Micro economics is the: “Study of the economic behaviour of individual units of an economy (such as a person, household, firm, or industry” http://www.businessdictionary.com/definition/microeconomics.html
Macro economics can be defined as: “Study of the behaviour of the whole (aggregate) economies or economic systems instead of the behaviour of individuals, individual firms, or markets” http://www.businessdictionary.com/definition/macroeconomics.html
We have identified several micro factors that relate to NS. These are; customers, suppliers, competitors, and the general public. Customers are one of the most essential parts of any company as they affect the demand for a product – in this case, horse riders can impact the demand for NS bits. If the demand for NS bits is high, then this must be met by the suppliers. If supply does not meet demand, then a company like NS risks losing customers to their competitors such as Myler bits. Equally, NS could potentially get into financial difficulty because they are able to supply a large number of bits when there is very low demand.
Neue Schule also has to be very vigilant of how the general public perceive them and their products, making sure they are always seen in a positive manner and always listening to customer feedback. All microenvironment factors, as stated above, can have an affect on how much profit Neue Schule makes and therefore must be carefully monitored by the company.
Some of the macro factors that relate to NS are; economic factors, demographic factors, social and cultural forces and political or legal factors.
An economic factor that may affect Neue Schule’s profits are: if they sell a lot of products abroad but exchange rates may negatively impact their profit, meaning it may not be financially viable for NS to continue trading in certain places. Similarly to this, NS may choose not to trade within a certain region if that area has a low average income, because NS products are high in price so may not suit that particular demographic. Equally, they may not trade in cities such as London where there are not as many horses, compared to more rural areas such as Gloucestershire. Social and cultural factors can have a massive impact on how NS may try to market their product and who their target audience is; they need to consider the class of their frequent customers.
Finally, political and legal factors can influence NS products, for example – animal welfare and user safety regulations will have to be taken into account when their products are designed.
KEEPING UP WITH THE GITAS 