Your assignment is to prepare and submit a paper on marketing grocery. Macro-environmental Factors
Macro-environmental factors are the environmental factors that affect the marketing strategies of the organization although it has limited chances of manipulating them. They include political-legal, socio-cultural, international and technological factors. The organization can define these factors in terms of scanning for better understanding of all opportunities and threats it may face together with the required strategic devices to adjust so as organization can attain and maintain competitive advantage (Kotler & Armstrong, 2006). Macro-environmental factors originate from outside of the organization and they cannot be changed by the organization’s actions. Specifically an organization can get great challenges when there changes in this factor of environment but the organization itself cannot affect the environment.
The legal environment forces organizations to become complex while affecting business operations directly. It is difficult for businesses to operate their activities without meeting obligations relating to regulations of the law. Some of the regulations that may affect bussines organizations include consumerism regulations, competitive and relations of employees. Most of regulations are associated with regulatory agencies. The US has the powerful regulatory agencies that include Occupational Safety and Health Administration (OSHA), Equal Employment Opportunity Commission (EEOC), Environmental Protection Agency (EPA) and many others.
Compliance cost of the regulations is very expensive although most of them are passed on consumers at the end. This means that most of the product prizes may be high to meet the requirements of all the regulations. Therefore, the organizations commodity-marketing price depends heavily on the legal requirements (Schmidt, 2005). Socio-cultural Factors Socio-cultural factors of environment comprises of traditions, values and lifestyles that provide the characteristics upon which the organization operates. Socio-cultural factors of environment affects the ability of an organization to get resources, come up with its own services and operate within a society. Social-cultural factors comprises of all aspects within the society that has the ability to influence the performance of an organization. They can include expanding educational levels, population demographics, values and norms together with the attitude towards social responsibility (Schmidt, 2005). Technological Factors Technology is a factor that affects the development of strategic plans of an organization. Variation in technology may lead greatly influence the demand of the organizations goods and services. It may also affect its processing techniques and the required raw materials for manufacturing goods. The changing of technology can influence an organization in two ways. First, it may provide new opportunities for the organization to explore and get better returns. On the other hand, it may cause threats to the survival status of the organization, the product or industry. Technological improvements continue to increase at a very high rate, which requires that all firms be a constant revolution to survive. Balance of Payment Balance of payment is the net difference in goods that bought and sold by business people of a country.