Macro-Environmental Elements and Business Organization

This assignment explores the concept of macro-environmental elements and their influence on business organizations. It highlights the importance of managing and controlling these factors through tools such as marketing communication mix. The report provides a summary of key concepts and references relevant to the topic, including books, journals, and online resources.

Contemporary Developments in
Business and Management

EXECUTIVE SUMMARY
Present document is enclosed with both the environments like internal and external
mainly offers organisation with a proper working environment. Along with this, marketing
communication mix would help Ford in enhancing sales and profitability. Away with this,
external factors mainly affects business operations and their functions as well.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Overview of the primary external influences and their importance for the firm........................4
TASK 2............................................................................................................................................8
1) Relevance of Marketing communication mix and its impact on the policies and decision
making of firm.............................................................................................................................8
2) Critical Evaluation of effectiveness of organisation's response............................................10
3) Demonstration of improvement in the response of firm.......................................................10
CONCLUSION..............................................................................................................................10

INTRODUCTION
Term contemporary development can be defined as evolution of a company within a
business environment, which is carrying a rapid changing business environment. This basically
helps an organisation in running business in much more successful manner. Along with this, it is
essential for a business organisation to look into every single change and adopt them as per the
requirements (DesJardins and McCall, 2014). This enhances competition within the environment
and if a company is looking forward to sustain within a business environment for a longer time
frame, then it is much needed for the firm to adopt changes that are coming within the business
world in a certain time frame. Firm which has been chosen for present report i.e. Ford Motor
company, it was found in the year of 1903 by Henry Ford. It is an auto-mobile manufacturer
along with providing their products and services in several countries across the world. Away
with this, report will cover PESTLE analysis in order to analyse the external business
environment. Assignment is also going to put light on marketing communication mix and lastly,
assessment is going to cover a range of improvement that company has made in order to sustain.
TASK 1
Overview of the primary external influences and their importance for the firm
An American reputed automotive manufacturer named as Ford Motor Company, has been
performing well in all over the world through offering customers with a good range of cars from
economic to racing. It has been analysed that, all the external business factors has immensely
impacted upon overall working of this organisation. Since this organisation (Ford), is doing
business among different nations like United Kingdom, India, China and many others it is
required for the company to focus on any sort of changes in order to remove all the risks in
specified time frame (Ellison and Boyd, 2013).
On the other hand, these factors which are coming under external environment do not
mainly stays connected to the company but at the same time, they impacts upon business
organisation's business functions or operations at the same time like Ford Motor Company. In
present context, it is being found that there are a range of external factors like political,
economical, social, technological, legal and environmental majorly impacts upon business and
functions of Ford Motor Company and these are described in a detailed manner underneath :
PESTLE analysis

Since, Ford Motor Company is dealing or operating business among nations, it can easily
be said that organisation would require to manage its overall performance level regardless
focusing all small areas. Then only Ford could expand its business among different nations.
Along with this, it is being found that an external environment may contain huge opportunities
but, they also carry high range of risks at the same time. Away with this, it can also be said that
proper analysis of external environment might directly encourage managers of a business
organisation like Ford Motor Company to pull out all the competitors in front.
On the other hand, managers may also finally find out threats which are present which
might aid in making effective plans along with the policies through which business expansion
can be done. In present context, PESTLE analysis has been done below which will aid Ford and
its management to administer all the risks, information and other things that are presented within
different range of macro environmental factors. In this, a detailed PESTLE Analysis has been
done beneath:
Political Factor – This is being considered as one of the most crucial factor of external
environment which majorly impacts upon overall working of a company. This factor mainly
stays linked with governmental federal laws, rules and regulations, which government changes
from time to time as per the requirements. Therefore, it can also be said that this factor can also
influence the spending power of customers. Since Ford Motor Company is doing business in
most of the countries, it will be required for them to follow all the rules and regulations that were
being made by nation's government in all over the world (Grint, 2013). On the other hand,
company's major influence is in Asian countries, where company cars are mostly sold in a high
volume. But, due to pressure from domestic car companies, this Ford can only sell specific
amount of cars in other nations. This is specifically be done by every single country's
government where both import and export of products and services of a company within a sector
is being set to a limit. This impacts upon profit margins of Ford because, they have got bound to
a limit where they have earned a certain amount only. This factor is important for Ford Motor
Company because, government basically offers equal opportunities to the company in order to
expand their business at international level just the way others are doing.
Economical Factor- Another crucial factor which majorly plays a crucial role for a
business organisation, at the time of seeking to develop the business or to expand it at
international level. It is being found that, if economic status of country is good enough then it

