Macro-Environment of Southwest Airlines (Revised Text)
Economic Environment: encompasses all factors that have a direct effect on GDP, unemployment, inflation, interest rates, and exchange rates (Gimbert 48). The most fundamental are; fuel prices, and the effect of economic cycles. Economic downturns brought about by such factors as the 2007 financial crisis and the September 2011 tragedy drive airline customers across the U.S. To cut down on personal expenditure. The company, as a result, faces lower levels of air ticket demand, although the levels of customer expectations remain unchanged.
World fuel prices are quite unstable. Southwest Airlines largely depends on fuel; as a matter of fact, fuel costs account for almost half of Airline companies' operational expenses. An increase in the price of fuel impacts negatively on profitability; the company may not consider raising its air fares, so as to protect its excellent-service-at-low-cost reputation.
Political and Legal...
Moreover, considering that the country has a tradition in consuming cereal products due to its agricultural background and preoccupation for healthy lifestyle, the technology adopted by a market entrant should also allow for flexibility in terms of receipts or changing health requirements from both the customer and the authorities. Political (legal) General food safety requirements refer to the health and hygiene of the food handlers, their food handling skills and knowledge, the
The best alternative is to divert Microsoft resources from copycatting an attempt a better, bolder form of technology to rival these competitors. Resistance to change Dropping out of the Internet search engine and downloadable music markets until a real, innovative change can be offered may be met with resistance from marketing staff, who wish to establish Microsoft as a continual player in these areas. But if Microsoft does not release a
Macro-Environment Socio-cultural and demographics Demand for green products Legislation Economic environment Technology Business Level Strategy Protection from the Five Forces Threat of New Entrants Competition Substitutes Supplier Power Competition The building of relationships Business partners/transactions Strategic management Improved value chain Inbound logistics Manufacturing operations Outbound logistics The sales and marketing techniques The virtual value chain The macroeconomic environment of any enterprise is indeed a very vital thing to all the operations of the enterprise. This is brought about by the fact that both the present and the future operations of the business
Six Examples of Macro Environment Introduction The macro environment refers to the external factors that can affect a business or organization on a larger scale. These factors are generally uncontrollable and can include economic, social, political, technological, environmental, and legal influences. Understanding and analyzing the macro environment is crucial for businesses to thrive and remain competitive in the market. One example of the macro environment is the economic factors, such as
They must comply with the legislation imposed in their country, as well as that in other countries where they operate. Also, in terms of international operations, fashion designers must act in accordance with the regulations imposed by the international regulators, such as the World Trade Organization. Microenvironemnt - Luella works with a team of talented specialists who are devoted to supporting the company reach its objectives in both creations, sales
Macro and Micro Environment in Management Planning is an important function of management. It is an act of formulating a program for a definitive course of action. The management defines a goal and puts forward its strategies to accomplish the objectives defined. STEPS IN THE PLANNING PROCESS For an organization to begin its planning, it needs to evaluate and assess whether it is ready. An organization need to realize where it is standing
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