Essay On Macro Environment

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Recommended: Effectiveness of the business 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 initial environment, these are

• Suppliers
• Marketing intermediaries
• Competitors
• 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

• Demographic
• Market globalisation
• Economic, “credit crunch” and economic recession
• Natural disaster and International terrorism
• Technological, Internet
• 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.

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 same organization hereby we want to select SMS Siemag.

The SMS group unites global players in plant and machinery construction for processing steel and NF metals, operating under the roof of SMS Holding GmbH. It consists of the two Business Areas SMS Siemag and SMS Meer as well as industrial participations. SMS Holding GmbH is responsible for strategic planning and control. The sole owner of the...

... middle of paper ...

...gy for metallurgical plants. The product ranges of Paul Wurth and especially SMS Siemag complement each other perfectly. That is why Paul Wurth will be associated with the Business Area SMS Siemag. The merger creates the basis for the further growth of both companies.

Improved communication: Since November 2013 SMS Siemag has its own intranet sites. All employees can access the new information platform to find the complete guidelines valid throughout the group as well as further information and applications. Apart from basic information on SMS group, the sites consist of standards, experts blogs, their experience and site information.

Competitive price: In fiscal year 2013, SMS Siemag made substantial progress towards goal of returning to new turnkey based steel plants business to profitability while continuing the cost reduction initiatives from fiscal year 2012.

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