October 25-29
Dear students, for this weekly forum we will discuss about: MACRO ENVIRONMENT
You must answer one or both questions with a response of at least 200 words and using at least one reference in APA style.
A) What are the consequences of not knowing completely the macroenvironment of your business?
B) Which element of the PESTEL model do you consider is the most important and why?
Remember that our deadline is Friday, October 29th before 11:59 pm. :)
PUT YOUR NAME AND LAST NAME IN YOUR ANSWER.
Best regards!
B)
ResponderBorrarThe element of the PESTEL model that I consider is the most important is the economical. This factor has a direct impact on the economy and its performance, having an effect also on the organization and its profitability (What is a PESTEL analysis?, 2016). It has resonating long term effects, I believe that this factor influence completely to all the companies in the world, because things such as economic growth/decline, interest, exchange, inflation, wage rates, unemployment, credit ability, etcetera are important to the company and their incomes. One example of this could be the rise in the inflation rate, this affects the prices of the products and services, and also the purchasing power of a consumer, resulting in a change inside the demand/supply models for that economy (Ritesh Pathak, 2020). The economical aspect has a huge influence in how a company should handle its prices, incomes and expenses, way of working and paying, etc. According to Thakur (2019), this element has an effect in the market and investment, it also helps to know when and where to invest or take the money out of a company. There are several economic factors that influence the business and economic developments. We need to make sure that we are prepared for the different changes in the economic aspect and the several consequences that it could have in order to have a successful business (Thakur, 2019).
Aletxa Pascual
References:
Ritesh Pathak. (2020). What is PESTLE Analysis? Factors, Advantages and Disadvantages of PESTLE Analysis. AnalyticsSteps. https://www.analyticssteps.com/blogs/what-pestle-analysis
Thakur, M. (2019, February 26). Economic Factors. WallStreetMojo. https://www.wallstreetmojo.com/economic-factors/
What is a PESTEL analysis? (2016, June 30). Oxford College of Marketing Blog. https://blog.oxfordcollegeofmarketing.com/2016/06/30/pestel-analysis/
Alejandro Gonzalez
ResponderBorrarA) What are the consequences of not knowing completely the macroenvironment of your business?
Not getting to understand the full scope of the macro environment of your business can lead to uncertainty and not getting your business to fully settle down and maintain a good business structure.
The macro-environment is more general, it is the environment in the economy itself. It has an effect on how all business groups operate, perform, make decisions, and form strategies simultaneously. It is quite dynamic, which means that a business has to constantly track its changes. It consists of external factors that the company itself doesn’t control but is certainly affected by.
This means that it is eventually going to affect your business and you are going to need to act accordingly or you'll face various problems depending on the factor that gets to you.
If the technological factor is in where you are lacking actualizations, then your competition might have better and cheaper ways to make their products while you are stuck with the old ways. You need to be in touch with how the market flows and what new innovations are going on in all the areas in order to stay relevant and the products to be the best quality possible in the market you are invested in.
S. (2021, October 1). Understanding Of Micro And Macro Factors That Affect Your Business. Mageplaza. Retrieved October 25, 2021, from https://www.mageplaza.com/blog/micro-and-macro-factors-affect-your-business.html#what-is-the-macro-environment
Macro environment
ResponderBorrarEstefanía Arias Rodríguez
B) Which element of the PESTEL model do you consider is the most important and why?
In my opinion the ecological element is the most important part of PESTEL model, the ecological model is in charge of creating the policies that an organization adopts in order to preserve or improve natural resources which the company will apply when performing its activities, the ecological element can be very tricky since both consumers and governments can penalize businesses for having an adverse effect on the environment, this penalizations can be huge fines for things like polluting, but it’s not all bad since companies can be also rewarded for having a positive impact on the environment. Now days according to studies customers are willing to change brands if they find a business is not environmentally friendly, therefore being environmentally friendly becomes more and more important since without it a company could literally run out of customers which leads to being bankrupt.
To sum up the ecological element is becoming more and more important since now the environment benefits the company rewarding them with customers and more profit or penalizing them with less customers depending on the environmental policies they follow.
