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EXTERNAL ENVIRONMENT

1.0 INTRODUCTION

The external environment (macro environment ) represent those and forces over which the organization has least control. They are, however as already mentioned, the forces and factors which give rise to perhaps the greatest opportunities and threats facing organization. The most important  of the macro environmental forces together with their relevance to the marketer. Lancaster et al, ( 2002).

Macro environment companies in reacting to changes in the environment, manager can use a number of different tools to understand the environment. This understand is important t it help company to make better decision.

According to kotler macro environment consist of the larger societal forces that affect the micro environment- demography, economic, natural, technological, political, and cultural forces. He looks first at the industrial. Kolter P, and Armstrong G.

The external environment in mobile phones industry have the following factor which are political, economic, social, and technological phenomena; 

1.1 POLITICAL ENVIRONMENT;

This is to an increasing extent, and operation of business firm is being influenced by the political framework and processes in our society. Marketing management must be alert to change in the political attitudes or climate, which depend on the policies of the government of the day. The political environment cant found out the problem.. The outcome of the political decision can be seen in the legislation and economic policies of the government. In this part, you will found that, although for clarity of exposition we are explaining the various macro environmental forces n separation, in reality they are very much dificult.. Many of the legal, economics and social developments in our society and other countries are nothing more than the result of political decisions put into action. For example, in 1980s the conservative party favoured a monentarist approach to the management of the UK economy. It attached great importance to the control of money supply and hence government public expendicture.

The election of labour government  in the UK in May 1997 led to the start of the introduction of a whole set of new policies based on what the leaders of this newly elected government argued was a very different set of attitudes and philosophies to those which characterized the previous conservative government. So, for example the newly elected labour government stressed the importance of, and therefore its commitment to, education , and health. Similarly, there have already been major changes in areas related to aspect such as welfare payment, training programmes to encourage the unemployed into work and the management of the economy, such as giving the bank of England control over interest rates. Lancaster et al, (2002).

I phone is a leading global player in mobile telecommunications. It operates all countries worldwide. This case study looks at how the I phone and the other group in UK subsidiary value ethics. It examines how ethics supports the company growth. Ethics are also the right thing to do it. It described some of the changes in the dynamics market and how Vodafone's ethics drive the company's actions in these areas.

1.2 ECONOMIC ENVIRONMENT.

This is depend on the economy in the certain country. If country is poor( third world country) the mobile phone industry doesnt improved very well, this is becouse they can not get enough customer than when if they going to sell their product to the rich country, ( developed country). This affect the mobile phone industry, also in paying their employees, becouse they do not have enough money for salary to give them.

Other important developments include the continuing efforts of Far Eastern competitors- not only Japan but also Singapore, Malaysia, Thailand and China- in world markets; the harmonization of East and West Germany; the near breakdown of the most recent round of the World Trade Organization talks. In short, the international economic environment is dynamic, and needs to be constantly monitored and adapted to in marketing plans.

The marketing firm needs to monitor continually the economic environment at both the domestic and international level. The ‘ebb and flow' of economic forces and the policies that governments use to attempt to mange their economies could have a significant impact on a firm's business operations. As with all other environmental factors, economic factors can be viewed as a source of both opportunities and threats to the marketing firm. By carefully monitoring and understanding the economic environment, a firm's management should be in a better position to capitalize upon the opportunities and to do something about reducing the threats. Lancaster et al (2002).

Changes in world economic force can be highly significant to marketing firms, particulary those engaged in international marketing. However, an understanding of economic changes and forces in the demostic economy is also important as these forces have most immediate impact. Lancaster and Reynolds.

1.3 SOCIAL ENVIRONMENT

The social environment probably presents the greatest challenge. People's basic beliefs, attitudes and values are shaped by the society in which they grow up. Their general behaviour, including their purchasing behaviour, is influenced by social conditioning. The main factor influencing a society's attitudes and behaviour is its culture. Core cultural values are firmly established within a society and are generally difficult to change. Such beliefs and values are passed on from generation to generation through the family and other social institutions such as the church, schools and government.  Because core cultural values are difficult to change, they act as relatively fixed parameters within which marketing firms have have to operate . Kotler states that culture is the most fundamental determinant of a person's wants and behaviour. These values are less persistent than society's core values and tend to undergo changes over time. Social and cultural influences are so interrelated that it is extremely difficult to evaluate the effects of one factor without the other. Before we look at the role of culture in more detail, let us first summarize some of the major changes that have occurred in the social environment that can have affected marketing. Lancester et al (2002)

Society is concerned about under 18s being at risk. Parents may have concerns about their children being contracted (using mobile phone) by paedophiles or other adult. Society is also concerned about adult  content being available via mobile phones to under 18s. adult content include gambling, violent games erotic material ect. Further issue related to social include the rise of mobile phones.      

