What are the macro environmental forces that influences purchasing?
Everything from the weather to the temperature of a room, it all effects how your body releases the enzymes to make your body warmer or cooler or hard or softer. They are minu…te subtle changes but its enough to somewhat shield you from extreme conditions.^^^ WHAT THE HECK ARE U TALKING ABOUT??! crazy dipsh*t... ok so environmental factors that affect enzyme activity are typically PH (level of acidity), temperature, heat, and concentration of substrate (substance that an enzyme works on)... PH and temperature at a convenient level for the enzyme tend to increase the activity, but at an extreme level can denature them (they unfold and become useless). Heat at higher levels also tends to denature them, and the concentration of a substrate at a high level increases activity and at a low level decreases activity.btw, the person who wrote the first answer is very annoying and does not know what the f**k they are talking about :) (MORE)
Compare two industries in terms of key environmental influences and competitive forces in them. Assess and compare the entry barriers and the extent of competitive rivalry in the two industries.?
The success of a company's competitive strategy depends on how it relates to its environment. Although the relevant environment is very broad, encompassing social as well as e…conomic forces, the key aspect of the company's environment is the industry or industries in which it operates. Industry structure has a strong influence in defining the rules of the competitive games as well as the strategies potentially available to the company.The intensity of competitive in an industry is not a matter of luck. Rather competition is rooted in underlying industry economics and goes well beyond the established competitors. Not all industries have equal potential. They differ fundamentally in their ultimate profit potential as the collective strength of the forces range from intense in industries like airline, real estate and steel where no firm earns spectacular returns, to relatively mild in industries such as oil field equipment and services, cosmetics and toiletries, where high returns are common.The essence of competitive strategy for a company is to find a position in its industry where it can best cope with these competitive forces or can influence them in its favour. Knowledge of the underlying sources of competitive pressure can reveal the basic attractiveness of an industry, highlight the critical strengths and weaknesses of a company, clarify the areas where strategic changes may yield the greatest pay off and pinpoint the industry trends that promise the greatest significance as either opportunity or threats. According to M. E. Porter, the goal of competitive strategy for a business unit in an industry is to find a position in the industry where the company can best defend itself against these competitive forces or can influence them in its favour. Understanding the existence and magnitude of economic, social, cultural, demographic, geographic, political, governmental, legal and technological and competitive changes underlie the need for an effective external audit. The competitive forces of the environment consists of those with whom an organization must "do battle" in order to obtain resources. As it is argued by one David F. (1989) in his book entitle, strategic Management Columbus, that increasing levels of environmental uncertainty are having a major impact upon all products, services, markets, and organizations in the business world. By identifying when, where, how, and why relevant trends and events will affect them, organizations can use the external audit to formulate and implement strategies more successfully.In comparing the telecommunication and the airline industries considering the springing up of these industries in the country, we would be looking at the key environmental influences in each of these industries and the competitive forces in them.In recent times, there has been the emerging of new telecommunication companies notable among them are airtel taking over zain, expresso taking over kassapa and Vodafone taking over Ghana Telecom. With the surfacing of these companies, it is believed that the key environmental influence that has brought about these companies are economic, social and demographic, political, and technological forces.With the economic factors, it is concern with the nature and direction of the economy in which a firm operates. In view of the fact that consumption patterns are affected by the relative affluence of various market segments, each firm, in its strategic planning, needs to consider economic trends in the segments that affect its industry. On both the national and international level, the firm must consider the general availability of credit, the level of disposable income, and the tendency of people to spend. Other economic factors it must consider are economic growth, inflation, government spending, interest rates, exchange rates, the money supply and taxation.On the issue of social and demographic forces as one of the environmental forces, this has a major impact upon almost all products, services, markets and customers. Organizations of all forms are challenged by the opportunities and threats stemming from changes in social, cultural, demographic and geographic variables.The social factors that affect an organization involve the beliefs, values, attitudes, opinions, and lifestyles of people in the organization's external environment, as developed from cultural, ecological, demographic, religious, educational, and ethnic conditioning. As social attitudes change, so too does the demand for various types of clothing, books, leisure activities, and so forth. Social factors, like other forces in the external environment, are dynamic, with constant change resulting from the efforts of individuals to satisfy their desires and needs by controlling and adapting to environmental factors.Demographic forces include some which can be forecast reasonably well and some which are more unpredictable. Changes