...areas from the economic, social, political and legal environments, analyse the key forces and trends that have taken place within these two environmental areas over the past decade. Introduction Marketing concept as outlined by Kotler and Levy (1969), is perceived by most as an undertaking to find and stimulate buyers to achieve a firm’s goals. The process entails product development, pricing, distribution, communication as well as continuous attention to the changing needs of the customers, and the development of new products to meet these needs. The implication of this change is that an organization is inevitably influenced by, and has to react to what happens outside the business. There are several external environments that may impact an organization, including economic, social, political and legal factors. Organizations utilize environmental scanning processes to focus on identification of emerging issues, situations and potential pitfalls that may affect an organization’s future (Albright, 2004). Analysis of the economic environment The economic environment is very dynamic and complex in nature and is influenced by the purchasing power and spending patterns of consumers. The economic environment is also shaped by rates of unemployment, inflation, gross national product, trade cycles, economic resources and exchange rates. Information relating to economic trends or forces can enable organizations to prepare for changes in these and adjust marketing activity...
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...a reliable strategy. The political aspect of this tool considers the possible political influence on the strategy pursued by the organisation. For Ryanair this aspect has represented a considerable advantage, in that the European Union is a completely stable political region and the EU integration has allowed the carrier to expand its activity and routes. On the other hand of it, the airline is affected by the decisions posed by other political organisations like the OPEC, the organisation that unite the oil producer countries and that decide on the oil costs, determining its output quantity, distribution and global supply chain. The incredibly high cost of fuel has strongly affected Ryanair revenues, showing how the industry is particular sensitive to oil cost fluctuation. The social environment is currently mainly characterised by demographic trends, particularly the ageing population and by changing consumers preferences, which are quite difficult to predict and are very much linked to the price of the service. The ageing population factor is likely to impact the travel industry in the next decade and to cause a shift in land transport, easier to access, to use and allowing movements from and to central town/city areas. Another uncanny social trend is represented by the tendency to the “cocoon effect” every time a terrorism act is carried out, people, following events like these, prefer to avoid travelling and stay home. On the other hand of it, it is very likely that...
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...political, legal, social factors are impacting upon the business activities of the selected organisations and their stakeholders: Sports Direct Political How the local, national, and international developments could affect the organisation and in what ways this could happen. Economical Nationally and internationally environmental issues that could affect the organisation Social Social and developing trends that an organisation might use or operate for future planning. Technological The various types of new technology can put impact on a competitive advantage with other organisations. Political factors These political factors are laws and regulations that are made by the government that could affect the business (legislations.) Many types of businesses and organisations can be affected by these laws. Political factors can cover a number of things from both national and international laws (European Union) e.g. employment of people within UK (Sports Direct-working permit), environmental issues such as Sports Direct - insuring that their products are recyclable and government e.g. taxation. Economical factors The economy plays a huge effect on businesses for example if the consumer spends more at Sports Direct then the business will attentively receive more revenue (income.) If the government raise taxes this then raises the costs of the business and could therefore affect what people buy, what the business sells and how much they sell it for e.g. Sports Direct...
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...Introduction In this task I will describe how political, legal and social factors are impacting upon BMW’s (A profit making business) activities and their stakeholders. I will also examine how political, legal and social factors have impacted on BMW in the UK and China. BMW BMW group has luxury brands ranges MINI, Rolls-Royce and BMW it's a really popular cars so they are the main strengths of BMW. Their present positions in market are very renounced and faithful so company turnover and trading profit growth are additionally high. They are a reliable brand. BMW has a new technology and world’s leading premium quality of automobile manufacturer so it's create good reputation of all the customer and company profit are high. Political Factors The primary thing to perceive is that political variables factors an external constraint on a business, which simply implies that the political factors that influence a business are frequently totally out of the organization's control. In this time plan, Gordon Brown penalize drivers of the echo-accommodating vehicles. In moved he declared that substantial contaminating cars would be higher rate of road tax £210 a year. So its means BMW needs to develop their car petrol motor so it’s performed longer and additionally last more life worth. BMW needs to constantly be watchful about dispatching new vehicles and give the correct safety supplies on it. Case in point BMW produce one of their auto with no air bags that could be illicit so all...
