...companies start to use a multinational approach in business, the international marketing approach should be used. This means that companies should be aware of external environmental factors, including those external to the country in which they are based. According to Yüksel (2012), an effective method to determine the macro-environmental effects on a company and the company's ability to take these conditions and choose an appropriate direction is the PESTEL analysis (Political, Economic, Sociocultural, Technological, Environmental, Legal). To utilize this tool even further, one can apply PESTEL and the effects of the macro-environment to their business and evaluate the apparent or implicit effects on the marketing mix. Companies such as Qantas, an Australian airline company could greatly benefit from the application of PESTEL analysis. After a huge financial loss in 2011 and a huge decline in market share forcing a major structural change and the cut of 1000 jobs (Gelineau 2011), Qantas needs to observe the effects the macro-environmental effects on its marketing mix. By doing so, it will gain more insight towards making a decision of majority ownership. It must be noted, that while an in depth analysis of each of the PESTEL macro-environmental factors is important, this report will take a broad approach, analysing the political, socio-cultural, technological and legal factors in relation to the marketing mix of Qantas. |Political Factors Firstly, it is important that marketer's...
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...assessing international marketing opportunities Susan P. Douglas and C. Samuel Craig Stern School of Business, New York University, New York, New York, USA Abstract Purpose – The choice of which country or countries to enter is a critical decision and needs to be made with considerable care and deliberation. Initial market entry decisions have typically focused on country evaluations based on macro-economic data. While appropriate in providing an initial screening of countries, other factors, notably contextual factors, can provide important insights in assessing international market opportunities. The purpose of this paper is to examine the impact of context at four distinct levels. Design/methodology/approach – The literature on the influence of context on consumption and purchase behavior is reviewed to provide a framework to understand contextual factors as a means to refine entry strategy and develop effective segmentation strategies. Findings – A wide range of contextual factors exert influence on consumption choices and contribute to within-country heterogeneity. These are typically examined at the macro-level, but also need to be examined at the meso-level, micro-level and situational level to fully assess market opportunities and establish viable market segments. Practical implications – Examination of contextual factors provides a richer and deeper understanding of which international markets to enter and which segments to target. Within-country cultural diversity, dramatic...
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...reduce its overall calorie and adding fat-free stuffs to the menu, but it only went so far, and some people believe it wouldn’t make a difference because still including toys would attract more children and adding fruits will only add more calories to the meal. However, the spokeswoman for McDonald’s said that the company has done its best not to let down other customers, due to its experience of getting complaints by eliminating French fries altogether. There are some forces and factors that are outside to the marketing organization that affects how a company operates its business, some of them are Demographic, Economic, Political and Legal, Socio-cultural, Technological, and Ethical Behavior. In this case, the external environments that affect McDonald’s in controlling its marketing mix are mostly Socio-cultural, and partly Economic and Ethical behavior. Socio-cultural factors are the slowest to change and difficult to predict among all the other factors. Socio-cultural is all about social changes which includes values and lifestyles that characterize a society, such as religion, attitudes. On the other hand, the area of concern for economic factors discussed in the article is the level of disposable income, which is the money customers have after paying taxes to use necessities such as food and clothing. Thus, if taxes increase, consumers are likely to have less disposable income. Low disposable income leads to low priced or even less spending on food, clothing, and transportation...
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...influence foreign companies’ marketing strategy. This literature review shows that, pushed by a multitude of factors, the Chinese food consumption and food consumer’s behavior have strongly changed over the past 10 years, both in quantity and quality demand, creating a lot of opportunities for foreign companies. Moreover, the Chinese cultural background and preferences are identified as playing an important role in the willingness to buy (WTB) and shopping habits which prompts for a more adaptive approach of marketing. Introduction In the past decade, China has seen a lot of both positive and negative factors influence its food consumption and its society as a whole. Three main socio-economic factors are identified by the previous literature. Urbanization has been growing fast, more than 50% of the population lived in urban areas and it is expected to reach 75% by 2035. Moreover, the average income has been continuously rising and contributes to the growth of the middle upper class granting an easier access to goods. Finally, the demand or the need for imported goods rocketed, fueled by the recurring food scandals. (Gale, Hansen, Jewison, 2014) This evolution largely contributed in turning the Chinese food market, now the largest in the world, into a very attractive potential market for foreign companies, however, this paper will show that, despite useful, these information are highly insufficient to establish an efficient and adapted marketing strategy in China. It...
