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.
Many researches have been conducted on the influence that the increasing exchange rate has on the trade balance deficit in developing countries. This paper contributes to the literature by investigating and testing whether the J-curve phenomenon exists in Jamaica.
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.
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.
There are two types of environmental factors that can influence the marketing decisions of the business. For Amazon they are:
It is important to recognise the main features that affect a business in view of the macro and micro-environmental factors.
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.
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.
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.
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.
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.
The factors that have a great influence on marketing management, marketers’ business decision-making, and their relationship with customers include macro- and micro-environment, and the latter in turn includes the concept of so-called “4 P’s” (i.e., product, place, promotion, and price). Micro-environment is also referred to as “immediate environment” and stands for the factors that are literally “close” to a certain company: its suppliers, customers, intermediaries (e.g., advertising agencies), and competitors (“Marketing environment,” n.d.) Four P’s are also called “the marketing mix,” and their most widely used interpretation belongs to McCarthy (Blythe, 2008). The marketing mix indicates the four aspects of how to make your business profitable and yourself proficient as a marketing specialist. As Cannon (1992) pointed out, “The marketing mix is the set of controllable variables that the firm can use to influence the buyer’s response.” First, the business person needs to understand what the product of consumer’s desire is. It is obvious that “an undesired product” will not be sold. Producers, however, may invent something that consumers even did not expect to have but really wanted, at least, unconscious...
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.
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.
Besides that, also important to consider there is the difference in shipping costs from different ports, as it will change the “landed cost” of the item, and the retail price and profit margin. Then, Problems encountered in international business larger and more complex than the problems faced in the domestic business. In example, the manager of an international organization decides to reduce costs and maximize the value-added. They must decide whether it is ethical to comply with all labor and environmental standards are found to be lower in less developed countries. In addition, they must decide which one foreign market to enter and should be avoided. The domestic business manager was not affected by this factor directly, but they will be affected by the economic downturn of international trade.