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Assignment
On

Economics for Business

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Contents
Introduction: ........................................................................................................................................... 1
Task 01: Understanding of the micro-economic business environment ................................................ 1
1.1 Explanation of the importance of microeconomics environment to Olive Oil............................ 1
1.2 Analysis of business objectives and business behavior in the economic context. ..................... 2
1.3 Analysis of the impact of market structures on business organizations.................................... 5
Task 02 Presentation ............................................................................................................................ 7
Presentation Notes : ......................................................................................................................... 14
2.1 Explanation of the determinants of national income For UK. .................................................. 14
2.2 The explanation of Government policies on the economy of UK. ............................................ 14
2.3 Analysis of the impact of the macro-economic environment of business organizations ......... 15
Task 03 Detail notes answering to the questions. .............................................................................. 17
3.1 Analysis of the features of the international economic environment. ..................................... 17
3.2 Analysis of the economic implications for business of operating in global business
environment. .................................................................................................................................... 19
Conclusion: ............................................................................................................................................ 20
References ............................................................................................................................................ 21
Appendix ................................................................................................................................................. 1
2.1 Explanation of the determinants of national income For UK. .................................................... 1
2.2 The explanation of Government policies on the economy of UK. .............................................. 1
2.3 Analysis of the impact of the macro-economic environment of business organizations ........... 2

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Introduction:
In the age of globalization, the business market has been prevailed widely around the world.
Economic environment, micro and its ways of making the impact on the aspects of business
including the competitive aspects of the business behavior and impact of market structures on
business organization are necessary to know at large. The subsequent pages belong to the
explanation and analysis of determinants of analyzing the areas of national income, government
policies, impact of different approaches for the organization by resolving the problems of the
question. Olive Oil case study will be focused to explain the answer more clearly.

Task 01: Understand the Micro-economic business environment

1.1 Explanation of the importance of microeconomics environment to Olive

Oil.
Economics has been identified as the core prospects and application of the commercial
activities that not only determines the economic environment according to the context of the
resource allocation and application. These not only developed the outline but also analyze the
market behavior of individual consumers and application. Xepapdeas (2009) refers that the
micro economics environment includes Privatization, Banking Reform, Workforce
Development, Labor laws and Mediation, IT knowledge park and E-commerce, Sector-Specific
initiative, Infrastructure PPI/PPP/BOT, Industrial parks, FTZs, EPZs. Microeconomics
environment has a great importance in the subsequent fields of business organization.

Theory of Supply refers to the process of quantity of products that suppliers intend to supply
to the market. Theory of Demand implies the amount of goods desirable by the individual
associated with the organization. Price Elasticity is the change in the quantity demanded on the
contrast of Price increase or decrease. These are given bellow:

New Business initiatives: Most of the entrepreneurs start their business be developing and
purchasing the framework for the utilized framework associated. For example, for Olive Oil
producing firm without a clear notion of cost and earnings is impossible to estimate ROI,
otherwise microeconomics concepts can lead to poor financial investment for business
organizations. These determines the implications associated with the objectives of
understanding the given framework for the operational attribution associated with the given
process in the new business iniative.

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Marketing Sector: marketing people of a business organization understand the implications

associated with the given framework. These can maximize the better implications in which it
helps to identify and understand the complete structure and lacking of the organization. A
comprehensive calculation determined the objective of making the understand to promote the
way these operate in business framework (Stewart, 2003)

Management Factors: Managers as a business determines the objective of making an effective

outcome and outline for the operations. In a sense these determines the objective of making
and implicating the business in an effective manner. While making the general budget decisions
managers also must have a grasp of micro economics. Business organization project should not
give a framework for the operations in an effective manner. Olive Oil producing firm managers
is recruited after being sure that he has an expertise in micro economic environment.

Finance and accounting: To define and apply a better outcome for the business and operation
it needs to fact for the financial aspects and their ways of making an understanding about the
proper consideration for the financial allocations. Thee also include the better proposition for
“price elasticity of demand”. Thus they become able to determine whether the price of given
assets e.g., gold, stocks, bonds will rise or fall in that country.

