P G has also established industry leading go to market capabilities. The former affects the working of a particular business only, to which they relate to, while the latter affects the functioning of all the business entities, operating in the economy. More than half of all product innovation coming from P G includes at least one major component from an external partner. (iv) Economic Growth: - The stage of economic growth of the economy has direct impact on the business strategies. Flexible, durable, efficient, effective, political legal effects: Business regulations influence and limit the behavior of Rules individuals and organization. The economic system of a country may be capitalist, socialist, communist or mixed. These sectors together influence the trends and structure of the economy. Technological effects: ObsoletethereforeProducts features should be up to date. Economic effects: Lawproductexportsnewgrowth price service opportunities of GNP. It can also market to Lower Income consumers in both developed and developing countries, especially in order to diversify grade 11 macro environment essay its customer base and to capture greater market share, especially in emerging markets such as Russia, China and India. In P Gs swot analysis, the company experiences strengths like, industry innovation leader or Brand Building leader in the Industry.
Because the cultural and social environment has such broad effects, most people dont stop to think about it, or how it may be changing, or how it may differ for other people. It refers the major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies. Socio-cultural Environment: grade 11 macro environment essay - Changes in social trends can impact on the demand for a firm's products and the availability and willingness of individuals to work. These factors affect the demand for goods and services. Take a read of the given article to know the difference between micro environment and macro environment. E-commerce also offers further revenue streams and customer penetration. Class and caste are influencing the purchasing pattern.
The legislature decides on a particular course of action. Laws, governments bodies, pressure groups, conan is a green product, law tax rate Public acceptance Easier to launch Emphasis on ethics social responsibility. Significant competitors include: Unilever, Colgate Palmolive, Playtex, Avon and Estee Lauder. (v) The rate of interest affects the demand for the products in the economy, particularly when general goods are to be purchased through borrowed finance. National income, per capita income, economic resources, distribution of income and assets, economic development etc. The environment which is not specific to a particular firm but can influence the working of all the business groups is known as Macro Environment. The cultural and social environment affects how and why people live and behave as they do which affects customer buying behavior and eventually the economic, political, and legal environment. In fact, some of these same store brand private label products are manufactured by the large consumer products firms.
Economic Environment: - Economic environment of business has reference to the board characteristics of the economic system in which the business operates. P Gs policies for business conduct flow from its Purpose, Values and Principles. The firm itself is an aggregate of a number of elements like owners like shareholders or investors, employees and the board of directors. No, influence, directly and Regularly, indirectly and Distantly, definition of Micro Environment, microenvironment refers to the environment which is in direct contact with the business organization and can affect the routine activities of business straight away. And also it is a disposable product. This a highly attractive strategic option given that P G is constantly innovating ways to reach more consumers, and the Low-Income consumer group is one that P G greatly covets. The weaknesses include, at the mercy of large retailers (Wal-Mart, etc. The firms believe that if they can manufacture and package a lower price alternative themselves, they would rather accept the marginal revenue from their lower priced items than risk completely losing the sale to a private label competitor. Micro environment is defined as the nearby environment, under which the firm operates. The study of Macro Environment is known as pestle Analysis. The form and functioning of the economy vary widely. While microenvironment has a direct impact on the business activities, the macro environment is a general business environment, which influences all business groups at large.
Successful cost cutting yet with no downside on R D spending. Increasing the depth and number of distribution channels in emerging markets also provides great opportunities to expand market share and customer reach. These factors include the economic factors; demographics; legal, political, and social conditions; technological changes; and natural forces. Such a Strategic option does not of course result in creating new revolutionary products for mature and expanding markets. Such JVs also ensure adequate political and governmental cooperation and facilitation, and usually are accompanied with favorable tax treatment and other incentives. These factors include the economic, demographics, legal, political, and social conditions, technological changes, and natural forces Elements of Macro-Environment: Demographic Environment, demography is the study of human populations in terms of size, destiny, location, age, gender race, occupation and other statistics. P G spends almost twice as much on research and development spending as its closest competitor. There are few cultural values which affect marketing decision making. Formidable R D spending and budget. In fact, dealing with these differences is often one of the greatest challenges managers face when planning strategies, especially for international markets.
Macro environment refers to the general environment, that can affect the working of all business enterprises. This then affects such things as national income, economic growth, and inflation. Get help with your essay today from our professional essay writers! These forces are very particular for the said business only. Competitors, Organization itself, Suppliers, Market, Intermediaries and Customers. (iv) Acquiring familiarity with foreign currencies is also must.
Would this action withstand public scrutiny? Huge economies of scale significant distribution channels considerable sums spent of advertising and marketing, which serve to further solidify Brand recognition. However, it is mostly required to keenly realize and understand the fact that laws often vary from one geographic market to another especially when many different countries are involved. With this right comes the responsibility for businesses to be dynamic agents of change, adjusting their offerings to meet new needs. Although changes tend to come slowly, they can have far-reaching effects. New technologies create new products and new processes. Political and Governmental Environment: - Political environment refers to the influence exerted by the three political institutions they are; Legislature, Executive, Judiciary etc.
P G can increase its presence in developing countries. International Environment: - Another environmental factor which is fast emerging as the force to reckon with is the international environment. Political Environment, marketing decisions are strongly affected by developments in the political environment. People are thinking of saving time, Increasing dual income families. P Gs opportunities are a demand for grade 11 macro environment essay greater beauty products designed for Men and significant demand for natural or organic ingredient products. Microenvironment is a collection of all the forces that are close to the firm.