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...intellectual achievement. Culture is like mental software and it has been defined as “the collective programming of the mind that distinguishes the members of one group or category of people from others” Geert Hofstede, (2009). Culture diversity and multiculturalism are the problems faced by business firms who tried to do business globally. Cultural diversity related to variety of human societies like dress, language, traditions and cultures on a particular region or particular part of the world or as a whole, while multiculturalism with organizational promotion of multiple cultures. Multiple cultures mean giving respect to different types of culture at same time. All the aspects regarding the culture have to be considered when a concern is going to launch its products globally. So in the case of international business, understanding culture of different countries is important because then only a company can put forward its globalization strategies, marketing strategies as well as organization structure. Without proper foundation a company can’t keep moving globally and launch products since cultural world operates in its own internal dynamic, its own principles and its own law-written and unwritten. Understand words, material things and behaviour since culture is communication. Understanding the VINEETH KAKKANATTU AYYAPPAN: 000697414 4 cultural differences is not an easy purpose because each country has its own hidden code of behaviour since it is a unified entity...
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...challenges that could be faced in the future. There are five environmental forces within the current economy that effect an environment scan, those forces are social forces, economics, technology, competitive, and regulatory forces. Below is a brief overview of how each force can impact the completion of an environmental scan. Social An environment scan is dependent on many things to ensure proper predictions of trends. Environmental forces are constantly changing, environmental scanning is “the process of acquiring information about these changes to allow marketers to identify and interpret trends” (Kerin, Hartley, & Rudelius, 2010, p. 74). Social trends include many factors, such as age, gender, ethnicity, culture, and occupation. Social trends can also be evaluated through three distinct cohorts, the baby boomers, generation X and generation Y. Demographic and gender preferences can also impact the completion of a environmental scan such as the population in an target market. Each of these identifiers assists in discovering and interpreting trends when performing an environment scan. As the Baby boomers leave the work force and enter retirement it shifts the social forces which could be a factor prohibiting the completion of an environmental scan. Economic Factors Expectations of the consumers as well as their spending habits help to determine the outcome of an environmental...
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...any other source available), carry out for the European brewing industry a PESTEL analysis. What do you conclude? Beer has been a part of the social fabric of cultures around the world for thousands of years. Even today beer ranks as the third most popular beverage in the world next to water and tea. Considered one of the oldest drinks, the origin of beer dates back to 6000 B.C. With low-cost strategies and lack of marketing and product innovations all created a very stable situation guaranteeing high returns on investments for most breweries in Europe. However, this situation has been changing dramatically and the industry has witnessed different brewing styles over the last decade. The market entry of large multinational breweries resulted in shrinking demand due to changing consumer preferences, the emergence of more aggressive competitive strategies and rapid changes in important distribution channels have created growing competitive pressures for European breweries. An industry that was used to stability must now find its way in an increasingly turbulent market environment. First of all, I need to evaluate the macro environment of the industry. The most suitable tool to analyze the broad macro-environment is the PESTEL analysis. In the PESTEL analysis environmental influences are categorized into political, economical, social, technological, environmental/ecological and legal aspects. It helps to identify how future trends might influence an organization and furthermore...
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...Business Research Report Entering the European Market Table of Contents Executive Summary 3 Introduction 4 Research Findings 4 Customs and Business Etiquette 4 European Law and Finance 5 Researching a Foreign Market 7 Recommendations 8 Conclusion 9 References 10 Executive Summary Expanding a business poses certain risks, and entering a foreign market can be additionally challenging. This report serves to guide foreign expansion in Europe by listing the main areas to be focused on, and recommendations for how to meet these specific needs in order to succeed in international ventures. Learning the customs and idiosyncrasies of the regions where the new business venture is planned is vitally important in order to penetrate the market. Understanding that good business practices can differ in other parts of the world, and applying best practices in all areas of business will create successful partnerships and customer bases. Applying foreign law is likewise important, as failure to comply with regulations where business is conducted can result in sanctions, fines, and have a generally negative overall impact on operations. Europe in particular has certain advantages of standardized laws that are applied throughout all European Union members, 27 countries in all. Thorough research of an organizations chosen market is another key stage to mitigate the risks of entering a foreign market. Through the use of focus groups and in-house research a...
