Markets Economists study trade, production and consumption decisions, such as those that occur in a traditional marketplace. Electronic trading brings together buyers and sellers through an electronic trading platform and network to create virtual market places. Microeconomics examines how entities, forming a market structureinteract within a market to create a market system. These entities include private and public players with various classifications, typically operating under scarcity of tradable units and light government regulation.
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However, the business does not exist in a vacuum, it exists within an external environment involving the actions of other players who are outside the business. It is very important that an organisation considers its environment before beginning the marketing process, as the business environment affects organisational decisions, strategies, processes and performance.
In examining the business external environment we must take in to account that there are two levels of environment.
The immediate or operational environment; for most firms includes suppliers, competitors, labour markets, financial institutions and costumers, and may include trade organisations, trade unions and a parent company.
On the other hand the general or contextual environment consists of the macro economical factors such as political, economical, socio-cultural, technological, legal and ethical influences on a business also known as PEST or PESTLE analysis, which affect a wide variety of businesses not only from a local or national aspect but also from the international and supranational developments.
The political environment has a huge influence upon the regulation of businesses and the spending power of consumers and other businesses. You must consider issues such as: All businesses are affected by economical factors nationally and globally.
Interest rate policy and fiscal policy will have to be set accordingly. Within the United Kingdom the climate of the economy dictates how consumer may behave within society.
Marketers also need to consider the state of a trading economy in the short and long-terms. This is especially true when planning for international marketing. You will need to look at: The social and cultural influences on a business vary from country to country.
It is very important that such factors are considered. Technology is vital for competitive advantage, and is a major driver of globalisation. Points to be considered are: In my essay I will focus my study in to the technological influences in the industry of electrical retail and discuss how these technological influences effect the industry and how other factors of the PEST analysis interlink with the technological factor and affect the industry.
Changes in technology is changing the way business operates. There have been massive changes in the technology in the past ten years. Investment in technology and innovation is frequently seen as a key to the success of an enterprise and has been used to explain differences in the relative competitiveness of different countries.
Technological changes leads to: The technological factor has a big influence on the electrical retail industry. I believe the major technological influences in the electrical retail industry is the innovation of information technology.
The development of information technology have had the effect of transforming existing business activities as well as creating entirely new ones. This has encouraged the development of computers, laptops, mobiles etc which are one of the most popular products in demand in the electrical retail industry and have the biggest affect on any business as well as the electrical retail industry in the way products are distributed, marketing and advertising for products and the invention of new products and making old products more profitable.
There are many effects of information technology on different functions carried out by any business as well as the electrical retail industry for instances the administration of businesses, as most businesses have computer systems therefore all records have become computerized.
Communication and mobility has been eased by the development of fax machines, e-mail, video conferencing, mobiles, laptops enabling people to work from anywhere.Essay External and Internal Environment Analysis.
External and Internal Environmental Analysis This environmental analysis will provide a complete external environmental scan designed to provide RoyalBlu Invites with the tools needed to identify the organizations strength and weaknesses.
Furthermore, including an assessment of the company . SWOT analysis is a method for analysing a business, its resources and its environment. It focuses on the internal strengths and weaknesses of a business (compared with competitors) and the key external opportunities and threats for the business.
Excerpt from Research Paper: Harley Davidson External Business Environment Strategic Business Plan Outline The Analysis of H-D's External Environment. The third step involves identifying opportunities and threats within the company’s external environment.
This is where the second part of the SWOT analysis (the O and the T) comes into play. External environment analysis is important in determining the strategy that should be adopted by a business and internal environment analysis is critical to identify the core competencies of the business.
of the business in order to come up with strong and competitive strategies to over come the external factors that can harm the business. Threats and opportunities are the external forces of the environment present in the business. They focus on .