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Your company produces computer software for small businesses. In your role as marketing manager, you have...

Your company produces computer software for small businesses. In your role as marketing manager, you have been asked to prepare a report for your board of directors explaining how aspects of the marketing environment could affect the company’s activities. You report should cover aspects of internal, micro and macro marketing environment. (10 Marks

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Answer - The business environment has an immense effect on the overall business delivery and profitability. Let's discuss some factors affecting the business environment :

  • Macro marketing environment - This includes the PEST analysis: Political, Economic, Social and Technological. Political governmental regulations affect business functioning and sometimes create restrictions in manufacturing or import/export for a software company. The economic conditions of the area determine the software demand. Social norms and stability appreciate the software price and adaptability. Technological awareness and flexibility create a marketplace for the software to establish and gain market share.
  • Micro marketing environment - The customers, employees, shareholders, distributors, and suppliers make up the micro marketing environment. For the software company to thrive and achieve success in a highly competitive marketplace, it first has to concentrate on building a strong microenvironment that favors business activities. The employee's skills and capability in developing the software as per clients demand, the shareholder's confidence in the company's ability, the efficiency of the distributors and suppliers to deliver the raw materials and the finished software at the right place, to the right person at right time is what determines the company's success.
  • Internal environment - This constitutes the organizational value system, Organizational structure, culture, mission, and vision. The software company should not only be an efficient producer of its products but in order to sustain its business growth maintaining a healthy and productive internal environment is essential.

Note - If this answer was helpful please upvote my answer to encourage me to write more such answers to hep students. Thanks and All the Best !!

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