Analysis of the Macro and Micro Environments of Progressive Office Furniture

This report analyzes the internal and external environment of Progressive Office Furniture, including core brand values, value proposition, buyer behavior, micro environment, macro environment, and SWOT and TOWS matrix.

Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Core Brand Values, Value Proposition and Buyer’s Behaviour..................................................3
Micro Environment of Progressive Office Furniture ..................................................................4
Macro Environment of Progressive Office Furniture .................................................................5
SWOT and TOWS Matrix...........................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Within a business organisation’s operational macro and micro environments, there exist
numerous internal and external factors that influence and have an effect on the business
organisation’s operational and financial performance in business industries (Javeed &
Mukhopadhyay, (2017)). This report analyses the internal and external environment of
Progressive Office Furniture also known as Progressive which is a business organisation that
specialises in designing, manufacturing, selling and installing furniture of all sorts. Progressive
Office Furniture was founded in 1990 and has successfully operating within Australian retail
sectors for the last 30 years. Progressive Office Furniture’s business operations are divided into
two separate divisions – Corporate and Dealership.
MAIN BODY
Core Brand Values, Value Proposition and Buyer’s Behaviour
Core Brand Values:
The Progressive Office Furniture retail business organisation was founded on and still
operates on its core brand values that relate to providing its customers within the Australian retail
markets with trust, innovation, value, quality and service. Overall the brand mission of
Progressive Office Furniture is to create and provide their customers with aspirational,
innovative and quality products that are effectively accessible by everyone through their diverse
and huge range of manufactured furniture products within the Australia’s retail markets. The
brand vision of Progressive Office Furniture is to provide their customers with a dedicated
standard against which the goods and products sold by their competitors can be effectively
measured, from taking care of the external environments to the community to operational
environment of the Progressive Office Furniture’s employees to the customer service experience
provided by Progressive Office Furniture to its retail consumers.
Value Proposition:
Value proposition relates to a business organisation’s promise of value that is to be
communicated, delivered or acknowledged to its customers through the goods and services that it

sells to them within operational industries. Progressive Office Furniture tries to provide optimum
levels of value propositions to its retail customers through various strategies and schemes that are
specifically designed to output maximum levels of value to their customers and satisfy their
needs, requirements and preferences in order to gain their long term loyalty. These value driven
schemes and strategies relate to inherently understanding the needs, requirements and
preferences that a regular retail customer possesses in relation to the furniture products that are
sold by Progressive Office Furniture (Lin, (2018)). These value driven strategies also focus on
increasing the range and diversity of the office furniture goods and products that are
manufactured and sold by Progressive Office Furniture in order to be able to effectively provide
value to the retail customers. In addition, the value driven strategies also place focus on
minimising the cost of Progressive Office Furniture’s goods in order for them to be highly
competitive against their competitors so that optimum value can be delivered to Progressive
Office Furniture’s customers through their retail goods and services.
Buyer Behaviour:
The behaviour of retail customers that Progressive Office Furniture services within the
Australia’s retail markets is convoluted and complex. Many customers of Progressive Office
Furniture prefer quality over quantity, i.e., they expect high quality of products form the
Progressive Office Furniture branded furniture goods and products while also expecting that the
prices of these goods remain competitive and affordable. The Progressive Office Furniture’s
customers also expect high customer service from a brand as big as Progressive Office Furniture
(Maqin & Hendri, (2017)). If these criteria of the retail customers are not fulfilled by Progressive
Office Furniture, then they switch to the numerous competitors that Progressive Office Furniture
has to compete with, in the highly competitive retail industry of Australia.
Micro Environment of Progressive Office Furniture
The micro environment of Progressive Office Furniture contains various variables such
as the business organisation, its suppliers, intermediaries, customers and its various competitors:
Company: Progressive Office Furniture operates on a functional long hierarchical structure that
allows for it to possess highly skilled employees at various positions within its long chain of
command. This allows for Progressive Office Furniture to effectively conduct its operations and

