How Micro and Macro-Environment Factors Affecting the Operations of the Business - Case Study Example

Qantas Case Study Name Date Course Question 1 Micro-environment factors 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 of affecting 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. The social media is also considered a technological tool for communication. Initially, it was not used well by the company to communicate to 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 suing 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. Conclusion In conclusion, the micro and macro environmental factors have the ability of affecting the operations of the business. The employees as well as the competition in the market are the major micro environmental factors that impacted negatively on the business. Technology and legal dispute are the macro-environmental factors that impacted negatively on the firm. The effects were severe that it affected the relationship of the firm with the customers. Question 2 Market segmentation involves the division of the targeted customers into different segments (Kotler & Armstrong, 2013). Qantas as accompany in the airline industry offers flight services to the customers. The segmentation of the services has been carried out by the company in order to ensure that the customers are able to afford. The segmentation involves the platinum passengers, gold passengers and silver passengers. The segmentation play an essential role in ensuring that the customers can be offered better services that suites their needs. This form of segmentation is common in the airline industry due to the nature of services that it offers. The market segmentation is also useful in ensuring that the needs of the frequent flyers are taken care of. The platinum segment is highly valued by the company as it intends to double their points in the bonus scheme. This segment is comprised of frequent flyers who ho the first class services offered by the company. The segment in most cases is comprised to the members of the society who are financially well off. This segment requires high quality services from the customers. The gold class is the other segment of the firm and is to receive 50% more of the points in the bonus program. This segment is also comprised of customers in need of high quality services. They are also financially well off and may be comprised of the business class. This customer segment has a high number of passengers as compared to the platinum segment. The silver segment is comprised of the customers from the middle class who frequently use the services of the company. However, the customers in this segment do not use high quality services. The company intends to offer 25 additional points to the customers in the segment. The silver segment has a high number of people as most of the customers can afford to pay for the services. The positioning is an important aspect that involves how the company presents itself to the members of the public and the customers (Jobber & Ellis-Chadwick, 2012). Positioning plays an essential role in attracting the customers. Qantas has positioned itself as a customer friendly firm with the ability of offering affordable and high quality services. The positioning has seen the firm coming up with different services and initiatives that are aimed at meeting the needs of the customers. The self service technology was put in place as a result of the customer feedback and the need to reduce the time taken during the process of checking in. Listening to the opinions of the customers is an indication of customer friendly and oriented service. The introduction of the bonus points as well as the offers indicates that the company is positioning itself as customer friendly. Damage control measures are being put in place by the company in order to ensure that the customer confidence is won back. Conclusion In conclusion, segmentation has mainly been used to classify the customers into three different groups. This is mainly dependant on the amount that they pay for their services. It has also been used to determine the quality of services offered to the customers. It is evident that positioning has enabled the company to acquire a customer friendly brand image and hence enabling it to attract and retain customers. Question 3 The 7Ps includes the traditional elements as well as three other new elements of marketing (Charlesworth, 2014). In terms of the product, the firm has managed it well which plays an essential role in meeting the needs of the customers. The pricing in the company is affordable and this has been well managed by the segmentation process. The segmentation ensures that customers from different market segments are able to afford the services. The price of a product is an important aspect that determines the ability of the customers to make the purchase decision. Place mainly involves the location in which the customers are able to obtain the service. The customers have to visit the premises of the firm in order to obtain most of the services. However, the firm has the ability of improving on this by enhancing its online presence. This will ensure that the customers are able to make most of the transactions online. This is useful in ensuring that the customer experience is improved. Promotion involves creating awareness of the product to the customers. The firm has not done well in terms of promotion. During the crisis, it was unable to provide the customers with adequate information. This is an indication that the firm is not capable to communicating effectively with the customers. The people involve the personnel who are responsible for providing the services (Kotler & Armstrong, 2013). The firm has not fared well in terms of dealing with the employees and more improvements are required. The industrial action that grounded the flights can be attributed to the inability of the firm to adequately address the needs of the employees. The processes at the company have not fared well due to gaps in the management of people as well as provision of information. The company has however faired well in terms of physical evidence as the customers are able to visit and use the facilities that are available to them. Conclusion All the 7Ps have been utilized by the company in order to market its services to the customers. However, some of the elements have not been used well which has effects on the firm. It is evident that the firm needs to improve on promotion as well as people. 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. Read More