D2 critically evaluate the impacts that both macro and micro factors have upon business objectives and decision-making. It has significant impact on the success of the business.
Strength and weaknesses of the business organisation are related with macro and micro environment factors. Economic factors affect the profitability of the company.
Macro factors include external factors of the environment in which organisation operate. It includes skill and knowledge applied to the production and changes in the technology of production. Economic factors are broad in range it is the mixture of national and international environment.
Ethics and morals serve as guidelines on how to act rightly and justly when individuals are faced with moral dilemmas. Organisation should take decision after considering the availability of these resources.
Macro environment factors include: Political and legal factors include change in the government activities and changes in the legal policies and regulations.
Additional Considerations A newer force which is gaining in importance is ethics. To face the challenge of changing social and cultural factors.
These can be defined by the set of moral principles and values that govern the actions and decisions of an individual or group. External analysis can be done through SWOT method. Strength and weakness and macro environment factors are related with each other and affect each other.
Economic factors represent the wider economy so may include economic growth rates, levels of employment and unemployment, costs of raw materials such as energy, petrol and steel, interest rates and monetary policies, exchange rates and inflation rates.
T stands for threats. Every business organisation use natural resources for providing product and services. A business organisation should have good staff, viable financial resources and natural resources.
Strength means capabilities and resources of the company thorough which company can create its economic value and competitive advantage. Weakness means a lack of resources or capabilities which prevent company in creating economic values or gaining competitive advantage.
These factors affect company directly because changes in customers taste and preferences changes the production policies and demand —supply of the company. This may manifest in government influence on tax policies, or government involvement in trading agreements.
W stands for Weakness of the company.Environmental analysis is integral to understanding how the organization operates within the organization itself, with in the industry and within the macroeconomic environment.
For this analysis the subject organization will be IKEA. “IKEA Group is one of the world’s largest privately owned. Environmental Analysis of IKEA Essay Words 6 Pages Environmental analysis is integral to understanding how the organization operates within the organization itself, with in the industry and within the macroeconomic environment.
Get affordable online Locus Assignment Help in Unit 1 Business Environment Assignment – IKEA, “IKEA”faces these macro environmental factors. Big and major changes in the macro environment factors are usually outside the control of business so it is necessary that management of the company should be able to analyse the effect of these.
A Study On Analyzing Ikea Business Essay. Print Reference this. Disclaimer: Macro Environment (PESTEL) Comparing IKEA’s macro environmental factors using PESTEL analysis shows that IKEA has performed well by adopting new changes when required. IKEA shows how they have well managed during the recent economical downturn.
Global Organizational environment analysis of IKEA. Print Reference this The Macro-economic environment is the most important environment which a firm or business must consider for devising an efficient strategy to gain a sustainable competitive advantage in the marketplace.
Global Organizational Environment. The name IKEA is an acronym. Transcript of Marketing Analysis for Ikea. Tuesday, March 4, Marketing Analysis for IKEA Macro/Micro Environment * Political - the environmental protection is increasingly becoming a global chase. - Singapore has a Environmental Protection Law to require the quality of Ikea's product.