...Analysis of the Macroenvironment The purpose of this paper is to describe and explain the macro environment of a company in the marketing setting, and to outline the macro environment of Cadbury Chocolate. In their book Principles of marketing (Armstrong 2010), the authors give six factors that are the macro environment of a trading entity. They are 1. the demographic environment, 2. the economic environment, 3. the natural environment, 4. the technological environment, 5. the political and social environment and 6. the cultural environment. The demographic environment. Demogrophy refers to the science of vital and social statistics (Delbridge 1997) These statistics of a population will determine the products that the population need or desire, and the type of marketing that will be effective. Australia and other first world countries that are the target market for Cadbury, are countries with a large middle class, that earn a good wage or salary and have a reasonable amount of disposable income. Cadbury chocolate produce a product that is a delicacy and is affordable by a large portion of that population. The economic environment Australia has a strong economy, compared to other first world countries. Unemployment remains in the low five percent range. Confidence in the future, although not high, is not dismal. People who have disposable income are prepared to spend it rather than save. Cadbury Choclate have marketed their product such that it is desirable by, and affordable...
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...To fully analyse the Macro business environment, one must look at: *Please note that all answers are according to the information acquired during the interview with the owner* Strengths: The fact that the business is owned and run by family only means that all employees are fully committed to the business. They rely on hard work and dedication in order for the business to succeed. This means that the human resources of the business are at the strongest possible level, and that there is a limited chance of failure due to a lack of dedicated employees. Staff have also been described to be extremely dedicated towards their work, and are professional in the way they conduct their allocated tasks within the business itself. The business’ main source...
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...link macro-environment (noun) DEFINITION OF MACRO-ENVIRONMENT Larger societal forces that affect the micro-environment. EXAMPLES OF MACRO-ENVIRONMENT IN THE FOLLOWING TOPICS: Scanning and Analysis All organizations should continuously appraise their situation and adjust their strategy to adapt to the environment. One technique used by organizations to monitor the environment is known as environmental scanning. It allows marketers to understand the current state of the environment, so that the organization can predict trends. The Macro Environment There are a number of common approaches for how the external factors, which describe the macro environment, can be identified and examined. The segmentation of the macro environment according to the six presented factors of the PESTEL analysis is the starting point of the global environmental analysis. Environmental scanning is one technique used by organizations to monitor the environment. The Dynamic Environment It is important to place equal emphasis on both the macro and micro-environment and to react accordingly to changes within them. The Marketing Environment Two key levels of the marketing environment are the micro-environment and the macro-environment. The Micro-environment The micro-environment includes the company itself, its suppliers, marketing intermediaries, customer markets, and competitors. The company aspect of micro-environment refers to the internal environment of the company. The Macro-environment...
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...ScholarlyScholarly Assignment-MACRO Analysis Research Strategies to be used by my Company For Keynes, the tension between rational calculation and the incalculable future is managed by the nature of humankind and our animal spirits . Keynes had an ambivalentview of uncertainty. He saw in the lack of rational control an undesired but unpreventableeffect of economic decision-making since the indeterminacy of the future is the prerequisitefor all autonomous and innovative rational activities. As Bernstein (1997, p. 229) puts it: ‘uncertainty makes us free.’This freedom to act is accompanied by the need to prepare for the undesired effects of risk-taking. The development of the statistical probabilistic skills to calculate the future contributed to the ‘modern’ response to uncertainty through insurance. Insurance was developed in Britain in the late 17th and early 18th centuries to meet the needs of mercantile capitalists to share the uncertainties of maritime trading. The growth and increasing wealth of the middle classes in the 19th century resulted in the expansion of insurance to protect against house fire and premature death (Evers and Novotny 1987, p. 36) Analyzation of the Macro environment using a PEST analysis The Macro Environment Analysis is traditionally the first step of a strategic analysis; it is sometimes referred to as an external analysis, a pest analysis or a pestle analysis. The purpose of the Macro Environment Analysis is to identify possible opportunities...
