Part 2 Section 1: Positive and negative impact of macro environment on the business operations Macro environment means the factors that affects from the outside boundaries of the organisation.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. Mintzberg and Waters wrote about the importance of an error free strategy formulation allowing for the most efficient path to be taken when achieving the chosen objective.
SWOT analysis The acronym SWOT highlights the importance of the strengths, weaknesses, opportunities and threats that are present in the microeconomic vicinity of the organisation in question.
This market analysis technique is used by businesses to aid the decision making process when an objective has been defined. S Department of Agriculture released a text discussing the SWOT analysis in practice and assessed each factor or letter and what it provides.
The strengths of a business relate to the internal fortes of the company and can include the skillset of employees or the resource advantages that the company holds.
Opportunities are considered external. It is such a favored technique for a multitude of reasons, namely the cost efficiency of it.
Another advantage is the development of business goals and the strategies for achieving them. The SWOT method also benefits from the state of problem domain, this being the ability to scrutinize the particular area in question, that being the businesses characteristics both internal and external.
This allows for easy use and application by managers when holding brainstorming sessions. This is also combined with the presence of data integration, the qualitative and quantitative resources will be easily accessible and used when assessing the four components of the analysis. Ergo, it is hard to distinguish the most important variable that is recorded and therefore the impact of said variable cannot be determined.
The acronym originally consisted of Political, Economic, Social, and Technological and in the late 21st century came the addition of the second E, environmental.
Used in strategic management it develops a companies understanding of the macro-environmental framework that will affect their objectives. The political heading of the analysis refers to any governmental directives that would effect or have an impact on the business.
It also includes but is not limited to, voting rates and trends, public opinion and activism of regulatory agencies. Economic factors include the exchange rates, GDP rates, interest rates and so on. These are all indicators of how the government is using their reforms and implementing their goals.
A prime example of this is the current global recession, which has increased unemployment and lowered average disposable income per person.
Thus making marketing plans less likely to succeed. Social factors highlight an consumer behavior trends and focuses on culture and lifestyle within society. These are important when deploying a new marketing strategy or objective as a greater knowledge of the social trends allows for more understanding of the market situation.
The use of this situational analysis method also encourages the development of strategic thinking amongst the brain storming session.
Placing importance on the objective that has been set and in turn rationally evaluating the external market environment.
Disadvantages of PEEST Due to the nature of this method it is apparent that it can be difficult to keep up with the ever changing and evolving society. This rapid pace of change makes it hard to anticipate future developments in society that could affect the success of the objective.
In turn, never producing a successful plan or analysis. It can also be argued that social factors are challenging to quantify, as they are purely subjective. Marketing Planning Process Dr.
Marketing identifies unfulfilled needs and desires. It defines, measures and quantifies the size of the identified market and the profit potential. It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services.
With this in mind it is clear to see that any marketing objective that may be put in place by a company needs to have a clear and concise marketing plan to correctly suit its environment.
This strategic planning process is graphically presented in Figure. This is a key stage as it is vital that the managers are aware of their environment, on both a macro PEEST and micro SWOT level before moving on to create the marketing strategy. British Airways British Airways BA is the flag carrier airline of the UK and is the largest airline based on fleet size and international flights and destinations.
Founded in March the ethos of the airline has always been to establish a high level of customer service and maintain the elegant, quintessentially British design.
The market segment that is targeted by BA is the corporate, upper middle class and middle class sector of the country. However in recent years, it has been noticeable to both internal and external audiences that the company has been under pressure from severe market upheaval from competitors and the economy.
Due to this the business decided to introduce an energetic marketing campaign that would reignite the consumers faith and interest in the company.
This implies that there will always be a market segment that will decide to purchase flights with the company.PESTLE analysis is, in effect, an audit or external scan of an organisation’s environmental influences that helps guide the planning and strategic decision making. GMT abb swot pestle analysis pdf - This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase.
We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals. Transcript of SWOT and PESTLE Analysis IBE. Company profile Existing since , being founded in Darmstadt, Germany, Merck is the oldest company in its domain politics Economy LEGAL ASPECTS ENVIRONMENT TECHNOLOGY SOCIAL AND CULTURAL strengths WEAKNESSES OPPORTUNITIES THREATS PESTLE AND SWOT ANALYSIS SWOT ANALYSIS PESTLE ANALYSIS Merck.
For Huawei Pestle and Swot analysis, see Huawei Pestle & Swot. INTRODUCTION Xiaomi is a Chinese privately owned electronics technology multinational currently engaged in the design, manufacture and retailing of smartphones, tablets, mobile apps, smart electronics as related software, accessories and third party applications.
SWOT Analysis and PESTLE Analysis Templates. Welcome to the RapidBI web site. To support the official CIPD fact sheets, this page contains two templates for you to use as part of your SWOT or PESTLE analysis. Remember to add the fact sheets and this site to your references.
This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals.