Comprehensive Strategic Knowledge

Running Head: MANAGEMENT 0
COMPREHENSIVE STRATEGIC KNOWLEDGE

MANAGEMENT 1
Table of Contents
Overview....................................................................................................................................2
Microeconomic Aspects.............................................................................................................2
Consumer Expectations..........................................................................................................2
Elasticity of demand...............................................................................................................3
Production cost.......................................................................................................................3
Supply and Demand dynamics...............................................................................................4
Macroeconomic Aspects............................................................................................................5
Aggregate demand and aggregated supply............................................................................5
Monetary and Fiscal policies.................................................................................................5
Current exchange rate............................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

MANAGEMENT 2
Overview
There are various economic parameters that significantly impact the market dynamics of a
nation and also influence the practices and activities of Business Corporation operating in an
economy. This drive organisation to consider the importance of these micro and macro-
economic factors while formulating marketing strategies and business policies. In this report,
various micro and macro-economic factors are being identified such as cost of production,
elasticity, average demand and supply dynamics and customer choices that plays a vital role
in the success of an enterprise.
Microeconomic Aspects
Depending upon the nature of goods and services the organisation is providing to the
customers, certain micro-economic aspects are available having significant impact on the
profitability and performance of the enterprise. Some of these factors are outlined below –
Consumer Expectations
It is important for an organisation to consider taste and preference of targeted consumers in
relation to demand for product. To that product sold by an enterprise, if the consumer is
highly loyal and do not opt for any substitutes, the organisation can make money on their
loyalty and a small hike in price can really help the corporation to gain more revenue (Fuchs,
Prandelli & Schreier, 2010).
Hence, while building marketing policies and marketing strategies, it is important for XYZ
firm to take in account the brand loyalty of the consumer in respect with commodity there are
offering.