Contributor, P. (2020, 22 septiembre). The PESTEL Framework Explained: 6 Important Factors. PESTLE Analysis. https://pestleanalysis.com/pestel-framework/
Regina López
ResponderBorrarB) Which element of the PESTEL model do you consider is the most important and why?
I consider that de most important element of the PESTEL model is social, because it comprehends the customary beliefs and traditions that surround a specific society in a
determined period, which is why marketers should track them regularly since it will affect every type of business. Since it involves trends, norms, customs, and even the values of the people in the country or countries in which you operate or intend to operate, you need to be really careful about what you say/do because it may have a bad impact on the client and can easily turn into a legal problem. Some topics that might be considered when evaluating social factors are: number of births per year, number of marriages and divorces, rates of immigration; outmigration, life expectancy, age distribution, distribution of wealth, impact of social class distinctions, per capita income, average levels of disposable income, lifestyle, importance of leisure time, culture and religion, acceptance of different races, trust in government, attitude towards work, shopping habits, savings rate, acceptance of foreigners, and much more topics, which is the reason why the social factor has a huge impact, because countries rely on the society/costumers to have successful companies, because that’s their way of income.
Lewin, J. (2021, September 3). Social Factors in your PESTEL Analysis (Part 4 of 7). Cayenne Consulting. Retrieved October 26, 2021, from https://www.caycon.com/blog/social-factors-in-your-pestel-analysis
Alejandra Martínez
ResponderBorrarB) Which element of the PESTEL model do you consider is the most important and why?
The PESTEL model involves the collection and presentation of information on the political, economic, social and technical factors in the organization's external environment that have or may have an impact on a company's activities and performance. Now, in my opinion, the most important factor is the political factor because there is a balance between the control system and the free market. This represents the demographic characteristics, norms, customs and values of the people in which the organization operates. Including demographic trends such as population growth rate, age distribution, income distribution, occupational attitudes, attention to safety, health awareness, lifestyle attitudes and cultural barriers. The political factor also affects all companies in all countries, just as they must be flexible enough to respond to changes in regulations and policies. In many cases, the company cannot control future changes in policies and rules. However, it is therefore recommended that companies considering moving or expanding to a new country conduct a PESTEL analysis and pay close attention to the political issues in the new country because this factor influences the decision of where to locate a company.
The following table lists some of the issues that could be analyzed when considering political factors:
- Political stability/instability
- Health of the government
- Level of corruption
- Legality of lobbying
- Fiscal policies (taxes)
- Trade policy (duties/tariffs, etc.)
- Freedom of the press
- Regulation/deregulation
- Antitrust regulations
Among others.
Bruin, L. (2021, October 5). Scanning the Environment: PESTEL Analysis. B2U - Business-to-You.Com. Retrieved October 27, 2021, from https://www.business-to-you.com/scanning-the-environment-pestel-analysis/
Lewin, J. (2021, September 3). Political Factors in your PESTEL Analysis (Part 2 of 7). Cayenne Consulting. Retrieved October 27, 2021, from https://www.caycon.com/blog/political-factors-in-your-pestel-analysis
ResponderBorrarMaría Andrea Marrufo
A) What are the consequences of not knowing completely the macroenvironment of your business?
When a company doesn’t understand, know or is fully aware of their macroenvironment they may make mistakes that could lead to terrible consequences. I will provide how important it can be to know you macro environment in three different factors, economic, socio cultural and demographic.
The demographic forces: Demography refers to the study of human populations. Demographic forces relate to people. They help understand why people are important in the business, considering their factors like age, gender, occupation and statistics. Your business should exist because of them and their needs. If we don’t consider these factor, our business doesn’t have a purpose and it is likely for it to fail.
Economic forces: they relate to the factor that affect customer purchasing from your company. Some of them could be GDP, GNO, Import duty rate, sales and taxes, unemployment, inflation, income for the workers, etc. Not knowing all these information clearly can make your numbers go wrong and eventually led to bankrupt for bad manage of the economy in the company.
