The market environment consists of both the macro environment and the micro environment. On macro environment the firm need to follow it and they can’t to control it. It consist variety of external factors that is economic, social, political, legal and technological. In the macro environment the firm should analyze national political issues, culture and climate, key macroeconomic conditions, health and indicators (such as economic growth, inflation, unemployment, etc.), social trends/attitudes, and the nature of technology's impact on its society and the business processes within the society. The microenvironment refers to the internal environment of the company such as consumer/customer, Supplier, competitors, the media (public) and in the microenvironment have the internal environment that is men, money, machinery, materials and minute.
The micro environmental factors that Yum! Brands, Inc needs to consider before attempting to open up Taco Bell stores in the Malaysia markets are the supplier, customer, competitors, the media (public) and the internal environment of the Taco Bell that is men or employees, money, machinery, materials and minute .
To open up the Taco Bell in Malaysia market, Yum! Brands must consider with the suppliers in micro environment. Yum! Brands must make sure that Taco Bell in Malaysia market have the supplier that can supplies all the raw materials to prepare the Taco Bell’s product and other goods such as packaging material in the Malaysia market. Yum! Brands must to identify all the suppliers in Malaysia that can supply the goods to them and deal business with them for example Ayamas Food Corporation and Ramly Mokni Sdn Bhd can supply the meat to the Taco Bell restaurant. Other than that Taco Bell must ensure that the suppliers are not outside from the Malaysia, when the supplier logistic is far so the cost of delivery will be high. So, Taco Bell must deal with the supplier in the Malaysia market to get the lower cost of delivery. Yum! Brands must know the suppliers availability. Taco Bell also must deal business with the supplier that have stability and strong organization. This is because if the supplier are not large, strong and stability there may have the problem that can be face by the Taco Bell. There will have the problem of delivery such as delay in receiving raw material can make the customer dissatisfaction.
Next, the micro environment the Yum! Brands must consider is customer. Yum! Brands must know the market segment in Malaysia that will buy the Taco Bell’s product such as the age, race, religion in the demographic segmentation, the lifestyle, social class, activities in the psychographic segmentation and etc. Yum! Brands also must analyze the market size and growth in Malaysia market, they must know the market size in Malaysia that is the number of buyers and seller (potential franchisee). They also must understand what the customer in Malaysia seeking in the fast food restaurant that can satisfy their needs and wants. Yum! Brands must ensure that Taco Bell produce the product based on what customer in Malaysia needs and wants. This is because in Malaysia market have many types of race, religion that have different needs and wants in their foods categories. For example religion, Indian in Malaysia does not eat beef meat because of the religion aspect.
Another micro environment factors is competitors. Yum! Brands must make the research who the Taco Bell’s competitors in the directly, indirectly, actual and potential in the Malaysia market.
‘Competitors are also a factor in the microenvironment and include companies with similar offerings for goods and services. To remain competitive a company must consider who their biggest competitors are while considering its own size and position in the industry. The company should develop a strategic advantage over their competitors’ (http://en.wikipedia.org/wiki/Marketing_environment)

So, Yum! Brands must know the competitors of the Taco Bell in Malaysia market that offer the similar product that satisfy the same needs and wants of the customer. The Yum! Brands should produce more valuable product for the Taco Bell to winning the customer over the competitor in Malaysia market. The competitor in Malaysia that satisfy the same needs and wants of customer such as KFC, McDonald, Pizza Hut, Burger King and many more. Yum! Brands must to identify all the weakness of their competitors in Malaysia market such as the weakness in their foods, services, packaging and many more. So, Yum! Brands must develop the strategies that is everything in the competitors goods and services in Malaysia can’t to provide to the customer, Taco Bell can provide it. What they can’t and haven’t prepare, Taco Bell can and will have prepared. Taco Bell must know all the marketing strategy that have been use by the competitors, especially the promotional method that they use to market their product. Taco Bell must follow up all the marketing strategy and make some differences than others competitors in Malaysia market..
The last factors of micro environment that Yum! Brands must consider is the media (public). Yum! Brands must know the media in Malaysia that can commercial the Taco Bell’s product. Yum! Brands must make the research which radio frequency, television channel, newspaper are most Malaysian favorable. For example the radio frequency in Malaysia such as Era fm, Hot fm, Hitz fm. The television channel such as ASTRO, TV3, RTM. The newspaper such as Utusan Malaysia, News Strait Times, Berita Harian. This is because Yum! Brands can use that media as the medium to promote the Taco Bell to ensure the Malaysian know about the launches of Taco Bell in Malaysia, Yum! Brands use the media as the medium to distribute the information and promote the Taco Bell product. So, when all the promotional are publish its can attract the new customer to come and try the Taco bell’s menu. Yum! Brands must use the media as the medium channel to communicate about the Taco Bell products to the target customer.
