2. CONTENT
Definition of Macro environmental information
Factors Of MEI
MEI Of Japan
Introduction
ME Factors
Demography
Economy
Technology
Political
Natural/Environmental issue
Social
Examples
Toyota
Panasonic
References
3. INTRODUCTION
Macro environment factors are external forces or components that may affect
the running of a business or organization.
To control of a business, macro environment factors often require changes
and shifts in operating, management, production, and marketing.
There are many different types of macro environment factors –
Political,
Economic,
Social, and
Technological concerns — also known as “PEST” — factors.
Demography
Natural
Some firms also include environmental and legal concerns in their definition.
4. ECONOMY
POLITICAL SOCIAL/CULTURAL
MACROENVIRONMENTAL
FACTORS
TECHNOLOGY NATURAL
DAMOGRAPHIC
5. JAPAN
(“sun-origin”)
It is an island nation in East Asia. Located in the Pacific Ocean.
Japan is sometimes referred to as the "Land of the Rising Sun".
A major economic power, Japan has the world's third-largest economy by
nominal GDP and fourth-largest economy by purchasing power parity.
It is also the world's fourth-largest exporter and fourth-largest importer.
After Singapore, Japan has the lowest homicide rate (including attempted
homicide) in the world.
According to the United Nations, Japan also has the third lowest infant
mortality rates.
6. DEMOGRAPHY
Japan's population is estimated at around 127.3 million, with 80% of the
population living on Honshu.
Religion
84–96 percent of the Japanese population subscribe to Buddhism or
Shinto.
Fewer than one percent of Japanese are Christian.
Other minority religions include Islam, Hinduism Sikhism, and Judaism.
Languages
More than 99 percent of the population speaks Japanese as their first
language.
Education
Primary schools, secondary schools and universities . The two top-ranking
universities in Japan are the University of Tokyo and Kyoto University. The
Programme for International Student Assessment coordinated by the OECD
currently ranks the overall knowledge and skills of Japanese 15-year-olds as
sixth best in the world.
Health
In Japan, health care is provided by national and local governments.
7. ECONOMY
Japan's economic growth developed in the Edo period, such as -
transport routes, by road and water, and the futures contracts, banking
and insurance.
Meiji period from 1868- Japan emerged as the most developed nation in
Asia(To develop market economy).
1960s to the 1980s has been called the “Japanese post-war economic
miracle”.
In 2011, Japan is the third largest national economy in the world(terms
of nominal GDP), and the fourth largest national economy in the world
(terms of purchasing power parity).
Japan has a large industrial capacity, largest and most technologically
advanced producers of -- motor vehicles, electronics, machine tools,
steel and nonferrous metals, ships, chemical substances, textiles, and
processed foods.
8. Agricultural businesses in Japan -13 percent of Japan's land, global fish catch-
13 %, low unemployment rate -4%.
In hybrid car manufactured by Toyota, one of the world's largest carmakers.
Japan is the second-largest producer of automobiles in the world.
Japan main exports are transportation equipment, motor vehicles,
electronics, electrical machinery and chemicals.
Japan's main imports are machinery and equipment, fossil fuels, foodstuffs
(in particular beef), chemicals, textiles and raw materials for its industries.
largest enterprises in Japan include - Toyota, Nintendo, NTT DoCoMo, Canon,
Honda, Takeda Pharmaceutical, Sony, Panasonic, Toshiba, Sharp, Nippon
Steel, Nippon Oil, and Seven & I Holdings Co.
9. TECHNOLOGY
Japan is a leading nation in scientific research( technology, machinery and
biomedical research).
Japan leads the world in robotics production and use, possessing more
than half (402,200 of 742,500) of the world's industrial robots.
The Japan's space agency JAXA conducts space, planetary, and aviation
research, and leads development of rockets and satellites.
On 14 September 2007, it launched lunar explorer “ SELENE " (Selenological
and Engineering Explorer) on an H-IIA (Model H2A2022) carrier rocket from
Tanegashima Space Center .
SELENE is also known as Kaguya, its purpose is to gather data on the moon's
origin and evolution. The probe's mission was ended when it was
deliberately crashed by JAXA into the Moon on 11 June 2009.
10. POLITICS
Japan is a constitutional monarchy where the power of the Emperor is
very limited(constitution as "the symbol of the state and of the unity of
the people”).
Power is held by the Prime Minister of Japan and other elected
members of the Diet (The Diet consists of a House of Representatives
with 480 seats and a House of Councilors of 242 seats).
The Prime Minister of Japan is the head of government and is appointed
by the Emperor.
Emperor Akihito formally appointed Kan as the country's 94th Prime
Minister on 8 June.
• Akihito is the current Emperor of Japan; Naruhito, Crown Prince of
Japan.
11. NATURAL /
ENVIRONMENTAL ISSUE
After World War II, environmental pollution was widespread in the 1950s and
1960s and the government introduced several environmental protection laws in
1970.
The oil crisis in 1973 also encouraged the efficient use of energy due to Japan's
lack of natural resources.
Current environmental issues include urban air pollution, waste management
water, nature conservation, climate change, chemical management and
international co-operation for conservation.
