The designer of Sies!isablle(fashion brand) has asked us to identify and discuss the different sub-enviroment that have an influence on her business that will also help improve her business.Here is our explanation on how to help her understand the business environment and to help her improve her business.
Macro-enviroment is an external environment that is the most influencial in the threat and opportunaties in a business.
This consists of the following distinct components and variables:
*Physical environment – it consists of all natural resources as a wealth exp. Development in community and infrastructure
*International environment – whereby all foreign and local trends effect ...view middle of the document...
The micro environment
It comprises the internal of a business and it is well controllable.
It has the following variables: *vision,mission and objectives – these give reason for the existence of the business and what the business intails and what their goals and motives are.
*management – makes sure that the employees are always motivated and happy so they can make customers happy.
*resources – it comprises the set of internal variables wich has interfaces with external environment,such as tangible resources,intangible resources and organisational variables
When a business is threatened by a variable in the external environment,it may be a opportunity to the other business.The micro environment varies from one business to the next.
The market environment
Also known as task environment and is outside the business.Their threats and opportunity spources are the market,customers,suppliers,intermediance and competitors.
These factors should be looked at when competition is assassed.The collective streghts in these factors determines the competitiveness in the industry and therefor the profitability of participants.When the competitors forces are weak it better the chances of the other’s survival and good performance.It is important for management to find a position in the market where the business can successfully defend itself against the forces of competition
The market is the people who have needs to satisfy and have the ability to do so.They are always informed of customers needs and has a strategy of influencing the customer.
Scanning of the market for...