This slide helps you in identifying the Microenvironmental factors with the example.

1. MICRO ENVIRONMENTAL
FACTORS
HASAN ADEEB JAFRI
16MBAW-24
GH8696

2. INTRODUCTION
MICRO ENVIRONMENTAL FACTORS, ARE THOSE FACTORS WHICH ARE VERY CLOSE TO A
BUSINESS ORGANISATION AND HAVE A DIRECT IMPACT ON ITS BUSINESS OPERATIONS AND
WORKINGS. BEFORE DECIDING ANY CORPORATE STRATEGY BUSINESSES SHOULD CARRY OUT A
FULL ANALYSIS OF THEIR MICRO ENVIRONMENTAL FACTORS.
OR
IN GENERAL WORDS THE FACTORS WHICH ARE DIRECTLY ASSOCIATED WITH THE BUSINESS
ORGANISATION FROM THE BEGINNING ARE COMES UNDER MICRO ENVIRONMENTAL FACTORS.
I TAKE APPLE INC. AS MY PREFERRED ORGANISATION IN ORDER TO MAKE THINGS MORE EASY
TO UNDERSTAND.
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3. FACTORS
Company
Employees
Competitors
Media
Shareholder
s
Suppliers
Customers
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4. CUSTOMERS
• AS ALL BUSINESSES NEED CUSTOMERS, THEY
SHOULD BE CENTERED AROUND CUSTOMERS.
THE FIRM'S MARKETING PLAN SHOULD AIM TO
ATTRACT AND RETAIN CUSTOMERS THROUGH
PRODUCTS THAT MEETS THEIR "WANTS AND
NEEDS" AND EXCELLENT CUSTOMER SERVICE.
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5. ATTRACTIVE PLANS: THEY CREATES DIFFERENT ATTRACTIVE
PLANS LIKE CONTRACT PLAN AND CONSUMER SUPPORT
PROGRAM IN ORDER TO ATTRACT MORE CUSTOMERS.
CONTRACT PLANS CONSUMER SUPPORT
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6. EMPLOYEES
• EMPLOYING STAFF WITH RELEVANT SKILLS
AND EXPERIENCE IS ESSENTIAL. THIS
PROCESS BEGINS AT RECRUITMENT STAGE
AND CONTINUES THROUGHOUT AN
EMPLOYEE'S EMPLOYMENT VIA ONGOING
TRAINING AND PROMOTION OPPORTUNITIES.
TRAINING AND DEVELOPMENT PLAY A
CRITICAL ROLE IN ACHIEVING A COMPETITIVE
EDGE; ESPECIALLY IN SERVICE SECTOR
MARKETING. IF A BUSINESS EMPLOYS STAFF
WITHOUT MOTIVATION, SKILLS OR EXPERIENCE
IT WILL AFFECT CUSTOMER SERVICE AND
ULTIMATELY SALES.
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7. APPLE #22 ON GLASSDOOR'S 2015 BEST PLACES TO
WORK LIST
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8. SUPPLIERS
• SUPPLIERS PROVIDE BUSINESSES WITH THE
MATERIALS THEY NEED TO CARRY OUT THEIR
BUSINESS ACTIVITIES. A SUPPLIER'S
BEHAVIOR WILL DIRECTLY IMPACT THE
BUSINESS IT SUPPLIES. FOR EXAMPLE IF A
SUPPLIER PROVIDES A POOR SERVICE THIS
COULD INCREASE TIMESCALES OR PRODUCT
QUALITY. AN INCREASE IN RAW MATERIAL
PRICES WILL AFFECT AN ORGANISATION
MARKETING MIX STRATEGY AND MAY EVEN
FORCE PRICE INCREASES. CLOSE SUPPLIER
RELATIONSHIPS ARE AN EFFECTIVE WAY TO
REMAIN COMPETITIVE AND SECURE QUALITY
PRODUCTS.
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9. APPLE HAVE TOTAL 748 SUPPLIERS,
663--OR ABOUT 89%--ARE IN ASIA,
WITH 44% OF THE TOTAL IN MAINLAND CHINA.