Socio cultural forces: these forces are determined by society’s basic values, behavior and preferences. Understanding the way people think about certain thing you may use in your company is very important because for some people it could be amazing but there is also people that could consider it offensive to culture, values or beliefs. Leading to lawsuits against your company and bad reputation.
Claessens, M. (2020, 21 marzo). The Macro Environment – Six Forces in the Environment of a Business. Marketing-Insider. Recuperado 27 de octubre de 2021, de https://marketing-insider.eu/macro-environment
Barrington, R. (2020, 6 febrero). Micro and Macro Environment Factors. Oxford College of Marketing Blog. Recuperado 27 de octubre de 2021, de https://blog.oxfordcollegeofmarketing.com/2014/11/04/the-impact-of-micro-and-macro-environment-factors-on-marketing/
Rodrigo Villanueva Muzzi
ResponderBorrarA) What are the consequences of not knowing completely the macroenvironment of your business?
Not knowing about the whole macro environment of your business can result in a large range of malfunctions in the structure or the base of your company. This would provoke that you don’t get to fully settle all the aspects of your business, and you will end up with a never ending cycle of problems.
Macroeconomics is related to spending, aggregate production, and the price level in a particular economy. The range of influence of the macroenvironment depends on the number of businesses of an organization that depend on the condition of the economy in an integral way.
The main aspects that you should take into account to have a good macro environment are:
“Demographic forces: Different market segments are typically impacted by common demographic forces, including country/region; age; ethnicity; education level; household lifestyle; cultural characteristics and movements.” (Barrington, 2020)
“Economic factors: The economic environment can impact both the organisation’s production and the consumer’s decision-making process.” (Barrington, 2020)
“Natural/physical forces: The Earth’s renewal of its natural resources such as forests, agricultural products, marine products, etc must be taken into account. There are also natural non-renewable resources such as oil, coal, minerals, etc that may also impact the organisation’s production.” (Barrington, 2020)
“Technological factors: The skills and knowledge applied to the production, and the technology and materials needed for the production of products and services can also impact the smooth running of the business and must be considered.” (Barrington, 2020)
“Political and legal forces: Sound marketing decisions should always take into account political and/or legal developments relating to the organisation and its markets.” (Barrington, 2020)
“Social and cultural forces: The impact the products and services your organisations bring to market have on society must be considered. Any elements of the production process or any products/services that are harmful to society should be eliminated to show your organisation is taking social responsibility. A recent example of this is the environment and how many sectors are being forced to review their products and services in order to become more environmentally friendly.” (Barrington, 2020)
If you manage to control all these aspects it’s sure that your macro environment will be working in your favor and not affecting you and all the work you're putting into it.
References:
Barrington, R. (2020, February 6). Micro and Macro Environment Factors. Oxford College of Marketing Blog. Retrieved October 28, 2021, from https://blog.oxfordcollegeofmarketing.com/2014/11/04/the-impact-of-micro-and-macro-environment-factors-on-marketing/
What Is a Macro Environment? (2021, September 4). Investopedia. Retrieved October 28, 2021, from https://www.investopedia.com/terms/m/macro-environment.asp
A) What are the consequences of not knowing completely the macroenvironment of your business?
ResponderBorrarMacro-environment often indicates a condition affecting the overall economy, and it is not affecting a particular section of the market. A macro environment condition will impact business decisions. Spending, investing and borrowing activities can be affected due to the presence of a macro environment.
Ecological, or natural forces in the Macro Environment are important since they impact the natural resources which are needed as inputs for business or for an economy at large. Also, environmental concerns have grown strongly in recent years, which makes the ecological force a crucial factor to consider.
It has an effect on how all business groups operate, perform, make decisions, and form strategies simultaneously. It is quite dynamic, which means that a business has to constantly track its changes.
Economic forces are factors such as monetary and fiscal policies, interest rate, employment, inflation rate, demographic changes, political changes, energy, security, and natural disasters. All of these have a direct effect on how businesses produce and distribute their products or services.
Demographic factors such as age, gender, education, income and experience has a considerable impact on business performance. ... The findings show that the relationship between gender and income in relation to business performance was found to be significant.
