always a possibility of new entrants.
- Explains that each firm has its own unique resources and capabilities that can be used to create an exclusive market position.
- Opines that breckenridge brewery has a strong business in brewing beer, but lacks professional management expertise and venturing into the wrong business. only then, will the company get out of the red.
- Explains that breckenridge brewery is a two-tiered concept with top microbreweries producing fresh, quality beer and chain of brewpubs.
- Explains that breckenridge brewery has only expanded eastwards and the west side of the country is relatively untouched.
- Explains that the industry environment has a more direct effect on the firm's strategic competitiveness and above average returns. regional specialty breweries have grown steadily from 1 in 1986 to 33 in 1996.
- Explains that there is a growing market for 'alcohol pops' and pressure groups like madd (mothers against drunk driving) which may put unwanted pressure on beer manufacturers.
- Explains that breckenridge brewery has a strong product line up which is different from the large breweries.
- Explains that breckenridge brewery has no formal system of planning and no detailed, company wide strategy.
- Explains that breckenridge brewery needs a professional management team if it is to turn in profit or grow further.
- Cites hitt, ireland and hoskisson (2005), strategic management : competitiveness and globalisation, 6th edition, thompson & south-western, and thompson and strickland (2002).
1661 wordsRead More - Fonterra Business Reportexplanatory essayEnvironmental scanning is the process of gathering information about events and their relationships within an organization's internal and external environments. The basic purpose of environmental scanning is to help management determine the future direction of the organization (Barnat, 2004). For a business to succeed, it is important to study the business environment of the firm that consists external and internal influences that affect the firm’s decisions and performance (Grant, 2010). Environmental scanning includes the assessment of Macro and Micro environmental analysis.
In this essay, the author
- Explains that environmental scanning is the process of gathering information about events and their relationships within an organization's internal and external environments.
- Explains that the first phase of a strategic analysis, macro environmental analysis, is the assessment of opportunities and threats to the industry where the firm belongs that is outside the control of our industry.
- Explains that political influences refer to the stability of the political environment and the manners of political parties and their philosophy.
- Explains new zealand's economic position is improving despite an increasingly restrained global outlook. business confidence has been positive after the economic recession in 2008, and australia did not suffer the worst of the global recession.
- Opines that the overall economic outlook of new zealand is improving as well as labor market, which gives confidence for wetrust in generating revenues and supporting the country economic growth.
- Explains that technology plays a critical function in business and varies from one business to another. updated technologies can help firms become market leaders while outdated technologies keep the companies delaying to respond to changes.
- Explains that wetrust is being operated as a sole proprietorship that will abide to the law and is liable to tax as required by the rules and regulations of the government of sme sector.
- Explains that environmental factors include the consideration of environmental regulations depending upon the industry. wetrust aims to develop an environmental and sustainability strategy for protecting and preserving the environment in new zealand.
- Explains that wetrust is a one-stop solutions provider for every business as we offer recruitment, selection, and outplacement services along with consultancy solutions.
- Explains that the company also offers outplacement services to the employees/employees as the number of redundancies among the companies is increasing.
- Explains that wetrust strives to provide high-end quality services to its customers, thus building lasting relationships.
- Opines that wetrust will be a new company in the industry and will have to establish itself with continued good performance.
- Explains that the company has a low financial backup due to limited availability of funds, and being new, it will take some time to establish its credibility among the banks.
- Opines that wetrust will be a new player in the industry and will take some time to create more awareness and create brand loyalty.
- Opines that auckland-based company wetrust will access more business opportunities in the upcoming future.
- Explains that the company will be offering services to its customers at low competitive prices, thus creating more opportunities in the market.
- Explains that wetrust will constantly look for technological up-gradations and innovations in order to provide high quality services and create opportunities for advancement.
- Opines that wetrust will face tough competition from stronger players in the market providing recruitment and hr consultancy services.
- Explains new zealand is one of forbes' 2012 best countries for business as a free market economy that can compete globally and ranked no.1 in the world for absence of protectionism.
- Explains that social forces take into account the aspects that impact the market and industry socially, such as demographics, cultures, traditions, lifestyle, attitude & behavior, and quality of life. the increasing population growth rate, positive and can-do attitude of new zealanders, optimistic social trends and expectation toward business will provide a fine environment for wetrust to enter
- Opines that wetrust will thrive to aggressively establish its credibility among its customers and capture the market in a short span of time.