For the internal environment in the microenvironment, Yum! Brands must know the internal environment of the company such as men or employees. This is because to open up Taco bell in the Malaysia market Yum! Brands needs to employ the Malaysian people as the employees. Yum! Brands must to give the series of lesson on how to make the Taco Bell menu. This is because Malaysian are not open up and know about the Taco Bell product before this. So, Taco Bell must ensure that all their employees have the credibility and quality on how to manage the Taco Bell restaurant. This is because if Taco Bell have the good quality of worker they can produce the good grade and high quality of product and service. So, it will give the good impact role to the business. Other than that, Yum! Brands also must consider with the department in the company.
‘This includes all departments, such as management, finance, research and development, purchasing, operations and accounting. Each of these departments has an impact on marketing decisions. For example, research and development have input as to the features a product can perform and accounting approves the financial side of marketing plans and budgets.’ (http://en.wikipedia.org/wiki/Marketing_environment)
All the department in the company is very important for the marketing decisions of the Taco Bell product. When Yum! Brands open Taco Bell in Malaysia, they must to make sure that all department are organize and operate to make sure the marketing decisions to be done. The goods centralization and decentralization of marketing decision is very important to the Taco Bell to retaining the customer.
Next. Yum! Brands must consider with the machinery that will be use in Taco Bell have provide in Malaysia or not and the machinery must be suitable to use in order to produce the product that follow up with the quality of product standardization. Other than that, to produce the Taco Bell product the machinery is very important. So, if there have no suitable machinery in Malaysia to produce the Taco Bell product, Yum! Brands needs to invest high cost of shipping to bring the machinery into Malaysia markets. Other than that, the internal environment in the microenvironment is the money or in the other word is capital. Yum! Brands must ensure that they have enough capital to open up the Taco Bell in the Malaysia market. This is because if the Yum! Brands have enough money allotment on the Taco Bell, they can increase the production of product and produce the good and high quality of product. Taco Bell will have enough money to pay the salary of the employees and Taco Bell can buy the quality of raw material to producing their product. Other than that, Yum! Brands must ensure that their materials that they will use is always the good materials. For example Yum! Brands must ensure that the cover packaging of the product can cover the food completely. Lastly is minutes, Yum! Brands must consider that, in one minutes how many tacos will be produce by Taco Bell. So, if the production is less than expectation, Yum! Brands can take some action to overcome the problem.
The macro environment factors that Yum! Brands, Inc need to consider before attempting to open up Taco Bell store in Malaysia markets are political and legal, economic, social and technology. The political that Yum! Brands must consider in Malaysia market is the stability of political in Malaysia. Yum! Brands must know there have no political problem and bad issues that can affect the Yum! Brands business in Malaysia. Political factors may also include goods and services which the Malaysia government wants to provide or be provided (merit goods) and those that the Malaysia government does not want to be provided (demerit goods or merit bads). Demerit goods such as by providing the pork and alcoholic drink in the fast foods restaurant industry. This is because the fast foods industry in the Malaysia market, their foods must can be eat by all people in Malaysia especially by Muslim. . Yum! Brands need to provide the food that can be eat by Muslim in the Taco Bell’s menu. Their drinks also are not making people become drunk. This is because fast foods restaurant is for all people and especially family that is public area. Drunker may make that place become horrible with their unrealization attitude. Here Taco bell have provide the product that can be eat by Muslim and also by the Indian in Malaysia because this product are not made up from beef meat. For example: All the Muslim and India can eat the seafood meat. So, by producing this types of product in Malaysia market, it will attract the Muslim and Indian to buy because there have no religion issues on the seafood meat.
Yum! Brands must know the legal factors towards the Taco Bell organization if they want to open in Malaysia. Yum! Brand must follow the legal agreement with Malaysia government to register the Taco Bell in the Malaysia markets. The Yum! Brands also must follow all the consumer law, employment law and healthy and safer law in Malaysia markets. This is because Malaysia have regulate their own law and regulations that must be follow by all people, institution and organization in Malaysia. Malaysia protect their country from any distraction by regulate their own law and regulation.
‘ The governmental efforts seek to encourage the growth of both international and local franchisors. In meetings we've had with the Malaysian government, there are plans to use a franchising development corporation (with ties to the Malaysian government) to lure western-based franchisors into Malaysia. These franchisors will be encouraged to sign master franchise agreements in the country which will, in turn, employ native Malays (Bumiputeras) in the franchising sector’ (http://www.allbusiness.com/sales/785668-1.html)
The Master Franchise Agreement is the agreement the western-based franchisor need to sign with the Malaysian government. In this agreement the franchisor needs to agree to employ the native Malays (Bumiputeras) in the franchising sector. In this agreement Yum! Brands must agree to employ native Malays (Bumiputeras) in the franchising sectors. If there have the potential franchisees from the native Malay that want to be the franchisees of Taco Bell, Yum! Brands must give the cooperation to employ them.
