The components of internal environment are controllable. In his various books, Porter developed three generic strategies that, he argues, can be used singly or in combination to create a defendable position and to outperform competitors, whether they are within an industry or across nations. The availability of the supplies is permanently watched by the organization to ensure the smooth working of its operations. This is a standout amongst the most impacting variables, in light of the fact that it manages the individuals who structure the business. Demographics, Economics, Environment 767 Words 3 Pages Explanation of what a marketing audit is: The purpose of a marketing audit is to review and appraise existing marketing activities and to look at the way the marketing is planned and managed, giving the opportunity for a systematic examination of each element of the organisations current marketing activity and achievements, and to objectively evaluate the effectiveness of the organisations investment in marketing.
Create goodwill among public, help to get a favourable response for a company. Legal Legal factors can limit or change how a business operates. It will have favourable effect on the business. For example, India has one of the youngest populations on earth and is expected to keep that status. The micro environment of a firm is all the actors within a firm which affects its ability to sell final products to its customers. Economic Factors Affecting Business The following article is a small elaboration of the major economic factors affecting business organizations. It's always wise to listen to customers; a company can gain insightful information that can lead to improvements or new services and products while sharpening their competitive edge.
Competitive Strategies Three of the most widely read books on competitive analysis in the 1980s were Michael Porter's Competitive Strategy, Competitive Advantage, and Competitive Advantage of Nations. Such forces or institutions are directly relevant to the organisational goals because they have direct and immediate impact to the decision and actions of the managers. In addition, customers are trying to associate themselves with good organizations that they feel are concerned for the environment. Environmental impacts can include issues such as limited natural resources, waste disposal and recycling procedures. The manager of marketing of a company ought to observe these distinctions before finalizing the marketing schemes. Organisations consist of specific groups of people who are likely to influence an organization, which are as follows: a Owners-Proprietor, partners, shareholders, etc. Competitive pressures - buyer bargaining power.
All of these may shape opportunities for the company, but could also pose threats. The Marketing Environment affects the organization's ability to build and maintain mutually beneficial relationships with its target customers. External factors , these include Macro factor and micro factors. Every country has different economic system. Social-Cultural Environment The social-cultural aspect of the macro environment is made up of the lifestyle, values, culture, prejudice and beliefs of the people. Publics can take the following forms. The firm should study the trends and development and the key success factors of the market, which are as follows: a The existing and the potential demand in market b Market growth rate c Cost structure d Price sensitivity e Technological structure f Distribution system, etc 4.
Uncertain supplies compel the firm to maintain high inventories resulting into increase in the cost. On the other hand, a sluggish economy decreases consumer confidence and can cause people to spend less, leading to declining sales and forcing retailers to lower prices. Physical Environment The physical environment includes the natural environment in which the business operates. Biotic component like human beings, animals and plants. It is surrounded by and operates in a larger context called the macro environment. Important trends in the ecological environment are the growing shortage of raw materials and the care for renewable resources. External environment is further classified as: I.
Low entry barrier, rapid innovation of supplier and changing demand of consumer create the product life-cycle shorten. Competitors: The competitive environment consists of certain basic things which every firm has to take note of. A firm needs adequate funds to meet its working capital and fixed capital requirements. Companies would be wise to spend time monitoring all their public understanding their needs and opinions and dealing with then constructively. Suppliers with their own bargaining power affect working and cost structure of the industry. The characteristics of human resource like skill, quality, morale, commitment can contribute to the success of the organisation.
This context is called the Macro Environment. The marketing audit assists in the evaluation of the whole marketing activity, and provides. The expectation of the society from the business is increasing. The business sector has economic relation with the government, capital market; household sector and global sector. Natural Environment The natural environment involves the natural resources that are needed as inputs by marketers or they are affected by marketing activities. They may include demographics, age distribution, population growth rates, level of education, distribution of wealth and social classes, living conditions and lifestyle. Political Political macro environment factors include things like tax policies, government-issued safety regulations, the availability of government contracts, and even shifts in the controlling political party.
Natural calamities like flood, drought, cyclone, Tsunami etc. They are beyond the control of the company. A company can rise and fall on the competence of its employees, so it's critical to find qualified candidates. The business environment is one of the most dynamic aspects of the business. The company has a duty to satisfy the people at large along with competitors and the consumers. Technology also opens new retail markets, with auction platforms like eBay and web-based retailers such as Amazon.