Macro Environment Assignment

Added on - Dec 2020

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Marketing
Table of ContentsINTRODUCTION...........................................................................................................................1Main body........................................................................................................................................1Situational analysis of Macro environment.................................................................................1Evaluation of needs to be undertaken for effectiveness of retailer's current SOSTAC strategy.5Implementation of current market strategy used by Selfridges in an international market........7CONCLUSION................................................................................................................................8REFERENCES...............................................................................................................................9
INTRODUCTIONMarketing term can be defined as a process of business in which buyer and seller meats for thepurpose of creating relationship and satisfying customer needs. Marketing can be seen as keycomponent of a business management. It is a process which bridges the gap between buyer andseller to satisfy each other's need. Selfridges & co. is a fashion retailer of united kingdom. It hasits department store in all over many countries. Recently, its departments includes clothing,furniture, home appliances, toys, hardware, paints, etc. This study will include a brief detail ofSOSTAC model, situational analysis of Macro environment, analysis of price, place and product.This assignment will also show an evaluation that is needed to be undertaken in order to enhanceeffectiveness of retailer's SOSTAC strategy. The study will also analyse the scope of fashionretailer in order to implement current marketing strategy in international market(Cowley, 2016).Main bodySituational analysis of Macro environmentSituation analysis:Situation analysis refers to a huge collection of different methods which could be used byinternal and external environment having influence over the normal course of business of thecompany. Situation analysis includes both, study of macro environment factors effecting thebusiness and micro environment factors effecting the business as well.Macro environment:Macro environment factors are generally those factors which effects the business, but businessdo not have any control over those factors. Macro environment also have a major effect overfashion retail sector. There are several major factors which effects the business of fashionretailers like technology, economic factors, demographic change, change in business customer'sbehaviour etc.(Cowley, 2017)As the company does not have any control over these factors, business should obtain akind of strategic plan in which it could make the company to handle any situation arisen due tothese factors easily and efficiently as well.Situational analysis of macro environment11While analysing macro environment situation, only relevant information regarding macroenvironment factors effecting the normal course of business are being analysed.1
Selfridges analyse the following factors for the purpose of macro environment situationanalysis:11Demographic analysis: while analysing the macro environment factors of business,Selfridges needs to analyse region's demographic situations first. As demand of thecompany's product totally depends upon the demographic situation of that area. In thisfactor company should take into account gender, age and some more other factors intoconsideration for taking decision about what kind of product should be provided to thosecustomers in order to give them maximum satisfaction(Bui, 2017).11Economic conditions: for analysing these factors, company needs to analyse infaltionrate, government policies etc. which are totally beyond the control of business. In order tounderstand the purchasing power of population of that particular region thses economicalfactors need to be analysed. As it also shows the scope of business of the company in thatmarket.11Technological factors: technological factors need to be taken seriously in today's world.Technological changes have a huge effect over every industry. If the business does notchange its strategies and plans as per the technology, it may result in huge loss to thecompany to the extent of shutting down situation of the business(Wijaya. and Hermawan,2018).11Political & legal: special provisions need which have effect over the business should beunderstand carefully of every country in which the company is doing its business. Anyaction against the legal or political provisions of the region can result into a huge penaltyfoe the company. Even any change in legal provision or political situation also must beconsider carefully by Selfridges & co.11Social & cultural: social & cultural factors have a huge influence over the fashionretailer's business. As it shows the taste and preference of the customers of that area. Alsochange in culture also need to be consider by the business. any festival season, change inweather, etc. also effects the demand of products of fashion industry. Selfridges shouldtake into consideration all these changes before offering its product to itscustomers(Dokukina, 2015).SOSTAC modal2
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