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...ENVIROMENTAL ANALYSIS Apple Watch For describing and analyzing the enviroment that involves our new product Apple Watch we should make a study about its internal (micro) and external (macro) enviroment. First of all, we will describe what is the micro and macro enviroment analysis. The micro environment, as the name suggests, is the immediate environment that impacts a business. The micro environment includes considerations related to suppliers, customers and local stakeholders, including local government agencies or regulatory bodies. The micro environment can generally be considered the local environment where the business Macro Environment The macro-environment includes those things that may impact small businesses but which are outside of their control. It is the larger, external environment within which businesses operate from an industry or economic standpoint. For describing and analyzing the enviroment that involves our new product Apple Watch we should make a study about its internal (micro) and external (macro) enviroment. First of all, we will describe what is the micro and macro enviroment analysis. The micro environment, as the name suggests, is the immediate environment that impacts a business. The micro environment includes considerations related to suppliers, customers and local stakeholders, including local government agencies or regulatory bodies. The micro environment can generally be considered the local environment where the business Macro Environment The...
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...Strategic Planning Template Macro Environment Analysis Whatmakesagoodleader.com 1.1 External or Macro Environment Analysis Review the macro environment and list the trends that may affect your business. When completing a macro environment analyses you will be seeking to answer the questions “what will affect the growth of our industry as a whole” and “What is the likely impact of all of the things that affect the growth of our industry” The things that may affect your industry as a whole may also affect many industries, such as interest rate rises, however you are only concerned with the things that affect your industry. This template contains examples of trends to consider, the list is to be considered by no means exhaustive. You will have to review the examples provided and update the list with the trends that are more likely to affect your industry. Effect on industry growth Positive/negative Environmental factor Technological Factor Web for business transactions Technology for your products Technology for you process Genetic engineering Voice recognition computing Fibre-optics Electronic communications Composite materials Nanotechnology Comments Example: increased ecommerce. Page 1 of 4 Strategic Planning Template Macro Environment Analysis Whatmakesagoodleader.com Environmental factor Economic Factors Personal income rate Disposable income Average household debit Personal saving rate Unemployment rate Inflation rates Interest rates Exchange...
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...Environmental Scan Paper The business environment of an organization reveals much about its competitiveness and the possible influences on the success of its strategies. The focus of this paper will be an environmental scan of the internal and external environments of two real-world firms, their competitive advantages and company strategies for creating value and sustaining competitiveness, measurement guidelines for verifying strategic effectiveness and their evaluation. Internal and External Environments Environmental scanning of the internal organizational environment focuses on company culture, employee-employee, manager-employee, and manager-manager, manager-shareholder interactions, in addition to organizational structure, natural resources’ access and brand awareness, among others (Schneider, 1995, p.70). Environmental scanning of the external organizational environment focuses on the analysis of the industry/immediate environment, national, and macro-environments. Analysis of the industry environment appraises the competitive Environmental Scan Paper The business environment of an organization reveals much about its competitiveness and the possible influences on the success of its strategies. The focus of this paper will be an environmental scan of the internal and external environments of two real-world firms, their competitive advantages and company strategies for creating value and sustaining competitiveness, measurement guidelines for verifying strategic...
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...CHAPTER 3: THE MACRO ENVIRONMENT MGMT 488 – STRATEGY AND POLICY OVERVIEW The macro environmental analysis is the first step in creating the Environmental Analysis. The macro environment examines the general business climate as it relates to the organization, but has nothing to do with the organization itself. The macro environment is primarily concerned with major issues and upcoming changes in the environment. The acronym for the macro analysis is “STEEP.” The five areas of interest are Socio-cultural and demographics; Technology; Economic conditions; Ecology and physical environment; and Political and legal. SOCIO-CULTURAL AND DEMOGRAPHICS Societal values and lifestyles change over time, and the most important of these should be discussed. For example, over the past generation, it has become acceptable for women to work outside the home – or not; smoking is not as acceptable as it once was; people are not retiring at 65; students going to college are older; and people are more aware of the environment and healthful living styles. The changes in values and lifestyles may come from many sources: medical (smoking, healthy eating, exercise); science (global warming, going “green”); economic (people working longer, women in the workforce); cultural diversity (music preferences, foods, living accommodations, medicine); and technologies (Internet dating, biodegradable plastic) are just a FEW examples. Some changes in values and lifestyles will be important to the industry...