Others: As the microeconomics environment consists of the factors such as , Banking Reform,
Workforce Development, Labor laws and Mediation, IT knowledge park and E-commerce,
Sector-Specific initiative, Infrastructure PPI/PPP/BOT, Industrial parks etc, these factors make
the concern groups of Olive Oil producing firm such as Media, stakeholders, employees,
competitors experienced for a great deal ( Stewart, 2003).

1.2 Analysis of business objectives and business behavior in the economic

context.
Xepapdeas (2009) said that in business every business organization has some objectives and
they have to take action and to maintain some behavior to reach economic goals. So, these not
only maximizes the insight about the business objectives and application. To create some better

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implications these are associated with the better impact for the operations associated with the
given framework.

Understanding the Business objectives:

Selden (2004) said that each and every aspects of the business objective determines the
competitive perspective and application for the specified goals in business. These not only
specifies the complete structured but also developed the complete utilization of the framework.
The factors associated with the objective of making an effective aspect of business objective
which are given below:

1. Expected Sales or profit

2. Increase in growth
3. Business value proposition for the operations

To achieve this objective, different strategies such as the increase in the quality or quality at
the same time the context of developing the performance of the organization can be considered.

Maximizing Objectives: With the objective of making a better impact on the performance of
the business and operation this is one of the key process to gain a better result driven from the
society. There are multiple aspects associated with it and to achieve these objectives significant
outcome and applications such as the planning and creating concern for the strategies.
Depending on the necessary attributes these objectives include the maximization of business
profit, growth and also efficiency.

Non-Maximizing Objectives: Clearly non business objectives include the competitive

illustration and application of competitive framework for the objective of bringing the efficient
outcome within the organization without the goal of maximizing anything. To achieve this
objective significant outcome and application can be made in order to determine the
competitive outcome for the further processes associated with the operations that precisely
target to achieve with specified operation.

Understanding the Corporate Objectives: Corporate objectives is one of the core processes that
not only include the complete business strategy and their ways of making an effective aspect
for the better implications for the given processes associated with the objectives. According to
the corporate objectives of the organization is given below:

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Functional Business Objectives: it is well known to all who have business knowledge that a
well- established business will divide its activities into several functions. These functions may
include the areas such as:

 Sending the Business proposition

 Innovation
 Employees
 Physical and Financial resources

Functional business objectives: Determined objectives that specifically address the business
knowledge, these can be utilized and applied for the further business proposition. These are
given below:

1. HRM
2. Operation and Production
3. Marketing and Sales
4. Administration and Finance

Determined by the objectives, there are several aspects that can be included and applied for the
operational framework associated with the higher level employee objectives and their
application for the further processes in the business proposition (Millimeter 2003).

SMART Objectives: it can be called objectives of objectives. It refers to some criteria that
need to conform to be set both in corporate and functional objectives. The SMART Objectives
refers the criteria which acronyms are given below:

Specific: By defining the specific application and allocation for the work in an effective
manner.

Measurable: To create and explore the result in a format the can be measured precisely.

Achievable: Objectives that can be achieved in a specific manner.

Relevant: objectives need to specifically addressed and applied by the given framework.

Time bound: Specification of time should be determined within objective (Selden, 2004).

Business Behavior:

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Arthur (2003) refers that business objectives are the initiatives of the business planning and
business behavior helps to impute the planning what has been taken in different level of
business. By developing and conducting the research multiple framework and applicability of
the operations can be assured through analysis objective oriented investigation and relative
assessment associated with the organization.. They states behavior of verities stakeholders
involved in business organization. Those are below:

Respect for time and Environment: To create and explore better and effective outcome
significant outcome can be addressed and applied for the operational framework under the
specific rules applicable for the organization. At the same time environment also need to be
monitored and applied for the organization.

