Marketing Management: Impact of Macro Environment on Rawlinson Knitwear

This report highlights the impact of macro environment on Rawlinson Knitwear, a well-established company dealing in the production of knitwear and school wear for students. It also provides recommendations to enhance the company's performance amid the current COVID-19 pandemic.

Marketing Management

Table of Contents
1. Introduction .................................................................................................................................1
2. Literature Review.........................................................................................................................1
2.1 Importance of environmental scanning ...........................................................................1
3. Key factor within the Macro environment that may impact the chosen organisation.................2
3.1 Political and Economic Factors........................................................................................3
3.2 Social, Technological and Environmental factors............................................................3
3.3 Legal Factors....................................................................................................................5
4. Recommendations........................................................................................................................5
5. Conclusion ..................................................................................................................................6
6. References ...................................................................................................................................7

1. Introduction
Marketing environment is the process of analysing and evaluating various internal and
external factors that has direct impact on the functioning and competitiveness of the company,
these factors also create huge impact on the brand image of the company. In order to enhance
the profitability and productivity of the company it becomes very essential for the business
organisation to regularly analyse and evaluate their environment and accordingly implement
required strategy to deal with the challenges that can happens effectively (Adie, 2019). For this
report Rawlinson Knitwear company is taken into consideration. The Rawlinson Knitwear is one
of the well-established company dealing in the production knitwear and schools wear for the
students, the company was founded in 1972 in UK, the company is considered to the consumer
discretionary product company (Lim, 2018). With the current covid 19 pandemic, performance
of chosen organisation has been directly impacted, so in order to enhance their performance and
gain competitive advantage in the marketplace, effective market environment analysis for the
selected company is highlighted in this report. In addition to this various suggestion in order to
enhance the performance of the company are also highlighted in this report.
2. Literature Review
2.1 Importance of environmental scanning
According to Hitesh Bhasin (2019), the term environment scanning is defined as the
process of continuously analysing the current trends happening in the internal and external
business environment which can have direct impact on the profitability of the company, it is one
of the most essential part of the business organisation which allows them to analyse the factors
which can create negative impact on their functioning (Environmental Scanning, 2019). In order
to gain competitive advantage in the marketplace also to enhance their performance through
effectively utilising opportunities present in the environment, it becomes very important for the
companies to continuously scan their environment (Abratt and Bendixen, 2018). The current
pandemic has influenced the profitability and productivity of the business, large number of
business were shut down due to the loss, also there has been large number of negative economic
and social implication recognised because of the number of restrictions imposed on travelling
around the globe. There has been declined in the business activities and various global events
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and rise in the online measures which are also considered to have long term impact on the
business (Yamamoto and Lloyd, 2019).
Economy of various major cities was largely impacted due ban imposed on the travelling
and also because of the lock down. The continue rise in the spread of covid 19 cases has greatly
impacted the global economy which has lead to impacting the performance of the various
companies around the globe. In case of Rawlinson Knitwear, which is one of the manufacturer
of the school uniforms for the children's, due to covid and lock down, all the schools and colleges
were closed down (Bauer, 2019). There was large impact on the performance and profitability of
the selected company. So in order to enhance their performance in the marketplace and regain
their competitive advantage, it becomes very essential for the company to scan their
environment, analysing various threat available also the how opportunities can be utilise
effectively if available will help Rawlinson Knitwear to improve their performance (Akgün and
Polat, 2021).
Proper environment scanning will help the chosen company to analyse various factors
which can amid the covid 19 can directly influenced the profitability of the company. Proper
environment scanning will also help company to analyse the economic conditions of the country,
which will be helpful in effectively carry out their production and pricing strategy in market, it
will help them in restructuring their policy as per the requirement leading them to increase their
performance (Lim, 2018).
3. Key factor within the Macro environment that may impact the chosen
organisation
The macro analysis is one of the essentials tool used by the business organisation in order
to analyse all the external factors that can have direct impact on the functioning and profitability
of the business (Beirman, 2020). It allows the companies to evaluate various opportunities and
threats present in the business environment. In order to analyse the macro environment of the
chosen company various factors can be taken into consideration (Athwal and Harris, 2018). the
various factors includes political, economic, social, technological, environmental and legal
factors, in case of the Rowlinson Knitwear these factors are discussed as follow.
