MODULE 7

• Macroenvironment – It has the larger societal forces (external forces) that affect the microenvironment.
• Microenvironment – It is composed of the actors (internal forces) close to the firm, affecting its ability to serve its customers
• STEEPLED Analysis - More complex analysis using eight (8) external forces influencing the firm. With this complex analysis, the entrepreneur determines how these forces impact, impede or improve the business to make smarter and more strategic business decisions (Frue, 2020).
• Social (sociocultural) – These include our attitudes, values, and lifestyles that influence the products people buy, the prices paid for products, the effectiveness of specific promotions, and how, where, and when people expect to purchase products (Lamb, Hair Jr., & McDaniel, 2018).
• Technological – The firm is impacted by technology's current, previous, and future state. Firms and their brands must take advantage of technology-related opportunities.
• Economic – The purchasing power and spending patterns of consumers are considered by firms when analyzing the economic forces.
• Environmental – This includes the physical and natural resources needed as inputs by the firm, which affects its activities/operations. Environmental sustainability must also be kept in mind since customers keep an eye on firms' impact on the environment and natural resources.
• Political – This includes methe laws the firm must pay attention to and the scope of impact of the government and its policies, such as political policy and stability, trade, fiscal, and taxation policies on firms and/or a specific industry. Moreover, the firm must pay attention to government agencies and pressure groups that influence or limit various organizations and individuals in each society that could impact the firm's demand patterns.
• Legal – Somewhat like political, this includes legislative bills passed within the area or location the firm operates (e.g., consumer law, health and safety laws, international and domestic trade regulations and restrictions). The firm must comply with legal regulations and requirements.
• Ethical – This force includes social values, which provide the basis of what is right or wrong, that shape business behavior (PESTLE Analysis, 2015). The firm must have ethical guidelines its employees must uphold.
• Demographic – This force includes people's vital statistics, such as age, race, ethnicity, and location, as consumer buying behavior and demographic characteristics are strongly related (Lamb, Hair Jr., & McDaniel, 2018). A detailed understanding of which demographics interact with their brand and products is crucial to firms.
• SWOT analysis - is the process of identifying internal strengths (S) and weaknesses (W) and examining external opportunities (O) and threats (T).
• Strengths - are its internal capabilities, resources, and positive situational factors that help serve its customers and achieve its objectives.
• Weaknesses - are its internal limitations and negative situational factors that interfere with its performance.
• Opportunities - Refer to the favorable forces or trends in the external environment that the company may be able to exploit to its advantage.
• Threats - refer to unfavorable external forces or trends that may present challenges to performance.
• Company – This involves the interrelated groups in the organization,such as the top management and other departments. The top management is involved in setting the mission, objectives, strategies, and policies.
• Suppliers – As partners of the firms in creating and delivering customer value, suppliers form that important link in the overall customer value delivery network of the firm, providing the needed resources.
• Marketing intermediaries – These form an important component of the overall value delivery network of the firm. They help promote, sell, and distribute the firm's products to final buyers.
• Resellers – Wholesalers and retailers are the distribution channels that help the firm find customers or make sales. Also, they buy and resell the merchandise.
• Physical distribution firms – These help the firm with stocking and moving products from their points of origin to their destinations.
• Financial intermediaries – These include banks, credit companies, insurance companies, and other financial firms that help entrepreneurs with their financial needs associated with buying and selling products.
• Marketing services agencies – These include marketing research, advertising, media, and marketing consulting firms that help the firm promote its products to the right markets.
• Competitors – The firm should do the following to be ahead of its competitors:
• Publics – Refers to groups of people with an actual or potential interest in or impacting an organization's ability to achieve its objectives.
• Financial publics – They impact the ability of the business to get funds (e.g., bank managers, investment analysts, and stockholders).
• Media publics – The people involved in news, features, editorial views, and other content (e.g., television stations, newspapers, magazines, blogs, and other social media).
• Government publics – Management should take into consideration developments in the government. The firm often consults its lawyers on product safety, honesty in ads, and other matters.
• Citizen-action publics – These groups question the firm's decisions (e.g., consumer organizations, environmental groups, minority groups, and others). The Public Relations Department helps the firm keep in contact with citizen groups and customers.
• Internal publics – They are the firm's employees, managers, volunteers, and the board of directors. Large firms have newsletters and other ways of informing and motivating their internal publics. This optimistic attitude carries over to the external public as workers feel good about the businesses they work for.
• General public – The firm ought to be concerned about the general public's attitude (nationwide) towards its activities and products. The firm's image influences the public's purchasing behavior.
• Local publics – They are the residents and organizations in the local community. Generally, large firms function to become responsible members of the local communities they operate in.
• Customers – They are the most critical actors in the microenvironment. Engaging target customers and creating strong relationships with them are the aims of the entire value delivery network.