To the customers: businessmen have to understand and treat the consumers with effective
respect. To endure their belief should provide highest quality products and services.

To the employees: to behave cordially with employees and to consider their interest seriously,
to provide rational salary and healthy accommodation for business development because they
are the runner of organization.

Owners/ Investors: owners or investors have a great role in business development. Business
behavior requires the responsibility to conserves, protect, and increase the owner’s assets.
Besides have to respect their request, suggestion and complaints (Arthur, 2003).

Suppliers: the relationships with suppliers needs to be developed in a way where the mutual
respect exists between these two. By creating and applying for the operations significant result
can be driven from the organization.

Competitors: By adding the policies the competitor and their application can be evaluated and
applied for the organizational proposition associated with the operation for developing
economic condition of a nation (Selden, 2004).

1.3 Analysis of the impact of market structures on business organizations.

Market structure is one of the core perspective and processes associated with the operation and
to make the better outcome for the operation different framework can be applied to ensure a
positive relationship with the business operations. This context will show below:

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Competitive understanding of market: infinite number of small firms competes here and no
single seller can influence the price. Unlimited competition is a general view of this market,
for becoming as these lose the capability and in terms of operation. There is no barriers to entry
any product for why no firms can possess market power.

Oligopoly market structure: in this market structure 3 or 4 firms control the entire market by
setting prices. Here products are generally identical and high barriers to entry because
competitors work together to control it. The actions of one firms affects all the firms this
market contains collation. Oligopolies are dangerous to customers as since they are not
recognized by government (Arthur, 2003).

Monopolistic competitive market structure: it is the market of larger number of large company.
Sellers can influence the price through creating the product identity. Products are not exactly
identical but are very similar for why business company use product differentiation. As low
barriers to entry in market for so heavy competition prevails among the business organizations.
The organizations merge with others.

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Monopoly market structure: there s a single seller and this one control the market price. High
barriers exist here to entry for a new organization. Three types of monopoly systems such as
natural monopoly, Technological monopoly, and Government monopoly create contraband for
other organization to enter into the market challenging the popularity, high technology and
government managed facilities of monopoly organization (Porter and Hartley, 2008).

Task 02 Presentation

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Presentation Notes :

2.1 Explanation of the determinants of national income For UK.

Besides Gross Domestic Product, national income includes external income also. National
Income is the amount earned by the country in a specific year. The importance of it is to
determine the growth in the production or any other sectors associated with it. It is measured
considering several attributes such as the GDP and GNP in an effective approach. In UK there
are many determinants of their national income these are discussed in briefly in below:

United Kingdom is a fertile country and plenty of modern row material exists here so factors
of production influence the national income.

The stock of resources: one of the very important determinant of UK is the stock of national
resources and how much they able to grasp and able to utilize.

Quality and quality of capital: quality and total amount of capital is the main determiner of
national income of a country and UK is not adverse of this rule.

Labor input: quality and quantity of labor and their skill influences the national income. If the
captains of industries are efficient then the production may increase to an effective amount
(Arthur, 2003).

Amount of GDP: if GDP of UK increases over years the country feel that they are heading
towards prosperity if it is stagnant or falling so economy is declining.

Issues with the complete structure and nature and comparison with developed countries of the
world also help to determine the national income of UK at large (Hilbert, 2002).

2.2 The explanation of Government policies on the economy of UK.

All part of economy are growing by various business organizations and in terms of making an
effective adjustment with the requirement of the environment these need to be applied for the
organization and government mush ensure that the organizations follows some policies on the
economy of his country (Hilbert, 2002).

Reducing the deficit and rebalancing the Economy: reducing the deficit, the gap between what
they expend and raise in taxes is main to the government economic plan. They also want to
correct the imbalance between the public and private sectors to escape from financial crisis.

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Stimulating private sector investment: Government of UK try to increase at the same time
stimulate the preferences associated with the operational projection that will help to asses fast
and reliable services and will help to develop national economy

Achieving strong and sustainable growth: UK Government has taken policy to achieve strong
and sustainable economic growth in the business organization so that the UK can compete in a
rapidly changing global economy (Arthur, 2003).

