The Micro Environment
Aims At the end of this session you should be able to: Critique the micro-environment to support your green marketing strategy and development of competitive advantage Conduct a resource analysis within a business environment – identifying green credentials Summarise strategic analysis through the use of a SWOT/TOWS report
The Micro Environment
Activity 1: • What is the micro-environment?
The Micro Environment
Customers
Employees
Distributors
Stakeholders
Suppliers
The Micro Environment
The Micro-Environment The Key
More controllable A level of influence
Micro-Environment — Micro-environment —
Actors close to the company that affect its ability to engage and serve its customers
The Company Suppliers Marketing Intermediaries Competitors Customers Publics
Internal Environment The Company Objectives
Culture and Structure
Resources
Stakeholders
• Profit • Non-Profit
• • • •
Entrepreneurial Professional Divisional Holding Company
• Micro-Business • SMEs • Multi-nationals • • • •
Shareholders Directors Employees Unions
Internal Environment The Company Objectives
• Profit • Non-Profit
Culture and Structure
• • • •
Resources
• • •
Stakeholders
• • • •
Entrepreneurial • Owner-manager retains control Professional Entrepreneurial • Decision-Making delegated Professional to specialists in functional Divisional departments Holding Company Divisional • Decisions are laid-down by Micro-Business head office Holding SMEs • Independent Organisations Multi-nationals acting as individual Shareholders organisations under an umbrella corporation Directors Employees Unions
Internal Environment The Company Objectives
• Profit • Non-Profit Marketing Challenges
Culture and Structure
Resources
Stakeholders
• Marketing managers can Entrepreneurial Professional be removed from the customer Divisional Holding Company • Marketing left to specialists overlooking need for • Micro-Businessorganisational engagement • SMEs • Multi-nationals • Marketing planning lacks • • • •
• • • •
integration into work of Shareholders other departments Directors Employees Unions
Internal Environment
Activity 1: The Company • What are your green credentials?
Internal Environment
Internal Environment
Internal Environment
Internal Environment
Internal Environment
Internal Environment
Internal Environment
Internal Environment
Internal Environment
Life Cycle Analysis
[Tribe, 1997, p. 98]
Life Cycle Assessment
[Tribe, 1997, p. 98]
Life Cycle Assessment
Eco-Balance/Cradle to Grave Analysis: Hospitality • Transportation of raw materials to construction site • Use of all water and energy involved in manufacturing process • Impacts engendered during usage and disposal
[Sloan et al, 2009, p. 90]
Resource Audit
Physical Resources
Human Resources
Financial Resources
Intangibles
Resource Audit Physical Resources
Buildings, fixtures and fittings, machinery and transport fleets
Consideration to: age, compatibility, reliability, efficiency and fitness for purpose
Human Resources
Labour force - skills, experiences, training, motivation, quantity, costs
Consideration to: discovering employees’ undeclared skills and potential
Resource Audit Internal Environment – Resource Audit Financial Resources
Debt and credit situation
Intangibles
Acquired knowledge and skill, patents and recipes, goodwill, brands and corporate image
Resource Audit
Flexibility Analysis
Balance of Skills Analysis
Reliance Analysis
Resource Audit Flexibility Analysis
Are an organisation’s resources flexible enough to deal with the uncertainties of the external environment
Balance of Skills Analysis
Whether an organisation can field a range of types such as innovators, leaders, doers and reflectors
Reliance Analysis
Whether an organisation is over-reliant on key personnel and whether it could manage in the case of their departure and corporate image
Resource Audit Business Motivations Access Issues / Health and Safety Nature of the resource/product Ownership: public or private sector
Resource Audit Business Motivations
Satisficer or maximiser; the role of economic and noneconomic motives
Access Issues / Health and Safety Requirements for DDA Nature of the resource/product
Natural or man-made environment
The Micro-Environment
Resource Audit Scale Business unit or destination Stakeholders and policy frameworks Customer profiles & segmentation
Micro-Environment — Micro-environment —
Actors close to the company that affect its ability to engage and serve its customers
The Company Suppliers Marketing Intermediaries Competitors Customers Publics
The Micro-Environment [Source: Grant, 1995, p. 61]
The Micro-Environment [Source: Grant, 1995, p. 61]
Suppliers
• How does your relationship with suppliers enhance your green credentials and add value?
The Micro-Environment
The Micro-Environment
The Micro-Environment
The Micro-Environment
Micro-Environment — Micro-environment —
Actors close to the company that affect its ability to engage and serve its customers
The Company Suppliers Marketing Intermediaries Competitors Customers Publics
Marketing Intermediaries
Marketing Intermediaries
• • • •
Resellers Distribution Firms Marketing Services Agencies Financial Intermediaries
Marketing Intermediaries
Marketing Intermediaries
Marketing Intermediaries
Marketing Intermediaries
Marketing Intermediaries
Micro-Environment — Micro-environment —
Actors close to the company that affect its ability to engage and serve its customers
The Company Suppliers Marketing Intermediaries Competitors Customers Publics
Micro-Environment — Micro-environment —
Actors close to the company that affect its ability to engage and serve its customers
The Company Suppliers Marketing Intermediaries Competitors Customers Publics
Micro-Environment — Micro-environment —
Actors close to the company that affect its ability to engage and serve its customers
The Company Suppliers Marketing Intermediaries Competitors Customers Publics
Micro-Environment Publics
Any group that has an actual or potential interest in your organisation’s ability to achieve stated objectives
Financial Publics Media Publics Government Publics Citizen-Action Publics General Public Local Publics
[Source: Evans et al, 2003, p. 198]
SWOT Analysis
SWOT Analysis
[Source: Evans et al, 2003, p. 199]
Possible Elements of a SWOT Analysis
SWOT Analysis
Possible Elements of a SWOT Analysis
[Source: Evans et al, 2003, p. 200]
‘No Frills Airline’
SWOT Analysis
The Outcomes from a SWOT Clear focus on: Factors that impact on past performance Factors influencing future performance Distinctive competencies - skills/characteristics that distinguish the product from its competitors Key factors for success
SWOT Analysis Guidelines: Key points so that an overview is quickly gained Many points may be relative rather than absolute and consequently a matter of judgement The SWOT should not concentrate solely on ‘hard facts’ and ‘softer’ factors such as the organisational culture should be included Prioritise and combine points Presentation should be specific and realistic in its assessment A critical and honest evaluation of the business is required (that not all businesses do!)
TOWS Analysis
TOWs Analysis
TOWS Analysis
TOWS Analysis
Strengths and Opportunities (SO) – How can you use your strengths to take advantage of the opportunities?
TOWS Analysis
Strengths and Threats (ST) - How can you take advantage of your strengths to avoid real and potential threats?
TOWS Analysis
Weaknesses and Threats (WT) – How can you minimise weaknesses and avoid threats?
TOWS Analysis
Weaknesses and Opportunities (WO) – How can you use your opportunities to overcome the weaknesses you are experiencing?
Summary At the end of this session you should be able to: Critique the micro-environment to support your green marketing strategy and development of competitive advantage Conduct a resource analysis within a business environment – identifying green credentials Summarise strategic analysis through the use of a SWOT/TOWS report