Environmental factors in marketing are classified into two (2) groups the macro and the micro environment. According to the investopedia Macro environment is the conditions that exist in the economy as a whole, rather than in a particular sector or region. In general, the macro environment will include tends in gross domestic product (GDP), inflation, employment, spending and monetary and fiscal policy. The macro environment is closely linked to general business cycles, as opposed to the performance of an individual business sectors.
Micro environment, the aggregation of all elements in or immediately surrounding a business that can affect its performance including its internal environment, its suppliers, its marketing intermediaries, its customers, its competitors and the community.
Factors that affect the business environment in the host country include currency value, transportation cost, language and culture. The value of a currency is done by the banks that deal with foreign exchange; exchanged rate is determined by inflation, national income natural resources and market forces. As a Jamaican company moving into the economy it would be very costly to our firm seeing that with the US reaching a trade deficit it has allowed our Jamaican currency to devalue. To deal with this issue is to allow the government to intervene in the market and buy these US currencies and this will reduce the demand of the currency and allow the US currency to depreciate its value and the Jamaican dollar appreciates in value. This will allow the government to manipulate the exchange rate so that the Jamaican economy can benefit at the expenses of others. In addition the government can revalue the currency as well and this can reduces the cost on the...
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...are implemented by the government and these may include tariffs, subsidies and quotas.
Tariffs are taxes imposed on imported goods or service; custom duties are placed on imports to make prices close to those of the competing domestic product. A subsidy is a form of government payment to a producer. Types of subsidies include tax breaks or low-interest loans; subsidies can also be cash grants and government-equity participation, which are less common because they require a direct use of government resources. Quota is a government-imposed limit or restriction on the number of units or the total value of a particular product or product category that can be imported (keegan, 2009). How Juici can deal with this situation is to go into a trade agreement with the government as the amount of patties can be imported in the market, and how will it benefit their environment.
It is important to recognise the main features that affect a business in view of the macro and micro-environmental factors.
A micro level focuses more on working with an individual or with a particular family. It is the study of small-scale structures and perspectives in the society. It focuses more on one on one interaction with the patient and their immediate family.
Business environment includes the internal as well as external factors that affect the operation of a business. Therefore, business environment is the sum total of the forces or the surroundings that have an influence on the business operations. The internal environmental factors are usually controllable because the management has control over it. Whereas the external environmental factors are difficult to control by the company. There are two types of external environment: Microenvironment and Macro environment.
The IMF representative in the clip claims that, “They needed to expand their exports and diminish their imports and the best way of doing that is to make foreign currency more expensive.” Whether done intentionally or not, the only economies that seemed to have prospered from this new relationship and reduced trade barriers are those countries that are already economically sufficient. Judging from the negative effects that befell Jamaica when it reduced its trade barriers, it could be concluded developed countries were looking for new markets to import their goods and set their eyes on Jamaica, a tiny country that they could easily intimidate into submission. In the video clip, vendors complained about the large amounts of foreign fruits and vegetables that were now in their market and stated that these imports were hurting their businesses. While local farmers are failing to find a market for their produce, foreign countries have found a market for their exports in the local supermarkets. As mentioned in the video clip, supermarkets seemed to be doing well with the overseas produce because they are being sold for less than the local produce. The reduction of trade barriers has introduced a new competitor to Jamaican markets that mirrors
The Macro-Environment is the most external environment the business can operate in. It has uncontrollable factors on which the business cannot control. There are six variables that are going to be discussed.
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.
The macroenvironment, level I of the customer value funnel, consists of society, demographics and psychographics, as well as natural, physical, political, legal and technological forces. While collaboration, competition, suppliers and regulators make up the microenvironment, level II of the customer value funnel.
There 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.
Understanding the economics of our time, we have to first differentiate between the two. With Macroeconomics, the government can regulate the buying and selling of products, foreign or domestic. With Microeconomics we can also regulate the buying and selling of products, within the confines of the companies that produce the items we use on a daily basis.
There are many differences between macro and micro-level theories. Micro-level focuses on individuals and their interactions. For example the relationship between adult children and their parents, or the effect of negative attitudes on older people. Some criticize on micro-level theories becuase they focus on what older people do rather than on social conditionsand policies that cuase them to act the way they do. Macro-level focuses more upon social structure, social processes and problems, and their interrelationships. For example the effects of industrialization on older people's status, or how gender and income affect older people's well being. This approach tends to minimize people's ability to act and overcome the limits of social structures. Both micro and macro-leve theories can take one of three perspectives which include: interpretive perspective, normative, and conflict.
A firm’s business environments include both internal environment defined as a set of conditions such as strengths, resources, capabilities, etc., within the firm that affect the choices and use of strategies, and external environment that is defined as conditions outside the firm that affect the firm’s performance.
Mesoenvironment or competitive environment basically decides the competitive situation of the industry of which your organization forms part of. This includes all the organizations involved from production to consumption. All these organizations form part of supply chain management, which include original producers, intermediaries, semi-manufactured products makers or spares producers, producers of end products, distribution channels, transporters, warehouses, cold storages, and consumers. If any of these organizations fail to do their part it will weaken the entire supply chain management. However Mesoenvironment can be best understood through “Porter’s Five Forces Industry Analysis”. This consists of:
Environmental 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.
Economics is basically the understanding of how different economies function. Economics is the study of how to best allocate scarce resources among competing uses. Scarcity in the economy is the main problem. There are not enough resources to keep up with the demand for them. Within the discipline of economics, there are two areas of study: Micro and Macro Economics.
What is Microeconomics? This question was left unanswered when I initially enrolled in this course. Microeconomics is the social science that studies the implications of individual human actions, specifically about how those decisions affect the utilization and distribution of scarce resources. Microeconomics shows how and why different goods have different values, how individuals create more efficient or more productive decisions, and how individuals best coordinate and cooperate with one another. Microeconomics does not try to explain what should happen in a market, but instead only explains what to expect if certain conditions change. For instance, If the price of the new iPhone 8 is higher than the previous model will the consumer buy it? There are several elements that will play into getting an answer for this question, but gives you a general idea of what microeconomics entails.