Micro And Macro Environmental Factors

Micro and Macro Environmental factors.

The marketing environment also impacts to the organization. This can be mainly classified in to two types as Micro Environment and Macro Environment.

Micro Environmental Factors

 Customers

 Suppliers

 Banks and Financial Institutions

 Owners

 Competitors

 Public

Customers

These are the people who consume goods and services from the organization. This may be an individual or an organization purchases a product for its own consumption of the products, or an organization that purchases a product for resale at a profit. These people are most important people for an organization, because these are the people who generate revenues to our company.

Suppliers

These are the people who supplies factors

A party that possesses the exclusive right to hold, use, benefit-from, enjoy, convey, transfer, and otherwise dispose of an asset or property.

Currently the ownership of Sri Lankan Airlines is distributed as:

Government: 51.06%, Bank of Ceylon: 23.54%, People’s Bank: 8.23%, NSB: 8.23%, EPF: 3.62%, Others (Gen. Public): 5.32%

This excludes the Rs. 26.89 billion advance made towards the share capital made by The Government of Sri Lanka).

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Competitors

These are the organizations which sells homogeneous or similar products to the same group of customers and fight to grab the other company’s customer’s base using the pricing strategies.

For example: If Sri Lankan Airlines reduces their Fare rates to LKR15000 CMB-MXA then the Air India will also reduce to LKR15000. This way the competition will increase and customer base may be grabbed.

Public

These are the people who will be interested in order to invest into their business or they are the final consumers who are going to consume the service that is offered.

PEST ANALYSIS

Macro Environmental Factors

These are the factors which are beyond the control of the organization which will help the organization’s decision and this will affect the

Inflation – It may raise higher wage demands from employees and raise cost.

Socio-cultural

As an organization, it is very important to be socially responsible because this will help to create goodwill among the general public. Since Sri Lankan Airlines takes this point into consideration, to prove the customers for the services they offer with the assurance of quality. This includes the demographic cultural aspects of the macro environment.

Technology Environment

Sri Lankan Airlines has adopted technological changes in their Airbus A330-300 operated flights including in flight Wi-Fi. Consumers can now use internet in the flight paying by credit card or purchasing a prepaid Wi-Fi card from the cabin crew. Being advance in technology is very important because it basically helps us overcome competitors, saves production cost, money, and time. Hence by adopting new technologies an overall competitive advantage could be gained.

SWOT Analysis

S- Strength

Sri Lankan Airlines has high Experience in flying aircrafts.

•More Destinations –UL provides destinations which are not provided by our competitors in other