How does the external macro-environment impact on the business Rio Tinto?

Answer 1

Economic forces: Both marketers and customers are affected by economic forces. Pride (2006) states changes in general economic conditions affect (and are affected by) supply and demand, buying power, willingness to spend, consumer expenditure levels and the intensity of competitive behaviour. A consumer's buying power are their resources such as money, goods and services and they are important because these resources can be exchanged. Disposable income is the money left after taxes. This is important to marketers because this money is used for spending and saving. Eg. Interest rates on general economic conditions.

Political forces: Legislation from the government can affect markets through the organisations and consumers. Some marketers simply adjust to these political forces. Others try to influence political decisions by supporting politicians that can positively affect them. Eg. Industrial Relations laws affecting agreements between organisations and employees.

Legal and regulatory forces: Federal Laws and regulation agencies affect marketing activities and decisions. Laws such as the Trade Practices Act and the Privacy Act set rules, which organisations must abide by or risk suffering penalties and/or punishment. These laws can be enforced by regulatory agencies who also assist in directing rules and regulations.

Answer 2

Economic forces: Both marketers and customers are affected by economic forces. Pride (2006) states changes in general economic conditions affect (and are affected by) supply and demand, buying power, willingness to spend, consumer expenditure levels and the intensity of competitive behaviour. A consumer's buying power are their resources such as money, goods and services and they are important because these resources can be exchanged. Disposable income is the money left after taxes. This is important to marketers because this money is used for spending and saving. Eg. Interest rates on general economic conditions.

Political forces: Legislation from the government can affect markets through the organisations and consumers. Some marketers simply adjust to these political forces. Others try to influence political decisions by supporting politicians that can positively affect them. Eg. Industrial Relations laws affecting agreements between organisations and employees.

Legal and regulatory forces: Federal Laws and regulation agencies affect marketing activities and decisions. Laws such as the Trade Practices Act and the Privacy Act set rules, which organisations must abide by or risk suffering penalties and/or punishment. These laws can be enforced by regulatory agencies who also assist in directing rules and regulations.