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  • Essay / The micro and macro environment - 844

    Environmental factors in marketing are classified into two (2) groups: the macro and the micro environment. According to Investopedia, the macro environment is the conditions that exist in the economy as a whole, rather than in a particular sector or region. In general, the macro environment will include trends in gross domestic product (GDP), inflation, employment, spending, and monetary and fiscal policy. The macro environment is closely linked to general economic cycles, as opposed to the performance of an individual industry. The micro environment, the aggregation of all elements in or immediately surrounding a business that can affect its performance, including its internal environment, suppliers, marketing intermediaries, customers, competitors, and the community. Factors that affect the business environment in the host country include monetary value, transportation costs, language and culture. The value of a currency is determined by the banks that deal with foreign exchange; the exchange rate is determined by inflation, national income, natural resources and market forces. As a Jamaican business entering the economy, this would be very costly to our business given that the United States running a trade deficit has allowed our Jamaican currency to devalue. Solving this problem means allowing the government to intervene in the market and purchase these US currencies, which will reduce demand for the currency and allow the US currency to depreciate and the Jamaican dollar to appreciate. This will allow the government to manipulate the exchange rate so that the Jamaican economy can benefit at the expense of others. In addition, the government can also revalue the currency, which can reduce the cost of paper. ...... are implemented by the government and may include tariffs, subsidies and quotas. Tariffs are taxes imposed on imported goods or services; customs duties are imposed on imports to bring prices closer to those of the competing domestic product. A subsidy is a form of government payment to a producer. Types of grants include tax breaks or low-interest loans; Subsidies can also take the form of cash grants and public equity participation, which are less common because they require direct use of public resources. Quota is a limit or restriction imposed by the government on the number of units or total value of a particular product or category of products that can be imported (Keegan, 2009). The way Juici can deal with this situation is to make a trade deal with the government because how much patties can be imported into the market and how will it benefit the environment..