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Marketing Exam BY YOU YOUR SCHOOL INFO HERE DATE HERE Marketing Exam 1.0 Key macro and micro environmental factors impacting Savoy Maintaining an understanding of what micro and macro-level factors impact business strategy development, competitive strategies and marketing tactics is necessary for the Savoy Hotel to ensure an appropriate market position.
This is one of the lowest global corporate tax rates giving the business additional capital to recapture the costs of renovation and expand service offerings. The UK Value Added Tax (VAT) increased from 17.5 percent to 20 percent since the Savoy closed and completed its reconstruction, this increased taxation rate is reflected in the pricing structure at the Savoy (Fairmont Hotel & Resorts 2013). Savoy must now retain 20% to comply with this legislation. Economic Forces The UK Consumer Price Index indicates rising prices for consumers at an inflating rate of 2.7 percent. Impacted products experiencing the highest inflation include fruits, bread, cereals and utilities (Peston 2012). This has implications for rising costs in the Savoy supply chain. The government is actively establishing a variety of austerity packages and making cuts in order to prevent a return to recession. Driving down the national interest rate impacts the wealth management portfolios of important target consumers. The Euro continues to gain against the British Pound, creating a favourable exchange opportunity for Savoy’s European clients. Social Forces Schiffman and Kanuk (2010) identifies that consumers often rely on first impressions and stereotypes when determining future repurchase intentions. ...
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