MICRO ENVIRONMENT includes the following factors.
1.SUPPLIERS : Suppliers are those people who are responsible for supplying necessary inputs to the organization and ensure the smooth flow of production. 2.COMPETITORS : Competitors can be called the close rivals and in order to survive the competition one has to keep a close look in the market and formulate its policies and strategies as such to face the competition. 3.MARKETING INTERMEDIARIES : Marketing intermediaries aid the company in promoting, selling and distribution of the goods and services to its final users. Therefore, marketing intermediaries are vital link between the business and the consumers. MACRO ENVIRONMENT includes the following factors.
1.ECONOMIC FACTORS : Economic factors includes economic conditions and economic policies that together constitutes the economic environment. These includes growth rate, infation, restrictive trade practices etc. Which have a considerable immpact on the business. 2.SOCIAL FACTORS : Social factors includes the society as a whole alongside its preferences and priorities like the buying and consumption pattern, beliefs of people their purchasing power, educational background etc. 3.POLITICAL FACTORS : The political factors are related to the management of public affairsAnd their impact on the business. It is important to have a political stability to maintain stability in the trade. 4.TECHNOLOGICAL FACTORS : Latest technologies helps in improving the marketablity of the product plus makes it more consumer friendly. Therefore, it is important for a business to keep a pace withv the changing technologies in order to survive in the long run
The six environmental factors of the PESTEL analysis are the following: Political factors
* Taxation Policy
* Trade regulations
* Governmental stability
* Unemployment Policy etc.
* Inflation rate
* Growth in spending power
* Rate of people in a...
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