1356 wordsRead More - The components of the macro environment are the political-legal environment, the economic environment, the socio-cultural environment, and the technological environment in which Euro Disney operates.
In this essay, the author
- Explains that the macroenvironment is composed of the political-legal, economic, socio-cultural, and technological environment in which euro disney operates.
- Opines that a closed type of theme park could have been suitable for the weather changes.
- Opines that euro disney's marketer should have scanned the environment before entering a market, analyzing the mega-environment as well as the task environment for possible opportunities and threats.
- Analyzes how euro disney's decision to open its theme park near paris has caused a negative publicity in the sight of many french politicians.
- Opines that euro disney marketers should have anticipated people's resistance toward the theme park and changed their positioning in accordance to the cultural and lifestyle changes.
- Analyzes how euro disney failed to recognize the recession period in europe. recession usually means higher level of unemployment.
- Explains that euro disney's competitors overpricing products and tickets has given a place for competitors to enter the market and gain customers.
- Explains that euro disney's strength is its well-known and established tradition and brand name. the existence of their own television programme is a strength, thus transformed into opportunity to advertise its products.
1395 wordsRead More - Marketing: Segmentation, Targeting and Positioningexplanatory essayThere are six primary micro environmental factors that usually influence Boots’ business activities, each of the microenvironment factors consists within itself a self-contained micro environment that is alone but allows interaction between other micro environments. The six primary micro environmental factors are divided into two groups one which directly impacts Boots’ and the other that doesn’t.
In this essay, the author
- Explains that segmentation, targeting and positioning (stp) is the most used strategic way in marketing. it aids marketers to prioritize ideas and create and advertise unique and appropriate slogans to communicate with various segments.
- Explains that segmentation is a marketing strategy that involves separating large target market into small groups of customers who share the common need of using or purchasing the product that needs to be marketed.
- Explains positioning in terms of marketing is the process of identifying a problem that needs to be addressed in marketing or an opportunity to increase the brand image or increase sales volume by having an increased reach in advertising.
- Explains that there are six primary micro environmental factors that influence boots' business activities. each of the microenvironment factors consists of a self-contained micro environment that allows interaction between other micro environments.
- Explains macro environmental factors are external forces that impact how boots functions. they are out of the businesses reach and require change the operating way of that particular organization.
- Explains that there are many models that depict the behavior of a consumer and the steps they go through in order to purchase.
- Opines that understanding the behavior of the buyer is crucial to marketing but it does not stop there to be a successful business for the long haul buying patterns.
- Explains that pharmaceuticals giant boots has an open innovation initiative back in 2010 through its centre for innovation. it has stayed competitive by bringing outstanding ideas to its shelves of nearly 1400 stores in the uk.
- Explains that the price was competitively placed for £6.80 when they were released. although 50% of mouth ulcer sufferers don't seek treatment, this solution was hands free and the patch was also dissolvable after relief.
- Explains that the product received center piece attraction as it was an innovative game changer in the ulcer industry.
- Explains that promotion boots gave free samples in the beginning to gain customer trust of the product and give the customers a chance to use this innovative product.
- Explains that boots works with its colleagues in its stores to ensure that it does not run out of stock and in finding out the most effective delivery routes and times.
- Explains that boot deliveries are made during off peak times so that the goods can reach stores at scheduled delivery times and also using less fuel.
- Describes the benefits of double-deck trailers for reducing fuel costs and manpower costs.
- Explains the concept of back loading, which involves returning trucks from deliveries to collect supplies from suppliers or warehouses en route.
- Opines that domestic marketing is limited as there will be high competition on a small area, whereas when it comes to international marketing the possibilities are endless.
- Explains that more customers means more profit, a basic rule of business, but foreign currency flowing into the home country is also an incentive.
- Explains that domestic marketing only uses a limited amount of technology, but international markets require more technological aspects.
- Explains that domestic marketing has nothing to do with politics but international marketing leads to improved relationships with foreign nations.
- Explains that international marketing faces lots of barriers like currency exchange rates, cultural differences, political relations, customs, etc., whereas domestic marketing only faces a fraction of these barriers.
- Explains that marketing a service isn't the same as marketing one. nearly all products come with multiple services.
- Explains that there are many factors which make marketing a service different from marketing an product.