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...Jordan Davis Whole Foods Market Baker College Whole Foods Market Economic environment The economic environment is describe as the totality of economic factors, such as employment, income, inflation, interest rates, productivity, and wealth, influencing the buying behavior of consumers and institutions. It has five main components; they are economic conditions, economic system, economic policies, international economic environment and economic legislations. Whole Foods CEO John Mackey has pioneered a different approach for the operation of his company than most large retail businesses. John Mackey has the ideal that business and “crony” Capitalism is fundamentally based on greed, selfishness and the exploitation of consumers, workers, society, and the environment for the goal of maximizing profits.(Mackey 2013). However as his business has grown and become very successful he grew to believe that if ran correctly business and capitalism can be a vehicle to solve most of the economic problems of the world we live in. (Mackey 2013). The economic condition of the world affects the profitability of Whole Foods Company through several different factors. The standard of living in which the customers of Whole Foods Market are subject to dictates the amount of tangible goods they can purchase from the company. Organic offerings cost more to produce that other types of offerings making the price to consumers considerable higher than non-organic...
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...Political or Legal Segment 3.4 Socio-cultural Segment 3.5 Technological Segment 3.6 Global Segment 3.0 Industry Environment Analysis 4.7 Threat of New Entrants 4.8 Bargaining Power of Supplier 4.9 Bargaining Power of Buyers 4.10 Threat of Substitute Products 4.11 Intensity of rivalry among Competitors 4.0 Competitive Environment 5.0 Opportunities and Threats of Nestle INTERNAL ANALYSIS 6.0 Nestlé’s Resources, Tangible and Intangible 7.0 Capabilities of Nestle 8.0 Core Competencies Analysis 9.0 Value Chain Analysis of Nestle 10.12 Primary Activities 10.13.1 Inbound Logistics 10.13.2 Operations 10.13.3 Outbound Logistics 10.13.4 Marketing and Sales 10.13.5 Services 10.13 Support Activities 10.14.6 Procurement 10.14.7 Technological Development 10.14.8 Human Resources Management 10.14.9 Firm Infrastructure 10.0 Weaknesses 11.0 SWOT Analysis 12.14 Strengths 12.15 Weaknesses 12.16 Opportunities 12.17 Threats 12.0 Current Strategy 13.0 Future Strategy 14.0 Conclusion 15.0 References Executive Summary Table of Contents Executive Summary 1 EXTERNAL ANALYSIS 1 1.0 Introduction 1 2.0 General Environment Analysis 1 2.1 Demographic Segment 1 2.2 Economic Segment 1 2.3 Political or Legal Segment 1 2.4 Socio-cultural Segment 1 2.5 Technological...
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...Introduction4 Sam’s Australian Wild Tuna Pty Ltd4 Internationalizing a Product1 Advantages5 Disadvantages6 Economic Environment6 Socio-Cultural Environment7 Social Prestige7 Daily Life8 Buddhism8 Swot Analyses9 Strengths9 Weaknesses10 Opportunities10 Threats10 Market Feasibility11 References11 Market Feasibility Report Executive Summary The following report analyses the market feasibility of the developing country of Thailand for Australian Wild Southern Blue Fin Tuna, for an organisation named Sam’s ‘Australian Wild Tuna Pty Ltd’. Global economic integration is battled by disadvantages such as risking large dedications of resources are discussed for internationalisation of a product in general. As the economy is seen to be growing but a great fallen yield in the Thai fishery market, the window of opportunity to infiltrate such a successful market in the world is crucial yet to do this the correct social prestige in the way business should be conducted, how the product impacts daily life and the Buddhist culture amongst the Thai is explored for essential prior-knowledge. Major Strengths and opportunities are found to outweigh weaknesses and threats in order for a concluding that the market is feasible for Australian Wild Tuna if applying the correct knowledge and accommodating for the different economy and socio-cultural environments. Introduction The purpose of this report is to identify if the Thai market is practical for the introducing of Australian...