APA references: Study.com | Take Online Courses. Earn College Credit. Research Schools, Degrees & Careers. (s. f.). Economic Forces. Recuperado 28 de octubre de 2021, de https://study.com/academy/lesson/how-economic-conditions-influence-the-modern-business-market.html#:%7E:text=Economic%20forces%20are%20factors%20such,distribute%20their%20products%20or%
demographic force. (s. f.). Oxford Reference. Recuperado 28 de octubre de 2021, de https://www.oxfordreference.com/view/10.1093/oi/authority.20110803095709794#:%7E:text=Any%20of%20the%20three%20factors,a%20particular%20place%20or%20area.
Isabella Estrada Salazar
ResponderBorrarA macro environment refers to the set of conditions that exist in the economy as a whole, rather than in a particular sector or region. In general, the macro environment includes trends in the gross domestic product (GDP), inflation, employment, spending, and monetary and fiscal policy. The macro-environment is closely linked to the general business cycle as opposed to the performance of an individual business sector.Macro environment analysis is part of a company's strategic management that enables it to analyze and identify potential opportunities and hazards that might impact the business. The goal is to prepare management in advance with information that assists them in making operational decisions.Some companies will employ analysts trained to evaluate macro-environmental factors and provide recommendations based on their research. These analysts will review broad macro-environmental forces related to such factors as politics, the economy, demographics, and technology.The macro-environment may also have a direct impact on the individual’s ability to consume and the sense of willing to spend. Macro environment will have a major impact on the industries and sectors that are big-ticket oriented and are significantly affected by the variation in the consumer’s spending habits. Consumer’s spending reactions based on the very broad macro environment will be closely watched by the corporates, economists and analysts as a measure of the economy's health.
A few of the significant factors making up the macro-environment contain inflation, gross domestic product, fiscal and monetary policies, employment, and consumer spending.
PETE RATHBURN. (September 03, 2021). Macro Environment. oct 27 2021, de INVESTIOPEDIA Sitio web: https://www.investopedia.com/terms/m/macro-environment.asp
SILVANA SANSORES
ResponderBorrarEnvironmental factors have come to the forefront only relatively recently. They have become important due to the increasing scarcity of raw materials, polution targets and carbon footprint targets set by governments. These factors include ecological and environmental aspects such as weather, climate, environmental offsets and climate change which may especially affect industries such as tourism, farming, agriculture and insurance. Furthermore, growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer. This has led to many companies getting more and more involved in practices such as corprate social responsibility (CSR) and sustainability.
The threat of pollution, for example, has forced municipalities to treat water supplies with chemicals. These chemicals increase the safety of the water but detract from its taste. This has created opportunities for businesses that provide better-tasting water. Rather than consume cheap but bad-tasting tap water, many consumers purchase bottled water. Indeed, according to the Agriculture and Agri-Foods Canada, bottled water amounts to 10.9 percent of the market share of Canadian non-alcoholic beverage market.
As is the case for many companies, bottled water producers not only have benefited from the general environment but also have been threatened by it. Some estimates are that 80 percent of plastic bottles end up in landfills. This has led some socially conscious consumers to become hostile to bottled water. Meanwhile, water filtration systems offered by Brita and other companies are a cheaper way to obtain clean and tasty water. Such systems also hold considerable appeal for individuals who feel the need to cut personal expenses due to economic conditions.
de Bruin, L. (2016, septiembre 18). PESTEL analysis (PEST analysis) EXPLAINED with EXAMPLES. Com.Mx. https://www.google.com.mx/amp/s/www.business-to-you.com/scanning-the-environment-pestel-analysis/amp/
Mauricio Ampudia
ResponderBorrarA) What are the consequences of not knowing completely the macroenvironment of your business?
Failure to understand the entire macro environment of your business may lead to a wide range of failures in your company's structure or foundation. This will cause you to not be able to completely solve all aspects of your business, and you will end up in a never-ending cycle of problems.
Macroeconomics is related to the expenditure, total output, and price level of a particular economy. The scope of influence of the macro environment depends on the number of enterprises in an organization, and these enterprises depend on economic conditions in an overall manner.
