Palmer (2012, p. 39) defined the organisation’s marketing environment as “everything that surrounds an organization’s marketing function and can impinge on it”. The concept of marketing environment is broken down into three sections, which are; the internal environment, the micro environment and the macro environment. Other model that help T.C. Harrison to understand their competitive environment is the SWOT analysis and Porter’s 5 forces. These models offer an insight of the current environment and how any improvements can be made.
Figure 1: SWOT analysis for T.C. Harrison
Based on the SWOT analysis, …show more content…
(Masterson and Pickton, 2004 p. 55) Examples of controllable variables include the available finance, the range of products offered, trends and issues within the internal environment of the organisation. The business employs around 500 people in the Derby branch and looking at the turnover, T.C. Harrison generated £251,512,000 of revenue in 2015 and out of which they made a profit of £2,279,000.
Micro-environment
The micro environment comprises the forces over which the organisation has direct or indirect control or “influence”. These forces can be other organisations or individuals that are affected by the actions of the organisation (Groucutt et al, 2004 p. 28). The forces that have a direct impact on the business are the competitors who T.C. Harrison compete with to earn the high position in the market. The customers have a direct influence on the business because the better the service, the more likely T.C. Harrison will be able to retain the customers. The other stakeholders like the investors and the government have a major influence because they will want to know how their money is getting used and how will the business have an impact on the …show more content…
(Sullivan and Adcock, 2002, p. 27) The PESTLE analysis considers six forces which are; political, economic, sociological, technological, legal and environmental and the purpose of the audit is to use the information gathered to “guide strategic decision making”. (PESTLE Analysis, Factsheets, CIPD, 2016). The changes in the technology will mean a change in the social-cultural factors; customers may demand for smaller engines and more economic vehicles. Also, changes in the economy ie fluctuating exchange rates and political factors such as new import and export laws being introduced will impact on the trade with other