marketing

the componets/layers of a business environment

the breakdown of primary elements that make up a busness environment; macro, micro, external, competitive and internal environment

macro environment

broad external forces that affect all businesses.

micro environment

forces closer to the firm that affects ability to serve cutomers

competitive environment

rivalry among existing competitors in the industry

internal environment

factors within a business that influence performance and strategy.

company cash flow

how much money a business have and expects to flow over time. (in and out of money)

assets and other resources

property and equipment that a business has access to.

products and services

what the business offers

strategic aliencesc

what organizations or influencial individuals does a business have a relationship with ?

organizational structure

personnels in the business and marketing initiatives

micro environment

• stakeholders closely connected to the business.

• factors outside the company but have a direct relationship within the business

examples: marketing intermediaries and public

marketing intermediaries

delivery apps, distribution, advertisement agencies

public

media, local community, financial institutions, government group, etc.

competitors

who they are and what their respective strengths and weaknesses may be

competing products and services

what these are and what their target market may be/are.

substitutes

alternative products/services that a business is considering rather than their core product.

forces of competition model

• made by michael porter

• also known as “5 forces of competition”

• an industry environment is always a competitive environment. regardless of products/services, competition is always present.

competitors

the most obvious form of operational risk

new entrants

risks when industry offers attractive growth prospects

substitutes

risks that threaten to steal market share in its industry

suppliers

threats if firm is too dependent on who gets to decided the increase of prices

buyers

threaten the firm through additional demand

external environment

refers to the physical environment, societal environment, and industry where business operates.

physical environment

• climate

• natural resources

• wildlife

societal environment

• political forces

• economic forces

• sociocultural forces

• technological forces

political

legislation, tax, political stability

economic

market growth, savings, employment, consumer spending, volatility, exchange rate, inerest rate

social

population, demographics, interests, lifestyle and consumer behavior

technological

new ideas, new products and services, threats to make the current business obsolete

industry environment

• competitors

• customers

• creditors

• employees

• government

• suppliers

government

refers to the local government (municipality, city, or provincial) or national government and its branches

competition

act or proess of trying to win or get something

substitute

anythin that takes the place or function of something

new entrants

the one who enters something in the context of marketing

suppliers

the ones that provide something that is needed or wanted

buyers

the ones that pays cash in exchange of goods and services

PEST/SPEET ANALYSIS

monitors rhe elements of macro environment which stands for political, economic, social, and technological

technological environment

new scientific and technological discoveries that are being launched and commercialized as new products with superior attributes that make or break the competing participants.

political environment

defines the governance system of the country or local business area.

social environment

demographics and cultural dimensions and the structure, social status and dynamics of population.

ecological

defines the natural resources and ecosystem that are habitats of men, animals, plants and minerals

economic environment

driven by the supply and demand forces