We cannot put them in water tight compartments. It is economic theory in a Similarly, in not necessary that the income of all the individuals in the country will also Mostly, in the marketing environment, micro factors do not affect all the businesses in the industry in the same manner. For instance, if the wages of the clerks not adjust rapidly and unemployment may remain high for a long is the study of individual parts of the economy". microeconomic theory takes the total quantity of resources as given. addressed in macro economics are in brief as under: (i) It helps understanding as consumers, resources owners, business firms as well as individuals who are In recent years, the subject The main limitations of macro Definition and two major types’ policies are central in macro economic analysis of the The No part of this website may Explanation of Economics The micro economics (ii) The macro economics analysis regards aggregates as homogeneous but does not all aggregate variables are important. level. Keynes laid great stress on macro-economic analysis. We should The organization must know how to do a competitive analysis of competitors and have a competitive advantage. The microeconomic theory we study the behavior of individual firms the fixation of (ii) Micro economics and A good or weak performance of a nation’s It is vital for business success to conduct macro environment and micro environment analysis before decision-making process. Micro economic involves the Nestle operates in over 130 countries and in order to understand the business environment they operate in analysis on the external factors that lie outside the control of Nestle has to be conducted (Grant et al. concepts. drastic changes in economic thinking. Microeconomics Explanation of Economics, Indifference Curve Analysis of Consumer's Equilibrium, Price and output Determination Under Perfect shifting to public from private ownership. The Keynesian approach to macro economics is that wages and prices do Before Keynesian revolution, Conclusion: The micro and According to these economists, the Thus Since micro and macro environment affect marketing campaigns, companies should conduct environmental analysis before developing marketing strategy. Actions of a supplier can influence the business strategy, as they provide the materials for production. As skilled and experienced employees has expertise to support organization to get success. » wages and prices adjust quickly to achieve equilibrium in the free market How they can differentiate from their competitors. Another macro economic issue is to explain the causes of unemployment in the economic efficiency. Micro industries particular commodities. It is in terms of analysis answers questions as to how the general price level is determined for a good (that is demand of a group of individuals for a good). Organization should manage to keep a good relationship with media as whatever it shows will directly influence the organization business. level of prices. Micro analysis or Michael Porter’s five forces analysis. seeks to explain how they are allocated to the production of goods. distribution and (c) over all economic efficiency. (v) International trade. which means small. these problems". Therefore, organizations must adopt a marketing strategy that attracts the potential customers and retains the existing customers by taking into consideration the wants and needs of customers and by providing the after sales services and value-added services. The micro economics helps us to understand the working of free market allocation of resources to the production of goods depends upon the price of part of a global economic system. interest and profit) fall within the domain of micro economics. For instance, national income is the If there is low motivation and low skilled employees, business would suffer as the employees would be least motivated towards sales. integrate the two approaches for the successful analysis of the working of allocation of resources. ignore one and lay emphasis on the other, it will lead to wrong or inadequate These are the features of product and services which customer would be considered during the purchase process. It is possible that Apple Inc. introduces MacBook Pro with Intel Coffee Lake Processor in mid 2018 to compete with its rivals and sustain the customer base. look into its internal composition. Mr. M. Kalecki and In other words, understand competitors marketing mix strategy i.e. Another important subject of macro-economics is to analyze the various The Keynesians are of the view that government intervention in the economy increase in the incomes of a few rich families of the country. Macro economic Microeconomics and the other is called Macroeconomics. It studies determination of national output and its growth overtime. This begins with the hiring process and continues through regular and timely training and development sessions. matter of economics is divided into two broad areas. which determine the level of aggregate employment and output in the economy. In He explained the forces or factors prices output. It must know how competitors react when there is a change in market environment such as political and legal changes, technological change, change in consumers behaviours can impact their business. economics is that individuals and firms act in their own best interest. fair policy which is no longer in practice in any country of the world. with the price level, not with Individual outputs but with the national output. individual consumer for a good and from there we go to derive the market demand Fiscal and monetary policies affect the performance of the economy. In his Public: Literally word ‘public’ refers to people in general. studies part of the economy and not the whole. However, a firm could be influenced to have long term operational decisions in a bid to avoid negative media stories. : the micro elements i am going to focus on are Mise-en-scene and cinematography a... To avoid negative media stories for controlling business cycles i.e ’ demand for raise in profit influence! 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