NORTH AMERICA IS HOME TO JUST OVER 10% OF ALL APPLE
SUPPLIERS.
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10. SHAREHOLDERS
AS ORGANISATION REQUIRE INVESTMENT TO
GROW, THEY MAY DECIDE TO RAISE MONEY BY
FLOATING ON THE STOCK MARKET I.E. MOVE FROM
PRIVATE TO PUBLIC OWNERSHIP. THE
INTRODUCTION OF PUBLIC SHAREHOLDERS
BRINGS NEW PRESSURES AS PUBLIC
SHAREHOLDERS WANT A RETURN FROM THE
MONEY THEY HAVE INVESTED IN THE COMPANY.
SHAREHOLDER PRESSURE TO INCREASE PROFITS
WILL AFFECT ORGANISATIONAL STRATEGY.
RELATIONSHIPS WITH SHAREHOLDERS NEED TO
BE MANAGED CAREFULLY AS RAPID SHORT TERM
INCREASES IN PROFIT COULD DETRIMENTALLY
AFFECT THE LONG TERM SUCCESS OF THE
BUSINESS.
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11. APPLE SHARING THEIR TIME WITH ITS
STAKEHOLDERS IN ORDER TO MAKE THEM
MOTIVATE FOR MORE INVESTMENT.
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12. MEDIA
• POSITIVE MEDIA ATTENTION CAN “MAKE” AN
ORGANISATION (OR ITS PRODUCTS) AND
NEGATIVE MEDIA ATTENTION CAN “BREAK” AN
ORGANISATION. ORGANISATION'S NEED TO
MANAGE THE MEDIA SO THAT THE MEDIA HELP
PROMOTE THE POSITIVE THINGS ABOUT THE
ORGANISATION AND REDUCE THE IMPACT OF A
NEGATIVE EVENT ON THEIR REPUTATION. SOME
ORGANISATIONS WILL EVEN EMPLOY PUBLIC
RELATIONS (PR) CONSULTANTS TO HELP THEM
MANAGE A PARTICULAR EVENT OR INCIDENT.
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13. NEWS IN FAVOR AND AGAINST OF THE
ORGANISATION
FAVOR AGAINST
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14. COMPETITORS
• THE NAME OF THE GAME IN MARKETING IS
DIFFERENTIATION. CAN THE ORGANISATION OFFER
BENEFITS THAT ARE BETTER THAN THOSE OFFERED BY
COMPETITORS? DOES THE BUSINESS HAVE A UNIQUE
SELLING POINT (USP)? COMPETITOR ANALYSIS AND
MONITORING IS CRUCIAL IF AN ORGANISATION IS TO
MAINTAIN OR IMPROVE ITS POSITION WITHIN THE
MARKET. IF A BUSINESS IS UNAWARE OF ITS
COMPETITOR'S ACTIVITIES THEY WILL FIND IT VERY
DIFFICULT TO “BEAT” THEIR COMPETITORS. THE MARKET
CAN MOVE VERY QUICKLY FOR EXAMPLE THROUGH A
CHANGE IN TRADING CONDITIONS, CONSUMER
BEHAVIOUR OR TECHNOLOGICAL DEVELOPMENTS. AS A
BUSINESS IT IS IMPORTANT TO EXAMINE COMPETITORS'
RESPONSES TO THESE CHANGES SO THAT YOU CAN
MAXIMIZE THE IMPACT OF YOUR RESPONSE. 14

15. COMPETITORS FOR APPLE
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16. CONCLUSION
• BUSINESSES CAN NOT ALWAYS CONTROL MICRO ENVIRONMENT FACTORS
BUT THEY SHOULD ENDEAVOUR TO MANAGE THEM ALONG WITH MACRO
ENVIRONMENT AND INTERNAL ENVIRONMENT FACTORS.
• BY CONTROLLING THESE FACTORS WE CAN MAXIMIZE OUR PROFIT AS
WELL AS EFFICIENCY .
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17. THANK YOU
HAVE A NICE DAY
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