consult various employees for all the decision making operations of the business increasing its
success rate.
Suppliers: Progressive Office Furniture also possesses various suppliers who consistently supply
the manufacturing operations of the retail business with required raw materials and goods
necessary for the operations of Progressive Office Furniture (Chaffey, (2019)). Good relations
with their suppliers allows for Progressive Office Furniture to procure raw materials at
competitive prices.
Intermediaries: The micro environment of Progressive Office Furniture also includes various
intermediaries such as small scale retail sellers, wholesalers, merchants, brokers etc., who are
essential for the sustained successful operations of Progressive Office Furniture.
Relevant Public: There are also present various relevant public within the internal environment
of Progressive Office Furniture such as its ownership, various investors, stakeholders and
shareholders. In order for Progressive Office Furniture to operate successfully within the
Australia’s retail industry, it need to always take into account the relevant public in all of its
decision making operations.
Competitors: Progressive Office Furniture also faces intense competition within the retail
industry from their numerous retail competitors, all of whom operate towards organisational
goals that are similar to Progressive Office Furniture such as increasing their overall market
share, productivity, customer base and financial performance (Krutikova & Kravets, (2018)).
Customers: The retail customers also have a significant impact on the micro environment of
Progressive Office Furniture, as all operations of Progressive Office Furniture have to conducted
while taking into account the requirements, demands, needs and preferences of the retail
customers, in order to effectively satisfy them.
Macro Environment of Progressive Office Furniture
Within the macro environments of Progressive Office Furniture, there are present various
forces which impact its operational and financial performance in Australia’s retail industry.
These are as follows:

Demographic: Demographic factors have a significant effect on the operational and financial
performance of Progressive Office Furniture. These include factors such as population, age,
geography etc. (Mose, (2016)). As the Australia’s population is steadily increasing in the last
decade, this demographic factor consistently increases the potential customer base that
Progressive Office Furniture has the opportunity to capture in order to grow and expand its
operations, allowing for Progressive Office Furniture to be able to operate successfully in
Australia’s retail markets for a sustained period of time.
Economic: Economic factors relating to taxation policies have a significant impact on the
financial performance of Progressive Office Furniture in Australia. Australian government
currently levies 30% of the profits generated by Progressive Office furniture as company tax.
This has an immense impact on Progressive Office Furniture’s financial performance in
Australia’s retail markets.
Natural: There are also numerous natural factors present in the macro environment of
Progressive Office Furniture, which effect its operational and financial performance. Changes to
government mandated rules, laws and regulations pertaining to how Progressive Office Furniture
and its suppliers procure the raw materials from the natural environments can increase the prices
of these raw materials, impacting the financial operations and performance of Progressive Office
Furniture.
Political: Australia and its elected government in addition to its head of state Queen Elizabeth II
are the governing authorities and govern all of Australia’s mandated policies and rules.
Australia’s prime minister is the leader of the current Australian government, with Australia
witnessing political stability in the last decade. This political stability is immensely beneficial for
Progressive Office furniture as they do not have to worry about any sudden political changes or
reforms impacting their business.
Technological: Macro technological factors such as new and innovative manufacturing
machines and equipment can have immensely positive impact on both operational and financial
performance of Progressive Office Furniture, as these new manufacturing machines are able to
perform with increased operational efficiency, while also taking into use less energy resources,

allowing for Progressive Office Furniture to effectively increase its profitability and productivity
within the Australia’s retail markets.
Cultural: Cultural macro forces also have a huge impact on all operations of Progressive Office
Furniture. Progressive Office Furniture is required to identify and analyse the cultural
background, upbringing and customs of all of its target customers within Australia, in order to
create and manufacture goods and services which cater to their target customer’s cultural
upbringing and not be offensive towards their cultural background or upbringing.
SWOT and TOWS Matrix
TOWS Matrix External Opportunities (O)
 Progressive Office
Furniture has the
opportunity to
significantly grow and
diversify their
operations by
expanding to global
markets and other
countries.
 Progressive Office
Furniture also has the
opportunity to capture
a lucrative retail
market, that possesses
increased number of
customers to be
procured and satisfied
through their digital
External Threats (T)
 The intense
competition that
Progressive Office
Furniture faces from
the numerous other
retail business
organisation within
Australia’s retail
industry is a major
threat to its
operational and
financial success.
 Inflation and other
detrimental effects on
the Australia’s
economy can result in
a decrease of
customer’s purchasing