‘Malaysia Consumer Protection Act
Consumer protection in Malaysia is regulated by the Consumer Protection Act 1999, which came into force on November 15, 1999 (the “CPA”). The CPA applies to areas of consumer protection that are not already covered by other statutes, such as the Contracts Act 1950, the Sale of Goods Act 1957, the Sale of Drugs Act 1952, etc.’ (http://www.ibls.com?ibls-internet-law-document.aspx?d=1513)
Other than that in Malaysia also have the consumer protection Act 1999. Yum! Brands must follow all the customer right that have been agreed in this act. As a consumer they the right to all the products and services of daily basic needs including food, clothing, health, education and house. So, Yum! Brands must know that all consumer in Malaysia have the right to buy and get the foods at the Taco Bell restaurant. Yum! Brands also must know that Taco Bell as the manufacturer are prohibited to use misleading and deceptive conduct, false misrepresentation and unfair claims in selling the product or service to the consumer. Yum! Brands also must know that, them as a consumer have the right to claim for damages from unfair practice from the supplier or manufacturer. Yum! Brands must accept all this regulations that have been regulate by the Malaysia Government.
Next, the macro environment that Yum! Brands needs to consider is economic factor. Yum! Brands must know the local currency used in Malaysia markets is the Malaysian Ringgit. So, Yum! Brands needs to sell the entire Taco bell product in Malaysian Ringgit. Other than that, Yum! Brands also must follow the standardized price level in Malaysia. Yum! Brands must consider with the inflation rate in Malaysia. This is because inflation may provoke higher wage demands from employees and raise costs. Yum! Brands need to consider the unemployment rate in Malaysia market, if the unemployment rate in Malaysia market is higher, the insufficient demand on Taco bell product will occur. So, Yum! Brands must consider that the unemployment rate in Malaysia can will be increase or decrease. Other than that, from the open up Taco Bell outlet in the Malaysia market, it will provide the employment opportunities to the Malaysian people. So, at the same time, the unemployment rate in Malaysia can be reduce. Yum! brands also needs to consider with the economic growth in Malaysia. Economic growth is the process by which a nation's wealth increases over time. Yum! brands will expect that, when the economic growth in Malaysia increase the demand on the Taco Bell product will increase. Yum! Brands must take grab the chance during the economic growth in Malaysia increase. This is because at that time people will have money to spend out. Yum! Brands must make some big promotion to attract and influence the target customer to come and buy he foods.
Another macro environment that Yum! brands needs to consider is social factor. Yum! brands must know the social factors in Malaysia market.
‘Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. For example, an ageing population may imply a smaller and less-willing workforce (thus increasing the cost of labor). Furthermore, companies may change various management strategies to adapt to these social trends (such as recruiting older workers).’ (http://en.wikipedia.org/wiki/PEST_analysis)
Yum! Brands must know that the social factors will affect the company’s product and Taco Bell operating. So, Yum! Brands needs to arrange the management strategy to adapt the social factor in Malaysia. Yum! brands must know the cultural aspect in Malaysia. In Malaysia cultural have Malay, Indian and Chinese. Mostly are Muslim, but also including a mix of Buddhist, Christian, Hindu, and other traditional Chinese religions. Yum! brands must know that, Taco Bell must sell their food with the permitted or recognized by Muslim law and obtain the Malaysian Halal Certification from JAKIM (Jabatan Kemajuan Islam Malaysia). So, that the Muslim in Malaysia will convince to eat at the Taco Bell. Yum! Brands must know that to get the certification from JAKIM, Yum! Brands must ensure that Taco Bell are not produce and selling their product that have the pork meat and also selling the alcoholic drink. Yum! Brands also must consider that, Indian in Malaysia do not eat beef and some of them are vegetarians. So, Yum! Brands must prepare the food that suitable for Indian in Malaysia. Yum! Brands must use other meat such as chicken, seafood, lamb that can be eat by Indian in Malaysia. Other than that, Yum! Brands also can produce the vegetarian foods that are suitable for Indian in Malaysia by producing the vegetarian foods with the curry flavor. This is because Indian in Malaysia very like to eat curry, curry is a part of their life.
The last factors in macro environment that Yum! Brands needs to consider is technology. Yum! Brands must know the level technology achievement in Malaysia. So, that Yum! brands can know what types of technology in the Malaysia market such as by the credit card in payment, online ordering via internet, ordering service by telephone, email and fax. So that, Yum! Brands can apply all this ordering technology such as ordering via online, telephone, email and fax at the Taco Bell restaurant because Malaysian knows how to use all these ordering process. This ordering technology will make the ordering process at the Taco Bell become more effective and efficient. Other than that, Yum! Brands can bring the new technologies in Malaysia markets that can create new products and new processes. But Yum! Brands must ensure that the technology can be use and suitable to use in Malaysia market and the level Malaysia’s technology can adapt that new technology.
So as the conclusion, if the yum! Brands open up Taco Bell in Malaysia market, the affect that Malaysia will get is government will get the benefits (income) from it through the taxation on the Taco Bell. If Taco Bell open up in Malaysia, they will provide jobs to the Malaysian people, either in the Taco Bell department or restaurants. Other than that, Malaysian people also can become the franchisees of the Taco Bell restaurants.