The important external factors that affect the economic environment of a business are; i Economic Conditions: - The general Economic conditions prevailing in the country viz. As a result, the chief executive and the managers of the business enterprise have to have continuous dialogue with various government agencies to ensure growth and profitability within the framework of controls and restraints. In history, Vietnam is part of French Indochina. The main focus of all the departments must be the customer oriented behavior that ensures the delivery of superior value to customers and this is made possible through the efforts of the marketing department. Every manager in every kind of organization is encircled by a complete web of laws, commission and official regulations, and court decisions. These may also vary from one country to another.
The public have the power to help you reach your goals; just as they can also prevent you from achieving them. Technological Environment : Science is a systematised body of knowledge and when this knowledge is put into practice or to practical tasks it becomes technology. The negative impacts of tourism development can gradually destroy the environmental resources on which it depends. But they do comprise a complex environment for all managers. While formulating economic theories, Micro Economics assumes that other things remain constant. Example If the supplier increases the prices of raw material they provide to the company, it will impact the marketing mix strategy of an organization, which will end-up with the increase in price of finished goods. In Thailand, Helene Curtis switched to black shampoo because Thai women felt that it made their hair look glossier.
Broadband Internet access, Companies based in Mumbai, Mobile phone 1672 Words 5 Pages Macro- Environmental Factors Vietnam is a peninsula, which located in the Southeast Asia monsoon zone. Even to obtain it there are difficulties in getting a right foreign collaborator and obtaining clearance from government. Environmental impacts can include issues such as limited natural resources, waste disposal and recycling procedures. Threat of Substitute High : Given the lack of switching cost between alternative for the consumer and the availability of cheaper alternatives to packaged food this has caused the threat of substitutes to be high Bradley et al. Ethics and morals serve as guidelines on how to act rightly and justly when individuals are faced with moral dilemmas. The analysis looks at five areas of. This paper will analyze global economic interdependence.
The marketing course is ideal for individuals looking to build practical skills in operational marketing management and broaden their strategic perspective. Media and Social Media The way media acts can make or break an organization. In summary, the macro environment is involved with the industries, companies, markets, clients and competitors, while the micro environment can be represented by the suppliers, competitors. Business cycles and economic growth of the economy are important factors defining the economic environment. Definition The micro environment in marketing includes all those micro factors that affect business strategy, decision making and performance.
The macro-environment consists of six types of forces economic, demographic, cultural, natural, technological and political. For example, there are a number of T. Local media often help your story proliferate, for better or worse. Its long narrow territory stretches 1700km from north to south and in the center a mere 50km from east to west, the territory looks like a dragon stand at east of the Indo-Chinese peninsula. The macro-environment, however, includes factors that influence the organisation but are out of its direct control.
Judiciary examines if the authority exercised by government is in accordance with the rules laid down by the legislature. It is important to learn the business environment, so as to understand the effect of various forces on business. The environmental factors that are affecting marketing process can be classified into : 1 Internal environment and 2 External environment Internal Environment of Marketing : This refers to factors existing within a marketing firm. An organization must understand, what value added services their competitor is providing or the unique selling point of their competitors. Karminder Ghuman, 2010 page 37.
The macro environment is primarily concerned with major issues and upcoming changes in the environment. Technological forces come in several different forms. They offer services such as lodging, restaurant, bar, catering and meeting space rental. Electrical appliances and instruments in the U. They should supply all imputes of right quality and stated quantity in time. It is a part of the external analysis when conducting a strategic.
Biodiversity, Biology, Ecology 1511 Words 4 Pages Macro- environmental trends. The old days of a country being able to completely sustain itself are coming to a rapid conclusion. Customers are the target focus for the value delivery network. Public normally forms an opinion about different brands of the same product after using the same. Its elements include suppliers, competitors, marketing intermediaries, customers and the firm itself.
A clerical post in an office may now demand the services of an expert in computers etc. Microeconomics focuses on the patterns of supply and demand and the determination of price and also output in individual markets. If there is low motivation and low skilled employees, business would suffer as the employees would be least motivated towards sales. Yes No Influence Directly and Regularly Indirectly and Distantly Definition of Micro Environment Microenvironment refers to the environment which is in direct contact with the business organization and can affect the routine activities of business straight away. Arithmetic mean, Decision making, Management 767 Words 3 Pages Contents: Introduction Page 2 Macro Environment Page 2 Competitive Forces in the Tourism Industry Page 4 Conclusion Page 6 References Page 6 Introduction: This paper will be dynamically examining the tourism industry during the 2000s. The competitors of the Sofitel hotel compete in terms of price, service, facilities that they provide and costs. Marketing Intermediaries help to distribute , promote and sell the finished product to buyers.
The management team can therefore change these items, issues or policies to improve the of the company. Read interesting comparison Furthermore some firms have integrated backwards and produce their own raw material handicapping the suppliers further Bradley et al. Social inertia comes in the way of the promotion of certain products, services or ideas e. The economic system and policy are a very important external constraint on business. This results in the study of macroeconomics, which looks at overarching issues that affect all consumers in each group defined by economists.