Name: Aashish Kafle Khadka

Student id: K210700

1. What are microenvironment forces? List and briefly explain each of these forces.

How could these forces be applied to an Australia business?

Ans:

Microenvironment force is the collection of forces or factors that act close to the organization and their
operations. Its can influence organization performance as well as the day to day activities and its
decision making processes of the organization. Customers, company, general public, competitors,
suppliers, and marketing intermediaries are the major forces included in microenvironment forces.

The list of microenvironment forces are as follow:

1. Customers: It is the most important factors in any organization of microenvironment. The main
purpose for the organization existence is to satisfy customers. As there is a direct relationship
between the revenue and the customers in the company. The ultimate aim is to provide the best
product and services to the customers at a best price but in case change occurs in the taste of
the customers, the organization works differently and makes a new decision as per customer
demand. Mostly the organization are located in an area where there are more population so the
organization are able to offer their product to the customers in best prices. It has become
important to listen to customers and value their feedback.
2. Competitors: it is another major factor of microenvironment for an organization. As there is
pure monopolies in the world of organization. Every organization, weather big or small has a
competition and competitors. This factor helps to decide the strategies and operations based on
what competitors are doing. Therefore, if the competitors are offering any product in the lower
price, the organization would be forced to lower the cost of the product.
3. Company: The Company itself includes employees, shareholders etc.as they both are important
factors for the organization. Human resources are significant factors for success or failure of an
organization. The proper training to the company employees are required for the utilization of
resources. Also the shareholder invest in the company, own shares of the company. In that way
they are actually owners of the company in that way .as the company itself is the major factor of
microenvironment forces.
4. General public: Every organization required the general public to promote their brands and
market their products. So it is necessary that the organizational company maintain their
relationship and the status with the general public. As any negative impact cand lead a huge loss
towards the organization.
 5. Suppliers: Suppliers is also considered to be one of the critical factors. The success of the
organization depends on the progress of the supplies. As suppliers provides the company with
the resources and materials of production to run the business. The relation between company
and the suppliers is power equations as both depend on each other for the survival. As any
significant changes occurs in suppliers prices, the organization profit gets directly affected.
Therefore, company need to change its prices sometime.

6. Marketing intermediaries– it includes wholesaler and retailers, which are also a vital Micro-
environment factor for organizations. The business of organizations heavily relies on the
operation of their wholesalers and retailers. In case, there is any problem at wholesalers’ or
retailers’ end; it would have a direct impact on an organization’s operations.

These are the major factors of microeconomic forces which can be applied to an Australia business. The
study of microenvironment helps in decision making process, understand the environment, competitors
etc. microenvironment is the first pillar to build the business empire. It includes all the marketing plans,
strategies, and objective. The effect on any forces of microenvironment leads to the direct effect in the
organization.

For an organization establishment we required different resources, forces, and objectives, plans etc.
After the brief discussion we already have an idea that these forces are most important and should be
applied to an Australia business. For an organization customers are important factors. According to the
study proper understanding of customers’ needs and demand leads to the success of an organization.
The satisfaction of customers required best pricing, listening to their requirements and giving the best
services also hearing their feedback. Not only customers but also general public, competitors, market,
suppliers are requires for a business. To understand the environment of business environment we
required competitors. It also helps in the success of the business as we have a competition we will be
more involved in establishing the better product that the competitor. From the beginning of business we
required these factors for the business goals.

2. Identify 3 brands that failed to innovate and briefly explain why it failed.

According to research there were lots of brands that existed in 1955 are gone. As the main reasons why

major companies fail to innovate isn’t caused by a lack willingness to do so. Rather, the problem is that

they’re too late in recognizing the opportunities, environment, threats, competitors etc. Some of the

brands that failed to innovate are as follows:

1. Nokia: Nokia is one of the much known brands which is not found in today generation. Nokia’s

mistake teaches us a lesson of how previous success can limit the capabilities to innovate. Nokia

had share over 50% in the phone market back in 2007. This company was outstanding in

developing hardware and because of this the brand was successful in a first place. But as for my

study this is also the main reason for this brand to fall apart. Nokia highly believed in its own

brand and it optimized hardware is what customers desired but did not look after the

Importance of phones software. Where Android and apple did focused in software

Improvement.

Nokia ignored about the market competitors and customers desire. Nokia kept on focusing on

hardware but the big changes in software attracts the current users. Even though Nokia was first

to develop a smartphone back in 1996 but it failed to translate itself into attractive product. It

was the fact that Nokia was afraid to make big changes according to the business environment

which led it to the company’s downfall.

2. General motor’s hummer: Hummer was originally developed for US military by vehicle

manufacturer AM general. It was strong and powerful appearance attracted the common

Americans so it became civilian car. All the celebrities started to drive the hammers as well and

it turned into an exclusive brand and status symbol. But the positive result that came turned

into negative later on.

In 1998 more cares were sold at high margin. The General motors decided to roll out even more

civilian hummers and released two other models and everything was going properly and had

good impact for business profit. But they underestimate one trend, the environmental

movement which encouraged boycotting the brand as not eco-friendly organization by eco-

friendly organization. As the people did not want to be associate with an expensive car that had

a negative impact to the environment.

3. BlackBerry Motion: Black berry also once had 50% share in US market, as they were also the
phone industry or a brand. It was welled known for the arched keyboard a new facility in mobile

they introduced. Everything was going well as they provided the services like ultimate messages,

status updates, facebook etc.

The story of blackberry is similar to Nokia. Just like Nokia, they believed too much in what they

do and owned. Whereas apple android were focusing in making smart touched screen phones

and working in software upgrades it ignored the benefits of touch screens and had a small

selection of apps tp offer and maintains on their services. Because of small ignorance BlackBerry

lost the war on smartphones and lost itself as a brand.