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...asfasfsfsafsafsding PESTEL analysis to understand how the macro-environment factors affect the industry. Each single factor has the potential to fundamentally change the competitive Samsung operates in. Due to the fact that the mobile industry is easy to be influenced by external environment, the analysis is especially important for Samsung. As PESTEL is one of the frameworks that help to understand market growth or decline, business position, potential and direction for operations (Kotler, 1998). We hope that after reading this report, you will agree that PESTEL really affect how a company works. ing PESTEL analysis to understand how the macro-environment factors affect the industry. Each single factor has the potential to fundamentally change the competitive Samsung operates in. Due to the fact that the mobile industry is easy to be influenced by external environment, the analysis is especially important for Samsung. As PESTEL is one of the frameworks that help to understand market growth or decline, business position, potential and direction for operations (Kotler, 1998). We hope that after reading this report, you will agree that PESTEL really affect how a company works. ing PESTEL analysis to understand how the macro-environment factors affect the industry. Each single factor has the potential to fundamentally change the competitive Samsung operates in. Due to the fact that the mobile industry is easy to be influenced by external environment, the analysis is especially important...
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...CHAPTER 3: THE MACRO ENVIRONMENT MGMT 488 – STRATEGY AND POLICY OVERVIEW The macro environmental analysis is the first step in creating the Environmental Analysis. The macro environment examines the general business climate as it relates to the organization, but has nothing to do with the organization itself. The macro environment is primarily concerned with major issues and upcoming changes in the environment. The acronym for the macro analysis is “STEEP.” The five areas of interest are Socio-cultural and demographics; Technology; Economic conditions; Ecology and physical environment; and Political and legal. SOCIO-CULTURAL AND DEMOGRAPHICS Societal values and lifestyles change over time, and the most important of these should be discussed. For example, over the past generation, it has become acceptable for women to work outside the home – or not; smoking is not as acceptable as it once was; people are not retiring at 65; students going to college are older; and people are more aware of the environment and healthful living styles. The changes in values and lifestyles may come from many sources: medical (smoking, healthy eating, exercise); science (global warming, going “green”); economic (people working longer, women in the workforce); cultural diversity (music preferences, foods, living accommodations, medicine); and technologies (Internet dating, biodegradable plastic) are just a FEW examples. Some changes in values and lifestyles will be important to...
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...Macro Environment Analysis Definition Macro environment analysis is a review of all the factors that a company is unable to control. Companies conduct this analysis to stay aware of the issue in the current business environment. A common tool for conducting a macro environment analysis is the PESTEL framework, which include factors from the political, economic, social, technological, environmental and legal aspects in the business environment. The ultimate purpose of this analysis is to create a strategy that will leverage as many of these external factors as possible to the company’s favor. The political factors of the PESTEL analysis include the current stability of the government, social welfare policies imposed upon companies, trade tariffs or regulations that restrict international business and tax policies on corporate profits. This information is quite important to businesses, as extremely difficult political situations often result in lower profits and a more inflexible business environment. A macro environment analysis may focus heavily on the political factors in countries with difficult business environments. The group of external factors for this analysis comes from the economic factors within a country. Companies are unable to control issues like the income of buyers in the market, available credit offered by banks, unemployment, interest rates and inflation found in the economic market. These factors can also affect the company, lowering purchasing power...
