Micro and Macro Environment

1.1 The micro-environment This environment influences the organization directly. It let ins suppliers that deal directly or indirectly, consumers and customers, and early(a) local stakeholders. Micro tends to suggest small, but this can be misleading. In this context, micro describes the relationship between firms and the driving forces that figure this relationship. It is a more local relationship, and the firm may movement a degree of influence. These are internal factors close to the play along that have a direct impact on the formations strategy. These factors include customers, employees, suppliers, regionholders, media, competitors. Customers Organisations survive on the basis of meeting the needs,  wants and providing benefits for their customers. Failure to do so will result in a failed bloodline strategy. Employees Employing the correct staff and keeping these staff motivated is an essential part of the strategic planning process of an organisation. Training and teaching plays an essential role particular in service sector marketing in-order to gain a  competitive edge.  This is clearly apparent in the airline industry. Suppliers Increase in raw clobber prices will have a knock on allude on the marketing mix strategy of an organisation. Prices may be forced up as a result.

Closer supplier relationships is one way of ensuring competitive and quality products for an organisation.  Shareholders As organisation require greater inward investment for growth they present increasing pressure to move from private ownership to public.  withal this movement unleashes the forces of shareholder pressure on the strategy of organisations. solid shareholder needs may result in a change in tactics employed by an organisation. many a(prenominal) internet companies who share prices rocketed in 1999 and early 2000 have seen the share price tumble as they face pressures from shareholders to turn in a profit. In a market which has very right away become overcrowded many havel... If you want to get a unspoilt essay, order it on our website: Orderessay

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