The macro environment is more general, it is the environment of the economy itself. It has an impact on how all business groups operate, execute, make decisions and make strategies at the same time. It is very dynamic, which means that the company must keep track of its changes. It is composed of external factors that the company cannot control but are definitely affected by it.
This means that it will eventually affect your business and you will need to act accordingly, otherwise you will face various problems, depending on the factors that affect you.
https://repositorio.usfq.edu.ec/bitstream/23000/2185/1/106073.pdf
A) What are the consequences of not knowing completely the macroenvironment of your business?
ResponderBorrarThe macroenvironment are the external factors that can be a threat to your business and affects almost all of the businesses.
If you don´t know well the marcoenvironment of your business, it can be more affected because you are not working on it, and it can impact the business without knowing why.
Not knowing the macroenvironment can lead to not having a good structure of your business, and it will impact on how the business operates.
B) Which element of the PESTEL model do you consider is the most important and why?
The element I consider the most important is the economical. I consider it the most important because is the one with the most influence in a business because it includes the interest rates, taxes, law, policies, and the governmental activities that will be valued later on.
The economical factors that are affecting business are the interest rates; which affects the cash flow, the exchange rate; that affects international payment, the tax rate; which affects the price of goods and its sales which affects the economy, the inflation; which increases the money supply in the market, the labor; it´s cost is always important, demand or supply; the increase of the price results in inflation and with inflation the economy increases and with increases in the supply of goods or services price of the same decreases.
Economic Factors. (s. f.). Wallstreetmojo. Recuperado 29 de octubre de 2021, de https://www.wallstreetmojo.com/economic-factors/
Sofia Cerdeira
Mariana
ResponderBorrarWhich element of the PESTEL model do you consider is the most important and why?
I think that the Pestel model that us more important right now is technological, because our society is changing a lot and new technologies are being created. If we as a business want to be successful in the market they should have the latest technology available so that customers will keep buying. New technologies affect business and this is why it is consider a Pestel model.
The best way to keep up could be:
New ways to produce goods and services
New ways to distribute products
New ways to use marketing to reach our main customers
Now what trends are coming up
I also think that another important Pestel factor is the economic one, it is important because economic factor take a huge part of the organization, how it grows, their incomes, the inflation and many others. Economic factors can affect all businesses.
Economic factors are always looking at economy aspects and how they could affect in each area of the business. That also can regulate prices and change them if the case is needed.
Even thought there are other Pestel models I think this two are the most important, because they are what can support a business and make it still work and be useful.
Bush, T. (2020, 13 septiembre). What Is the PESTEL Model for Business Analysis? PESTLE Analysis. https://pestleanalysis.com/pestel-model/
Gerardo Ortiz
ResponderBorrarA) What are the consequences of not knowing completely the macroenvironment of your business?
The macroenvironment refers to a set of conditions that exist in the economy as a whole and not in a particular sector or region. The macroeconomic environment generally includes GDP growth, inflation, employment, consumption, and monetary and fiscal policies. The macroeconomic environment is closely linked to the business cycle as a whole, not to the sectoral activities of individual companies. The Macro Environment explains how the macroeconomic environment in which a company or sector operates affects its performance. Unlike individual sectors and markets, macroeconomics deals with the level of gross domestic product, costs, and prices. The magnitude of the influence of the macroenvironment depends on the scope of activities of the company as a whole. The circular industry is strongly affected by the macroenvironment, while large industries are less affected. Industries that depend on loans to buy money and invest in companies depend to a large extent on interest rates and changes in global financial markets. The macro environment can also have a direct impact on consumers' ability and willingness to spend. The luxury and high-value consumer goods industry can be seriously affected by fluctuations in consumer spending. Businesses and economists are closely monitoring consumer responses to the broader macro environment as an indicator of the health of the economy.
Reference:
https://www.investopedia.com/terms/m/macro-environment.asp
Mariano Rodríguez Gutiérrez de Quevedo
ResponderBorrarIn order to understand why is so important to know the macro environment of your business first we did to define, what is a macro environment?, according to monash business school a macro environment is the major uncontrollable, external forces (economic, demographic, technological, natural, social and cultural, legal and political) which influence a firm's decision making and have an impact upon its performance, knowing this we can determine why understanding the macro environment of a company is so important, it will help a lot to know how and with what a company could accomplish a lot of things.
