MARKETING 3RD LECTURE

Organizations Enviroments

General Enviroment
External enviroment:
Everything outside the company that affects it.
The uncontrollable enviroment.
Task enviroment:
External environment of an organization which affects its ability to reach business goals. Any business or
consumer with direct involvement with an organization may be part of the task environment. Examples of
task environment sectors include, competitors, customers, suppliers and labor supply.

Internal Enviroment:
Enviroment inside the company (its controllable)

Macro Enviroment- Pestel Analysis.

Also Public pressure groups and Strategic partners.

Task 1
Milk Industry
Potential Entrants: New technologies, more efficiency.
Suppliers: cattle feed and veterinary medicines, Technologies.
Buyers: Demand on the dairy products , Increase/decrease of population, Bad health hhabits, aging
increased consumer purchasing power
Substitutes:Almond Milk, Soy Milk

Competitors: Competition and has led many multinational companies to increase milk collection and
introduce new products to market, such as UHT milk

Technologys impact in the workplace:

Workers need greater problem solving skills

Outsourcing routine tasks

Virtual organizations

Technologys impact on strategy:

Faster new product introductions to market

Entrance of electronic competitors

Formation of electronic shopping

Wider choice of suppliers

More substitute goods and services available to company

Product differentiation based on technological sophistication-We have a possibility to use modern

technologies to change a channels of supplies and distribution.

Discussion questions:

Going green is a great marketing tool. More and more people are environment conscious and they would
prefer to choose an environmentally-friendly product rather than others. But if all of the companies go green
it would lose its marketing functions and would require new actions to keep up with others.

Mass
customization

Online
shopping

Reduction in
Manufacturing time

Telecommunication
devices

Outsourcing of routine jobs

Infrormation superhighway for

global competition

Any company can count which uncertainties

they have.
Entrance barriers are lower when there is least
uncertainty. If more companies are getting
through entrance barrier, than our situation
becomes more complex and more dynamic.

Internal Environment:

Owner

Board of directors

Employees

Physical work environment

Organizational Culture:

The set of values, beliefs behaviors, customs and attitudes that help the members of the
organization understand what it stands for, how it does things, and what it considers important.

Organizational culture is important for it. Determines the feel of the organization

Its starting point is often the founder.

Manage organizational culture:

The manager must understand current organizational culture and its not easy to change it but sometimes it
needs to.

CASE STUDY
ETHICAL DILEMMA.
Ethical Dilemma: Read the following case study and choose an option at the end on what would you
do.
Dr. Abraham Hassan knew he couldn't put off the decision any longer. AH BIOTECH, the Bound
Brook, New Jersey-based company started up by this psychiatrist-turned entrepreneur, had
developed a novel drug that seemed to promise long-term relief from panic attacks. If it gained FDA

approval, it would be the company's first product. It was now time for large-scale clinical trials. But
where should AH Biotech conduct those tests?
David Berger, who headed up R&D, was certain he already knew the answer to that question:
Albania. "Look, doing these trials in Albania will be quicker, easier, and a lot cheaper than doing
them in the States," he pointed out. "What's not to like?"
Dr. Hassan had to concede Berger's arguments were sound. If they did trials in the United States,
AH Biotech would spend considerable time and money advertising for patients and then physicians
who'd be willing to serve as clinical trial investigators. Rounding up U.S. doctors prepared to take on
that job was getting increasingly difficult. They just didn't want to take time out of their busy practices
to do the testing, not to mention all the recordkeeping such a study entailed.
In Albania, it was an entirely different story. It was one of the poorest Eastern European countries, if
not the poorest, with a just barely functioning health-care system. Albanian physicians and patients
would practically arrive at AH Biotech's doorstep asking to take part. Physicians there could earn
much better money as clinical investigators for a U.S. company than they could actually practicing
medicine, and patients saw signing up as test subjects as their best chance for receiving any
treatment at all, let alone cutting-edge Western medicine. All of these factors meant that the
company could count on realizing at least a 25 percent savings, maybe more, by running the tests
overseas.
What's not to like? As the Egyptian-born CEO of a start-up biotech company with investors and
employees hoping for its first marketable drug, there was absolutely nothing not to like. It was when
he thought like a U.S.-trained physician that he felt qualms. If he used U.S. test subjects, he knew
they'd likely continue to receive the drug until it was approved. At that point, most would have
insurance that covered most of the cost of their prescriptions. But he already knew it wasn't going to
make any sense to market the drug in a poor country like Albania, so when the study was over, he'd
have to cut off treatment. Sure, he conceded, panic attacks weren't usually fatal. But he knew how
debilitating these sudden bouts of feeling completely terrified were- the pounding heart, chest pain,
choking sensation, and nausea. The severity and unpredictability of these attacks often made a
normal life all but impossible. How could he offer people dramatic relief and then snatch it away?
What Would YOU DO?
1. Do the clinical trials in Albania. You will be able to bring the drug to market faster and cheaper.
2. Do the clinical trials in the U.S. Even though it will be more expensive and time-consuming, you'll
feel as if you are living up to the Hippocratic Oath.
3. Do the clinical trials in Albania, and if the drug is approved, use part of the profits to set up
a compassionate use program.