Organizational

Environment
 What is Organizational Environment?

• The marketing environment consists of the

actors and forces outside marketing that
affect marketing management’s ability to
develop and maintain successful transactions
with its target customers.
• Basically, three types of marketing
environments affect every organization. The
three are built into Micro and Macro
Environments.
 Micro Environment
• The micro-environment of an
organization can best be understood as
comprising the company itself and other
organizations and individuals who directly
affect the activities of the organization.
• The company can manage these factors to
a large extent. This sub-divided into
internal and task environments.
 Internal Environment
• These are factors that the organization has direct
control over.
• They are mostly other functions within the firm
other than marketing.
• Top Management,
• Technological Resources,
• Operational Resources, Machinery etc.
• Financial Resources, Procurement etc.
• Production Resources, Storage etc.
• Human Resources, Organizational culture
 Task Environment
• Customers: Individuals, Resellers, Business,
Institutional, Industrial, Government, Foreign
• Suppliers: Mainly products and regular service providers
• Labour Market: Potential employees available to be
hired with necessary competencies and capabilities.
• Competitors: Direct (brand) and indirect (substitute
and solution)
• Collaborators: Bankers, Insurers,
• Consultants, Other service providers,
 External Environment
• External Environment is by far the most
difficult to deal with by businesses.
• It is mainly used in foreign direct investment
decisions.
• Business operators rely on government to
improve the macro environment.
• This environment provides the opportunities
and threats in SWOT Analysis.
 Political
• System of government
• Political ideology
• Executive decisions
• Potential for wars/clashes
• Security and Intelligence
• Local authority powers
• Strength of Civil society
 Economic
• Economic System in place
• Disposable and discretionary income
• Income distribution in the country
• Cost of doing business: labour, energy,
Tax regimes
• Macro indicators: inflation, forex,
interest rates etc.
• Level of infrastructure
 Socio-Cultural
• Customs, practices and values
• Business culture
• Gender roles in society
• Land tenure systems
• Language diversity
• Productivity Attitudes
• Religious dominance and diversity
 Technological
• Level of business processes (eg. Banking, surgery,
etc.)
• Certification standards
• Effects of automation on labour
• Rate of change of technology
• Support for Research and Development
• Technological institutions
• Enabling infrastructure (Connectivity, energy,
utilities etc.)
 Legal
• Fundamental laws in the country and
access to laws
• Approach to adjudication
• Efficiency of justice system
• Fairness in Judgments and other
institutions
• Access to justice and courts
• Alternate Dispute Resolution
 Ecological
• Environmental policies
• Enforcement of environmental laws
• Environmental awareness
• Force of Green thinking groups
• Geographical local
• Types of energy sources