Creating simpler and fairer tax system: Government has implemented the easiest tax system
that helps to improve the state of the public finance and also help to make good understanding
with business organizations.

Others: besides the quoted policies UK government has many others polices in economy those
are given bellow:

1. Stimulating and improving the Export of the organization

2. Stimulating economic growth in rural areas.
3. Making a single market more effective.
4. Addressing the potentiality to finding better actions for UK economy (Porter, 2005).
5. Boosting the private sector for the operations
6. Application of industrial strategies for the performances

2.3 Analyzing the impact of the macro-environment for the business

processes associated with the business organization
According to Xepapdeas (2009) Macroeconomic environment refers to the aspects in which
the economy as a whole and make a better impact on the particular sector associated with the
operation. However, the Elements of macro environment and its impact are discussed in the
subsequent pages. Macro Environment Analysis of Olive Oil that is SWOT analysis:

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Population and market size is the first and foremost considerable topic for a businessman.
Population is the main fact of market so before entering into the marketing one must know the
changes about population. Demographic environment of Macro environment impact on
business organization’s marketing by doing experiment of the marketing factors given below:

1. Age structure of the total population and its changes

2. Changing of family life style
3. Education and profession
4. Geographical shift in population (Stewart, 2003).

Impact of economic environment: economic environment that not only assures the better
influence of the given framework. To create the better impact and analysis significant
performance can be addressed under the factors associated with the organization. Knowing the
buying ability or economic condition helps to take marketing strategy. Economic environment
effects marketing decisions of Olive Oil in two ways A. changing income and B. changing
consumers spending patterns. We can say that demographic and economic environments have
the great impact on marketing decisions.

Natural environment and its impact: determining the application there are multiple aspects
associated with the natural environment and in order to make the better improvement and
application several factors are being applied. From 1960s buyers are started thinking about

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world natural loss. So the business organizations have to produce environment friendly
production. Issues are given below:

1. Increase of population
2. Row materials deficiency
3. Cost of energy (Joseph, 2003).

Technological environment: There are several aspects included and applied in order to make
the better use and application are given below such as

1. Technological advancement
2. Unlimited potentiality
3. Maximize the research and developed budget
4. Major improvements

Political environment of Olive Oil: To operate the business and their operations to make the
better use and effectiveness can be included and applied for the overall perspectives. There are
several perspectives and influence on the operation and to operate these need to be managed
and applied for marketing systems Increase in the interest group of Public Government agency
enforcement (Selden, 2004).

Cultural environment of Olive Oil and its impact: Different aspects of the operations can be
included and applied for the better impact and implications associated with the framework to
understand and evaluate the value, perception, preferences and several other approach. Cultural
environment has some elements that affect business systems and those elements are:

1. Persistence of cultural value

2. Sub-cultures
3. People’s view of others
4. Shifts and people’s of organization, society, nature and universe (Joseph, 2003).

Task 03 Detail notes answering to the questions.

3.1 Analysis of the features of the international economic environment.
Warren, (2008) refers that can help to maximize the impact and evaluation associated with the
business and for the better impact and application these can be utilized and applied for the

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better preferences for the organization. So there are many features of international economic
environment and those are discussed below:

Free Trade Protection: By creating international economic environment there are specific
adjustment and application for the businesses across the globe which is one of the major
outcome and application for the businesses in terms of trade.

Increased volume of capital movement: in the age of globalization capital movement and trade
determine the world currency value. Today exchange media is dollar and the dollar value of
world that are specified.

Relationship between productivity and employment: there is a relationship between production

and employment. Gross domestic product (GDP) and Gross National Income (GNI) help to
measure the economic output. Increase of GDP inflects increases in national as well as
international productivity. Although employment in manufacturing remains steady or declined,
productivity continues to grow (Bukman, 2003).

