Topic > The micro and macro environment - 844

Environmental factors in marketing are classified into two (2) groups: the macro and the micro environment. According to Investipedia, the macroenvironment is the set of conditions that exist in the economy as a whole, rather than in a particular sector or region. Generally, 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 individual business sectors. Microenvironment, the aggregation of all elements within or immediately surrounding a company that can influence its performance, including its internal environment, its suppliers, its marketing intermediaries, its customers, its competitors, and community. Factors that influence the business environment in the host country include the value of the currency, transportation costs, language, and culture. The value of a currency is established by the banks that deal with exchange; the exchange rate is determined by inflation, national income, natural resources and market forces. As a Jamaican company entering the economy, it would be very costly for our company, as the trade deficit achieved by the United States has allowed our Jamaican currency to devalue. Addressing this problem means allowing the government to intervene in the market and purchase these US currencies and this 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. Furthermore, the government can also revalue the currency and this can reduce costs… middle of paper… are implemented by the government and these can 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 competing domestic products. A subsidy is a form of government payment to a producer. Types of subsidies include tax breaks or low-interest loans; Subsidies can also be cash grants and government equity, 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 agreement with the government so how much meatballs can be imported into the market and how this will benefit their environment.