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...A company must get to know about the targeted market environment before it decided to operate internationally. There are the macro-environment that affects Starbucks marketing decision, economic factors, socio-cultural factors, demographic factors, political factors, natural factors and also technology factors. Economics Factor Being a producer of first-rate and specialty coffees, Starbucks requires a market that able to withstand the demand for the coffee. Starbucks marketing decisions for an economy with high disposable income that leads to high quality of life country like US. It is an example of a developed country that has the high purchasing power and spending patterns which most of the citizen in US are willing to spend more in return for a quality product such as Starbucks coffee. It shown that economic factors affect the business function and largely alarm consumer purchasing power. This requires an important market research about economic and financial stability of a city before they move it in. http://www.ukessays.com/essays/marketing/internal-and-external-factors-affecting-starbucks-marketing-essay.php There are two economics factors that help a company to determine if the country would be a good market, which are the country’s industrial structure and income distribution. Country’s industrial structure is referring to industrial economy, raw material exporting economy or subsistence economy of a country. These show the employment, product and service needs and...
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...mobile phone market is android, htc, and apple. They gradually increase their market share by providing better service. In this situatition for nokia, it is difficult to ensure the continuous growth in the future and sit in the first position. For these nokia has to continue the analysis work efficiently. ENVITONMENTAL ANALYSIS FOR NOKIA Analysing the environment is vital in the strategic decision making for any organization as well as nokia.As nokia corporation is world largest network provider ,they should be more careful about the analysing of internal and external environment. External environment analysing for nokia:- the noticeable environment factors which are important to the success of nokia are political,economic,socio-cultural,technological,legal and ecological. Political:-political factors refer the formal and informal rules made by government. For staying on the continues growth, nokia will have to be careful such kinds of government rules- * Tax policy * Environmental and employment lows * Trade restriction * Political stability. Economic factors:-economic factors affect the buying pattern or habit of potential customer. It will also affect the nokias capital return, the economical factors that nokia has to consider is- * Economic growth * Recession * Share price * Yearly income rates So, when the management going to take any...
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..... 2 1.2 Strategic group mapping ......................................................................................................................... 4 2. External drivers of change affecting Apple’s Strategic Business Unit ....................................................... 5 2.1 PEST Analysis ....................................................................................................................................... 5 2.1.1 Political and legal drivers ............................................................................................................. 5 2.1.2 Economic factors .......................................................................................................................... 5 2.1.3 Socio-cultural factors ................................................................................................................... 6 2.1.4 Technology ................................................................................................................................... 7 2.1.5 Legal factors ................................................................................................................................. 7 2.1.6 Environment................................................................................................................................. 8 2.2 Five Forces Model...
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...COCA-COLE IN INDIA SOCIO-CULTURAL FACTORS ANALYSIS Social and cultural environment refers to a social form has been formed under the values, religious beliefs, customs, ethics, and so combined. Any business in a certain social and cultural environment, where corporate marketing activities will be subject to environmental impact and socio-cultural constraint. This knowledge forms values, creates attitudes and influence behavior (Guidelines for Socio-cultural Analysis. Jonathan Renshaw ,Marie-Madeleine, Mailleux ,Sant`ana Volker von Bremen, 2001).Most scholars of culture would agree on the following characteristics of culture.In this essay I will explain the aspects that throw Coca-cola to difficulties in india. India`s water shortage and contamination Water scarcity has always been a problem for india. India`s water resource accounts for just 4% of the global water,, but it needs to feed 17 percent of the world's population. Moreover, India's total annual water consumption is expected to increase from 634 billion cubic meters currently to 1.18 trillion cubic meters in 50 years later. 40 years later. India can supply drinking water per capita will be less than half of 2001. In recent years. India's confronting growing water demand, but supply is dwindling. With the rapid population growth and economic development, coupled with a large number of agricultural areas of water irrigation, there will be a water supply crisis in India. In India, Coca-Cola and Pepsi have been criticized...
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...TMAs via the Online Learning Environment (OLE). All assignments must be uploaded to the OLE by the due date. Failure to upload a TMA in the required format to the OLE may result in the score of the TMA being adjusted to zero. Question 1 (20 marks) For each of the following ten sub-questions, select the best answer. Each correct answer is worth 2 marks. 1 The candy market in Asia has grown recently as more Asians imitate the American lifestyle, and Hershey has decided that to grow it must start selling to the Asian markets. This decision was part of which management function? A planning B organizing C leading D controlling 2 The marketing manager of Interstate Bakeries was asked to meet with the organization's research and development department to explain why the company needed to change its 25-year-old package design for Twinkies. The marketing manager took on an interpersonal role as: A liaison B disseminator C disturbance handler D figurehead 2 MGT B240 Principles and Practices of Management 3 Which of the following would be a part of an organization’s specific environment? A the technology it uses to make its product B new laws controlling its product’s exportation C the economy in which it operates D its competitors 4 The __________ is the set of key values, beliefs, and attitudes shared by organizational members. A industry code of ethics B internal environment C organizational culture D organizational strategy 5 Doug has a low-paying job for...