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3.1 Political and Economic Factors
The political factors are the type of factor which includes the extent to which the
government interfere in the functioning of the business organisation, it involves the government
rules, laws and regulation which creates political stability and instability for the business
(Banerjee and Mandal, 2018). The current covid 19 pandemic has directly impacted the politics
of the UK, there were changes in the governing and political system of the company. In context
to Rawlinson Knitwear company needs to ensure that they are regularly re-evaluating their
political environment so as to perform better and create a favourable environment for themselves
(Breitbarth and Huth, 2019). Reconsidering the political changes will help Rawlinson Knitwear
to capture large number of customers base. Whereas Current changes in the political factors and
Brexit will create negative impact on Rawlinson Knitwear.
Economic factors includes the factors which creates direct impact on the functioning of
the business and also helps in determining how effective and profitable business is. Various
factors include economic growth, interest rate, inflation, exchange rate. It is analysed that the
present economic impact of the covid 19 had huge impact on the economy of the UK in
comparison to other country (PESTLE Analysis, 2021). In case of Rawlinson Knitwear these kind
of economic instability will directly influence the functioning and performance of the company
and will create threat for them. Implementing suitable strategy such as low cost strategy will help
the company to enhance their performance and will lead to creating positive impact. Whereas
economic instability will directly influence the functioning of the company (Francisand
Robertson, 2021).
3.2 Social, Technological and Environmental factors
Social factors includes the behaviour and cultural factors of the customers which directly
influence the buying behaviour of the customer, not offering the products and services as per the
needs and wants of the customers will create dissatisfaction among them which can lead to
directly impacting the profitability of the chosen company (Dalbouh, 2021). The current
pandemic has lead to change in the needs and preferences of the customers, now they are more
concern about the healthy and safety issues. In order to satisfy the needs and wants of the
customers, business organisation needs to ensure that products are offered as per the taste nad
preference of the customers. In respect to Rawlinson Knitwear, they needs to ensure that they are
following all the precautions and measures to ensure the safety, this will help them to satisfy the
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social needs of their customers effectively. Also quality goods and services needs to be provided
to the target customers in order to enhance their satisfaction level (Laczniak and Murphy, 2019).
The positive impact of the factor includes the effective consideration of the safety and security
factors while producing the products and services will help Rawlinson Knitwear to satisfy the
social needs of their target customers. However not following the safety protocols will create
negative impact on the functioning of the chosen company.
The technological factors includes any kind of changes in the technology or any kind of
technology advancement will directly influence the profitability and productivity of the business.
The current pandemic covid 19 has forced the business to collectively move towards the use of
technology in order to carry out their activity also avoid social distancing. Not able to effectively
use the technology has impacted the performance of the company (Dixit, 2020). Effective use of
advance technology will help Rawlinson Knitwear to gain competitive advantage in the
marketplace. This factor can also lead to creating positive and negative impact for the chosen
company as discussed below. Effective use of well advance technology will help Rawlinson
Knitwear to attract large number of customers base and increase their profitability and
productivity. Whereas not having required technology or tech information will create challenges
for the chosen company and will create negative impact on the company, directly influence their
competitiveness (Matthyssens, 2019).
Environmental factors includes the factors are mainly related to the sustainability of the
environment, with the increasing scarcity of resources, pollution and many more has forced the
business to effectively work towards the sustainability of the environment in an ethical manners.
With the current pandemic responsibilities of businesses towards the environment has increased,
companies are more concerned about the environment specially the UK's government has set the
target for the carbon footprints for all the companies also needs for the sustainable products is
increasing in the marketplace (Mitręga,2019). In case of the Rawlinson Knitwear, company
needs to ensure that they are effectively fulfilling their corporate responsibility and effectively
working towards sustainability of environmental, these factors has both positive and negative
impact of on the chosen company (Dreyer and Krüger, 2018). The positive impact of
environmental factors will lead to ensuring the sustainability of the environment also use of
sustainable products will help Rawlinson Knitwear to enhance their performance. But whereas
with ongoing pandemic and changing environment performance of the Rawlinson Knitwear can
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be directly influenced in negative manner. Also not working towards the sustainability of the
environment will impact their profitability (Soni and Verghese, 2018).
3.3 Legal Factors
The legal factors includes the legal laws or legislation implemented which allows the
companies to know what is legally right and what is not. In includes the laws related to the
healthy and safety, equal opportunities and consumers rights. With the growing current pandemic
the more emphasis is given on the health and safety laws in each and every organisation. In
context to the Rawlinson Knitwear, in order to enhance their performance the company needs to
ensure that they are effectively following the required laws also ensuring the safety and security
of their employees (Pihaand Avlonitis, 2018). Following the legal laws will help selected
company to enhance their performance in the market as the customers will feel safe and secure.
