The micro environment encompasses all the entities that affect the function ability of the enterprise. These include suppliers, marketing intermediaries, customers, competitors, and publics. Three of the above will be further explained.
Suppliers: can be viewed as the main artery, they supply the materials used in production. The larger the suppliers’ contribution to the business: the greater their impact on the business decisions. For instance an owner owns a fishing business “Fin-tastic Fish Shop”, where they provide fish fillets to local restaurants. The owner depends on eight fishermen from Gouyave who collectively own a large fishing boat. Unfortunately a major accident occurs and the boat is out of commission. The owner of Fin-tastic Fish shop is now left stranded and may have to depend on smaller suppliers whose contribution cannot meet the demand. Depending on the quality of the relations between the Shop owner and the fishermen he can assist in recovering of the boat. It is wise to treat suppliers as partners especially is they are the main supplier(s) to you enterprise.
Customers: is the force that keeps most if not all companies alive. “Customers are one of the most important actors in the company’s microenvironment” as cited in Kotler & Armstrong, Principles of Management, 2014. Custo...
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...its citizens’ moral ethics. Consequently, in 2008 when the issue of erecting Casino gambling houses in the country, there was uproar in the nation. Regardless gambling being an illegal activity, and seemingly lucrative investment, for its investors, scores of people objected because of moral persuasions. Furthermore, firms who regard its society take responsibility for its actions and mitigates against negative externalities when it can.
Conclusively, there are three kinds of companies; “those who make things happen, those who watch things happen and those who wonder what’s happened” Kotler & Armstrong, Principles of Management, 2014. Every company has the direct responsibility for the life of its business. Viable plans are not enough. There must be a plan to be customer oriented with strategic plans that empowers the firm to “profitably meets the needs of society”.
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