Macro and micro factors affecting the steel industry

Socio-cultural factors represent the culture of the society that an organization operates within. This force could include corporate social responsibility, fair trade, affiliation between corporations and charities. Competitors are the rivals, which compete with the firm in the market and resources as well.

The microenvironmental factors are controllable by the business. Microenvironment is a collection of all the forces that are close to the firm. Unlike the micro environment of a retail store, companies in the retail industry usually cannot influence or change the macro environment and must adapt to changes as they arise.

Legal needs to be complied with whereas Political may represent influences, restrictions or opportunities, but they are not mandatory. Suppliers can control the success of the business when they hold the power. Political and legal forces: Barcoding and computerized billing systems have improved the retail industry by allowing retailers to develop new processes that increase efficiency.

Point-of-sale systems increase sales by allowing retailers to process cash, check, credit- and debit-card payments. Micro and macro environments have a significant impact on the success of marketing campaigns, and therefore the factors of these environments should be considered in-depth during the decision making process of a strategic marketer.

The retail industry also relies heavily on government-supported road and transportation infrastructure to move goods and bring customers to retail locations.

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It is dynamic in nature. The public have the power to help you reach your goals; just as they can also prevent you from achieving them. The important principle is identifying the key factors from the wider, uncontrollable external environment that might affect the organization The PESTLE Factors We start with the Political forces.

There is often a tendency to focus Technological developments on digital and internet-related areas, but it should also include materials development and new methods of manufacture, distribution and logistics. Key Differences Between Micro Environment and Macro Environment The following are the major difference between micro and macro environment: Those who sell same or similar products and services as your organisation are your market competition, and they way they sell needs to be taken into account.

Retailers that fail to conform to new social norms often lose business to companies that are willing to adapt to changing societal values. Social and cultural forces: 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.

These can be defined by the set of moral principles and values that govern the actions and decisions of an individual or group. The Role of Technology in the Macro Environment Technology not only creates new products for retail companies to sell, but also plays a major role in changing the way retail companies do business.

The impact the products and services your organisations brings to market have on society must be considered.

The Role of Macro Environment in the Retail Industry

Who the customers are B2B or B2C, local or international, etc. If the product the organisation produces is taken to market by 3rd party resellers or market intermediaries such as retailers, wholesalers, etc. 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.

Micro Environment Factors The suppliers: The Role of Government Laws, regulations and other government policies can have a number of positive or negative effects on the retail industry. Additional Considerations A newer force which is gaining in importance is ethics.

However, these are all merely variations on a theme. Something may be ethical but not protected by law, whereas otheractivities may not be ethical, but are legal.

The Impact Of Micro and Macro Environment Factors on Marketing

Government assistance, such as government-backed loans and subsidies, can help fledgling retailers grow or allow an established company to keep costs low for consumers.

The factors of the microenvironment affect the particular business only, but the macro environmental factors affect all the business entities. It consists of individuals, groups, organizations, agencies and others with which the firm deals during the course of its business.

Conclusion Microenvironment and macro environment, both cover the overall environment of business. The Role of Social Factors Changes in social values and trends impact the goods retailers sell and how retailers relate to consumers.

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. A particular problem may exist with how ethical factors relates to legal forces as they may be at different stages in development.

So, they are more complementary rather than contradictory. However, the macroeconomic variables are uncontrollable. It is associated with a small area in which the firm functions. First of all, political factors refer to the stability of the political environment and the attitudes of political parties or movements.x Understand the problems of dealing with the micro and macro environments.

industry. Micro environment Factors that affect one firm only. Internal environment Factors THE MARKETING ENVIRONMENT 33 such items as computers or office equipment – all such tenders must be thrown open.

PESTLE - Macro Environmental Analysis. The PESTLE Analysis is a framework used to scan the organization’s external macro environment.

Difference Between Micro and Macro Environment

The letters stand for Political, Economic, Socio-cultural, Technological, Legal and approaches will add in extra factors, such as International, or remove some to reduce it to PEST.

consists of the micro-environment and the macro-environment. The forces close to the organization that affect its ability to serve its customers is the micro. Micro Environment Macro Environment; Meaning: Micro environment is defined as the nearby environment, under which the firm operates.

Macro environment refers to the general environment, that can affect the working of all business enterprises. Elements: COSMIC, i.e. Competitors, Organization itself, Suppliers, Market, Intermediaries and. Jun 29,  · Unlike the micro environment of a retail store, companies in the retail industry usually cannot influence or change the macro environment and must adapt to changes as they arise.

micro environment analysis of samsung The aim of this section is to conduct an internal environment analysis of Samsung which will investigate the environment in which Samsung operates in.

components of the analysis will be those in which the company has control over, as known as internal environment.

Macro and micro factors affecting the steel industry
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