Supply and Demand and Larger Societal Forces

The microenvironment consists of the actors close to the company that affect its ability to serve its clients the company, suppliers, marketing intermediates, customer markets, competitors and publics. The macroenvironment consists of the larger societal forces that affect the microenvironment demographic, economic, natural, technological, political and cultural forces. (Kolter, 2008) We stated on this website that marketing was about meeting needs and providing benefits and the customer should be the interchange focus of the business.The companies marketing strategy should be focused around this concept, however, in that location atomic number 18 factors within the companies marketing environment which can constrain this activity. These factors are both controllable and uncontrollable and have to be carefully monitored by the organisation. The companies marketing environment can be defined as the controllabe and uncontrollabe elements that run the strategic direction of the c ompany. The companies marketing environment can be analysed in two broad levels.The macro environment involves looking at uncontrollabe variables that function company strategy. This is is discussed further in PEST Analysis. Political Influences Relationships between burnt umber producing nations and US State & Local government controls Economic Influences Constant hold for food and beverages Changes in disposable income could influence purchase levels There is an importance of economic indicators to the strategic planning process in any system of rules is the ability to benchmark economic conditions that contribute to improve profitability, business gain and market size.Starbucks have succeeded several economic factors as well as price elasticity of demand. Price elasticity of demand can be determined by the piece change in the quantity demanded with the percentage change in price. They should consider household income that people are free to spend more on food and beverage s when household income increases. Starbucks innovation in joint ventures has opened new markets and opportunities increasing product use among polar demographics.Starbucks has proven to be highly innovative in business civilisation that offers prepaid cards, priced from ?5 to ?500. Joint ventures with Pepsi Company, Dreyers Grand Ice Cream Inc and animate entertainment with the launch of Hear Music have developed Starbucks with grand success. Starbucks has shown their values, leveraging market power, resources, and capabilities to achieve returns higher than their competition (Investment Group, 2001).