What Does Macro Environment Mean - Assignment Example

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The paper “What Does Macro Environment Mean?” looks at the macro environment, which basically comprises of the external and the uncontrollable factors that affect the functioning of the organization. The various factors are the political environment, economic environment, socio-cultural environment…

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Subject: Management
Type: Assignment
Level: Masters
Pages: 3 (750 words)
Downloads: 2

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The threats are external factors that arise from political, economic, social and technological. In order to cope up with the threats posed upon the company, Intel can aim at high-income groups who can afford to buy the product even if the price suddenly increases. The firm at times is not able to increase the purchasing power of the people to generate the demand for its product. In this case, the firm has to reduce the price of the product to increase sales. Intel can even invent or develop new low-cost products to suit the low-income market segment.

The main opportunity as being observed is that it is a value-priced market. There is a high degree of excellence in comparison to the price that the customer pays for a particular product. The other opportunity that was sought is that PC Chips. Intel designs its chip in such a way that it is compatible with any of the computers that are being manufactured. The main threat of the company involves AMD’s Athlon Processors. This will increase the competition between the two companies and have a serious impact on the industry.

Industrial espionage is the other threat for Intel (Rodin, & Et.Al, n.d.). The company needs to build such chips that would be compatible with any of the machines. Almost all computer manufacturers depend on the components or any other type of software that is supplied by the vendors. The processor is the prime component of a computer system. Intel has been continuously innovating in the field of processor manufacturing which will provide the added advantage in the long run. There has been a shift in demand for personal computers from developed countries to developing countries.

Intel has to keep pace with the changing need and demands of the customers of such countries so that it can manage its resources well in advance and it can formulate its strategy according to the requirement. Intel can also enter into the software.

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