The Macro And Marketing Environment Of H & M's Management
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QUESTION 1
H&M’s management environment would consist of three elements namely: The Micro, the Macro and Marketing environments defined as follows:
The Micro environment is also known as the operating environment. It consists of the organisation’s internal environment which affects its performance. It includes customers, staff, suppliers, intermediaries, competitors etc. The Micro environment consists of the elements which directly affect the organisation’s goals and mission. (www.businessmanagementideas.com/microenvironment)
According to Philip Kotler, “Micro environment consist of the factors in the company’s immediate environment which affects the performance of the business unit. These include suppliers, market intermediaries, competitors,…show more content… the industry can decide which products to offer and at what price. This analysis will form part of the costing and marketing strategies. The fast food industry deals with many buyers each with a variety of needs and wants when compared say to the earth moving equipment industry. Being able to understand how customers spend their money and offering high profit menu options will allow the industry to remain profitable.
If the industry is aware of Competitor Rivalry capabilities, who they are and how they operate the fast food industry can include pro-active marketing strategies into their strategic plan. There are many competitors offering equally attractive fast food options which means that outlets will need to differentiate themselves either on service, price or value-added options to attract and keep customers. Rivalry could impact profits as customers will be enticed through menu offerings or better…show more content… A strategic plan is developed by the Resort’s top management and will include:
• Creating a vision (or the dream of the company)
• A mission statement which is realistic based on the vision
• Goals for the resort which will translate the mission statement
The strategic plan is a long term plan and will be developed for an extended period of time – normally more than five years. This plan will focus on the entire organization merging the holiday resort, the two restaurants, the spa and treatment centers as well as the visitor entertainment centers into one overall plan.
The Resort’s Strategic Plan will reconcile the organisation’s resources assessing the external threats and opportunities, whilst creating and maintaining synergy and a competitive edge. (Smit, Cronje, et al., Management Principles, chapter 5, paragraph