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Merlin Entertainment Place

Free «Merlin Entertainment Place» Essay Sample


External business environment comprises of both micro and macro environments. Microenvironment refers to factors that are closely related to the business, and influence the business operations. Macro-environment, in its turn, consists of uncontrollable forces that affect business in general. The fact that the macro environment is external and rarely controlled makes it the basis for an external environment. The following paper examines both micro and macro environments of Merlin entertainment company.


The adaptability of a business depends on the growth and survival against external forces. These factors may either present opportunities or threats to business. Hence, forces of macro environment are the following: economic, political, social-cultural, legal and technological environment (Jain, Trehan & Trehan, 2010, p.10).

Economic environment

Economic policies, conditions and systems form the basis of economic factors affecting business. Economic conditions affect the phases of an entity and the purchasing power of the customers. In the case of depression, the purchasing power is low, and it negatively affects the business. Government policies and legislation may either harm or assist the business depending on how they are imposed to multinationals such as Merlin Entertainment. A capitalist economy is a private sector oriented and thus attracts more investors unlike the socialist and mixed modes of economy (Jain, Trehan & Trehan, 2010, p.11).

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Political Environment

The outcome of various ideologies determines the political temperatures and in return influence operation of a business. In the case the country’s politics and attitude towards Merlin Entertainment business are poor; the company may not thrive as expected. Therefore, ideologies that influence good partnership between the business world and the government results in favorable market share. On the other hand, negative attitude against Merlin Company from political affiliations suppress the business world and affect a country‘s relation to the world (Singla, 2010, p.43).

Social –Cultural Environment

People’s preferences and tastes change in regard to the trend of the Merlin Entertainment Place are diverse. The general belief among customers is that the quality is related to advertisement. Hence, the more adverts a product receives, the better its quality and vice versa. This notion drilled through media leads to a shift in demand for commodities depending on their availability. In addition, the composition of the population determines the market size of certain goods offered by Merlin Entertainment as opposed to others (Ghuman, 2010, p.45)


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Every citizen in a given country is governed by laws stipulated under the constitution. Multinational companies have to take the hosting country’s law into consideration to avoid hiccups. Prior to investing in the country, Merlin Entertainment ought to identify an issue of such as security, cost of doing business and legal framework of a given country. The strength of security and legal provisions influences the global market to invest more and thus creates competitiveness in terms of commodities.

Technological Environment

Advanced technology has impacted the business culture and their mentality towards commodities. The rapid growth in levels of information has resulted in a change of consumption patterns and tastes. However, the incorporation of technology into Merlin Entertainment may not always result in positive feedback from consumers. Hence, there is a need for preparedness in case of any setbacks that may arise in the future. The company ought to have a framework to deal with impacts of technologies on commodities to foreign countries (Young &Pagoso, 2008, p. 56).

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Internal environment commonly known as micro-environment forms the basis of Merlin Entertainment Company. The company has to put up marketing strategies to ensure high productivity. Since the company has the ability to control such activities through management of strengths and weaknesses. Merlin Entertainment micro-environment includes value chain, competition, customer service, cost accounting, and technology as discussed further.

The subdivision of a Merlin Entertainment allows a mode of organization that helps monitor day-to-day activities. Value chain revolves around from the concept of accounting in analyzing the cost incurred throughout the entertainment. Activities on value addition include primary and support activities. Primary function involves sales, logistics and marketing among others. The transformation from inputs to output is a primary activity brought closer to customers. The support activities form the basis for the primary functions and are the backbone of Merlin Company.

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Analyzing the cost in terms of infrastructure and procurement allows the management to come up with activities that add value to the final commodity. In return, it creates competition by similar institutions and improves on products. In the case of Merlin Entertainment, employees should lead the mission of the company towards achieving the set goals. The training of employees equips them with skills and knowledge to effectively deliver on the services. Technology dependency adds value to a commodity through the emerging designs.

Automation of tasks is a technology dependent function that ensures satisfaction of customers in offering better products (Mukerjee, 2007, p.70). Forecasting demand entails understanding the market and developing entertainment products that suit these needs. Adopting a unique strategy does not always work, but optimization of Merlin Entertainment is the best practice. Managing customer relation not only entails human resource, but also the technical approach through putting up infrastructure to facilitate service delivery.

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The practice of having a central location for the customer service of Merlin Entertainment Company is vital, in order to receive a response on standardization of products (Mukerjee, 2007, p.69). Centralization of data enables the company to give feedback with a uniform appeal across borders. The incorporation of dealers into the improving the face of the company has resulted in quality feedback.  In addition, managers need to monitor the turnover as well as stock to enable them gauge business performance.

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