directly offers business organisations with ample number of benefits from profit margins to sales.
If it is talked about Ford Motor Company, it is offering customers with marginal cost based cars,
which means a country consist with an open business market, Ford could easily grab a good
position in it within specified time frame. Within economical factor, there are certain elements
like inflation rate, growth rate of GDP, currency fluctuations and more basically comes in it. This
could be understood with a very good example where inflation rate is high within a country then
it will be very important for Ford Motor Company's management to use a cut down approach in
order to reduce the prices of cars which they are selling (John Wiley & Sons.Easterby-Smith and
et. al., 2015). On the other hand, if it is talked about Pounds Sterling, which is the currency of
United Kingdom is continuously rising, then it is may be possible that it might impact upon
pricing of cars and other services that are being offered by Ford Motor Company because this
company belongs to an other nation i.e. America. Through looking at the above mentioned
situation, it can easily be said that Ford Motor Company would require to make alterations as per
the requirements in order to become successful within UK.
Social Factor- This factor mainly be consist with ample number of elements like human
perception, culture, preferences, dislikes, demographic alterations and many other things which
might impact upon sales figures of a business organisation. It is being found that, both culture of
a country and perception of citizens of same nation mainly influence upon company's products
and services. This could be understood with a good example where an individual (buyer) is
looking forward to buy a car as per his or her requirements. Under this, if sales executive of Ford
company would show the cars that are not meeting with requirements of the customer, then it
will directly change the mindset of buyer regarding a company. This whole scenario might
impact upon Ford's reputation which may lead to reduction in customer base at the same time.
Therefore, it is required for companies like Ford and many more others to deliver training to
individuals (staff members) in order to enhance the overall productivity or to improvise the
communication with customers so that their experience regarding customer service could easily
be improvised.
Technology Factor – This is being considered as one of vital most factor which stays
present within the external business environment. It has been analysed that, the whole world is
slowly digitalising itself and at present time, there are many countries that has already made
themselves digitalised. This led business organisations to expand their businesses among areas

where they were not been able to do so. All this happened because of high speed internet and
technology. In the same way, Ford has also taken this whole scenario as a business opportunity
which may aid in expanding business at international level. Social media, which is a part of
modern technology has helped Ford Motor Company to market its products and services in all
over the world. This has influenced people and made them customers of this organisation. On the
other hand, since it is a digital world, demand of hybrid cars is also increasing time by time. This
has also being grabbed by Ford Motor Company as an opportunity and with the help of Artificial
Intelligence, company has kept its focus on enhancing standards of cars (Kaplan, 2017). This
could be understood with a good example where Ford Motor Company has invested
approximately to £1 billion dollar in order to bring up the technology within the cars through
which they can make cars automatic, which do not require to have a driver. Production of these
vehicles would be more beneficial and provide opportunities of gaining competitive advantage in
the marketplace.
Legal factors- Basically, it is being found that this factor is generally related with
advertising standards, rights and authorities of customers and firms, health and safety of
employees, quality and safety of vehicles, product labelling, etc. Considering this element, a
business organisation dealing in automotive industry could easily manage its business deeds that
are linked with functions and operations. If it is talked about Ford Motor Company, this factor
might impact upon overall working of a business organisation that might lead Ford to face a
range of issues in specified time frame. This could be understood with a situation where
management department of Ford has not taken both safety and as major part which means, the
company has just made normal policies which were putting excretion upon staff members. This
directly impacted negatively upon sales figures because, staff was not getting leaves as per their
requirements. After this, Ford has managed to follow all the requirements of staff members
considering an all new policy which indulge all the laws and regulations (regarding health and
safety), which improvised overall performance level of staff (Osborne and et. al., 2014).
Environmental force- It is being considered as one of a crucial approach of external
business environment. Under this, it can be said that executives of Ford needs to work their
functions without harming the earth and nature at the same time. For this, they have selected
environment officers in all over the world considering the goal that less carbon can be released
by the organization (Ford). They are likewise working for ideal (optimal) utilization of assets

