Macro environment Essays
1250 WordsMay 17th, 20155 Pages
Macro environment, one of the three key elements of the marketing environment explains the influences of broader societal forces. These major external forces are not controllable, but being aware of the environmental factors and its changes will be of great advantage for growing the business (Angela, 2012).
In the travel business, the operation does not depend only on the internal functioning but is also affected by external factors. Wotif is also affected by these internal and external factors. Macro environmental analysis is needed for Wotif to achieve their goals, increase their profit and improve their current strategies.
Political factors hugely affect the tourism business. It is important to analyse the political…show more content…
Despite the strong dollar, number of visitors from China has increased rapidly. China in Asia contributed to 17.3% of international expenditure in the financial year 2013-2014. Though, Wotif’s performance in the Asian market has been lacklustre.
It posted a lower profit this financial year due its under performing Asian business continuing to drag on earnings (O'Sullivan, 2013)
These economic factors will influence the tourism arena in the new financial year.
Australians are known for their love to travel and exploring new things. Australians are among the biggest-spending travellers in the world, second only to Saudi Arabians. Despite the fall of the dollar, Australians are showing no signs of changing their ''have passport, will travel'’ mentality (Upe, 2013)
St George-Melbourne Institute reported that nearly 60 per cent of Australians nominated holidays and travel as a key motivation for saving money, ahead of a deposit for a house, renovating, retirement, education, repaying debts, buying a new car or an expensive item for the house (Upe, 2013)
During Christmas, Australians are now spending on Christmas holidays instead of buying gifts. Travellers are more inclined to head overseas at Christmas than they were last year (Swallow, 2013)
In 2014-2015, Australia will be seen hosting major events including the
Show MoreMcDonald’s became a famous global name (refer to appendix 1) which had more than 33,000 restaurants in 119 countries (McDonald’s, 2012). How could it operate profitably in a competitive market? It was due to the flexibility in the changeable marketing environment (Lovelock, 2002). The marketing environment can be assumed as a flexible system. Just like the human body which may die if it fails to adjust to environmental modifications, so the business also may lose if it does not adapt to external and internal changes (Sowell, 2011).
Sargeant and Jay (2004) stated SWOT analysis contains specific indicators as to the key determinants of success in the company whereas most authors defined the marketing environment comprising microenvironment…show more content…
To satisfy children’s needs, McDonald’s celebrated birthday parties at Kids’ Zone and they were successful in this service (McDonald’s Malaysia, 2012).
No competitive marketing strategy is perfect for all companies, thus a company must identify an adaptable business strategy by considering competitors (Palmer, 2000). McDonald’s realised Vietnam was a risky market, because there were three big fast food companies (KFC, Lotteria and Jollibee) which had their own markets (Saigon Times, 2009). Moreover, McDonald’s got a foothold in the fast food marketing (refer to appendix 3).
By using the PESTEL model, we can analyse many different forces in a company's macro environment (Palmer, 2008). Successes in a difficult external marketing environment significantly depend on how well you use potential of the market and avoid the pitfalls (Gillespie, 2011).
The political forces are the less predictable factors that affect and limit a firm’s operations (Pride and Ferrel, 2010). McDonald's made trial evaluations in the mid-1990s but in 1996 postponed their plans because of an anti-Western political backlash in Vietnam (Sunday Times, 2004).
The economic situation determines some extent the success of organisations. The economic forces (including economic growth and unemployment, interest and exchange rates, taxation changes and inflation) have a vital influence on the