online stores. power, which is a
massive threat to
Progressive Office
Furniture.
Internal Strengths (S)
 Progressive Office
Furniture enjoys high
brand awareness,
value and reputation
amongst its
competitors within
retail markets of
Australia on account
of its 30 year long and
sustained successful
operations.
 Progressive Office
Furniture has also
invested into and
developed their
operational
infrastructure, which
allows for them to
operate with optimum
levels of performance
and efficiency.
Strength Opportunities
(SO)
 Progressive Office
Furniture can make
use of their high brand
awareness, value and
reputation attributes to
successfully enter and
expand into global
markets to increase
their operational and
financial performance
and diversify their
functions.
 Progressive Office
Furniture can also
make effective use of
their highly developed
infrastructure in order
to satisfy the needs
and requirements of
their online digital
customers acquired
through online stores.
Strength Threats (ST)
 Progressive Office
Furniture can use their
high brand reputation,
value and awareness
metrics to deter the
negative impact that
inflation can have on
its operational and
financial performance
(Dunn and et.al.,
(2018)).
 Progressive Office
Furniture can also
make use of their
highly developed
infrastructure in order
to stave off the threat
that they face from the
immense competition
within the retail
industries of
Australia.
Internal Weaknesses (W)
 Progressive Office
Furniture has not been
Weaknesses Opportunities
(WO)
 In order to effectively
Weaknesses Threats (WT)
 In order to fend off
the immense

able to effectively
merge and acquire
other business
organisations into
their own, to grow and
expand their business
operations (Camilleri,
(2018)).
 The marketing efforts
of Progressive Office
Furniture are also not
significantly
successful, even
though the retail
business invests
significantly into their
marketing operations.
enter into global
markets and expand
their operations,
Progressive Office
Furniture can merge
with or acquire a new
business organisation
that already operates
within the retail
markets of expanding
location.
 Progressive Office
Furniture can make
effective use of
marketing to make the
operations of their
online digital stores
successful, which
would allow for them
to effectively acquire
new customers and
grow their operations.
competition that
Progressive Office
Furniture faces from
numerous competitors
in Australia’s retail
markets, Progressive
Office Furniture can
merge with or acquire
some of them.
 If inflation occurs in
the Australia’s
economy resulting in
decreased purchasing
power of retail
customers, then
Progressive Office
Furniture can use
marketing operations
effectively to attract
their target customers
exclusively and
conduct their
operations.
CONCLUSION
Based on the findings of the report, it is concluded that there are numerous factors in the
macro and micro environments of Progressive Office Furniture that effect its financial and
operational performance in Australian retail markets. This report analyses the core brand values,

value proposition and customer behaviour of Progressive Office Furniture. Then the report
analyses the micro environment in which Progressive Office Furniture operates in. Further the
report assesses the macro environment of Progressive Office Furniture and applies the SWOT
and TOWS frameworks to its operations in order to effectively analyse the effects of macro and
micro environments.

REFERENCES
Books and Journals
Camilleri, M. A. (2018). The marketing environment. In Travel marketing, tourism economics
and the airline product (pp. 51-68). Springer, Cham.
Chaffey, D. (2019). Digital marketing. Pearson UK.
Dunn, J. and et.al., (2018). Factors of the marketing macro system effecting children’s food
production. Economic Annals-ХХI. 170(3-4). 49-56.
Hudrasyah, H. and et.al., (2019). MARKETING STRATEGY FOR GAME DEVELOPER
BASED ON MICRO AND MACRO ENVIRONMENT IN INDONESIA. Journal of
Global Business and Social Entrepreneurship (GBSE). 5(14).
Javeed, N., & Mukhopadhyay, D. (2017). Exosomes and their role in the micro-/macro-
environment: a comprehensive review. Journal of biomedical research. 31(5). 386.
Krutikova, A., & Kravets, O. (2018). Analysis of micro and macro marketing environment in the
juice market.
Lin, B. (2018). The Preliminary Exploration and Analysis of Bamboo Industry in the Macro and
Micro Environment of Ghana.
Maqin, R. A., & Hendri, N. (2017). Comparative Analysis: The Effect of Macro and Micro
Environment on Marketing Strategy and Marketing Performance of Small Medium
Enterprises (Survey on Group of Small Medium Enterprises of Food and Non-Food
Products in Cianjur Regency, West Java, Indonesia. International Review of
Management and Marketing. 7(5). 70-76.
Mose, A. (2016). Analysis of Macro and Micro Environment on the Marketing Strategy
Formulation and the Influence to the Competitive Advantage (Case Study). Academy of
Strategic Management Journal. 15. 35-41.