1.4 TECHNOLOGICAL ENVIRONMENT

Technology is a major environmental influence upon the marketing firm. It affect not only the firm's operation and products, but also consumers' lifestyle and consumption patterns. Management must be aware of the impact of technology changes. As Wilson explain in relation to electronics.

The impact of new information technology has been particularly marked in the marketing research area. For example, it is now possible of design and admimister questionnaires via computer terminals. In the past this method has been used on a limited basis, but being more and more frequently used. Computer assisted telephone interviewing (CATI) has revolutionized the  speed with which surveys can be completed. Responses are fed immediately into a computer and a report hard copy can be available immediately after the final interview is completed. as Thomas explain.

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Technology has influenced the development of products themselves. Genetic engineering, aerosol cans, digital television, compact disk player, dvd player and digital cameras have all come into widespread use over the past few years. While older industries, have developed and grown to take their place. These new industry have capitalized on developments in the technological environment ( e,g information technology, biotechnology and aerospace).

The rate of technological change would appear to be accelerating. Marketing firms themselves play a part in technological advancement and must make use of current technology. They must ask themselves what products or processes are likely to be demanded and technologically feasible to produce in, say, the next 10 or 20 years that are not available now. Management must anticipate the impact of technological changes not only on the firm, but also on all other elements in macro-environment. Lancaster et al.

The mobile phones industry has been deal of technological change and will continue to do so. Mobile phones were originally used for telephone conversations. Text massaging became available and usage has increased dramatically, however most of the text were between people who are already knew each other and had swapped contact numbers, in other word the users were happy to communicate with each other.

As technology developed, it has become possible to swap information between mobiles and other devises via Bluetooth technology. This can be distressing particularly if the reciepient is a adult or young person.

1.5 SWOT IN MOBILE PHONES INDUSTRIES

A large mobile phone (apple) industry producer has decided to develop a new range of hi-tech mobile devices for the young professional market. In order to promote this new range. They must understand the current prevailing climate in the internal environment.

SWOT is a planning tool that helps firms focus on key issues IPHONE uses SWOT analysis to look at the strengths, weaknesses, opportunities and threats inside and outside the business. Strengths and weaknesses are internal aspects, such as marketing or production. This can be used or changed by the business. Opportunities and threats are external factors that the business needs to take account of. Example the business has less control opportunities by using their strengths and counter threats by dealing with any weakness.

STRENGHTS

Strengths are aspects of a business that add value to its products or services. IPHONE strengths include

. A strong global brand

. A dear vision

. Strong concept

. Democratic design (the equal balance of foundation quality design and price)

Apple the one who produce IPHONE measures its strengths using key performance indicators (KPI) KPIs help it to set targets and how it is achieving its vision. It also strengths through its production processes, such as in

. Increased use of renewable material

. Smarter

. Long term partnership with supplier

. Economies of scale

OPPORTUNITIES

A business uses strengths to gain from opportunities. Apples opportunities come from linking its sustainability plans to growing demand from customers for

- Better product

- How prices (cheap)

Apple works towards these in many ways such as by

- Providing tips and ideas for sustainable life on its website

- Showing social responsibility, for example, through its works to support charities.

- Providing using easy internets.

WEAKNESS AND THREATS

A business must know its weaknesses in order to improve and manage them. Apple (IPHONE) needs to consider:

. The size and scale of its business

. The demand for low cost products- the cost needs to be balanced against quality.

. The need to keep public and Apple (IPHONE) stakeholders well inform about it environmental activities.

Threats can be managed if the business if the business is aware of them. Apple (IPHONE) has put its place as number of practical solutions to turn a threat into an opportunity. These include;

- Social trends –It gives tips and ideas to customers and employees on reducing their impact on the environment.

- Market forces – It makes better use of technology and material. This reduces costs and benefits the customer and the environment.

- Economic factors – how prices appeal to Apple customer especially in tough financial times.

Apple (IPHONE) is a well-known global brand. To keep doing well it must asses internal and external factors that may affect the business performance. It takes advantage of opportunities and manages any threats in a positive way. Apple (IPHONE) unites design. Low prices and good use of resources. Its product processes and systems all show a responsible approach to people and the environment. Apple (IPHONE) know that behaving sustainably is good for customers, the planet and its business.

Reference:

Books;

Lancaster G, Massingham L, Ashford R,2002, Essential Marketing, fourth edition, McGraw-hill, UK, pp 51-63.

Lancaster G, and Reynolds P,2004, Marketing, Palgrave McMillan, New York, pp 23-29

Kolter P, Amystrong G, 2008, Principle of marketing, Pearson education, New York, pp 64-67

Bibliography:

Keegan W, Green M, 2003, global marketing, third edition, prentice hall, new Jersey.

Valdez S, with Wood J, 2003, Introduction to global financial market, Palgrave Macmillan, New York