Micro environment is the specific or the task environment of a business which affects its working or operations directly on a regular basis. While the changes or transformation in the macro environment will affect the business in the long run, the effects of changes or transformation in the microenvironment will be noticed immediately as it is near to the internal part of the business itself. 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 microenvironment 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.
The competitors and the customers are happened to be the internal environmental factors that keep business doors open for making money or maximise 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(TQM) 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 continuous 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 needsin order to add value to the company’s 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. If these requirements are not been met, it is either the production of the company will fall off or the final output of the company’s product will face the quality suffers. In some extreme cases, such as Toyota'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 Toyota’s products or services.
In that occasion, the rigorous Toyota Production System which is the Toyota's version of Henry Ford's TQM 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 advantageto 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 encumberthe marketing activities through the negative 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 PERUSAHAAN OTOMOBIL NASIONAL BERHAD or PROTON was incorporated on 7th May 1983 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 Tun Dr. Mahathir Mohamad who conceived the idea of a Malaysian car.
PROTON was publicly listed on the Kuala Lumpur Stock Exchange (KLSE) in the year of 1992. During that period of time, its shareholders include Khazanah Nasional Berhad, Petroliam Nasional Berhad, Mitsubishi Corporation, Mitsubishi Motors Corporation, Employee Provident Fund Board and other local and foreign investors. Tun Dr. Mahathir 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 organisations newly introduced PROTON Exora, PROTON Persona and PROTON Saga Models with the latest engine powered by the new CamPro IAFM 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 Waja, PROTON Satria, PROTON SatriaGTi, PROTON Wira, PROTON Iswara, PROTON Arena, PROTON Perdana V6, PROTON Juara, PROTON Persona and PROTON Exora.
The ranges of engine capacity provided in PROTON’s products are 1. 3, 1. 5, 1. 6, 1. 8 and 2. 0 litre engines will satisfy and fulfil 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 United 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 1998, Malaysia had exported a total of 18,422 units to countries and areas, including Argentina, Australia, Bahrain, Bangladesh, Belgium, Brunei Darussalam, Chile, Cyprus, Egypt, Fiji, Germany, Jordan, Kuwait, Lebanon, Libya, Maldives, Mauritius, Oman, Philippines, Qatar, the Russian Federation, Saudi Arabia, Singapore, Slovenia, Sri Lanka, Taiwan Province of China, Turkey, United Arab Emirates and United Kingdom. The models which had being exported during that period of time including Wira which is Sedan and Aeroback, Satria and Putra.
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 product. 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 Malaysians 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 might 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 could be invented and this could ensure that PROTON to be as a brand name to remain in the industry.
