A Study on How Macro Environment Affect the Business
1.0 Introduction
1.1 The marketing environment which made up of microenvironment and macroenvironment surrounds and impacts upon the organization. The microenvironment includes forces close to the company that affect its ability to serve consumers, such as other company departments, suppliers, competitors, and consumers. According to Armstrong et al (2006, pg. 61) the macroenvironment consists of larger societal forces that affect microenvironment which is the demographic, economic, natural, technological, political and cultural forces.
1.2 Company must constantly watch and adapt to the marketing environment in order to seek opportunities and ward off threats. Report from International Monetary Fund (IMF, 2009) reported the global economy is in the midst of a deep downturn. Global growth is expected to fall when measured in terms of purchasing power parity and to turn negative. In this assignment, the author will be introducing one of the budget airlines in Singapore - Jetstar Asia. The author will also examine the macroenvironment forces that the chosen company and tourism industry will face in the current economy downturn.
2.0 Industry
The author had chosen the tourism industry in Singapore. The reason for choosing this low cost carrier is because the author sees a growth in this industry for the next 12 months. Singapore national carrier - Singapore Airline (SIA) had recently announced its reduction in flight frequency in most routes as there is about 11% reduction in capacity across their network. SIA will be withdrawing service to Amritsar, India and Vancouver, Canada. The Associated Press (Prahok, 2009) reports that Asia’s budget airlines should benefit from bargain hunting travellers amid a global economic slowdown. The fallen of fuel prices by about 75 percent enables budget airline to keep tickets cheap. The author believes this would be able to attract many travellers to switch from travelling on the usual full service carriers to budget airline.
3.0
1.1 The marketing environment which made up of microenvironment and macroenvironment surrounds and impacts upon the organization. The microenvironment includes forces close to the company that affect its ability to serve consumers, such as other company departments, suppliers, competitors, and consumers. According to Armstrong et al (2006, pg. 61) the macroenvironment consists of larger societal forces that affect microenvironment which is the demographic, economic, natural, technological, political and cultural forces.
1.2 Company must constantly watch and adapt to the marketing environment in order to seek opportunities and ward off threats. Report from International Monetary Fund (IMF, 2009) reported the global economy is in the midst of a deep downturn. Global growth is expected to fall when measured in terms of purchasing power parity and to turn negative. In this assignment, the author will be introducing one of the budget airlines in Singapore - Jetstar Asia. The author will also examine the macroenvironment forces that the chosen company and tourism industry will face in the current economy downturn.
2.0 Industry
The author had chosen the tourism industry in Singapore. The reason for choosing this low cost carrier is because the author sees a growth in this industry for the next 12 months. Singapore national carrier - Singapore Airline (SIA) had recently announced its reduction in flight frequency in most routes as there is about 11% reduction in capacity across their network. SIA will be withdrawing service to Amritsar, India and Vancouver, Canada. The Associated Press (Prahok, 2009) reports that Asia’s budget airlines should benefit from bargain hunting travellers amid a global economic slowdown. The fallen of fuel prices by about 75 percent enables budget airline to keep tickets cheap. The author believes this would be able to attract many travellers to switch from travelling on the usual full service carriers to budget airline.
3.0