Macro Environment Analysis: Analysis Of The Macinking Industry

Mohan Meakin Group

Macro Environment Analysis. The said company operates in a varied and unique type of the Macro environment, and is bound to be affected by numerous uncontrollable factors which are discussed below:-

1. Demographics. The typical demographic characteristic for the said company is highlighted basically by the age factor, termed as Legal drinking age. the inferences drawn from this factor are explained below.

(a) In India most of the state baring few state like Goa, Maharashtra, Karnataka the legal drinking age has been specified as 25 Years. Therefore the people under the age of 25 are excluded from the targeted consumers list and this restricts the sale of products below this age. The census report of India indicates that

As per the increase in the taxation, the price of the products will increase and can lead to lower consumption by the consumers and hence affect negatively on the company. (c) The Cable Television Network (Regulation) Amendment Bill, prohibits alcohol advertisements. Hence the marketing advertisements of liquor products cannot be aired on televisions, and restricts the company advertising campaign.

3. Economic Factors. When compared to other products or companies the liquor business has the different connotations with respect to economy and are discussed below:- (a) The increase or decrease in the economic standards does not affect the company because whether in sorrows or happiness people still reach out to their favorite drinks view various price version of the liquors like old monk, Golden eagle etc. (b) The latest trends indicate that with the increase in the disposable per captia income people consumption of alcohol has increased. (c) During economic crises the demand from the lounges, pubs and bar decreases due to extremely high markup prices and people prefer to consume liquor at their

Suppliers. The company is heavily dependent on the suppliers, which include supplies of grains, barley certain vegetables and the sugar products like molasses(made out of sugar cane). The suppliers of these raw materials are not dependent on the Mohan Mekains company and can supply these items to other company, as well as these items can be used by general public in the raw form. Therefore in such a state the suppliers naturally has the higher bargaining powers, wherein they different options of trading other than Mohan Meakens. Considering the critical requirement of the particular raw materials for making particular flavor liquor, the criticality of the raw materials supplied by particular supplies gives suppliers an upper