Research Paper On Micro Environment

Topics: Economics

Let us take a roughly look at the macro environment just to get the rough idea on the different between macro environment and micro environment. Macro environmental factors generally affect all firms by shaping opportunity and risk in the business-environment. Advancements in research and innovation, changes in political stability or cultural framework are macro factors often influencing long-term strategic management, or even the objectives of a firm. As for the example, Intel with its microchip has shaped management strategy of firms within several industries.

Most strategic management modals incorporate an environmental analysis, which scans the existing macro influences and potential opportunities.

A situation analysis evaluates environmental influences in relation to internal factors, to establish an individual firm’s limitations and competitiveness. Micro environment is less universal to some extent which the micro environment refers to factors affecting firms in a specific sector or industry. The “Porter’s Five Forces” modal is an industrial analysis used by firms to understand the micro environment.

This strengthens management strategy against changes in micro factors, which can reverberate across the entire industry. There are plenty of micro environmental factors that might affect in today’s business activities.

It is an each made up of a self contained micromanagement that happened to stand alone but it interacts with the others in order to make the activities mingling with each other in the micro environment of the business. As for the example, the company itself, the employees, suppliers or even the parts providers which is the suppliers might be the three factors which have a direct effect on the business.

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The competitors and the customers are happened to be the internal environmental factors that keep business doors open for making money or maximize its profits which will have an impact that is not as direct but just as great because of its impact. Company All of the departments within an organization have the potential to positively or negatively impact and give influence on the outcome of the organization about the customer satisfaction. As a result, a marketing department have to work closely with the finance, purchasing, research and development and manufacturing departments together with among the others in order to identify the ways that each department can contribute to the provision of excellent customer value which will lead to greater customer satisfaction.

Employees The employees apply an influence on the small business’s quality, operations and profitability through their daily activities. Most of the major quality and production models which including the Lean, Six Sigma and total quality management(TTS) have the framework to encourage the employee leadership over an ordinary management. An example of employee commitment and obligation is the self-directed employee task group. These groups will encourage their group members to learn more and perform to a higher standard and to participate in the mutinous improvement process. The members of these groups can be motivated and inspired by the external forces such as company incentive programs or internal forces such as the pride and satisfaction in work had done well.

Supplier The company’s suppliers are the entity that will provide the products or services which the company needs order to add value to the compass own products or services. Those parts or services must be delivered on time and must meet the company’s specifications in order to ensure the level of quality. Fifties requirements are not been met, it is either the production of he company will fall off or the final output of the company’s product will face the quality suffers. In some extreme cases, such as Toast’s recall of cars which is built from 2009 to 2011 for a faulty accelerator. In this situation, the suppliers can cause Toyota the problems with the public perception of Toast’s products or services.

In that occasion, the rigorous Toyota Production System which is the Toast’s version Of Henry Ford’s TTS program has been called into question and holds the responsibilities because Toyota had relied on a single supplier for accelerators which is used in its vehicles. Competitors The competitors will directly and indirectly affect the business’s profits by trying to take the business away from the company and it is just as the same where we try to take away their business. The competitors are a stimulus to a company and it is just the same as you the company to them. The competitors will affect the company s activities which will affect its profits, but if the company having to provide the better products for a lower cost and most probably faster than the company’s competition, the company can easily compete with the competitors in ways they may not be able to match. Therein lays an advantage the company whereby it can be driven to provide a product that delivers more added values for the customers than the competitor.

Publics (Customer) Publics or customer are groups that might have a significant impact on the marketing activities which is formulated to contribute to the customers’ satisfaction with a product and an organization. For example, a satisfied customer is a public that can contribute to a marketing program through the positive word of mouth. Consumer will advocates and represents as the watchdog groups are the examples of publics that may encumbered marketing activities through the active word of mouth which will directly give a negative impact towards an organization. About the company of PROTON In this particular discussion, we will look upon the company PROTON which is a national car provider company in Malaysia. PROTON full name is PERUSAL AUTOMOBILE NATIONAL BERTHA or PROTON was incorporated on 7th May 1 983 to manufacture, assemble and sell motor vehicles and related products including the accessories, spare parts and other components.

PROTON had produced the Malaysia’s first car which is known as the Proton SAGA which was commercially launched on 9th of July 1985 by Malaysian Fourth Prime Minister which was Tuna Dry. Mathis Mohammad who conceived the idea of a Malaysian car. PROTON was publicly listed on the Koala Lump Stock Exchange (KEELS) in the year of 1992. During that period of time, its shareholders include Khans National Bertha, Petroleum National Bertha, Mediumistic Corporation, Mediumistic Motors Corporation, Employee Provident Fund Board and other local and foreign investors. Tuna Dry.

Mathis had gained all the shareholder’s trust in order for them to invest in PROTON and at the same time will save PROTON from being a majority owned by the foreign investors. At the year of 2008, PROTON had put their focus more in the core areas of product, quality, cost efficiency and distribution network and it has been a focal point for PROTON to improve and revolutionize its brand name towards the local and global perceptions. PROTON aims is to have a strong product portfolio. The aims had been executed by PROTON in introducing the right car, for the right market, at the right price and at the right time. This was reflected in the organizations newly introduced PROTON Exert, PROTON Persona and PROTON Saga Models with the latest engine powered by the ewe Camphor FAIN engine.

PROTON has also continued to update, make continuous improvement and refresh its existing product lines to entice and attract customers. There are plenty type of PROTON’s car model. The PROTON’s model products include the PROTON was, PROTON Austria, PROTON straight, PROTON war, PROTON Swear, PROTON Arena, PROTON Persona V, PROTON Jaguar, PROTON Persona and PROTON Exert. The ranges of engine capacity provided in PROTON’s products are 1. 3, 1.

