Environmental Analysis: Google Company

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Introduction The report consist of two sections. The first section focuses on the impact the micro and macro environment has on Google Company, which is the largest search engine in the world. It analyses on the factors that can be a negative or positive influence to the company. The report will first focus and analyse on the six macro environmental factors which are economical, global, political, socio-cultural, technological and demographical. Following the macro environmental factors will be the micro environmental factors which are companies, competitors, customers, public, intermediaries and suppliers. The second section focuses on the (assessment of the organizational culture) Importance of Macro and Micro environment factors Macro and Micro environment factors are part of the external environment. The external environment consists of a variety of factors outside the company doors that they typically don’t have much control over. Managing the strengths of the internal operations and recognizing potential opportunities and threats outside of their operations are keys to business success. An understanding of macro and micro marketing environment forces is essential for planning. It helps a business to compete more effectively against its rivals. These factors also assist in the identification of opportunities and threats and enables an organization to take advantage of emerging strategic opportunities. Macro environmental factors Baines et al (2009: 77) highlight that the macro environment forms the basis of various elements which formulate the larger part of the society, these factors directly impact a business. The six macro environmental factors which are being focused on will be; economical, global, political, socio-cultural, technological and demographical. A macro-environmental analysis includes examination of elements and connections in the company’s widest environment. Macro environment refers to those factors which are external to company’s activities and do not concern the immediate environment. It comprises general forces that affect all business activities in market. The macro environment cannot be controlled by the organisation and hence the business needs to adapt to the needs of the macro environment (Johnson et al, 2011: 65). The economic environment constitutes of economic conditions, economic policies, and the economic system that is important to external factors of business. The economic conditions of the country includes the nature of the economy of the country. The general economic situation in the region, conditions in resource markets like money, material, market raw material components, services, supply markets and so on which influence the supply of inputs to the organisation, their costs, quality, availability and reliability of supply of products and services. It determines the economic strength and weakness in the market. The purchasing power of the individual depends upon the economic factors like current income, price, savings, circulation of money, debt and credit availability. People income distribution pattern analyses the market possibilities and impacts on enterprise and development process of the country. The availability of economic resources of the country and the level of the economic income of the country may also have impacts on the enterprise. These are the very important determinants of business strategy in the organisation for formulating,

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