Question

How can an organization's leadership and external factors such as economic and social factors affect the outcome of a well-developed marketing plan? Include at least two specific examples.

Answer 1

Unlike inner variables, external components affect variables outside and without the company's control. Considering the external environment, entrepreneurs can make appropriate changes to their marketing plan in order to make it more adaptable to the external setting. Many criteria are regarded external elements. Some of the most significant and exceptional variables that need to be listed are the present financial situation, legislation, infrastructure environment, and client requirements.

No external variables influence company more than the current state of the economy, an financial condition. The situation shifts over time as the economy passes through growth and contraction. Conditions of a positive economy can be beneficial to business development, and adverse ones can have negative implications such as a small company scale, capital shortage or even bankruptcy.

Local public laws and regulations play an essential part in the company's growth. There are some nations whose regulations prevent certain sectors from developing. That may be a danger to the business. On the other side, through their laws and regulations, some sectors obtain favorable and constant assistance from local government. Furthermore, if regulations enable non-country organizations to invest in local sectors, they will indirectly generate a huge source of economic assistance for local company.

Artificial intelligence, intelligent web searches and other high-tech features have been at the forefront of many businesses for centuries. American Airlines, for example, began using a computerized flight reservation scheme and Bank of America assumed an automated check-processing scheme. Regardless of the size of your business, tangible and intangible technological advantages are well known.

Because it can help you generate profits and produce the results as your customers’ needs. In particular, the culture, efficiency and relationships of a business are obviously affected by technology infrastructure. Furthermore, it also exerts impacts on the security of confidential information and trade advantages.

Competition occurs, even in company, in any sector of our lives. When it comes to competition, businessmen can flourish or be harmed to lose their marketplace position.

Competition gives innovation, better client service, complacency, key knowledge of the market and comprehension of your own business — your power and weakness.

For the downside, if you are not ready to alter the competitive market, your business may be adversely affected by scary investors, higher market expectations, competitive cost, and disloyalty to customers.