5, 1. 6, 1. 8 and 2. 0 litter engines will satisfy and fulfill a wide range of customers both locally and abroad. PROTON cars are also known internationally as very competitive and innovative automobiles.

PROTON now is being exported to other 50 countries like Lignite Kingdom and other continental European markets. By this means, PROTON is realizing its goal of being an internationally successful Malaysian automobile manufacturer. Refer to the history, the first PROTON car was exported to foreign company in 1986. The number has increased steadily every now and then, and in the year of 1 998, Malaysia had exported a total of 1 8,422 units to countries and areas, including Argentina, Australia, Bahrain, Bangladesh, Belgium, Brunet Tarantulas, Chile, Cyprus, Egypt, Fiji, Germany, Jordan, Kuwait, Lebanon, Libya, Maldives, Mauritius, Oman, Philippines, Qatar, the Russian Federation, Saudi Arabia, Singapore, Slovenia, Sir Lankan, Taiwan Province of China, Turkey, united Arab Emirates and United Kingdom. The models which had being exported during that period of time including Wire which is Sedan and Aerobic, Austria and Putter.

The company PROTON In order to know better about the company in this micro environmental factor, we have to have the knowledge about the company itself. As for the company PROTON, PROTON’s strength is lies in its competitively priced reduce. Its widespread nationwide distribution network helps the industry to move forward towards the advancement with the support from Malaysian government itself. The company also has the good the corporate governance practice and highly regarded by many of the Malaysian out of patriotism they feel for this country as PROTON is the national car maker and provider. Unfortunately, the apparent due to short history in car making definitely could not be an excuse for PROTON to come out with low quality products.

This could cost for PROTON a very high as over the period of time which it eight jeopardize the PROTON’s reputation. Poor product performance and functionality is something crucial for PROTON that cannot be allowed to happen and the quality of product produced always needs to be monitored and assured to the customers. Other than that, the operational cost and other expenses is always to be a challenging indicator to any industry and for the case of PROTON, it is more susceptible to increase the raw material cost such as the steel particularly. The demand for cars in any segment is always there for PROTON except for more trying times like during the economic crisis. There are always plenty of opportunities for PROTON to be a global player in the global market.

Nobody ever say that cars should only be manufactured by a developed and contain a powerful technologies like Japan, Germany and other western countries even though these countries have the reputation of making good cars long time ago before PROTON existed in the market and it has bring Malaysia into the picture. Collaborations within big industry players could enable PROTON to do many things by revolutionize its products for improvement. Through research and development department, many more innovative products loud be invented and this could ensure that PROTON to be as a brand name to remain in the industry. The Employees of PROTON PROTON’s Managing Director, Seed Zinnia Abiding, was once quoted saying that 60 percent of the defects made in PROTON cars were due to poor quality components from vendors, but he also admitted that the rest of the blame has a clear-cut on the firm’s workforce. Since then, the management of PROTON had urged the employees to focus on quality control which is very critical and a crucial factor to put PROTON to profitability and overseas exports.

This is because the consumers always wanted the quality cars and hey have put extra efforts to wait for PROTON to improve its quality and the also have the high expectations on PROTON. According to Seed Zinnia Abiding again, he quoted that, “Today, we want to focus on rebuilding the company. The focus is putting PROTON on a better footing, to improve quality, product and profit. We need to be prepared to compete globally. ” Therefore, in order to retain a competitive edge in term of skills-set and technical know-how in this industry, PROTON needs to ensure that their human capital and the workforce is to be continuously developed with the right training and tools.

Consistent and relevant training is very crucial for the human capital of PROTON in order to ensure that their employees have the knowledge and tools to help drive PROTON forward and it will bring up the quality of the employees as well. The suppliers of PROTON As we all know, PROTON have to be careful in opening tenders for those suppliers in order to fulfill its requirement on the product specifications and all sort of things that could urge PROTON to produce the quality cars. If the management is serious in bringing the PROTON back to a profitable entity and building up its reputation to gain the heart of its customer, they should UN it like a proper corporation and not as a charity organization which means the incompetent of vendors and the vendors which were being overlooked, contributing hiccup and downturn of the PROTON’s sales performances. This might affect the reputation of PROTON which they do not adhere to the standard of PROTON’s requirement of specification s must be removed and replaced with the other suppliers or vendors. This is because the vendors will play as a big player for PROTON to improve its quality of product which could bring up its reputation to the public.

In another word, if PROTON is trying to talk and campaigning about the zero- effect, then the zero tolerance towards the vendors who cannot deliver must come into the picture as a complimentary to the campaign or otherwise the entire exercise of campaign is going to be a pointless effort and public fund will continue to be wasted just by a simple lousy mismanagement on revaluing the vendors. PROTON’s zero-defect campaign is aimed at removing a reputation for poor quality which has left it struggling to compete against foreign competitors. The Competitors of PROTON One of the threats is of course from the rivals twitchiest is the competitors in the local automotive industry. Perusal Tomtit Asked (Persona) which is the Malaysian second national car maker and provider had been set up after PROTON started to challenge PROTON’s in the local market share In Malaysia. Persona actually did better in recent years and outperformed PROTON with their most well selling car model so far which is the Movie and they grab for more than 30% of overall market share.

Above is the example photo of the PERSONA Movie which had been the most selling car in recent years and it had dominated the market in a quite high number of percentage. PARODIED keep on producing and improving its Movie del because they can easily tap the market as it is a hot item in the market.

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Research Paper On Micro Environment. (2018, Feb 03). Retrieved from

Research Paper On  Micro Environment
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