- Explains the three strategies that are generally used for identifying the most profitable target markets.
- Explains that boots needs to understand the factors that motivate a buyer to buy the product. understanding the psychology of how and what makes customers buy ensures successful marketing.
- Explains that boots keeps competitive with their competition by bringing the next best thing and to achieve this they have listed of innovation needs on their website. if anyone has successfully come up with an effective solution to any of the needs listed they can submit it for a review.
- Explains that alliance healthcare is the backbone of alliance boots' distribution services. it delivers goods to nearly 5700 pharmacies in the uk alone.
- Explains that both domestic and international marketing refer to the same marketing principles. however, there are glaring dissimilarities between the two.
1705 wordsRead More - The Business Environmentexplanatory essayThe business environment that firms operate in can be divided into the internal environment and the external environment.
In this essay, the author
- Explains that an organisation exists in its environment, which provides resources and limitations.
- Opines that the organisation depends on its environment for the resources and opportunities necessary for its existence.
- Explains that the environment contributes resources to the organisation only if it returns desired goods and services to it.
- Explains that environmental factors affect an organisation in two ways: they set limits and pose threats, and they also provide opportunities and challenges.
- Explains that cigarette manufacturing, liquor making, filmmaking, pharmaceutical companies, etc., have an obvious impact on their environment.
- Explains that the business environment that firms operate in can be divided into the internal environment and the external environment.
- Describes the factors or forces that affect the day-to-day activities of the business.
- Opines that the ultimate aim of all business organisation is to create a customer. customers expect quality goods at reasonable prices, while management seeks to win customers' loyalty through factual information about their products.
- Opines that suppliers are responsible for continuous and uninterrupted supply of raw materials to feed the production cycle which converts them into finished goods.
- Explains that in capitalism, it is the market force that decides the organisations which will prosper and the ones that will perish. in pursuit of survival and growth, organisations must compete with one another.
- Explains that shareholders can influence firm policies and procedures by exercising their voting rights. company directors and managers are now more conscious of the decisions they make and how they carry out their responsibilities.
- Explains that firms depend on banks, insurance companies, and other financial organisations to provide them with capital to carry out their business activities.
- Explains that the firm must take care of the needs of its employees by providing a conducive environment for them.
- Describes the major forces outside the organisation that have the potential to significantly influence the firm's success.
- Explains that availability of resources affects the location of industries. constraints in the physical environment determine the type of business activities carried out.
- Describes the laws and regulations passed by the government to control business activities. these laws act as guidelines within which the business must operate.
- Explains that the economic environment refers to the state of the economy in the country, unemployment, inflation rates, trading and business arrangements.
- Explains that the social elements of a country have an impact on the business firm. the products and services provided depend on demographics, values and attitudes, and the culture of society.
- Explains that breakthrough in technology can affect a business by allowing it to take advantage of new methods of production, new materials for manufacturing goods, and better services to its clients.
- Opines that shareholders are unlikely to contribute to the company's future requirements if they don't receive a fair return on their investment.
- Argues that socially oriented activities weaken the firm's goal of profit maximisation. money spent on social projects improves external environment and in turn allows the organisations to prosper.
- Explains that managers of businesses are evaluated strictly on economic performance; rewards go to managers who keep costs down. social responsibility cannot be left to individual firms and managers must be enforced by law.
1258 wordsRead More - Nike Reportexplanatory essay2) companies evaluate their decisions rationally with the goal of maximizing profits as a group, whereas consumers evaluate their decisions as individuals with the goal of maximizing their personal satisfaction,
In this essay, the author
- Explains nike inc. was founded in 1962 by bill bowerman and phil knight as a partnership under the name blue ribbon sports. their modest goal was to distribute low-cost, high-quality japanese athletic shoes to american consumers.
- Explains that nike's brand images, including the nike name and trademark swoosh, represent one of the most recognizable brands in the world. aggressive advertising campaigns, celebrity endorsements, and quality products enhance the brand.
- Explains how nike evaluates applying game theory to predict consumer reaction to a marketing message. share of mind is achievable through an appropriate media mix.
- Explains that nike's advertising campaign, reincarnate, was about athletes 'leaving their old selves behind' and discovering their potential.
- Explains that nike's marketing takes into account the different needs of athletes and consumers and uses its website to communicate with these groups via in depth content, product information and athlete insights.
962 wordsRead More