Japan is one of the world's leaders in the development of new environment-
friendly technologies, and is ranked 20th best in the world in the 2010
Environmental Performance Index
Kyoto Protocol (1997 ) conference which created it, Japan is under treaty
obligation to reduce its carbon dioxide emissions and to take other steps to
curb climate change.
12. SOCIAL
Art-
Japanese architecture includes wood, traditional housing and many temple buildings
Japanese sculpture, largely of wood, and Japanese painting are among the oldest of
the Japanese arts.
Music - J-pop
Literature –
Japanese literature include the Kojiki and Nihon Shoki. Japan has two Nobel Prize-
winning authors—Yasunari Kawabata (1968) and Kenzaburō Ōe (1994).
Cuisine-
Japanese cuisine is based on combining staple foods typically Japanese rice or
noodles, with a soup and okazu.
Sports-
sumo is considered Japan's national sport, Golf is also popular in Japan. Japan has one
of the most successful football teams in Asia, winning the Asian Cup four times. Also,
Japan recently won the FIFA Women's World Cup in 2011.
14. EXAMPLES
TOYOTA
Toyota is a multinational automaker headquartered in Toyota, Aichi
Japan.
It was the second largest automobile manufacture, in 2010 by
production.
Toyota is the ninth largest company in the world by revenue. In July
2012, it had manufactured its 200 millionth vehicle.
Company Profile
Type- Public
Industry Automotive, Robotics, Financial services
Founded August 28, 1937
Founder(s) Kiichiro Toyoda
Headquarters Toyota, Aichi, Japan
Area served Worldwide
Key people Fujio Cho (Chairman)
Akio Toyoda ( President and Ceo)
Production output 7,308,039 units (FY2011)
Revenue 18.583 billion (2012)
15. Parent Toyota Group
Divisions Lexus, Scion
Subsidiaries 522 (Toyota Group)
Toyota India, Hino Motors, Ltd.
Toyota Financial Services , DENSO ,Toyota Industries
Fuji Heavy Industries (16.5%)
MEF affecting Toyota
Demographic factor
As population is growing rapidly, Toyota concentrate first both the techies and the
early adopter who are willing to take risks and are attracted by the advanced
technology of the Prius. Due to the swift growing in concerning about the
environment, Toyota focused their targets on the environmentally conscious
customers plus the customers who were desired for more fuel efficiency when the
Prius-second generation-was introduced in 2004 (Vasilash 2000).
Technology factor
Hybrid cars are more powerful than they used to be and consume less resource than
“regular cars”.
16. Economic factor
According to Beauchamp (2006), disregard of the weak economic growth and
high oil prices, the sales figures for automobile have remained constant lately in
Europe, North America and Asia. This had resulted to the emergence of new
customers and growth. The fierce competition among the manufacturers had
urged Toyota to conduct more research and development on Prius . Therefore,
Toyota launched a second generation Prius where they continue making
amendment according to the latest technology and preferences of their buyers.
Natural factor
Due to rise in gasoline prices consumers have started shifting towards smaller
SUVs, cars and hybrids which are more fuel efficient and less depend on oil. Some
substitutes such as ethanol fuel mixes and hybrid technology had emerged as a
replacement for petrol.
Political factor
Many states are rewarding the car owners with tax breaks amounting to
thousands of dollars. Furthermore, some states government gave further tax
breaks, in some circumstances complementing the federal tax break. There were
also some eco-friendly organizations involved in this incentive game such as
Google, Timberland and Hyperion Solutions providing employees as much as
$5,000 toward the purchase of hybrids. Many states even gave permission for the
hybrids to use car pooling lanes which allow people to travel more quickly to
work. Lastly, lots of insurance companies offer discounts to hybrid cars.
17.
18. is a Japanese multinational electronics corporation headquartered in
Kadoma , Osaka , Japan.
Employees 366,937
Its main business is in electronics manufacturing.
Panasonic is the world's fifth-largest television manufacturer and is among
the world's 20 largest semiconductor.
The company recorded revenues of approximately $101,704.3 million in the
financial year ended March 2011 (FY2011), an increase of 17.2% over FY2010.
The company organizes its business operations under six segments:
digital AVC networks,
Panasonic Electric Works (PEW) and
Pana Home,
SANYO,
home appliances,
components and devices
19. MEF OF PANASONIC
Technological innovations and product development capabilities
Panasonic is one of the leading technology-driven companies in the
world. The company has consistently innovated technologies and
products through strong research and developments (R&D)
functions.
The R&D activities have helped the company to extend its
technological leadership globally.
One of its models, 3D HDTV TC-PVT25 was awarded the ‘Best of
Show’ and ‘Best in Television’ category at the fifth annual Consumer
Electronics Show 2011.
The company is the industry and technology leader in High Definition
Plasma (HDTV Plasmas) televisions and further introduced seven
new models in early 2011. Also, the company introduced Full HD 3D
televisions.
20. Focus on eco-line products to drive future growth
Panasonic is one of the few consumer electronics companies with
increasing focus on eco-friendly products. The company aspires to
become ‘No. 1 Green Innovation Company’ in the electronic
industry by 2018.
The company’s consistent focus on energy-saving eco products
positions it strongly in this segment.
Considering the fact that many developed countries have policies
to promote green products, the company could capitalize the
opportunity on a large scale.