Factors Affecting Macro Environment

Micro Environment consists of factors or elements close to business that have a direct impact on the business operations and success. It also affects the business performance and various other decisions that are critical to business. Some of the micro-environmental factors include customers, employees, distribution channels, suppliers, media and the general public.

Macro Environment are the major external and uncontrollable factors that influence an organization 's decision making, and affect its performance and strategies. The macro-environment consists of forces that originate outside of an organization and generally cannot be altered by actions of the organization. These factors include sociocultural, technological, political-legal, economic,

Firstly Needs and trends are major macro-environment variables that affect Vadilal. Enterprising individuals and companies manage to create new solutions to meet unmet needs. It is important for the Vadilal to understand its customers needs and then produce the products accordingly. If they fail to understand their customer needs then they will have to incur losses as people will not be satisfied with their products. Trends reveal the shape of the future and can provide strategic direction. Now a days people have become health conscious and they want low calorie of ice-creams and desserts and so Vadilal has understood these trends and are accordingly producing ice-creams and desserts which are nutritious and healthy as well with low calories. Another trend that we observe is that at the end of major occasions and functions like parties, etc. they serve ice-creams and desserts which is also one of the factor that is impacting the demand for Vadilal ice-creams and frozen

Vadilal faces competition from major players such as Amul, Havmor, Mother-Diary and Kwality Wall’s. It also faces competition from other local players in India. Competition is one such factor which is beyond the control of Vadilal. Due to the presence of so many competitors the ice-cream market in India is flooded with a variety of new products in various new flavours. Amul is a market leader in ice-cream space currently occupying 38% of market share. Vadilal faces stiff competition from Amul and Mother Diary who are continuously introducing new products and offerings for their customers. Vadilal also faces one of the major threat from local players who sell the low priced products in market. Thus Vadilal faces great competition at national as well as regional level in the entire ice-cream