Outline the Components of Any Organisation’s or Industry’s Macro-Environment, and Give an Example for Each Component of a Current Major Operational Change and/or Industry Trend.
According to Elliot et al (2010) the five components of the macro-environment are the
• political environment – changes in laws and government influence,
• economic environment – buying power and spending patterns ,
• socio-cultural environment – people component; age, sex, race, location , corporate social responsibility,
• technological environment – advances in technology changing how we communicate, and;
• legal environment – societal values, perceptions, preferences and behaviors.
Example of current major operational change or industry trend for each component
Political – Changes to Australia’s workplace health and safety laws (Elliot et al, p48) have changed the operating environment of many businesses ,
Economic – Long term trends such as recessions and most recently the global economic crisis affect the marketing industry as these circumstances reduce spending capacity,
Socio-cultural – different groups of people have different tendencies and trends, a group of affluent young people would be more likely to go out for a night in the city than a group of people with young children. There is a trend for big business to be seen to be helping the planet, McDonalds and the Commonwealth Bank are sponsoring clean up Australia Day this year (CUAD Website),
Technological – Technology changes and updates all too frequently as a more advanced option comes on the market, apple introduced their iPad only 12 months ago and it is now outdated by the new iPad2 to be released for sale on 25th March (apple website), and;
Legal – Regulations and laws change with time and Governments, many industries have adopted codes of conduct as a self regulatory device (Elliot et al 2010).
Spark (2008) discusses six forces in the Macro environment, he includes legal in political and brings out demographic, natural environment and cultural as separate forces of socio-cultural environment.
References/Bibliography
Spark, M., 2008, Marketing Concepts – MAR110 lecture 1
• political environment – changes in laws and government influence,
• economic environment – buying power and spending patterns ,
• socio-cultural environment – people component; age, sex, race, location , corporate social responsibility,
• technological environment – advances in technology changing how we communicate, and;
• legal environment – societal values, perceptions, preferences and behaviors.
Example of current major operational change or industry trend for each component
Political – Changes to Australia’s workplace health and safety laws (Elliot et al, p48) have changed the operating environment of many businesses ,
Economic – Long term trends such as recessions and most recently the global economic crisis affect the marketing industry as these circumstances reduce spending capacity,
Socio-cultural – different groups of people have different tendencies and trends, a group of affluent young people would be more likely to go out for a night in the city than a group of people with young children. There is a trend for big business to be seen to be helping the planet, McDonalds and the Commonwealth Bank are sponsoring clean up Australia Day this year (CUAD Website),
Technological – Technology changes and updates all too frequently as a more advanced option comes on the market, apple introduced their iPad only 12 months ago and it is now outdated by the new iPad2 to be released for sale on 25th March (apple website), and;
Legal – Regulations and laws change with time and Governments, many industries have adopted codes of conduct as a self regulatory device (Elliot et al 2010).
Spark (2008) discusses six forces in the Macro environment, he includes legal in political and brings out demographic, natural environment and cultural as separate forces of socio-cultural environment.
References/Bibliography
Spark, M., 2008, Marketing Concepts – MAR110 lecture 1
References: Bibliography Spark, M., 2008, Marketing Concepts – MAR110 lecture 1 notes, SUT, Melbourne Elliott, G., Rundle-Thiele, S., Waller, D., 2010, Marketing, John Wiley, Milton. http://www.cleanupaustraliaday.org.au/about/supporters-and-partners, viewed 9/3/2011 http://www.apple.com/au/ipad/, viewed 9/3/2011