This environment comprises the factors that are common to all companies in all industries. These factors that affect the business are all external and are not in any way in control of the business and companies can only safe guard or minimize the affect of the factor(Jobber,2004).
These factors include:
- Cultural or Social
These would be factors such as regulations set by government in accordance with the needs of the country and its people.
- Manufacturing regulations can be adhered to by compiling to EU safety, health and environmental requirements . This is done by applying for the CE Marking that is then displayed on a product.
- Advertising laws which could also be seen as a legal factor, can also be a political factor. These also have regulations such as ensuring the product advertising is an accurate description of the product. That marketing and advertising will be truthful, honest, decent and socially responsible. This is all under the Consumer Protection from Unfair Trading Regulations act (Gov.uk, 2015).
Any company’s objective is to make as much profit for the company as possible. With this in mind economic factors influence how much profit a company makes. These can also be overlapping with legal factors.
- Corporation tax is one overlapping example of a factor, as companies who make profits of more than £300,000 during the financial year have to pay 21% of that towards Corporation tax( Gov.uk, 2015).
- Though the recession is seeing an end, consumers are less inclined to buy consumer goods especially ones such as Nike being a big brand also comes with a big price for their goods when there are cheaper alternatives, this affects Nike footballs bottom line and ultimately affects their profit margin.
- Tax laws
- Current Trends are a factor that is not controlled by the business and can at best influence the factor. Nike football are a relatively trend setters in the sectro and aren’t highly affected by this with a the highest social media following in sport and overall 14th amongst other brands (FanPageList, 2014).
- Manufacturing might be made difficult when shipping materials depending on the season, and where they are being shipped from and terrible weather conditions may delay the shipping which could delay orders.
- Such as when the restock of Jordan’s which are produced by Nike had to be delayed (Forester, 2014).
New Technologies and materials being produced now open the market up to innovation in the boot realm, which will be exploited by companies who are more innovative and find ways to use them practically in boot designs to be stylish and functional.
- Fan Page List,. ‘Top Brands On Facebook.’. N.p., 2015. Web. 3 Mar. 2015.
- Forester, Pete. ”Heads Up: Nike Store Postponed Today’s Air Jordan Restock’. Complex UK. N.p., 2014. Web. 1 Mar. 2015.
- Gov.uk,. ‘Corporation Tax – GOV.UK’. N.p., 2015. Web. 28 Feb. 2015.
- Gov.uk,. ‘Corporation Tax Rates And Reliefs – GOV.UK’. N.p., 2015. Web. 3 Mar. 2015.
- Gov.uk,. ‘Marketing And Advertising: The Law – GOV.UK’. N.p., 2015. Web. 28 Feb. 2015.
- Jobber, D. Principles And Practice Of Marketing. London: McGraw-Hill, 2004. Print.
- Studiowide.co.uk,. ‘Marketing Environment – Macro’. N.p., 2015. Web. 3 Mar. 2015.