But whereas strict legal laws can have negative impact on the performance of the Rawlinson
Knitwear.
4. Recommendations
It is analysed that in order to enhance the performance of the company amid the current
covid 19 pandemic effective environment scanning is very essential for the chosen company, it
will allow the company to analyse various opportunities and threat present in the marketplace
(Gbadamosi, 2019). It is recommended that in order to enhance their performance Rawlinson
Knitwear needs to effectively utilise the opportunities present such as satisfying the social needs
using the proper safety protocols will help the selected company to satisfy the social needs of
their customers also with growing use of the technology and large number of companies towards
use of advance technology in order to connect and attract their customers amid the current
pandemic has also created huge opportunities for the company to attract their potential customers
using well advance technology and enhance their performance and profitability (Hofacker and
Corsaro, 2020). In addition to this effectively working towards the sustainability of the
environment will also help Rawlinson Knitwear to have positive impact. But whereas factors like
political, economic instability and also strict legal laws which will create potential threat for the
chosen company. It is recommended that essential strategy needs to be implemented in order to
overcome these threat (Rather, 2020). The various other recommendation that can be taken into
consideration by the Rawlinson Knitwear in order to overcome the challenges and enhance their
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performance such as Rawlinson Knitwear can focus on producing sustainable products in order
to attract the upcoming markets effectively (Stewart and Ladik, 2019). Also in order to enhance
their brand image and market share effectively Rawlinson Knitwear can start investing in the
new markets also. Selected company can also focus on improving their current products lines as
per the current trends and requirements in order to attract large number of customers and gain
competitive advantage in the marketplace(Sahaf, 2019).It is also recommended that chosen
company can use various well advance social media platforms in order to make them aware of
the products and services. Creating more customers’ engagement through directly interacting
with them will also help Rawlinson Knitwear to enhance their performance for the long term.
With changing taste and preference among the customers due to the current pandemic, offering
quality and unique products to the target customers will also help chosen company to attract
large number of customers (Kotler, 2019).
5. Conclusion
From the above report it has been analysed that environment scanning plays an essential
role in determining various forces that can influence the brand image of the company also
impacting their competitiveness. It is analysed that effective environment analysis helps business
organisation to identify various opportunities present in the environment also implementing
necessary strategy in order to deal with the threats, with the help of this analysis the strength and
weakness of the company is also be analysed effectively. It is also analysed that proper
environment analysis amid the current covid 19 pandemic helps companies to enhance their
performance effectively and also gain competitive advantage in the market. This report helps in
analysing that marketing environment analysis helps in enhancing overall performance of the
company. In addition to this in order to analyse marketing environment pestle analysis is taken
into account also these macro environmental factors can have positive or either negative impact
on the selected business organisation as analysed in this report. In addition to this to continue to
enhance the performance of the chosen company various recommendation such as use of
sustainable products, enhancing current product lines, investing in untapped market and so on are
analysed in this report.
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6. References
Books and Journals
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Bauer, H.H., 2019. Wege des Marketing (Vol. 36). Duncker & Humblot.
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Mitręga, M., 2019. Dynamic marketing capability–refining the concept and applying it to
company innovations. Journal of Business & Industrial Marketing.
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Piha, L.P. and Avlonitis, G.J., 2018. Internal brand orientation: conceptualisation, scale
development and validation. Journal of Marketing Management, 34(3-4), pp.370-394.
Rather, R.A., 2020. Customer experience and engagement in tourism destinations: the
experiential marketing perspective. Journal of Travel & Tourism Marketing, 37(1),
pp.15-32.
Sahaf, M.A., 2019. Strategic marketing: making decisions for strategic advantage. PHI Learning
Pvt. Ltd..
Soni, N. and Verghese, M., 2018. Analyzing the Impact of Online Brand Trust on Sales
Promotion and Online Buying Decision. IUP Journal of Marketing Management, 17(3).
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Edward Elgar Publishing.
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Online
Hitesh Bashin 2019, Environmental Scanning,
[Online] Available through; https://www.marketing91.com/environmental-scanning/
PESTLE Analysis, 2021 [Online] Available through; https://boycewire.com/pestle-analysis-
definition-and-template/
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