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competitive and macro environmental factors that impact a business 

The Unit 1 Assignment is based on the competitive and macro environmental factors that impact a business, as explained in Chapter 3. As a reminder, competitive environmental factors include the rivals, new competitors, customers, substitute services, and suppliers. Macroenvironmental factors include laws and regulations, the economy, technology, demographics, and social values.

For this assignment, you will choose a company that interests you. Choose wisely, as you will evaluate aspects of this company in various ways throughout the course.

Visit the “Hoover’s Company Records” guide accessible in the library. This guide provides an overview of various public companies in terms of both internal and external factors.
Choose one of the companies profiled by Hoovers. It is best to choose a company with which you are already familiar.
Read the guide for your chosen company, paying attention to note factors that relate to the environmental factors as described in Chapter 3 of the text.
Using this document and your own experience and knowledge of the company, prepare a paper that describes each of the competitive and macro environmental factors forming your chosen company’s overall business environment.
Assignment Checklist:

Define which factors comprise a business’s competitive environment and macroenvironment.
Using research and your own knowledge, provide one example of how each of the ten competitive and macroenvironmental factors impacts your chosen company.
Your submission should include a title page, introduction, main body, conclusion, and reference list. For assistance writing a paper or formatting a reference list in APA format, please see the “Citation and Plagiarism Resources” link under “Academic Tools.”
The paper should include an introduction and conclusion and be at least two double-spaced pages in length, using size 12 point font.
View complete assignment details and rubric.

Once completed, submit your assignment to the Unit 1 Assignment Dropbox. Assignments are due Tuesday 11:59 p.m. ET of their assigned unit.

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Competitive and macro environmental factors that impact a business

Introduction to Management

            A competitive environment involves a system within which other businesses compete with each other using various marketing channels, pricing methods as well as promotional approaches. A competitive factor, on the other hand, is a feature, a characteristic or even a benefit usually considered essential in the promotion of a product within an extended market. A business environment can be influenced by factors such as product features, the number of sellers selling the same product, availability of information, barriers to entry as well as the location of the business, rivals, new competitors, customers, substitute services, and suppliers... These factors prevents the availability as well as the attractiveness of alternative companies selling the same product and when the substitutes no longer exist, a company is said to have a monopoly over its business environment thus no competition.

            On the other hand, a macro environment is a more general environment compared to the microenvironment. This is the environment within the economy that affects each business in terms of their operations, decision making, and performance as well as the formulation and implementation of strategies. These include external factors that in most cases, a company cannot control and has no monopoly over compared to the microenvironment factors. Some of the macro environmental factors include laws and regulations, the economy itself, political and legal forces as well as demographics, social values and technology.

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My chosen company is the Walt Disney, an entertainment company that has for a long time been in the entertainment business and provided content mainly for children including movies, cartoons and other video games.  The following are examples of how the 10 competitive and macro environmental factors impacts Walt Disney.

Rivals – Every business has rival, especially those creating the same content as Walt Disney. However, this affects the company positively rather than negatively as it encourages Walt Disney to price their products, maintain their brand, and produce unmatched quality content that makes them stay on top of their business environment.

New competitors – New competitors challenge the company to stay updated with the current trends in order to miss on new ideas that could better their products.

Customers – Walt Disney customer base is mostly children and their parents. This therefore affects the way the company creates its marketing strategies and campaigns to suit their customers. In most cases, Walt Disney’s customers are not only local but also international and B2B.

Substitute services – Substitute services keeps the company engaged on all fronts. For example, originally, the company is supposed to be creating content such as cartoon shows for kids. However, creating games also keeps them engaged and boosts their financials.

Suppliers – Walt Disney has managed to remain the largest entertainment company with their products being consumed by a majority of the population thereby contributing to the success of the company in the entertainment industry.

Laws and regulations – Laws and regulations guiding every line of work must be respected and the company must be up to date with the relevant laws in order to inform decision making in terms of the products produced.

The economy – The economy affects two essential aspects of the Walt Disney Company. For instance, it affects the level of production within the company as well as the customers’ decision on whether to purchase of not from the company. Demand and supply as well as inflation, interests and exchange rates are some of the factors to consider in this regard.

Demographics – Every market is usually affected by a particular demographic aspect. For instance, Walt Disney is affected by demographic factors such as age, the education level as well as cultural and lifestyle characteristics of their consumers.

Social values – The products produced by Walt Disney can either impact the society negatively or positively. Therefore, the company has to eliminate any content that undermines societal values, which in most times can affect sales.

Technology – Technological factors affecting Walt Disney include the skills and knowledge implemented during production. This affects the company in a way that for it to maintain the production of high quality content it has to ensure that the technology used is up to date without which it risks producing low quality movies and shows especially in relation to picture quality and clarity.

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