Group 1
Q1. To revise and discuss lecture Topic 1 slide 12 to 16.
Technological
Businesses are driven to rethink the business technology they use to reach customers, produce
their products, and provide their services. When we refer to business technology we mean digital
tools such as computers, telecommunications, and the Internet. The expansion of Internet access
to virtually every corner of the world has forced many traditional brick-and-mortar businesses into
e-commerce or online sales. The advantage to businesses is that their customers no longer have
to live in proximity to their stores in order to purchase goods and services. Consumers can
conveniently shop for products and services without leaving their home, their desk, or their phone.
Political-legal
The political and legal environment in a country is one of the most important factors influencing
the advertising and promotional programs of international marketers. Regulations differ owing to
economic and national sovereignty considerations, nationalistic and cultural factors, and the goal
of protecting consumers not only from false or misleading advertising but, in some cases, from
advertising in general. It is difficult to generalize about advertising regulation at the international
level, since some countries are increasing government control of advertising while others are
decreasing it. Government regulations and restrictions can affect various aspects of a company‘s
advertising program including the types of products that may be advertised, the use of foreign
languages in ads, the use of advertising material prepared outside the country and the use of
local versus international advertising agencies.
Social and Culture
The sociocultural environment is a combination of social and cultural factors. It includes the
human population, norms, customs, lifestyles, different generations’ values, and so on (culture,
language, religion, education, customer preferences). A business has to utilize and adapt its
external sociocultural environment, otherwise it will not be able to survive. As society and culture
change, businesses must adapt to stay ahead of competitors and be keenly aware of society’s
social preferences regarding its needs and wants which will be influenced by the population’s
values, beliefs, and so on. It can be concluded that successful businesses develop acceptance
and understanding of sociocultural differences among various countries and learn how to take
advantage of opportunities as well as deal with disadvantages from different ethnic cultures.
Economic
The term economic environment refers to all the external economic factors that influence buying
habits of consumers and businesses and therefore affect the performance of a company.
Business leaders should be aware of the economic forces such as interest rates, tax regulations,
unemployment rates, inflation rates, consumer spending patterns, and so on. The economic
fluctuations and decline in economic activity will cause a company to decrease in its sale and
profit. Interest rates greatly influence the cost of capital of all businesses. This influences capital
spending and competition. When interest rates go down, businesses may expand. On the other
hand, when they go up, businesses may contract or fail at higher rates. Inflation and deflation are
sustained increases or decreases in general price levels. Moderate inflation can be positive
because it encourages businesses and consumers to spend as everything is always getting more
expensive. High inflation can be damaging to markets as businesses and consumers begin to
store goods. Deflation discourages spending as everything is always getting cheaper.
Natural
The natural environment involves the natural resources that are needed as inputs by marketers
or that are affected by marketing activities. Marketers should be aware of several trends in the
natural environment. The first involves growing shortages of raw materials. Marketers need to
rely less on nonrenewable resources and use renewable resources more wisely. A second
environmental trend is increased pollution. Industry will almost always damage the quality of
the natural environment. The third trend is increased government intervention in natural
resource management. The governments of different countries vary in their concern and efforts
to promote a clean environment. The general hope is that companies around the world will
accept more social responsibility, and that less expensive devices can be found to control and
reduce pollution.Companies are developing strategies and practices that support environmental
sustainability. They are responding to consumer demands with more environmentally
responsible products, such as recyclable or biodegradable packaging, recycled materials and
components, better pollution controls, and more energy-efficient operations. More and more,
they are recognizing the link between a healthy ecology and a healthy economy. They are
learning that environmentally responsible actions can also be good business.
Group 2
Q2. To revise and discuss lecture Topic 1 slide 17 to 23.
(slide 17)
Task Environment
The task environment is the layer closest to the organization and includes those sectors that have
a direct working relationship with it. The task environment includes customers, competitors,
suppliers, and the labour market.
Customers are those people and organizations in the environment that acquire goods or services
from the organization. Customers are important because they determine the organization’s
success.
Competitors are organizations in the same industry or type of business that provide goods or
services to the same set of customers. Specific competitive issues characterize each industry.
Suppliers are people and organizations that provide the raw materials that the organization uses
to produce its output. A supply chain is a network of multiple businesses and individuals that are
connected through the flow of products or services. Many companies are using fewer suppliers
and building good relationships with them so that they will receive high-quality goods at lower
prices.
Labour market represents people in the environment who can be hired to work for the
organization.
(slide 18)
Environmental Performance Index provides a data-driven summary of the state of sustainability