along with the resources alongside taking out wastes exercises from the creation procedure so
development and manageability would be accomplished by them in a shorter time frame. Under
this it can be said that, Ford may require to put more concentrate on new sorts of vehicles like
electric or hybrid cars with the goal that consideration of an enlarging number of clients can be
attained by Ford. As Management of Ford has already chosen to build half electric and hybrid
vehicle by 2021, this progression of the board can demonstrate gainful for them in fulfilling
those clients who more lean towards energy effective cars (Symon and Cassell, 2012).
TASK 2
1) Relevance of Marketing communication mix and its impact on the policies and decision
making of firm
Marketing communication mix:
This is being considered as one of a crucial approach which is specifically used by a
company in order to promote products along with services in front of targeted customers. Away
with this, a marketing communication mix consist with two distinctive factors and these are
communication mix and marketing. Along with this, if it is talked about management of Ford,
this basically uses a range of elements regarding marketing and these are : sales promotions,
media, print advertisements, event sponsorship and many more. Basically, this type of method
can be used by a business organisation in regards to communicate a detailed message to the
targeted customers. It is being identified that there are a range of factors like advertising, public
relations, sales promotions, personal selling and more. These can also be considered as some of
crucial elements which majorly impacts upon policies and decision making as well of Ford.
Advertising - This is being considered as essential tool which is majorly being used by a
business organisation when it comes to promote products and services among targeted
customers. It has been analysed that there are a range of media tools which can be used and these
are Television, newspaper, radio, online websites, social media and so on. On the other hand, it is
being found out that management of Ford is typically using social media as its advertising
method in regards to communicate with customers and to offer them with right amount of detail
regarding the cars and their features within a business organisation. Along with this, CSR, HR,
and management for enhancing are the crucial elements which basically plays a crucial role in
developing the advertisements. With the help of this, it can easily be said that Ford would expand

its business in specified time frame through spreading awareness about the offerings and services
of Ford among the customers.
Sources: Marketing communication mix, (2018).
Public relation- Another crucial media tool which helps in marketing the products of a
company which directly aid an organisation in expanding business at international level. This
basically stays enclosed with newspaper, social media and more which directly aid in
communicating with the customers in much more effective and efficient way. Away with this,
public relations stays much more influential as this is one of a crucial approach which directly
may aid Ford in reaching to an all new level (Welford, 2016). This could be understood with a
good example where, Ford will use better HR policies in the workplace such as providing
training to their employees on regular basis, it will beneficial for the firm's growth. Whereas, if
company have not proper management structure then it impacts the business operations and
functions in negative manner.
Personal selling- Another crucial advertising tool that could be utilised for
communicating with the public or the targeted customers. On the other hand, management
majorly identifies basic needs along with the preferences of customers so that adjustment can be
made accordingly and it can also influences the policies or decision making of Ford Motors. On
Illustration: Marketing communication mix

the other hand, its impact can easily be identified with the help of an example, where Ford
basically provides right amount of information to staff members through which they could
effectively communicate with targeted customers or with the public at the same time.
Direct marketing - This mostly stays enclosed with direct mail, telephone marketing,
online marketing and etc., which mainly impacts upon preferences or tastes of customers in
positive or negative manner. Such as management of Ford motors is using direct mail or message
method for attracting the customers which will help them in building good relation with new
customers. This process is time consuming in present time and only target a range of customers
with products and services.
Sales promotion- This is one of the most powerful tool of advertising which consist with
both promotional tool and sales at the same time. Basically, this is utilized by Ford for a
particular time frame. This advertising tool is utilized when organization needs to spread
awareness among number of clients in a little time frame. This could be understood with an
example where Management of Ford has given loyalty cards and alluring rewards to their current
or old clients with the goal that future choice would be made in positive way.
Event sponsorship – Under this, an organisation like Ford requires attraction of ample
number of customers towards their offerings in a shorter period of time (Wilton, 2012). This
could be understood with a good example where management of Ford Motor Company on a
continuous basis organises events regarding new cars or services that organisation has developed
and through this company has spread awareness and this builds positive image of the
organisation in the mindset of customers within a small time-frame.
2) Critical Evaluation of effectiveness of organisation's response
In resent business scenario, almost each type of organisation use effective communication
methods that help in influencing the buying behaviour of consumer (Botha, Kourie and Snyman,
2014) . In general the concept of marketing communication mix is a vast that supports companies
to attracted number of customer in order to buy their product. By applying proper mix an
organisation are able to determine the actual requirements and desire of people and thus deliver
the appropriate goods and services in order to fulfil those requirements in specific time frame
and in most suitable manner. There are number of benefits of effective marketing communication
mix which are defined below:

