provide a brief explanation of the various environments in w

provide a brief explanation of the various environments in which businesses operate. Provide the break down under each environment. list and describe the proactive responses organizations can make to the environment

Solution

There are seven external factors that could influence business and marketing efforts. I will define the seven and discuss two of the external factors disadvantages and advantages.

1. Competitive environment is the competition between one or more business. In order to deal with this kind of environment, the company needs to be on its toes all the time. It has to analyze the strategies of the competitor and how these strategies can be countered.

2. Economic environment is totality of economic factures such as employment, income, inflation, interest rate, productivity, and wealth that influence the buying behavior of consumers and firms. In this kind of environment, the organization needs to take cautious economic and financial decisions. Thee future trends and past patterns must be analyzed and the expert opinion and market situation should be analyzed effectively.

3. Political legal environment is when the government implements’s laws and regulations which affect the way and business operate. The organization should have a good relationship with the government and try to be ready if there are some changes in the political or legal set up of the country.

4. Technological environment is those forces that affect the technology and which can create new products, new markets, and new market opportunities. The organization needs to take the advantage of technological development, It must invest in the technological research and development and upgrading.

5. Sociocultural environment means relating to the social and cultural practices, beliefs, and tradition within a particular society. The changes in the society must be examined closely and the cultural changes and patterns must be accommodated in the strategic formulation of the company.

6. Demographic variables is the characteristics of the aggregate population that marketers use to segment the market, including age, ethnicity, income, gender, and race.

7. Natural Environment involves all the natural resources, such as raw materials, or energy sources, needed by or affected by marketers or marketing activities.