Emergence of world economy: the third major feature of international economic environment
is the emergence of world economy as the dominant economic unit. How does the global
economy work and who is in charge? However the answers of these are not clear yet.

Market Capitalism: it is the economic system in which individuals and firms allocate resources
and production resources are privately owned. Nowadays market capitalism is practiced widely
around the world, most notably in North America and Western Europe (Friedman, 2002).

Centrally planned socialism: in this type of economic system the states has broad power to
serve the public interest. The clear superiority of market capitalism in delivering the goods and
services is grasped by formerly socialist countries.

Economic Exposure: economic exposure refers to the impact of currency fluctuations on the
present value of expected future cash flows. It can occur when a company’s transactions result
in sales or purchases dominated in foreign countries (Ono, 2001).

Balance of Payments: the balance of payments is a record of all economic transactions between
the resident of a country and the rest of the world. The balance of payment is divided into the
current account and capital account.

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Purchasing power parity: Modern economists use the concept of purchasing power parity (PPP)
when adjusting national income data to improve comparability (Bukman, 2003).

3.2 Analysis of the economic implications for business of operating in

global business environment.
The characteristics of present global business are liberation of trade, deregulation, implication
of new technology etc. on the other hand free movement of investment has given more celerity
in global competition (ILO, 2013).

Coping with Competitors: In order to carry out a competitive operation on the market the
process of global business is required as part of the economic application associated with the
business.

Operating in emerging Markets: The emerging market also include the operations of the
business effectively. Therefore, carrying out a better outcome for the operations can be used as
the core competency for the business in the emerging market

International economics is concerned with the factors that affect the actions associated with he
economics and their ways of making it effective for the organizational benefit and application
within the industry (Venebles, 2001). The most important implications for business of
operating in global business environment are given below:

International trade: To define the international business processes significant performances can
be utilized and applied under this aspects in an effective manner. (Mitra, 2001).

International political economy & relations: it studies the impact and issues including the
conflict between the countries and their ways of making an attempt with the framework to
maximize the outline for the operation. And these also assures the economic relation for the
operations.

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International finance: To cope up with the objective of the operation these help to maximize
and undertake the internal finance opportunities for the organization and thie evaluation for the
framework

Information technology has given more facilities to international enterprise which has opened
a landmark in the business field and has created a new competitive landscape, besides it has
transformed the business environment and labor relations. To design new strategies in world
perspective dealing with new competitive landscape, a new more flexible managerial viewpoint
is required.

According to the given and global aspects of economy these need to be reviewed under the
given regulatory and applicable means of the strategies at the same time cope up with the given
ethical consideration for the evaluation and maintain environment associated with operations.
These also occupies the better impact and their ways of illustrating the propostion for the
overall performances (World Bank, 1991).

Conclusion:
This report analyzed and applied the complete understanding of the economic factors
associated with the economics of the organization like Olive Oil. To make this effective
different aspects and implications can be evaluated and applied for the better analysis which
has been carried out within the report to understand the global economy and their assessment
for the business performance.

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References

Arthur A. and Witney, F (2003), Labor Relations, eleventh edition, Englewood Cliffs, N.J.:
Prentice-Hall, 2003.

Friedman, Milton and Rose D. Friedman, (2002), Capitalism and Freedom. Chicago:
University of Chicago Press.

Hilgert, Raymond L. and David A. Dilts,(2002), “Cases in Collective Bargaining and Industrial
Relations”, tenth edition.New York: McGraw-Hill / Irwin,

ILO, 1996. ILO Enterprise Forum. Implication for enterprises and the ILO of a changing world
economy. [online]. Available at: <http://actrav.itcilo.org/actrav-
english/telearn/global/ilo/seura/iloimpl.htm> [accessed on 1st Nov, 2015].

Jon E. Hilsenrath and Rebecca Buckman, 2003,.“Factory Employment Is Falling World-

Wide,” The WallStreet Journal,October 20, p. A2.

