Anticipation of future economic conditions will enable the firm to devise appropriate strategies. The manufacturing units and factories, for instance, will not be suitably located in the hilly regions for difficulties in transport, unless raw materials availability or suitable climatic conditions justify its location in that region.
Some of the most important demographic trends that affect markets are: A recent example of this is the environment and how many sectors are being forced to review their products and services in order to become more environmentally friendly.
The political environment includes all lawsgovernment agenciesand groups that influence or limit other organizations and individuals within a society. Because, on the whole, their needs is the reason for businesses to exist.
So the social and cultural factors have affected the production pattern of business. Competitors can be called the close rivals and in order to survive the competition one has to keep a close look in the market and formulate its policies and strategies as such to face the competition.
These are the same companies mentioned as market intermediaries. For example, planting of trees Afforestation programmes can substantially reduce air pollution near the industrial area. This may manifest in government influence on tax policies, or government involvement in trading agreements.
It also helps to develop all the ancillaries and supporting business. Latest technologies helps in improving the marketablity of the product plus makes it more consumer friendly.
Suppliers can control the success of the business when they hold the power. Dumping of garbage, dead bodies and almost everything used in rituals to the nearby water sources by households.
However, it is observed that the quality of this environment is deteriorating day by day. If your customers use disposable income to buy your product, knowing where you are in the economic cycle helps you plan production.
These includes growth rate, infation, restrictive trade practices etc.
So that they voluntarily try to protect rather than damage the environment. Nature has given us: Technology affects the society. Therefore, marketing decisions are strongly influenced and affected by developments in the political environment.
This force could include corporate social responsibility, fair trade, affiliation between corporations and charities. The low income may be the reason for very low demand for a product in a country.Definition of macro environment: The major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies.
As a new business manager, the first thing you must be in tune with is the state of microeconomics and macroeconomics. Adam Colgate. How to Handle External. The Impact Of Micro and Macro Environment Factors on Marketing There are two kinds of external marketing environments; micro and macro.
These environments’ factors are beyond the control of marketers but they still influence the decisions made when creating a strategic marketing strategy. Jun 29, · All retail companies operate within a “macro environment,” or the sphere of influence outside the company that shapes how companies do business.
The macro environment was not likely to change in the near future so we were able to focus on micro environmental variables. 18 people found this helpful The macro environment was always changing and causing us to implement new strategies to keep our business afloat and alive.
Jun 29, · Understanding the big picture macro environment helps a business adapt and compete in the market. The Role of Macro Environment in the Retail Industry Macroenvironmental Forces Affecting.
The Macro Environment – Six Forces in the Environment of a Business written by Maximilian Claessens 26th February The company is not alone in doing business.Download