Task XXXXXXXXXXwords): In this TMA you are required to collect and report information that will assist in the development of a marketing audit for your organisation or one you know well ( I work for a...

MARKETING MANAGEMENT
(PART 1)
Table of Contents
Task 1    3
Introduction    3
i. External factors that may affect the company’s performance    3
Macro environmental factors    3
Micro environmental factors    4
ii. Internal factors that may affect the company’s performance    5
Conclusion    7
Task 2    8
Introduction    8
Employee-customer satisfaction model and relationship marketing    8
Conclusion    11
References    12
Task 1
Introduction
Royal Dutch Shell also refe
ed to as Shell is an Anglo Dutch multinational dealing in oil and natural gas. It has operations across the globe in more than 90 countries. This exposes the firm to a number of internal as well as external factors that have an impact on its performance. This part of the assignment discusses the external and internal factors affecting the operations, top line and bottom line of the income statement.
i. External factors that may affect the company’s performance
Macro environmental factors
Political factors: Political instability in the Middle East and other countries has a negative impact on the operations of the company. According to the views of Chandler (2017), the favoured trading partners, trader regulation in various countries affects the operations of the firm. The organisation is able to operate easily in nation that are trade partners and vice versa. The pricing regulation of various countries also effects the operations of various organisations.
Economic factors: The rate of crude oil in international markets, rate of interest of Federal Reserve, private banks and others greatly affect the operations of Shell. Rate of growth of economy, inflation, cost of labour and other economic factors play a great role in framing the strategies of the organisation for short term as well as long term. According to the perspective of Channon and Jalland (2016), the economic growth rate, unemployment rate, exchange rate and other economic factors have a significant impact on the operations of Shell.
Socio-cultural factors: Demographics and the level of skills of people in an area influences the operations of the firm in that nation. In addition to that, the entrepreneurial spirit among the people, education level and other social factors has an impact on the operations of Shell. For example: If labour is available at a cheap cost then the firm uses less of machines in that area and vice versa. The social convention, healthy policy and other such factors of the people affects the operations of Shell in that area. An area, in which people are health conscious tend to use more of renewable energy over oil and natural gas products (Di
et al. 2012).
Technological factors: Implementation of technology automates the process and makes it more efficient. The technology adopted by the competitor, technology that best suits the operations in an area, technology for integration of global operations and others factors have a significant impact on the operation of Shell. According to the views of Cunha and Moneva (2016), the rate at which the technology diffuses also affects the level of adoption of technology by Shell. The technology used by Shell is one of the best in the industry. The technology affects the value chain structure of Shell that affects the operation of Shell in that region.
Environmental factors: With the introduction of Corporate Social Responsibility, firm have to spend a significant portion of their profit on development of the society. The labour laws and other ethical norms of the industry affects the manner in which operation are done. Shell operates in various countries therefore; climate has an impact on the manner in which the operations are executed. The pollution norms of various countries and attitude of prevailing government towards renewable energy influences the operations of the firm. As per the views of Enneking (2014), being an organisation of repute, Shell considers the ecological impact of its operations. Hence, it has modified its operations in a manner to ensure sustainable use of resources.
Legal factors: There exists a difference in the laws of various nations. Some favour labour, some favour corporates and others. The legal framework for enforcement of a contract, anti-trust laws and others have a significant impact on the operation of the firm in that nation (Di
et al. 2012). It is easy for Shell to operate in countries with liberal laws towards business.
Micro environmental factors
Customers: The requirements of customers varies from country to country and business to business. Since Shell has operation in various countries, it has to meet different set of requirement of different customers. The requirements of customers influences the technology to be adopted for a project and others. The customers are the ultimate reason for production of goods and services. Therefore, customers has a major influence on the operations of Shell.
Competitors: The level of operation of customers, their markets share and others influences the operation of Shell for an area. The competitors generally vary depending on the geographical location. Therefore, an important micro level factor influences the operations of Shell. The firm has to ensure that it is ahead of the competitors to maintain and increases its market share. This influences the level of technology that is adopted, but this varies from region to region.
Suppliers: The bargaining power of suppliers impact the operation of an organisation. If there are more number of suppliers then the firm can operate effectively at low cost and vice versa. The location of suppliers also influences the operations of Shell. As per the views of Hennchen (2015), if the distance between supplier and operation area is high then it leads to increase in lead-time for procurement of raw material and others. Therefore, planning has to be done in accordance to that. The outlets are located at areas that are easily accessible from the point of view of the customers. The stores provide various services like ATM and other services for the convenience of the customers.
Distributors: The distributors refer to individual or firm who forward the final product to the wholesaler. They play an integral role in managing the sales in various areas. The efficiency of the suppliers affects the demand for the product that ultimately affects the production of the firm. Therefore, distributors play an integral role in planning sales of Shell.
General Public: The attitude of the public towards the organisation plays an integral role in managing the operations of an industry. According to the perspective of Kedzierski (2016), if there exists an entrepreneurial spirit among the public then there will be less restriction in terms of trade unions and other local issues. It depends on area to area. In developed nations, such issues are observed in less numbers.
ii. Internal factors that may affect the company’s performance
Sales: Higher the sales, higher is the production requirement of an organisation. Since, Shell is involved in production of oil and natural gas products, sales is an major factor that is used to determine the production requirement. High investment in technology is required in regions that have higher demands for products of Shell. In addition to that, higher sales leads to generation of higher profits that enables the firm to invest heavily in expansion and up gradation of production process.
Market share: Shell is one of the leading firm among those involved in oil and natural gas products. According to the views of Provasnek et al. (2017), the market share of the firm in most of...