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...3.0 Introduction of SWOT Analysis Managers do external and internal analysis for organization to see the trends and changes of environment to make better decisions. SWOT analysis is an analysis of an organization’s strengths, weaknesses, opportunities and threats.(Robbins & Coulter, 2009). 3.1 Strength Strength defined as power such as skills and resources that help to achieve competitive advantage and organization’s goal. Basically, it involves internal valuation about environment inside the organization. It tends to refers to current factors. (SWOT Analysis Definition. n.d). Strength is that an organization can achieve competitive advantage by critically exerting available resources to execute strategies in pursuit of its mission. (Kinicki and Williams, 2008).For instance, strategically distribute the usage of raw materials for different productions to prevent waste of resources. Besides, way of carry out a business can be implementing effectively to fulfill operation objectives. Strengths can be intangible such as what employees in an organize proficient in. For example, how employees make work done in a successful way through characteristics and qualities they owned. Moreover, factors related to product, pricing, qualities clearly manifests tangible strength of an organization. Strengths can include useful features such as brand loyalty and customer goodwill. Example can be wide product line that satisfied consumer’s needs or committed workers that...
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...0px; outline: 0px; padding: 0px; vertical-align: bottom; border: 0px;"> Home Page » Business and Management Pest Analysis In: Business and Management Pest AnalysisWhat is PEST Analysis? A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment. Such external factors usually are beyond the firm's control and sometimes present themselves as threats. For this reason, some say that "pest" is an appropriate term for these factors. However, changes in the external environment also create new opportunities and the letters sometimes are rearranged to construct the more optimistic term of STEP analysis. Many macro-environmental factors are country-specific and a PEST analysis will need to be performed for all countries of interest. The following are examples of some of the factors that might be considered in a PEST analysis. It is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning. The organization's marketing environment is made up from: 1. The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc. 2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our competitors, etc. 3. The...
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... Student ID: 12449 INTRODUCTION: That assignment consists of two parts. In first part, we will discuss the macro environmental factors that will affect BP (British Petroleum), when they have to consider their future strategic decision in order to regain their market position in the USA. In second part, we will suggest a marketing plan for BP to consider to recover from this ‘‘marketing disaster’’. The disaster is the Gulf of Mexico oil platform (which is the Deepwater Horizon) explosion occurred, millions barrels of oil have been leaked in the region for a few months. That infiltration is the largest environmental disaster in U.S. history. The goal of macro environment analyse is to see that marketing opportunity and threats were given by changes and trends in macro environment. Focusing on them for marketers helps to take decision and modifies their strategies and plans. The marketers wish to know which elements of macro environment affect their planning and how they influence future strategies. We will see the strong point and factors of macro environment which are the social and cultural environment, political and legal environment, economic environment, technology environment and demographic environment. And we will consider the “how these factors influence the decisions.” That assignment begins with the definition of the company which is BP. The company is active in...
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...Japan's number one car manufacturer. Its brands include Lexus, Toyota and other series such as high low-end models. Toyota has an international presence in over 170 countries worldwide. Toyota Motor Corporation since 2008 and gradually began to replace General Motors as the world ranked number one car manufacturer. However, the company of the Toyota had a bad year in 2010. They had plenty of manufacturing problems in different countries around the world. So the company needs to recall lots of cars. The incident brought to Toyota big losses. Porter’s Five Forces Perspective and PEST analysis are from different area. Porter’s Five Forces Perspective is used for the analysis of competitive strategy, and can effectively analysis customs of the competitive environment. PEST analysis is a macro-environment analysis. Its’ macro-forces is refers to the impact on all industries and enterprises. Its’ macro-environment can be focus on various situations. The first part is focusing on these two theories that using I chosen the company of Toyota as an example to overview and critique these two theories. Then compare and contrast these two theories. At last, conclusion this report and given some advises for these two theories. 2. Overview and Critique of theory 1 2.1 Overview the Porter Five Forces Perspective Porter five forces perspective has also known as Porter’s five competitive model. This model was first used by Michael Porter (Porter) made. This model was published in 1979 on the "Harvard...
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