Macroeconomic Environment

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Submitted By nicole0276
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INTRODUCTION **** marketing definition Macro economics is the study of the behaviour and trends in the economy as a whole involving the analysis of six major forces to identify possible opportunities and threats available to the organisation. To illustrate these forces, the hypothetical “Bamboo Company” (located in Sydney New South Wales) will be used. This organisation has prided itself on the use of recyclable and renewable resources where possible and as a result, has developed the Bambicycle. This entry level hybrid bicycle combines the best attributes of a road bike and a mountain bike in one as well as being constructed by bamboo which is one of the world’s fastest growing renewable resources.

An analysis of the six macroeconomic influences with reference to the Bamboo Company are as follows:

THE DEMOGRAPHIC ENVIRONMENT Demographics is the statistical study of the population as a whole, consisting of the following variables and how they will affect the bicycle marketing environment: – The changing age structure of population “Australia's population, like that of most developed countries, is ageing as a result of sustained low fertility and increasing life expectancy” (Australian Bureau of Statistics [ABS], 2010a para 7). The proportion of the population aged 65 years and over is projected to increase from 13% in 2007 to between 23% and 25% in 2056, and 25% and 28% in 2101 (ABS, 2010c para 15) with the first wave of baby boomers exiting the workforce in 2011. . – The Changing Family There is an increasing trend of families who no longer have children within the home such as the “empty nesters”. The proportion of families without resident children has increased from”35% of total families in 1997, 38% in 2003, and 40% in 2006-07 and 2009-10” (ABS, 2011b para…...

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