Macro Environment and Marketing Mix

Topics: Marketing, Strategic management, SWOT analysis Pages: 10 (3350 words) Published: November 5, 2012
Macro Environment:

“The major external and uncontrollable factors that influence organisations decision making and affects its performance and Strategies” is called Macro Environment. Macro Environment can be studied through different analysis, there are several but mainly used are PESTLE analysis and SWOT analysis. Sainsbury’s Overview:

Sainsbury’s was established by John James and Mary Ann in the year 1869 as a small dairy shop. In very short time the store became popular for selling good and quality products at very low prices, and as a result further store branches followed over time. Also as a result of its popularity and huge market this group floated on the London Stock Exchange in the year 1973. Sainsbury is the Great Britain based food retailer with business interests in monetary services. The group comprises Sainsbury’s supermarkets, convenience stores, an online based home delivery service and Sainsbury’s Bank whose head-office is in Holborn, London. The manpower is about 151,000. J Sainsbury plc consists of Sainsbury's – 509 supermarkets and 276 stores – and Sainsbury's Bank. A large Sainsbury's store offers around thirty thousand goods and an increasing number of stores also offer various non-food goods and services. 165 stores also manage an online home delivery service. Macro Environmental Factors:

PESTEL Analysis:
PESTEL analysis is simple and used widely to understand the big picture of Political, Economical, Social-cultural, Technological, Environmental and Legal. This process is used for future forecast. There are many factors which are affecting the macro environment that will affect the decision making of the managers. Tax changes, new lays, political related trades, barriers, government policy etc...

PESTEL analysis (macro-environment) of Sainsbury’s
The management decision making of any company or organisation depends on many macro environmental factors. These involve Tax changes, new lays, political related trades, barriers, government policy etc... It is necessary to study them in detail so that management can take a better decision in managing future aspects. And to study these in detail PESTEL analysis is used. Sainsbury’s is a well known organisation which is having a large customer base and large capital base. PESTEL forces of Sainsbury‘s:

Political forces- European union extensions , Euro Zone, Globalize business, taxation rules and policies Economic forces- Changing rates of interest, exchange rates, national GDP and Income, inflation, Job market and unemployment, Share Market Social forces- Population based on age, different view to work, income classification and distributions, Community works. Technological forces- Invention, modern and new product innovation and improvements , class of technological obsolescence Legal forces- Law for Competitors, monitoring health and safety, employment based law. Environmental forces- Global warming, environmental issues, green house effect, animal welfare,

Political forces: Political forces are referred to policies that are related to government such as the degree of intervention in the economic scale. What product and services does the mentioning country want to provide? What extent does it depend in subsidising organizations? Sainsbury’s is forced by these factors. Economic forces: The economic changes of any government have impact on local business. These include interest rates, taxation charges, economic growth, inflation and exchange rates. So business influenced by the economical factors has impact nationally as well as globally. Sainsbury’s is automatically gripped by those forces. Social forces: (Argenti, 1974) It is very important for any business to understand the values and the culture of the society even before starting the business. Changes in social trends can impact on the demand for a firm’s products and the availability of individuals to work. This may also includes the tastes, habits, dislikes, customs, traditions,...

References: • Aguilar, F. (1967). Scanning the business environment. New York: Macmillan.
• Fahey, L, & Narayanan, V.K (1986). Macro environmental analysis for strategic management. St. Paul, MN: West.
• Kotler, Philip, Keller, Lane (2005) "Marketing Management", Prentice Hall, ISBN 0131457578.
• J. Scott Armstrong (1982). "The Value of Formal Planning for Strategic Decisions". Strategic Management Journal 3. doi:10.1002/smj.4250030303.
• Kotler, P
• Lancaster, Geoff./ Massingham, Lester./ Ashford, Ruth (2002), “Essentials of Marketing“ , (Forth Edition), Great Britain, McGraw- Hill Education, ISBN: 9 780077098605
• Barlon, Kimuli
• Armstrong. M. (2006). “A handbook of Human Resource Management Practice” (10th ed.). London: Kogan Page. ISBN 0-7494-4631-5.
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