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Controllable And Uncontrollable Factors In Business

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The economic environment is continually shifting because of changes to economic factors. Financially viable factors are equally controllable and uncontrollable. The convenient factors, such as price, earnings and interest charge are politically controlled. Unmanageable factors, such as purchaser capital and distribution of wealth, change and diverge, making them difficult to calculate. Both the controllable and uncontrollable factors are reasons for the changes in the marketplace and end user demand. The breakdown to account for economic factors leads to pecuniary penalties for businesses and the economy as a whole.

Task 1
Micro-economic business environment
The trade and industry environment of business will lead a pivotal role in shaping …show more content…

Research is practical in investigating prospective customer demand and in developing products that top match preferred benefits. This benefits businesses once they have paid for advertising and utilize other promotional techniques to support brand and its benefits. These selling techniques are significant in achieving competitive advantages above other competitors trying to optimize presentation as consumers make choices based on their wants and …show more content…

Those options refer to procurements of goods and services from production source. As a business, part of your function is to supply and promote products as well as commodities and services that are demanded by a target market segment within the population. In essence, businesses should want to persuade the choices of customers who have restricted budgets to expend on diverse products and services. Supply and demand is one of the most important concepts at the microeconomic point. This is the evaluation of the altitude of consumer demand for selective goods to the existing supply in the marketplace. In a extremely competitive industry in which customers enjoys many choices, supply might surpass demand. Over time, this can cause some businesses to fail. In a further niche market with a small number of providers, chance to succeed in meeting customers requirement may be superior if businesses recommend and promote a worth product with preferred features. Business pricing strategies show a relationship sturdily with microeconomic factors. The ultimate or equilibrium price position exists at the point at which quantity supplied exactly equals quantity demanded. The higher the prices, the lower the range of the people who will purchase them. On the other hand, if businness offer lesser prices than the market demand dictates, businesses must leave

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PESTLE analysis : Is a shortcut of six words which is political , Economic , Social , Technological , Legal and Environmental .Usually this concept used in marketing .Also it used as a tool by organization to track the environment they are operating in or are planning to new project or service .Moreover it used to assess the four external factors with regard to the situation of the organization's business ,and how it will effect in the business over long term. Political factors: This factor looks at how government regulations and legal issues affect a business's chance to be profitable and successful.

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The pricing strategy or pricing policy is one of the most important managers make for a product as it affects the profitable outcome and competitiveness that a product may make. (Toni, 2017). A business can use a variety of pricing strategies when selling a product or service. The price can be set to maximize profitability for each unit sold or from the market overall. It can also be used to defend an existing market from new entrants, to increase market share within a market or to enter a new market by dropping the price or offering more benefits with the device such as packages.

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Apple marketers must always be aware of the present and future economic developments. This is to ensure that the marketing plan can be done. Economic environment factors that affect consumer buying and spending and affect the wealth of an area include income distribution inflation, recession and spending patterns. The amount of individual or household income is refers by consumer income.

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This is also where price mechanism takes place because any changes in demand and supply, will affect the price, and eventually balancing the demand to be equal to supply. This is the reason why consumers and producers have no control over the price, and in this situation, everyone is considered as price takers. This causes a horizontal line in the demand curve for the firm’s product(s), as can be seen in Figure 1 (b). Figure 1 There are barely any barriers to enter this market, making it easy to enter and exit according to the firm’s capabilities.

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Political environment includes laws, government agencies, and pressure group that influence and limit various organizations and individuals in a given society. Economic environment consists of economic factors that affect consumer purchasing power and spending patterns. Social factors include the demographic and cultural aspects of the external macro environment. In which demography is the study of human population in terms of size, density, location, age, gender, race, occupation, and other statistics; cutural environment consist of institution of other forces that affect society’s basic values, perceptions, preferences, and behaviors. Therefore, these factors have an impact on customer’s needs and size of potential markets.

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