in population structure can be readily forecast; changes in tastes and values are more difficult. Again it is essential to be able to appreciate the significance of observed events and changes.Another environmental influence that can result in the above mentioned two industries is political forces, this relate to changes in governments and their priorities and legislation programme. The direction and stability of political factor is a major consideration for managers on formulating organizational strategy. Political factors define the legal and regulatory parameters within which organizations must operate. Political constraints are placed on firms through tax programmes, fair-trade decision, pricing policies, minimum wage legislation, pollution policies, and several other actions geared toward protecting employees, consumers, the general public and the environment. As such laws and regulations are usually restrictive; they tend to reduce the potential profits of firms. Nevertheless, some political actions are designed to benefit and protect firms. Such actions include patent laws, government subsidies, and product research grants. Thus, political, governmental, and legal factors either may represent key opportunites or threats for organizations. For instance, if Vodafone Ghana received financial assistance form the Ghanaian government this support would make the company one of the most successful members of the sub-regional telecom industry.Technological forces of the organization's external environment include new approaches to producing goods and services; new procedures as well as new equipment. To avoid obsolescence and promote innovation, an organization must be aware of technological changes that might influences its industry.Technological changes and breakthrough such as computer engineering, superconductivity, robotics, unmanned factories, bio-computers, lasers, fibre optics, space communications, satellite networks and electronic funds transfer are greatly impacting on organizations. Technological forces such as these represent major opportunities and threats that must be considered in formulating strategies since they can have a dramatic impact on an organization's products, services, markets, supplier's, distributors, competitors, customers, manufacturing process, marketing practices, and competitive position. According to Porter M. (1980), in his book entitled Competitive Strategy: Techniques for Analyzing Industries and Companies, the nature and degree of competition within any given industry depends on five basic forces:1. The threat of new entrants2. The bargaining power of customers3. The bargaining power of customers4. The threat of substitute products or services5. The jockeying among current contestants (i.e. rivalry among existing firms) Industry analysis is a tool that facilitates a company's understanding of its position relative to other companies that produce similar products or services. Understanding the forces at work in the overall industry is an important component of effective strategic planning. Industry analysis enables small business owners to identify the threats and opportunities facing their businesses.In view of the above discussion on the industry and forces with companies in the industry, let us now cmpare the airline industry and that of the telecommunication industry in terms of the key environment influences and competitive forces in them using M. E Porter's five forces. It is important to know that if an industry wants to sustain long-term profitability, it must respond strategically to competition and naturally keep tables to established rivals.Considering the commercial aviation industry, its one of the least profitable industries because all five forces are strong. Established rivals compete intensely on price. Customers are fickle, searching for the best deal regardless of carrier, suppliers, that is plane and engine manufacturers, along with unionized labor forces bargain away the lion's share of airlines profits new players enter the industry in a constant stream and substitutes are readily available such as train or car travel.If a firm is to control its growth, change and development, it must seek to control the forces of which provide the opportunities for growth and change, and those which pose threats and demand responses. Managers must as well manage the organization's resources to take advantage of opportunities to counter threats.Understanding an organization's external environment is essential for developing and implementing an effective strategy. To gain a greater understanding of their environment, the company's executives should also analyze their industry and competitors. Thus designing feasible strategies for an organization requires a thorough understanding of the organization's industry and competition. (MORE)
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Not only can environmental factors influence beliefs, they indeed influence us every day we live and breath. Commercials, classmates, friends, parents - everywhere we receive …information we are being persuaded one way or the other. It's interesting to hear how US Americans feel about a news story vs other countries. Same story, but totally different approaches. That is because our environments form our way of thinking. (MORE)
