Micro and Macro Enviroment Explanation

Macro environment

Definition : the major external and uncontrollable factor that influence an organizations decision making, and effect its performance and strategies. These factor include the economic factor, demographic, legal, political, and social conditions technological change and natural forces.

Economics

The economics environment studies the factor that effect the consumer purchasing power and spending pattern. The economy is not very stable. Hence, it make the spending power of the consumer especially the white collars have been reduced. The price of petrol that had been increasing has increases the burden of the consumer. Thus, they are now looking for a more fuel efficient cars. The pricing of the perodua cars are very affordable and it’s a very economic car. Therefore the consumer now are willing and able to buy the car produced by perodua because its satisfied their need and want. In addition, the economic environment looks at the income distribution of the consumer to determine their purchasing power. Its consist of upper class, middle class, working class, and underclass consumer. The perodua car are suitable for consumer from the middle class and working class because of the price of the cars is ranging from RM23,000 to RM52,000 and its make it afoordable for them who have a less.

Demographic

The demographic environment is the study of human population in term of the size, density, location, age, gender, location and occupation of the consumer, its segment according to the element above. The female consumer are more likely to drive a perodua cars because it is smaller in the size and it is easier to be drive especially for those who are working in the town that will always caught in the traffic jam. The produa company manufacture the cars in more sporty design and modern feature to fulfill the needs and wants of the generation Y consumer. The car is also targeted for the working class people who are mainly white collars or the newly graduate who are just started to work because it is more economic for them.

Politic

The political and legal environment consist of the law and regulations, government policies, government agencies and pressure groups that will influence the ability of the company to serve the customers. Government had set quota to help protecting the local cars manufacturer which consist of perodua. Government also imposed higher tax to the import car in order to help to increase the sale of the local cars. This policy help to enhance the perodua company in term of generating more sales and being protected from the imported for manufacturer. Apart from that, the trademark and copy right protection help to protect the company trademark of the brand name and the design of the cars so that it cannot be intimated