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...Marketing Management 1 Assignment 1 Company: Shri Mahila Griha Udyog Lijjat Papad Product: Papad Section: 3 Group: 5 Group Members: Abhishek FT163006 Divya FT163020 Jimmy FT163035 Megha FT163051 Prateek FT163068 Shamipa FT163085 Vaibhav FT163099 Contents Introduction 3 PESTEL Analysis 4 Political and Legal 4 Environmental 4 Socio-cultural 4 Technology 4 Economic 4 Porter’s five forces analysis 6 Competitive Rivalry: Moderate but constantly increasing 6 Threat of New Entrants: Low 7 Bargaining Power of Suppliers – Low 7 Bargaining Power of Buyers – High 7 Threat from Substitutes – Moderate 7 SWOT Analysis 8 Strengths 8 Weaknesses 9 Threats 10 Opportunities 10 Current Segmentation, Targeting and Positioning 10 Segmentation 10 Targeting 11 Positioning 11 Growth strategy for Lijjat Papad 12 Recommendations 12 ANSOFF’s matrix 12 12 Proposed segmentation 13 Proposed Targeting 13 Proposed Positioning 13 References: 14 Introduction Lijjat papad was established on March 15, 1959 by a group of 7 women to spend their leisure time and earn their livelihood using the only skill they possessed, that was cooking. It has grown from 7 women in 1959 to 40000 in 2006 and 43000 in 2014 and from their 1st profit of 80 paise to 300 crores in 2006 and 650 crores in 2014. It started in Girgaum village of South Mumbai and the 2nd office was opened in Vadala that became the regd...
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...Journal of Vacation Marketing http://jvm.sagepub.com/ Benefit segmentation of potential wellbeing tourists Juho Pesonen, Tommi Laukkanen and Raija Komppula Journal of Vacation Marketing 2011 17: 303 DOI: 10.1177/1356766711423322 The online version of this article can be found at: http://jvm.sagepub.com/content/17/4/303 Published by: http://www.sagepublications.com Additional services and information for Journal of Vacation Marketing can be found at: Email Alerts: http://jvm.sagepub.com/cgi/alerts Subscriptions: http://jvm.sagepub.com/subscriptions Reprints: http://www.sagepub.com/journalsReprints.nav Permissions: http://www.sagepub.com/journalsPermissions.nav Citations: http://jvm.sagepub.com/content/17/4/303.refs.html >> Version of Record - Oct 14, 2011 What is This? Downloaded from jvm.sagepub.com at EMIRATES AHM on February 25, 2012 Article Journal of Vacation Marketing 17(4) 303–314 ª The Author(s) 2011 Reprints and permission: sagepub.co.uk/journalsPermissions.nav DOI: 10.1177/1356766711423322 jvm.sagepub.com Benefit segmentation of potential wellbeing tourists Juho Pesonen, Tommi Laukkanen and Raija Komppula University of Eastern Finland, Finland Abstract The purpose of this study is to segment tourists according to the benefits they seek from a tourism destination. These segments are examined in order to find attractive segments for local wellbeing products. Segmentation in the context of wellbeing and wellness provides companies information...
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...Discuss the socio – cultural impacts of the tourism development using examples from the country of your own choice This essay will argue that Lithuania has many positive and negative social and cultural impacts on the tourism industry. In these days tourism became one of the most important in economic, social and cultural environment. People pay attention in these things because they are also very important to develop any business. Tourism is very significant for countries, because it may bring a lot of money if it will be developing properly. First of all, talking about Lithuania’s social positive impacts: people are travelling to different countries to find something new in other cultures, traditions, to see different environment and to meet different people and to know something new. This is like a positive impact in tourism industry, because they bring something new too. Lithuania is a small country, but it has socio – cultural positive things, such as, meaningful leisure, improving the public and also work in communities, because people all the time with each other and that make the country stronger and stronger. These things make positive impacts, because social tourism is about people and their activities. People, who comes to new country should adapt to that country’s customs, traditions, social environment but also should not lose their own. As it was mention before, Lithuania is a small Scandinavian country, where is about just 3,000,000 people. So there is not...
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