Question

Your mandate is to launch a new smartphone for Nokia. Explain how specific factors could affect your business (positively and negatively): a) in the micro-environment and, b) in the macro-environment.  (2 pages maximum).

Answer 1

If I will have to a launch smartphone for the Nokia, I will be taking following factors into consideration-

A.Macro factors- Macro factors that I would be looking at the economic cycle which is existing in the market and would also be looking for the monetary policies of the Government and the fiscal policies of the Government and the nature of the consumer disposable income along with all such political instability which can be causing a dent in the overall income of the business so I would be the pricing after the consideration of these macro factors which can be relating to the entire economy and it will have a lot of systematic risk associated with the launch of the smartphone.

B. Micro factors would be as follows-micro factors is firm specific in nature and when I would be launching a smartphone for the Nokia, I would be looking into the demand pattern into the entire industry and the supply pattern in the entire industry as well so I would also be looking at the pricing of various competitors in the industry and the profit margins which are available to the competitors in the industry so I will be accordingly fixing a prize after settlement of these micro factors which would be very important in order to decide to profit margin of the entire form