 Helps the internal management: As it is a wider concept that support and aid internal
manager to analyse and capture the market trends so that more customer can be attracted.
Internal manager use to build effective advertisements scripts that help to provide a clear
knowledge about companies’ product to a large number of audiences. As customers are
better aware particular goods and services they prefer to consume accordingly to fulfil
actual needs. In Ford manager use the concept of advertisement so that features of
particular new cars can be elaborated at global level and comes into knowledge of
customer. This help to increase sales figures and support to increase profitability within a
specific time frame.
Aid in modification in marketing policies: The key benefit of marketing communication mix is
that, it enables the manager of company to make changes in existing marketing policies or
activities (Bybee, 2013). It is only probable when they are able to determine the targeted
customer group, accurate needs and desire, best suitable price that customer can pay and most
important spending power of customer in that economy. In Ford motors, manager identify and
target middle class income group people those are willing to buy designer cars to raise their
standard of living. Thus in order to fulfil their needs management bring changes in payment
polices and reduces the burden from willing customer. Such as if a vehicle cost approx. £4,500
and customer wants to buy they can make down payment of about £1000 and rest of the payment
would be deducted in appropriate selected instalments. This help company to gain success in
short time as customer can buy cars without thinking too much and increase brand image at
global level.
 Encourage event sponsorship: It is observed that company uses the methods of event
sponsorship in order to promote their product and determine actual customer. In context
of ford marketing managers could easily recognize their besieged consumers and
encourage their services in operational manner. They use to arrange various e\vents so
that responses and reviews of customer can be collected and needed modification can be
made in existing product. The concept of event sponsorship is helps ford to provide
profitability within a small time frame and also expand business at global level.
 Direct or personal selling: This method is useful for company by promoting subsequent
product in market to targeted customer. In Ford manager develop an effective direct

selling team which help to promote their vehicles in market to specific target customer
and determine their future needs.
As it is stated that each approach of communication mix are connected with one another thus,
directors of Ford are not able to make meaningful decision if they focuses on only one method.
As the theory of marketing communication mix is associated with encouraging specific goods
and services therefore manager must consider each and every aspect of business in order to gain
profitability. For instance by using direct selling and personal selling methods helps an
organisation to come in close and direct contact with targeted customer and analyse their actuals
needs. On the other side advertisement helps customer to get known about the special features
and benefits that are provided by company in particular vehicles (Chawla and Derr, 2012) .
Similarly by applying the concept of event sponsorship management are able to get reviews,
feedback for product and services provided to target customer base. This help in bringing
possible changes in product so that sales can be increased and company can get better customer
base.
All these benefits are beneficial for company to improve overall business structure, but at the
same time there are some major drawbacks of marketing communication mix that are defined
underneath:
 This idea of communication mix is more extensive and requires additional time and
efforts for framing powerful policies and actualizing extra features in the product and
services. As all alterations are vital for the goods which can impact the decision making
process in negative manner.
 This idea is mainly utilized for centring the conduct and primary feelings of clients so
directors make decision as per needs but at the same time it do not consider any other
areas of firm while making decision (Chambers, 2014). It impact sales and customer base
in specific time frame. The board of Ford lack in the ability of taking meaningful decision
that impact the existing customer base and also reduce the new customer.
 The concept of marketing communication mix only used in recognizing the likings of
customer and take valuable feedbacks from clients that increases sales and improve
revenues. But consumers are not measured as the chief component of this process
because as it mainly includes promoting features of product and aware customer about
the same. Due to this many time company may faces situation of low sales and losses in

specific time frame. As in Ford Motors, Managers also focus to promote new cars and
other vehicles in market thus not able to build effective relations with customers that
customer base with existing marketplace (De Massis and Kotlar, 2014).
3) Demonstration of improvement in the response of firm
There are various improvement to respective company with the implementation of
communication mix that are defined below:
 By applying communication mix, Manager of Ford are able to attract huge number of
customer by delivering appropriate goods as per their requirements wants that satisfy
them most. It also directs managers to collect feedbacks and any future suggestions from
the customers that help to make changes in order to increase sales (Denk, Kaufmann and
Roesch, 2012).
 In context to decrease time and overall cost, company must hire professional staff
member with appropriate knowledge and long experience that help to increase sales and
satisfy customer demands.
 As a ford motor is operating business at global level thus Managers must prepare
operational policies like global marketing that bring smooth functioning in different
business operations.
 They could use social media platforms and applies the concept of digital marketing in
future period that will be helpful in increasing market share and capture huge market.
CONCLUSION
With the help of above mentioned report, it is being summarised that macro-
environmental elements like environmental, political, economic and technological and more
majorly influence overall working of a business organisation. Along with this, it can also be said
that managing and the controlling related to a product can easily be done through using a range
of tools like marketing communication mix and more.

REFERENCES
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Marketing Communication Mix. 2018. [Online]. Available Through:
<http://www.themarketingguywhodrivessales.com/crashcourse/promix.htm>.