Even though this factors are incontrolable a company could use them to their advantage, making the right decisions based on the knowing of your macro environment and the micro environment factors your company has developed which consists of suppliers, costumers, resellers and the general public a company should easily thrive on whatever industry is on
Micro and macro environments have a significant impact on the success of marketing activities, and therefore such environmental factors must be considered in-depth during the process of creating a strategic marketing plan. Considering these factors will improve the success of your organisation’s marketing campaign, business structure and the reputation of the brand in the long term.
References:
The impact of micro and macro environment factors on marketing. Oxford College of Marketing Blog. (2020, February 6). Retrieved October 29, 2021, from https://blog.oxfordcollegeofmarketing.com/2014/11/04/the-impact-of-micro-and-macro-environment-factors-on-marketing/
Macro-environment. Monash Business School. (2018, February 8). Retrieved October 29, 2021, from https://www.monash.edu/business/marketing/marketing-dictionary/m/macro-environment
The pestel model is called like that because of all the elements it is made up of, which are: political, economical, social, technological, ecological, legal.
ResponderBorrarThe pestel model helps to understand the environment and to analyze it when you are going to start or create a company or a business.
Each element is very important, since each one consists of different things but the most important for me is the economic, since a company is based on the economy, it is also one of the elements that can affect your company or your business a lot, you have to analyze if the environment in which you want to develop your business or company is well economically or see and analyze what economic position they are in, If you open your business in an environment where the economy is low you will create a business or company where the products are low price because people will be able to buy more easily and you will have higher sales, for example if your environment is a place where the economy is very high, you will open a business with higher prices.
Not only that if you want to go to more advanced things you need to analyze the key accesses, contacts with other countries for the exchange of your product, economic globalizations and above all you have to focus on the THREATS as the increase of interest rates and what better example than the COVID19 nothing has affected more companies like this, because people could not go out and the economy was very low so several companies and businesses have been affected.
Because of that is why the economy is an extremely important element to open a business or a company.
Pathak, R. (s. f.). What is PESTLE Analysis? Factors, Advantages and Disadvantages of PESTLE Analysis. Analytic Steps. https://www.analyticssteps.com/blogs/what-pestle-analysis
Marijose Diaz Haas
ResponderBorrarA) What are the consequences of not knowing completely the macroenvironment of your business?
The macro-environment refers to how the macroeconomic conditions in which a company or sector operates influence its performance. The amount of the macro environment's influence depends on how much of a company's business is dependent on the health of the overall economy. Cyclical industries are heavily influenced by the macro environment, while basic staple industries are less influenced. Industries that are highly dependent on credit to finance purchases and business investments are strongly influenced by changes in interest rates and global financial markets. The macro-environment can also directly affect consumers’ ability and willingness to spend. Luxury goods industries and big-ticket consumer goods can be highly impacted by fluctuations in consumer spending. Consumers’ reactions to the broad macro-environment are closely monitored by businesses and economists as a gauge for an economy’s health.
Macro-environment often indicates a condition affecting the overall economy, and it is not affecting a particular section of the market. A macro environment condition will impact business decisions. Spending, investing and borrowing activities can be affected due to the presence of a macro environment.
Ecological, or natural forces in the Macro Environment are important since they impact the natural resources which are needed as inputs for business or for an economy at large. Also, environmental concerns have grown strongly in recent years, which makes the ecological force a crucial factor to consider, that’s why it is crucial to be fully aware of the microenvironment of your business.
REFERENCES:
Tanya Sammut-Bonnici. (2015). Macroenvironment. 29/10/21, from University of Malta Website: https://www.researchgate.net/publication/272184190_Macroenvironment
Summer. (2021). Understanding Of Micro And Macro Factors That Affect Your Business. 29/10/21, from mageplaza Website: https://www.mageplaza.com/blog/micro-and-macro-factors-affect-your-business.html