I . INTRO

Economics today has a term of market environment which involves points and impacts permitting a business to create sucessful relationship with customers as well as to keep it lasting longer. The market enviroment can be categorized into two levels: micro and macro.

The first one refers to small impacts in the business with the affection of serving the company customers, whereas the second one has larger societial impacts on the mirco environment.

As a result, both of them differ from many points. The organizations, suppliers, customers market,and the intermediaries and competitors are concerned in the micro environment. On the contrary, the Macro environment involves such factors as Demographic, natural, technological, cultural, political, and economics effects. However, these can be altered by the variety of many kinds of companies.

All companies are affected by macro environmental factors which form chances and threats in the business environment. Such elements often leaving a mark on long – term strategic management, or even the goals of a firm as prior research and innovation, political stability changes or cultural framework are difinited as macro factors. An environmental analysis are used for look for the existing macro impacts and potential chances carefully by most strategic management modals. Moreover, a situation analysis assess the impacts related to internal factors, for the purpose of forming an separate firm’s restrictions and competitiveness.

In contrast, Micro economics has the environmental factors which is less popular than the Maro, only resulting in a particular sector of companies or industry. They can be listed as competition, suppliers, customer, and labour and competition. To understand the micro environment, the firms apply the “Porter’s Five Forces” sample as an industrial analysis. This makes management strategy more powerful to against alters in micro factors because those can have a strong impact on the entire industry.

2. External Environment analysis

2.1. Macro Environment

2.1.1. Political and Legislation

Developments in political and legal field greatly affect the marketing decisions. sound marketing decision cannot be taken without taking into account, the government agencies, political party in power and in opposition their ideologies, pressuregroups, and laws of the land. These variables create tremendous pressures on marketing management. Laws affect production capacity, capability, product design, pricing and promotion. Government in almost all the country intervenes in marketing process irrespective of their political ideologies.

The political environment consists of laws, government agencies, and pressure groups with the power to influence or limit the behavior of individuals and organizations in a given society. Changes within the political and legal arena can affect business. Therefore, it is important for marketers to understand public policy and legislation, and the implications presented for business and marketing.

Legislation can encourage or discourage competition, and it can ensure (or not) fair markets for goods and services. Political corruption can influence marketing success or failure. Over the years, legislation affecting business around the world has increased steadily. Companies must be aware of changes in the political and legal environment so that decision-making can respond to the current political climate, and so that the firm can make any needed adjustments in corporate marketing policy.