External Environment

How can Public Opinion be managed?

Can be monitored/manipulated by use of public relations officials to release strategic information. Diffuse potential issues before they start to spread.

What influences do the successes and failures of competitors have on

Competitors success determines a portion of the marketing planning. (e.g; if a competitor goes under, adjustments will need to be made in order to take advantage of the situation)

What factors make up a company's external environment?

Competitors, Employee Unions, Customers, Owners, Demographics, Values

What are the impacts of a slow economy on an organisation?

Consumers become concerned about job stability, in turn they more likely to be cautious with expenditures. (decreased revenue) A slow profit stream can make it difficult for a small business to repay creditors, which can negatively impact its long-term viability. A business facing financial struggles is far less likely to qualify for loans for capital expenditures and operations, which limits growth opportunities.

What are the main FIVE factors that affect a company's ability to operate? hint: PECCG

Customers, Governement, Economy, Competition, Public opinion

How might competition impact an organisation?

May affect how an organisation chooses to address a target market

How might the Economy affect a company's ability to operate?

May limit the amount of capital a company can spend on business growth. increased/decreased disposable income

How does Public Opinion impact on an organisation?

Positive perception can boost sales, whereas negative perception can have a contrary effect.

How might the Government affect a company's ability to operate?

Regulations in product development, packaging, shipping. (cost affective) May lead to increased unit costs (reduced profit margins)

What are Indirectly Interactive Factors?

The environment has a secondary and more distant effect upon the organisation. (e.g; complying with the Americans with Disabilities Act requires employers to update their facilities to accommodate those with disabilities.)

What are Directly Interactive Factors?

The environment has an immediate and firsthand impact upon the organisation.

What is the definition of an organisations 'External Environment'?

The external environment of an organisation are those factors outside the company that affect the company's ability to function

What are the impacts of a strong economy on an organisation?

Unemployment is low, consumer confidence is high, disposable income is high, easy to overextend within a smaller company