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BUSINESS INFORMATION SYSTEM ASSETS An asset is anything of value or a resource of value that can be converted into cash. Individuals, companies, and governments own assets. For a company, an asset might generate revenue, or a company might benefit in some way from owning or using the asset. STAKE HOLDERS A stakeholder is a party that has an interest in a company and can either affect or be affected by the business. MAIN CHARECTERISTICS OF BUSINESS Economic activity: Business is an economic activity of production and distribution of goods and services. ... Buying and Selling: ... Continuous process: ... Profit Motive: ... Risk and Uncertainties: ...
Creative and Dynamic: ... Customer satisfaction: ... Social Activity: PRIVATE LIMITED COMPANY A private company is a firm held under private ownership. Private companies may issue stock and have shareholders, but their shares do not trade on public exchanges and are not issued through an initial public offering (IPO).
Micro Environmental factors
Micro environment refers to the environment which is in direct contact with company and affects the routine activities of business straight away. It is a collection of forces or factors that are close to the organization and can influence the performance as well as the day to day activities of the firm. Six components of micro environment are: Company , Suppliers , Marketing Intermediaries , Competitors , General Public and the Customers.
The Company
Various groups in an organization like the top management, finance, operations, human resourcing, research and development (R&D), accounting etc needs to be taken into account by the marketing management for designing the marketing plans. Marketing managers needs to work closely with them as that will help them to make decisions with broader strategies and plans. With marketing team taking the lead, other departments like manufacturing, finance, legal and human resources takes the responsibility for understanding the customer needs as well as creating customer value.
Suppliers
environment are Demographic , Economic , Natural , Technological , Political and Cultural e nvironments.
Demographic environment
Demography can be defined as the study of human population in context of size, density, age, location, gender, race, occupation and other statistics. The marketers have special interest in the demographic environment because it consists of people and people are the driving force for development of markets. The large and diverse demographics offer both opportunities as well as challenges for businesses.
Economic environment
The economic environment consists of factors that can affect consumer purchasing power as well as the spending patterns. As an example, it is not advisable for a company to start exporting its goods to a country before having examined the citizens spending patterns. Important economic criteria includes GDP, GNI, Import duty rate, unemployment, inflation, spending patterns as well as the disposable personal income.
Natural environment
It refers to the natural resources or physical environment that are required as inputs by marketers or which is affected by the marketing activities. The ecological conditions have become a crucial factor to consider as the environmental concerns have grown strongly in the recent years. Example, air and water pollution, floods, droughts, etc.
Technological environment
Technology has a crucial influence in the macro environment. An organization needs to perform a thorough research on the spread and use of technology, before investing in any of
marketing activities. The company needs to have an understanding of the technology penetration as well as user interface technology in the region and make plans accordingly for their communication and campaigns.
Political environment
The developments in the political environment strongly affect the marketing decisions. This involves laws, government agencies, as well as the pressure groups that can influence or give constrains to various individuals or organizations in a given society.
Cultural environment
The cultural environment links to factors which affects the basic values, preference, perceptions and behavior of the society. Organizations needs to understand the cultural beliefs and practices prevalent in society for marketing decision making. Failure of companies in understanding foreign cultures can lead to many cultural blunders. For example, a symbol having a positive meaning in one culture can have a negative meaning in some other culture. In conclusion, success of any marketing campaigns is highly dependent on the micro and macro environmental factors. Any strategic marketer should have an in-depth consideration of these factors for any decision making. Considering these factors can boost the success rates of marketing campaigns for any organization as well as increase the reputation of brand in long term.
