Macro environment
Presented by Thabani Nkala
Business studies
201210178.
University of Johannesburg
MACRO ENVIRONMENT
Any company operates in a larger macro
environment of forces that shape
opportunities and pose threat to...
There are six major forces in the
company’s macro environment:

• Demographic
• Economic
• Natural
• Technological
• Polit...
The Company’s Macroenvironment

MBA-I MIBM

4
Demographic Environment
Demography is the study of human populations in terms of size,
density, location, age, gender, occ...
Economic Environment

Consumer
Psychology

Income
Distribution
Economic Environment
The economic environment consists of factors that affect
consumer purchasing power and spending patte...
6

ECONOMIC
GROWTH
2

The Economic
Problem
POLITICAL ENVIRONMENT
The political and legal environment consists
of laws, government agencies, and pressure
groups that ...
Legal and Regulatory Environment


Laws and Regulations





for safety
for consumer protection
to protect special int...
Political Environment
This environment is also very important from company’s
point of view because marketing decisions are...
Cultural Environment



The institutions and other
forces that affect a society’s
basic values, perceptions,
preference, ...
Cultural Environment
Cultural factors strongly affect how people think and
how they consume.
This environment is made up o...
Natural Environment

The natural environment involves the natural resources that
are needed as inputs by marketers or that...
Mobile industries being eco-friendly
Energy efficiency: automatic screen brightness
adjustment, battery saver feature, ene...
Technological Environment
Most

dramatic
force now
shaping our
destiny.
Technological Environment
Today technological advances are perhaps the most
dramatic forces affecting today’s marketing st...
Mobile industries being eco-friendly
Energy efficiency: automatic screen brightness
adjustment, battery saver feature, ene...
Technological Environment
Accelerated pace of change
Unlimited opportunities
R&D Spending
SOCIAL - CULTURAL ENVIRONMENT
Society shapes the beliefs, values, and
norms that largely define consumer tastes
and prefer...


Gap Analysis


Difference between total market potential and total sales



The difference could be due to



Produc...
Market Share


Market share is the percentage of total sales that a
company can expect to get from the total market.



...
ACTIONS TAKEN DURING LIBERALIZATION


Elimination of industrial licensing and registration.



Liberalizing the MRTP act...
Environmental Scanning and Analysis

SCANNING

ACTION

ANALYSIS
Five forces analysis
Potential
entrants
Threat of
entrants

Suppliers

COMPETITIVE
RIVALRY

Buyers
Bargaining
power

Barga...
Walt Disney markets two distinct Pooh bears to match its two-tiered
market.
MBA-I MIBM

30
References
Drēziņa, E.(2014). Macro. [Online],available:
http://www.slideshare.net/elinadrezina/macro-31821756 07 March 20...
Prof assignment
Prof assignment
Prof assignment
Prof assignment
Upcoming SlideShare
Loading in …5
×

