Business environments
A business has two kinds of external environments of marketing; macro and microenvironments. These two environments are not in the control of the marketers, but they play a significant role in influencing the decisions in the creation of a strategic marketing strategy. The microenvironment is the environment that is in direct contact with the organization. The atmosphere is associated with a standard area in which the firm functions, and it affects the routine activities of the business organization. A microenvironment is a collection of all the forces that are in close association with a business. The effects of the microenvironmental factors are short term. An example of microenvironmental factors include the competitors, suppliers, customers, the organization itself, and the intermediaries of marketing. These factors are controllable, and they affect the business both directly and regularly.
The macro-environment, on the other hand, is the extended environment in the economy that influences the working of the organization, its performance, decisions, and strategies. The macro-environment is dynamic, and therefore it keeps on changing. The elements are comprised of the factors that are not under the control of the business organization. However, these factors have a significant effect on the functioning of an organization. These elements include the population, economy, demographics, technology, legal issues, political and environmental factors. The details are widely known as PESTLE. The features of the macro-environment are not controllable, and they affect the organization both indirectly and distantly.
External factors affecting the business can be described as the micro and macro-environment factors. Technology, for instance, is a macro environment factor that is on the business trend. Due to the advancements in technology, businesses need to be up to date with the newest of the techniques, so as to be able to deal with innovation, competition, and development as a result of globalization. The trend on technology in businesses result to market opportunities and creation on new and better products and services that cause an expansion in a business resources like the human resources (employment of more staff), physical resources that lead to the use of more technologically advanced machines, intellectual resources, as technology will lead to more brands and knowledge on services and products offered and financial resources due to increased profits that cause more capital and cash for the organization. These factors will impact positively on the business.
On the other hand, some elements have negative impacts. The external economic factor, for instance. It involves the examination of the economic policies and fiscal. These examination reports that the currency rates keep in fluctuating, thus dynamic to the economy of any organization. The trend on the economic issues is that the currency of countries is changing due to globalization, and therefore there will be a lot of impact on the business organizations. These factors will cause an adverse effect on the resources of the business, as more cash will be needed to keep up with the competition, new staff will be required who can work with the revolving world and the intellect of the organization automatic changes to a global perspective.
Some of the responses to the external factors and trends may include the following.
An organization should consider doing a SWOT analysis so as to be able to know about the opportunities and the threats they are to face. This is t enable them to be adequately prepared and to make strategies that will help in tackling any negative or positive impact of the business due to the external factors and the trends. Investing n skilled and more knowledgeable workforce is also a vital factor to be able to combat the issues of the trends and the external factors of a business marketing. Experienced personnel will be in a position to tackle arising trends and be able to deal with the external factors of marketing like technological advancements legal and political issues, demographics, and the population. An organization should also consider formulating programs that would educate the workforce on the external factors and how to deal with them. The workforce of an organization is diverse, and therefore, not everyone in the business would know how to tackle some of the external factors affecting the corporation. The program can involve a more knowledgeable individual educating the staff on the external factors, their effects, and their solution. External factors ad dynamic and therefore repeated information on their impacts is required in all field of an organization. An external factor is not solved generally as the last case since it’s dynamic, new experience and skills in addressing the changing factors are therefore very significant. The programs would be done twice annually so as to keep the staff up to per.
Change in a business environment is inevitable since there will always be change. Although the move is never welcomed, it is expected. Some of the changes in the business environment include the internal shift in management and power in a business organization. The figure of authority plays a significant role in an organization, their style of management specifically, the manner of communication and association impacts a business both positively or negatively. A compelling authority figure who is diverse, open to opinions, and uses a strategic style of leadership causes a positive effect on a business. A selfish leader, like the autocratic managing director of the XYZ Company, leads to negative impacts on an activity-like low performance. Besides, there are fluctuations in the economy that happen daily. The up and down volatility significantly impacts on the operations of a business. The effects of variations can be bot positive or negative. If the modifications are up, then that causes a negative impact on the profits of a business. If the differences are down, then a company is affected positively. Another change is new entities and exits of competitors. The entry of competitors cause competition, and this affects the business negatively since many competitors give a company a run for their money. If competitors leave or are not there, then a company maintains a monopoly, which means ore profits affecting it positively.
The process of management in a successful change in an organization is both a challenging and intense process. The administration should make change through a well-formulated plan. When change is well planned, then it becomes exciting, rewarding, fast, and successful. Planning for change by the management enables the management to get the workforce on board towards similar goals that would be supported by change. If the workforce is not inboard with the move and the goals promoted by evolution, then the process will be complicated. It is also the role of the management to motivate the organizational members towards change. If the members are not motivated, then they become resistant to change, which causes the change to be complicated. The management is the pivot of change in an organization because the management devises the change, formulates, and adjust on the best methods of implementing change.
The government, society, and business are a fundamental tool in the world today. The company helps in the satisfaction of the needs of human beings through the providence of goods and services in exchange for profits. The government is the structure of authority in a society that creates rules and policies for the businesses. The community, on the other hand, is the network of individuals that relate to producing ideas, institutions, industry, and material commodities. These three elements work together. The market capitalism market tries to explain this relationship. The model argues that it is easy for any person to get into the market. The model supports that any business that enters into the market aims at making profits and creating competition. The competition created offers the customers with quality and value. The management using the market capitalism model aims mainly at increasing the interests of the shareholders. In this model, the regulations and rules by the government are limited, available, but limited. The model involves less control involvement by the society and the society mainly experience struggles. The wealth and the power in this type of model are mostly concentrated on a selected group. The business corporations and the government takes advantage and control of society since they have more power. A Scenario of such a case is a monopolistic business. In Australia, for instance, the banks are in control over the society together with the government. The banks objectify on making profits and a result causing difficulties in the community in association with the government.
The changes in the relationship between the government and the society and the business will result in several opportunities. The difference in the world of business today aims at having a positive correlation between these three institutions that leads to the achievement of every institution’s goals and benefits. The success of the positive collaboration of these institutions will cause opportunities like increased employment levels, affirmative business policies by the government on businesses, earning of revenue by the government from the businesses and a good association between the people in the society, the company, and the government. This association will limit issues like high taxes by the government, unethical operations by businesses to the organization to make profits, and lack of collaboration and support by the community on business operations. The association will effect on Corporate Social responsibility is a form of duty that a business enterprise has to achieve in the community in which it operates. This form of liability is not forced, but it should be voluntarily be completed by the business organization as a way of being responsible to the community of its operation. Corporate social responsibility leads to peace, cohesion, and an excellent beneficial opportunity among the government, society, and the business.