Essays on Micro and Macro-Environment Factors - Qantas Case Study

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The paper "Micro and Macro-Environment Factors - Qantas" is a great example of a marketing case study.   The micro-environmental factors include the forces that are close to the firm and have a direct impact on its operations (Kotler & Armstrong, 2013). The forces have the ability to affect the internal operations of the company for a short period of time. The employees are considered as part of the micro-environment and may affect the operations of an organization. The employees contributed to the grounding of the firm as a result of the industrial action.

The activities of the employees have a direct impact on the performance of the organization. The relationship between the employees and the management may be affected as a result of the industrial action. This may have negative impacts on the morale of the employees and hence leading to poor performance. Competition is one of the most important micro-environment factors. The competition in the market is dependent on the strategies and quality of services offered to the customers (Jobber & Ellis-Chadwick, 2012). The industrial action affected the competitiveness of the company.

Virgin Australia had to step in so as to help the stranded customers. The company also took advantage of the situation to build its brand image. Qantas is therefore likely to be affected by the competition in the market as a result of the industrial action. The customers were stranded during the industrial action and this has negative effects on the customer experience. The levels of customer satisfaction were affected by the industrial action and the poor customer experience may lead to customers seeking the services of the competitors. Macro-economic factors The macro-environment involves the forces that are outside the control of the company but have a direct impact on its functioning (Ryan, 2014).

Technology is one of the important macro-environmental factors that are likely to affect Qantas. The company introduced a self-service technology that enables the customers to check themselves in for their flights. However, the new technology has ended up inconveniencing the customers. The customers have to pay more for their language as a result of using the technological tool. The technology being used is not friendly to the customers and hence impacting negatively on their experience.

Social media is also considered a technological tool for communication. Initially, it was not used well by the company to communicate with the customers about the situation. This also impacted negatively on the customer experience as they were left stranded. The legal issues are a macro-environmental factor that is also likely to affect the business (Charlesworth, 2014). The industrial action attracted a legal dispute with the employees. A ruling in favour of the employees means that the company has to spend on the payment of the employees.

This has a direct negative impact on the revenue of the organization. The customers may also end up using the firm for the inconveniences that they were exposed to without notice. The legal action is not only financially costly but it affects the brand image of the organization. The brand image of the company may suffer as a result of lawsuits and hence leading to the loss of customers.

References

Kotler, P., & Armstrong, G., 2013. Principles of Marketing 15th Global Edition. Pearson.

Jobber, D., & Ellis-Chadwick, F., 2012. Principles and practice of marketing (No. 7th). McGraw-Hill Higher Education.

Ryan, D., 2014. Understanding digital marketing: marketing strategies for engaging the digital generation. Kogan Page Publishers.

Charlesworth, A., 2014. Digital marketing: A practical approach. Routledge.

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