Prof assignment

1,036 views
866 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,036
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
15
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Purchasing power: is the amount of goods/services one unit of currency will purchase. Purchasing power is determined by income, prices, savings, credit availability, and debt. The financial crisis in 2008-09 may have permanently changed consumer buying habits.The income distribution of a country can influence the decision to enter a specific market.
  • Notes and teaching tips: 12, 18, 20, 34, 45, 46, 47, 48, 50, 51, 52, 56, 63, and 64. To view a full-screen figure during a class, click the red “expand” button.To return to the previous slide, click the red “shrink” button.To advance to the next slide, click anywhere on the full screen figure.Applying the principles of economics to interpret and understand the news is a major goal of the principles course. You can encourage your students in this activity by using the two features: Reading Between the Lines and Economics in the News.(1) Before each class, scan the news and select two or three headlines that are relevant to your session today. There is always something that works. Read the headline and ask for comments, interpretation, discussion. Pose questions arising from it that motivate today’s class. At the end of the class, return to the questions and answer them with the tools you’ve been explaining.(2) Once or twice a semester, set an assignment, for credit, with the following instructions:(a) Find a news article about an economic topic that you find interesting.(b) Make a short bullet-list summary of the article.(c) Write and illustrate with appropriate graphs an economic analysis of the key points in the article.Use the Reading Between the Lines and Economics in the News features in your textbook as models.
  • Notes and teaching tips: 5, 6, 17, 21, 37, 38, 41, 57, 58, and 62. To view a full-screen figure during a class, click the red “expand” button.To return to the previous slide, click the red “shrink” button.To advance to the next slide, click anywhere on the full screen figure.Applying the principles of economics to interpret and understand the news is a major goal of the principles course. You can encourage your students in this activity by using the two features: Reading Between the Lines and Economics in the News.(1) Before each class, scan the news and select two or three headlines that are relevant to your session today. There is always something that works. Read the headline and ask for comments, interpretation, discussion. Pose questions arising from it that motivate today’s class. At the end of the class, return to the questions and answer them with the tools you’ve been explaining.(2) Once or twice a semester, set an assignment, for credit, with the following instructions:(a) Find a news article about an economic topic that you find interesting.(b) Make a short bullet-list summary of the article.(c) Write and illustrate with appropriate graphs an economic analysis of the key points in the article.Use the Reading Between the Lines and Economics in the News features in your textbook as models.
  • Prof assignment