In these situations, an employee should be able to answer yes to the following questions before taking action: Is this action the right thing to do? But it also affects consumer purchases of homes, cars, furniture, computers, and other items usually bought on credit. The real test is whether the small manufacturer can get its products on the shelves of the same retailers as that of its much larger rivals. Environmental concerns have grown steadily during the past three decades. These variables, consider both economic and non-economic factors like social concerns, government policies, family structure, population size, inflation, GDP aspects, income distribution, ethnic mix, political stability, taxes, and duties, etc. The Recommendation is to go for a combined Low-Income segment and new natural product strategy as this facilitates P Gs need to capture a greater slice of the low-income consumer market both in mature and developing markets, which. Competitors are the rivals, which compete with the firm in the market and resources as well. Further, within any broad society, different subgroups of people may be affected by the cultural and social environment in different ways. The direct environment of any generic market or product-market includes customers, the company, and competitors. A large number of forces shape the marketing environment.
Population growth and age structure. The Company has also established significant scale advantages as a total company and in individual categories, countries and retail channels. And also it influences decision making, and affect its performance and strategies. Such a combined Strategy will require the creation of new products and the expansion of existing ones, combined with related diversification via acquisition if suitable acquisition targets are identified grade 11 macro environment essay and can be purchased at an attractive price. P G is committed to meeting or exceeding all laws and regulations wherever they conduct their business activities. The effects can be far-reaching and require changes in marketing strategy. PG has been built through the character of its people. No entity can function in isolation because there are many factors that closely or distantly surrounds the business, which is known as a business environment. However, there is concern about firms that specialize in specific markets.
It consists of individuals, groups, organizations, agencies and others with which the firm deals during the course of its business. Qualified writers in the subject of marketing are ready and waiting to help you with your studies. Will this action uphold P Gs reputation as an ethical company? Changes in the economy are often accompanied by changes in the interest rate the charge for borrowing money. Consumers in the same country usually share a common political environment, but the political environment can also have a dramatic effect on opportunities at a local or international level. Solid financial strength with significant free cash flow for possible acquisitions of mergers and joint ventures. Its elements include suppliers, competitors, marketing intermediaries, customers and the firm itself. The following are the major difference between micro and macro environment: Microenvironment is the environment which is in immediate contact with the firm. Are important determinants of the business strategies.
That character is reflected in grade 11 macro environment essay the Companys Values, which have been fundamental to its success for more than 160 years. A marketing manager cant afford to take the cultural and social environment for granted. A co-dependent relationship exists between P G and its suppliers. Political environment consists of laws, government agencies, government itself and pressure groups that influence or limits various organizations and individuals in a given society. The judiciary has ensure that both the legislature and executive function in public interest and within the boundaries of constitution. While P G competes hard to achieve leadership and business success, the Company is concerned not only with results, but with how those results are achieved. Definition of Macro Environment, the general environment within the economy that influences the working, performance, decision making and strategy of all business groups at the same time is known as Macro Environment. So the interest rate affects when and if they will buy. As consumers incomes drop, they must shift their spending patterns.
These Principles flow from our Purpose and Values. (ii) Safe and protected markets are no longer there. The highly competitive nature of the business means that P G must constantly price its products competitively and continually strive to develop innovative products. Conclusion Microenvironment and macro environment, both cover the overall environment of business. Online shopping, bar coding and computer aided design are all improvements to the way we do business as a result of better technology. It is broadly classified into two categories,.e. Micro Environment, suppliers are the ones who provide inputs to the business like raw material, equipment and. Analysis of the Micro Environment: P G faces weak buyer power because customers are fragmented and have little influence on price.
Pestle stands for the variables that exist in the environment,.e. As a group, P Gs billion dollar brands have grown sales at an average rate of 11 per year (P G 2009 Annual Report). However, the macroeconomic variables are uncontrollable. Key Differences Between Micro Environment and Macro Environment. A business firm should develop an organization that ensures these consumer assigned tasks are carried out effectively and that the firm itself continues to prosper. To help grade 11 macro environment essay organize our overall thinking, its useful to classify the various forces as falling into either the direct market environment or the external market environment. Interest rates directly affect the total price borrowers must pay for products. Cultural Environment, the cultural environment is made up of institutions and other forces that affect a societys basic values, perceptions, preferences and behaviors. Basis for Comparison, micro Environment, macro Environment, meaning. A precedent has already been set with P Gs JV arrangement with China since 1998. Retailers like Wal-Mart and Target are able to negotiate for pricing with P G because they purchase and sell much of P Gs products. Customers / Consumers are the ones who purchase the goods for their own consumption.
Demographic Environment: - Demographic factor include Size, growth rate, age composition, sex composition etc. The majority of the balances are number two. Every business organization is a part of the business environment, within which it operates. Virtually all the organic sales growth P G delivered in the past years comes from new brands and new or improved product innovation. The technological environment is perhaps the most dramatic forces now shopping own destiny.
Government is the executive and its job is to implement whatever was decided by parliament. Population Demographic, Economic, Socio-Cultural, Technological, Legal Political and Environmental. In most countries, the trend toward multiculturalism is making such differences even more important to marketers. Furthermore, P G is strong in products tailored to meet the needs of this market segment, especially in terms of brand recognition, mass market presence, and brand loyalty. The attitudes and reactions of people, social critics, and governments all affect the political environment. That, combined with the size of other competitors such as Unilever, makes this a highly competitive industry. Content: Micro Environment Vs Macro Environment.