Millimet D. L., List J. A. and T. Stengos, (2003), “The Environmental Kuznets Curve: Real
Progress orMisspecified Models?,” The Review of Economics and Statistics, MIT Press,.
85(4), 1038-1047.

Mitra D., 2008. Trade policy, political economy of," The New Palgrave Dictionary of
Economics, 2nd Edition. Oxford University Press.

Ono T. (2001), “The Effects of Emission Permits on Growth and the Environment” in
Environmental and Resource Economics 21, 75-87.

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Porter and Hartley, (2008) Market structure. [online]. available at:

<https://www.gov.uk/government/topics/uk-economy> [accessed on 4th Nov, 2015].

Porter M. E. and C. van der Linde, (2005), “Towards a New Conception of the
EnvironmentalCompetitiveness Relationship”, Journal of Economic Perspectives 9, 97-118.

Selden T. M. and D. Song, (2004), “Environmental Quality and Development: Is There a

Kuznets Curve for Air Pollution Emissions?” Journal of Environmental Economics and
Management, Elsevier,27(2), 147-162.

Stewart R. B., (2003), “Environmental Regulation and International Competitiveness”, The

Yale Law Journal,102-8, 2039-2106.

Joseph E., (2003) Globalization and its Discontents. New York: W. W. Norton &

Venables A., 2001, International Trade: Economic Integration," International Encyclopedia of

the Social & Behavioral Sciences. Pedia press. (pp. 7843-7848).

Warren J. K, (2008). Global Marketing, Fifth Edition, by Warren J. Keegan and Mark C. Green.
Published by Prentice Hall, a Pearson Education Company. Copyright

Xepapadeas A. and Zeeuw, A. D (2009), “Environmental Policy and Competitiveness: The

Porter Hypothesis and the Composition of Capital,” Journal of Environmental Economics and
Management, 37(2), 165-182.

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Appendix:

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Appendix
2.1 Explanation of the determinants of national income For UK.
Hilbert (2002) refers that national income is defined as the total value of all the goods and services in
the country. Besides Gross Domestic Product, national income includes external income also. National
Income is the amount earned by the country in a specific year. The importance of it is to determine the
growth in the production or any other sectors associated with it. It is measured considering several
attributes such as the GDP and GNP in an effective approach. In UK there are many determinants of
their national income these are discussed in briefly in below:

Skill of enterprise: the size of national income can be depends upon the supplies of man by the gift of
nature. United Kingdom is a fertile country and plenty of modern row material exists here so factors of
production influence the national income.

The stock of resources: one of the very important determinant of UK is the stock of national resources
and how much they able to grasp and able to utilize.

Quality and quality of capital: quality and total amount of capital is the main determiner of national
income of a country and UK is not adverse of this rule.

Labor input: quality and quantity of labor and their skill influences the national income. If the captains
of industries are efficient the production will be quite large. With the managerial quality lacking in the
country business organization the size of national income can be small (Arthur, 2003).

Amount of GDP: if GDP of UK increases over years the country feel that they are heading towards
prosperity if it is stagnant or falling so economy is declining.

Unequal Distribution of Wealth: if the output is less and there is unequal distribution of wealth the
economist of UK suggests measures to increase output and to bridge the gap between the rich and poor.

Problems of inflation and deflation and comparison with developed countries of the world also help to
determine the national income of UK at large (Hilbert, 2002).

2.2 The explanation of Government policies on the economy of UK.

All part of economy are growing by various business organizations but the government of UK still has
a huge to do through continuing to create job and supporting business to grow. UK Government follows
some policies on the economy of his country (Hilbert, 2002).

Reducing the deficit and rebalancing the Economy: reducing the deficit, the gap between what they
expend and raise in taxes is main to the government economic plan. They also want to correct the
imbalance between the public and private sectors to escape from financial crisis.