    1. 1. Macro environment Presented by Thabani Nkala Business studies 201210178. University of Johannesburg
    2. 2. MACRO ENVIRONMENT Any company operates in a larger macro environment of forces that shape opportunities and pose threat to the company.
    3. 3. There are six major forces in the company’s macro environment: • Demographic • Economic • Natural • Technological • Political • Cultural
    4. 4. The Company’s Macroenvironment MBA-I MIBM 4
    5. 5. Demographic Environment Demography is the study of human populations in terms of size, density, location, age, gender, occupation, etc. Demography environment is of major interest to marketers because it involves people and people make up markets. • Mobile industries launches handsets based on occupation. • They also launches its product according to location. • Sometimes industries launches its product keeping gender factor in mind.
    6. 6. Economic Environment Consumer Psychology Income Distribution
    7. 7. Economic Environment The economic environment consists of factors that affect consumer purchasing power and spending patterns. Marketers must pay close attention to major trends and consumer spending patterns. • As far as mobile industries are concerned, the economic system is critical as it can control what the organization is to produce, how it should produce and the category of recipient who should use their end products. • Nokia has launched new handset Lumia 1020 in US not in India as company is focusing more on low budget handsets for India.
    8. 8. 6 ECONOMIC GROWTH
    9. 9. 2 The Economic Problem
    10. 10. POLITICAL ENVIRONMENT The political and legal environment consists of laws, government agencies, and pressure groups that influence and limit various organizations and individuals. Sometimes these laws also create new opportunities for business. Two major trends in the political environment are:  Increase in business legislation  Growth of special interest groups
    11. 11. Legal and Regulatory Environment  Laws and Regulations    for safety for consumer protection to protect special interests  Dangers of litigation--anyone can  Examples: sue, and juries often buy it!  Antitrust    Fair competition Pricing “Truth in Lending”--have to tell people real costs of financing; car leases now regulated
    12. 12. Political Environment This environment is also very important from company’s point of view because marketing decisions are strongly affected by developments in the political environment. It consists of laws, government agencies and individuals in a given society. Any political decision can affect market. For example: • In Egypt and Libya there are ongoing a political riot and in this situation Nokia company decreased their market. • Samsung violated a host of Apple patents and engaged in "willful infringement”.
    13. 13. Cultural Environment  The institutions and other forces that affect a society’s basic values, perceptions, preference, and behaviors.
    14. 14. Cultural Environment Cultural factors strongly affect how people think and how they consume. This environment is made up of institutions and other forces that affect society’s basic values, perceptions, preferences and behaviors. • Mobile industries operates in a diverse number of culture. • Mobile industry puts one local language in their handsets. • Marketing strategy depends sometimes on the culture.
    15. 15. Natural Environment The natural environment involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities. Mobile industries are continuously improving the environmental credentials of all their product like: • Improving energy efficiency. • Using renewable materials and smart packaging. • Making eco friendly products.
    16. 16. Mobile industries being eco-friendly Energy efficiency: automatic screen brightness adjustment, battery saver feature, energy efficient charger. Materials: free of PVC, Contains bio plastics & recycled metals, Free of nickel on the product surface. Recycling: 100% recoverable as materials and energy. Packaging: 100 % recyclable, minimized package made of renewable materials containing up to 60% recycled materials, Virgin wood fibers up to 100% certified.
    17. 17. Technological Environment Most dramatic force now shaping our destiny.
    18. 18. Technological Environment Today technological advances are perhaps the most dramatic forces affecting today’s marketing strategies. Forces that are creating new technologies are also creating new products and market opportunities. The mobile phone in our hand is now packed with advanced tools that let you do so much more. • Nokia launched wireless charging phone. • Samsung launched phones with HD sensitive touchscreen. • Recently Nokia launched phone with 41 megapixel camera. • Sony launched a phone which is dust and water resistance.
    19. 19. Mobile industries being eco-friendly Energy efficiency: automatic screen brightness adjustment, battery saver feature, energy efficient charger. Materials: free of PVC, Contains bio plastics & recycled metals, Free of nickel on the product surface. Recycling: 100% recoverable as materials and energy. Packaging: 100 % recyclable, minimized package made of renewable materials containing up to 60% recycled materials, Virgin wood fibers up to 100% certified.
    20. 20. Technological Environment Accelerated pace of change Unlimited opportunities R&D Spending
    21. 21. SOCIAL - CULTURAL ENVIRONMENT Society shapes the beliefs, values, and norms that largely define consumer tastes and preferences. People absorb, almost unconsciously, a world view that defines their relationships to themselves, to others, to organizations, to society, to nature, and to the universe. The diversity in the world is not only restricted to topography but also in the languages, cultures as well as religious beliefs. In this era of globalization, organizations cater to the culture of each country where it functions or operates.
    22. 22.  Gap Analysis  Difference between total market potential and total sales  The difference could be due to  Product usage gap - increase promotion, advertising, price etc.  Product line gap - lack of product variation; latent demand  Distribution gap - lack of appropriate coverage MBA-I MIBM 24
    23. 23. Market Share  Market share is the percentage of total sales that a company can expect to get from the total market.  Eg. there are 100 gadgets sold in a country and company A sells 43 of them, then company A has a 43% market share  you sold Gadgets for a total cost of $860 and the people in the country spend a total of $2,000 on the same widgets, then the market share is $860/$2,000 or 43% MBA-I MIBM 25
    24. 24. ACTIONS TAKEN DURING LIBERALIZATION  Elimination of industrial licensing and registration.  Liberalizing the MRTP act.  Freedom for expansion and production.  Increase in the investment limit of the small industries.  Freedom to import capital goods.  Freedom to import technology.  Free determination of interest rates.
    25. 25. Environmental Scanning and Analysis SCANNING ACTION ANALYSIS
    26. 26. Five forces analysis Potential entrants Threat of entrants Suppliers COMPETITIVE RIVALRY Buyers Bargaining power Bargaining power Threat of substitutes Substitutes Source: Adapted from M. E. Porter, Competitive Strategy, Free Press, 1980, p. 4.
    27. 27. Walt Disney markets two distinct Pooh bears to match its two-tiered market. MBA-I MIBM 30
    28. 28. References Drēziņa, E.(2014). Macro. [Online],available: http://www.slideshare.net/elinadrezina/macro-31821756 07 March 2014 Fegade, A. (2013). Micro environment. [Online], available: http://www.slideshare.net/atulfegade/bom3/ 07 March 2014 Patel, R. (2009). Marketing environment. [Online], available: http://www.slideshare.net/raj1436/marketing-environment-1315233 Singh,P. (2013). Macro environment.[Online], available: http://www.slideshare.net/ParitoshSingh4/macro-environment-of-theindustry 07 March 2014

    ×