The Macro Environment factors are: 1) Demographic Environment 2) Economic Structural Environment 3) Technological Environment 4) Political Environment MACRO-ENVIRONMENTAL …FACTORS A business and its forces in its micro environment operate in larger macro environment of forces that shape opportunities and pose threats to the business. It refers the major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies. These factors include the economic factors; demographics; legal, political, and social conditions; technological changes; and natural forces. The important environmental factors are; (1) Economic Environment (2) Political and Governmental Environment (3) Socio-cultural Environment (4) Natural Environment (5) Demographic Environment (6) Technological Environment (7) International Environment. 1. Economic Environment: - Economic environment of business has reference to the board characteristics of the economic system in which the business operates. The business sector has economic relation with the government, capital market; household sector and global sector. These sectors together influence the trends and structure of the economy. The form and functioning of the economy vary widely. The importance external factors that affect the economic environment of a business are; (i) Economic Conditions: - The general Economic conditions prevailing in the country viz. national income, per capita income, economic resources, distribution of income and assets, economic development etc. are important determinants of the business strategies. Business cycles and economic growth of the economy are important factors defining the economic environment. (ii) The economic system operating in the country also affects the business enterprise to a very great extent. The economic system of a country may be capitalist, socialist, communist or mixed. (iii) Economic Policies: - The government decides the economic environment of business through Budges, Industrial regulations, Economic planning, Import and Export regulations, Business laws, Industrial policy, Control on prices and wages, Trade and transport policies, the size of the national Income, Demand & supply of various goods etc. (iv) Economic Growth: - The stage of economic growth of the economy has direct impact on the business strategies. Increased economic growth rate and increase in consumption expenditure, lower the general pressure within an industry and offers more opportunities then threats. (v) The rate of interest affects the demand for the products in the economy, particularly when general goods are to be purchased through borrowed finance. Low interest rated provides opportunities to the industries to expand whereas rising interest rates pose a threat to these institutions. (vi) Currency Exchange: - Current exchange rates have direct impact on the business environment. When the rupee was devalued in 1991, it was to make Indian products cheaper in the world market and consequently boost India's exports. 2. Political and Governmental Environment: - Political environment refers to the influence exerted by the three political institutions they are; Legislature, Executive, Judiciary etc. The legislature decides on a particular course of action. Government is the executive and its job is to implement whatever was decided by parliament. The judiciary has ensure that both the legislature and executive function in public interest and within the boundaries of constitution. Legal and political environment provides a framework within the business is to function and its existence depends on the success with which it can face the various challenges constructed out of political and legal framework. 3. Socio-cultural Environment: - Changes in social trends can impact on the demand for a firm's products and the availability and willingness of individuals to work. Social class and caste of a person goes a long way in deciding the business activities in relation to its production and marketing activities. Tradition, customs and social attitudes have changed the attitude and beliefs of the persons which have their effect on organizational environment. Class and caste are influencing the purchasing pattern. Socio-cultural environment may include expectations of the society from business, attitudes of society towards business and its management, views towards achievement of work, views towards structure, responsibility and organizational positions, views towards customs, traditional and conventional, class structure and labour mobility and level of education. 4. Natural Environment: - Environmental factors include the weather and climate change. Changes in temperature can impact on many industries including farming, tourism and insurance. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider. The growing desire to protect the environment is having an impact on many industries such as the travel and transportation industries (for example, more taxes being placed on air travel and the success of hybrid cars) and the general move towards more environmentally friendly products and processes is affecting demand patterns and creating business opportunities. 5. Demographic Environment: - Demographic factor include Size, growth rate, age composition, sex composition etc. of population, Family size, Economic stratification of population, Educational level, Caste, religion etc. All these demographic factors are relevant to business. These factors affect the demand for goods and services. High population growth rate indicates an enormous increase in labour supply. Population with varied tastes, preferences, beliefs, temperaments etc. gives rise to differing demand pattern and calls for different marketing strategies. 6. Technological Environment: In order to survive in today's competitive world, a business has to adopt technological changes from time to time. New technologies create new products and new processes. Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as the organizations providing the products. MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances. Online shopping, bar coding and computer aided design are all improvements to the way we do business as a result of better technology. 7. International Environment: - Another environmental factor which is fast emerging as the force to reckon with is the international environment. Implications of global or international environment are; (i) Due to liberalization, Indian companies are forced to view business issues from the global perspective. (ii) Safe and protected markets are no longer there. World is becoming small in size due to advanced means of transport and communication facilities. (iii) Learning of foreign languages is must for every business manager. (iv) Acquiring familiarity with foreign currencies is also must. (v) Facing political and legal uncertainties is inevitable. pradeepkalari (pradeep sp) (MORE)