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Stimulating private sector investment: Government of UK try to stimulate private sector investment to
achieve a transformation in broadband in the UK by 2015 that will help to asses fast and reliable services
and will help to develop national economy

Achieving strong and sustainable growth: UK Government has taken policy to achieve strong and
sustainable economic growth in the business organization so that the UK can compete in a rapidly
changing global economy (Arthur, 2003).

Creating simpler and fairer tax system: Government has implemented the easiest tax system that helps
to improve the state of the public finance and also help to make good understanding with business
organizations.

Others: besides the quoted policies UK government has many others polices in economy those are
given bellow:

7. Increasing the UK’s export and attracting inward investment.

8. Stimulating economic growth in rural areas.
9. Making European funding work better for the UK economy.
10. Using industrial strategy to help the UK economy and business compete and grow
11. Making a single market more effective.
12. Boosting private sector employment in England.
13. Supporting economic growth through local enterprise partnerships zones.
14. Strengthening relationship in Asia, Latin America and Africa to support UK prosperity and
security (Porter, 2005).

2.3 Analysis of the impact of the macro-economic environment of business

organizations
According to Xepapdeas (2009) Macroeconomic environment refers to the conditions that exist in the
economy as a whole, rather than a particular sector or region. The macro -economic environment is
closely linked to the general business cycle, as opposed to the performance of an individual business
sector. Elements of macro environment and its impact are discussed in the subsequent pages. Macro
Environment Analysis of Olive Oil that is SWOT analysis:

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Impact of demographic environments: under macro environment demographic environment is very

effective and important in the marketing sector of business organizations. Population and market size
is the first and foremost considerable topic for a businessman. Population is the main fact of market so
before entering into the marketing one must know the changes about population. Demographic
environment of Macro environment impact on business organization’s marketing by doing experiment
of the marketing factors given below:

5. Age structure of the total population and its changes

6. Changing of family life style
7. Education and profession
8. Geographical shift in population (Stewart, 2003).

Impact of economic environment: economic environment of country or market is important factor for
business organizations. In market not only people but also their buying ability is important. Knowing
the buying ability or economic condition helps to take marketing strategy. Economic environment
effects marketing decisions of Olive Oil in two ways A. changing income and B. changing consumers
spending patterns. We can say that demographic and economic environments have the great impact on
marketing decisions.

Impact of natural Environment: for different types of business and industrial activities our natural
environment is getting worst. As a result before making marketing strategy one should be cautious about
danger of natural environment. From 1960s buyers are started thinking about world natural loss. So the

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business organizations have to produce environment friendly production. Marketing manager

concentrate on some natural issues, such as

1. Shortage of row materials

2. Increase cost of energy
3. Increase of population
4. Government in natural resources management (Joseph, 2003).

Impact of technological environment on of Olive Oil: technological environment consists of some

elements by which new product are being developed. For this reason marketing sector of Olive Oil have
to face new threats, problems and sources of creation, such as

5. Faster pace of technological change

6. Unlimited opportunities
7. High research and development budget
8. Concentration on minor improvement
9. Increased regulation of technological change

Impact of political environment Olive Oil: one of the important parts of macro environment is political
environment that has great impact on business organizations in IK. In general law of the state,
Government agencies and other controlling groups put a great impact in the whole marketing system.
In three ways this environment impacts on business organization marketing systems these are A.
Legislation Regulating Business B. Changing Government Agency Enforcement C. increases in public
interest group (Selden, 2004).

Impact of cultural environment of Olive Oil: cultural environment is the combination of different
organization and forces which affects a society’s basic value, perception, preference and behavior. The
particular society in people lives shapes their beliefs and values. United Kingdom has a reach culture
their culture as well as foreign cultural view and different factors seriously affect its overall marketing
of Olive Oil. Cultural environment has some elements that affect business systems and those elements
are:

5. Persistence of cultural value

6. Sub-cultures
7. People’s view of others
8. Shifts in secondary cultural values
9. People’s view of themselves
10. People’s view of organization, society, nature and universe (Joseph, 2003).

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