Macro and Micro Environment
Uploaded by
Carmilleah FreyjahMacro and Micro Environment
Uploaded by
Carmilleah FreyjahMacro- and Micro-
environment and
their influence on
Marketing
Planning
The Marketing
Environment
Microenvironment refers to the
environment which is in direct
contact with the business
organization and can affect the
routine activities of business
straight away. It is associated
with a small area in which the
firm functions.
Factors that Affect the
Microenvironment
1. Suppliers
2. Competitors
3. Marketing Intermediaries
4. Customers/Consumers
5. Firm
The SWOT Analysis
The SWOT Analysis
SWOT analysis draws the critical strengths,
weaknesses, opportunities and threats
(SWOT) from the strategic audit.
The SWOT Analysis
Strengths and Weaknesses - The strengths and
weaknesses in the SWOT analysis do not list all
features of a company, but only those relating to
critical success factors. The general environment
within the economy that influences the working,
performance, decision making and strategy of all
business groups at the same time is known as
Macro Environment. It is dynamic in nature.
Therefore, it keeps on changing.
The SWOT Analysis
Opportunities and Threats Managers need
to identify the main threats and
opportunities that their company faces. The
purpose of the analysis is to make the
manager anticipate important developments
that can have an impact on the firm.
The PESTLE Analysis
A PESTEL analysis or PESTLE analysis (formerly known
as PEST analysis) is a framework or tool used to
analyses and monitor the macro-environmental factors
that may have a profound impact on an organization’s
performance. This tool is especially useful when
starting a new business or entering a foreign market.
Components PESTLE
Analysis
1. Political Factors
These factors are all about how and
to what degree a government intervenes
in the economy or a certain industry.
Basically, all the influences that a
government has on your business could
be classified here.
Components PESTLE
Analysis
2. Economic Factors
Economic factors are determinants
of a certain economy’s performance.
Components PESTLE
Analysis
3. Social Factors
This dimension of the general
environment represents the demographic
characteristics, norms, customs and
values of the population within which
the organization operates.
Components PESTLE
Analysis
4. Technological Factors
These factors pertain to innovations in
technology that may affect the
operations of the industry and the
market favorably or unfavorably.
Components PESTLE
Analysis
5. Environmental Factors
Environmental factors have come to
the forefront only relatively recently.
They have become important due to the
increasing scarcity of raw materials,
pollution targets and carbon footprint
targets set by governments.
Components PESTLE
Analysis
6. Legal Factors
Although these factors may have
some overlap with the political factors,
they include more specific laws such as
discrimination laws, antitrust laws,
employment laws, consumer protection
laws, copyright and patent laws, and
health and safety laws.
