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Market environment and business environment are marketing terms that refer to factors and forces that affect a firm's ability to build and maintain successful customer relationships. The business environment has been defined as "the totality of physical and social factors that are taken directly into consideration in the decision-making ...
A graphical representation of Porter's five forces. Porter's Five Forces Framework is a method of analysing the competitive environment of a business. It draws from industrial organization (IO) economics to derive five forces that determine the competitive intensity and, therefore, the attractiveness (or lack thereof) of an industry in terms of its profitability.
These forces affect the organization's ability to raise its prices as well as the costs of inputs (such as raw materials) for its processes. [21] The five forces framework helps describe how a firm can use these forces to obtain a sustainable competitive advantage, either lower cost or differentiation. Companies can maximize their profitability ...
The situation analysis looks at both the macro-environmental factors that affect many firms within the environment and the micro-environmental factors that specifically affect the firm. The purpose of the situation analysis is to indicate to a company about the organizational and product position, as well as the overall survival of the business ...
Economic forces are the factors that help to determine the competitiveness of the environment in which the firm operates. [1] These factors include: [2] Unemployment level; Inflation rate; Fiscal policies; Government changes; These factors determine an enterprise’s volume of demand for its product and affect its marketing strategies and ...
Effective demand management considers factors which are both within and beyond the firm's control, such as disposable income, competition, price, advertising and customer service. [ 87 ] Consumer choice is highly influential on demand analysis, as each consumer aims to maximise their satisfaction with a combination of goods and services ...
Evaluating or crafting an organizational strategy requires analysis of the relationship between mission, value and resources. Strategy allows managers to focus on an organization's long-term plan and ensure that mission objectives are met. Organizational strategy explores the relationship between unit and the environment.
The degree to which an organization's internal strengths matches with its external opportunities is known as its strategic fit. [6] [7] [8] Internal factors may include: [9] Human resources—staff, volunteers, board members, stakeholders; Physical resources—location, building, equipment, plant