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...Student Name : Victor Belinschi Student Number: 10022233 Course Title: MBA in Business Management Lecturer Name: Dr. PJ Paul Module/Subject Title: International Management Assignment Title: PESTEL Analysis Nr. of Words: 3231 (Excluding References) I have chosen to write a PESTEL analysis for LIDL (the food retailer from Europe) in the context of a potential expansion to Moldova, my home country. This particular industry was chosen because there are no major food retailers in our country besides the Metro Cash & Carry. Therefore, our market is relatively young and with potential to grow. Political Factor The Republic of Moldova is a relatively young country as it gained its independence in 1990 when the USSR had collapsed. From that year on, the Moldavian people have struggled to install democracy. Until 2000 Moldova has been governed by democratic forces and has already achieved some progress in installing a fair and efficient legal system. Unfortunately for many persons, the elections of 2000 have identified the Communist party as the winner. The Communists have governed the country until 2008 when they have lost the elections in favour of the three democratic parties: Liber Party, Liberal-Democratic Party and the Democratic Party. However, the disparity of votes between the opposition and the winning forces was relatively insignificant and in order to have a consolidated majority in the Parliament and to be able to efficiently adopt legislation, the...
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...: PESTEL Analysis china 1. Political Factors The Chinese government is still under its communist regime. Nevertheless, current trends in the trade and investment legislations of the state reveal the opportunity for foreign companies. One development in the regime indicated the decentralization of the decision making processes with regards to trade and investment. (2000) This gives a certain level of latitude for the foreign trade companies in China making the economic decision to expand their profit. A feature of this endeavour would be the proliferation of joint ventures in the country. Another reform that made China more accessible to foreign companies is the encouragement of foreign direct investment. (2000) This brought about net capital inflows and a sizable build-up of foreign exchange reserves which in turn assisted in the development of Chinese provinces like Fujian, Guangdong, Taiwan and Hong Kong. 2. Economic Factors The Chinese government is a signatory of the WTO agreements which mean their economic policies are converted to suit the agreements of free trade as espoused by the WTO. This presents an advantage to foreign companies in entering the market of China. However, having just recently signed the agreement and having a considerable amount of time trading internationally with serious restrictions and trade barriers, there are still drawbacks that may pose a problem for these foreign firms. These include what (2003) indicated as institutional problems...
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...Bobmarlay Brewing Company | MARKETING PLAN | | The rationale of BBC marketing plan is to serve as a quick blueprint towards, achieving our objectives. | | Presented by: A Group of Northern Caribbean University Students | 6/24/2013 | | NORTHERN CARIBBEAN UNIVERSITY College of Business & Hospitality Management Department of Professional & Continuing Education Salem Runaway Bay Campus Presented in partial fulfillment of the course MKTG490: Strategic Marketing Assignment Facilitator From: Date June 24, 2013 Lot # 2 Main Street Ocho Rios St Ann Tel. 1876 Website: www.bobmarlay.com Email: Sales@bobmarlay.com customerservice@bobmarlay.com TABLE OF CONTENTS PAGES Company Overview 6 Executive Summary 6-7 Marketing Strategy 7 Mission 7 Marketing Objectives 8 Marketing Mix ...
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...the worldrenowned Spanish brand “Orbea” bikes and their own design bike models, which are manufactured in China under the firm’s brand-name and sold in the Asia Pacific region. During 2008-11, the firm doubled its sales, even though the global financial crisis had dramatically eroded consumer purchasing power. Vincent Hong, the 25 year old owner of the business, learned from reading a popular magazine (Business Review Weekly) that much of the firm’s recent success may be attributable to cycling becoming a trendy and popular sport in Australia. Browsing the Internet, he decided to briefly cross-check the article with the Retail Cycle Traders Australia Website (RCTA, 2008), from which he found that the trend has continued for at least a decade and that: “Bicycle sales in Australia averaged 795,000 per year for the four years 1998-2001. In the four years since then, bike sales averaged 1,133,000 per year. By comparison, car sales have never reached one million in a year”. This information raised 1 Vincent’s interest in researching the trend further. Perhaps, the car dealer next to his store may cast more light on the trend, he thought. Discussions with the car dealer confirmed the website...
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...Bobmarlay Brewing Company | MARKETING PLAN | | The rationale of BBC marketing plan is to serve as a quick blueprint towards, achieving our objectives. | | Presented by: A Group of Northern Caribbean University Students | 6/24/2013 | | NORTHERN CARIBBEAN UNIVERSITY College of Business & Hospitality Management Department of Professional & Continuing Education Salem Runaway Bay Campus Presented in partial fulfillment of the course MKTG490: Strategic Marketing Assignment Facilitator From: Date June 24, 2013 Lot # 2 Main Street Ocho Rios St Ann Tel. 1876 Website: www.bobmarlay.com Email: Sales@bobmarlay.com customerservice@bobmarlay.com TABLE OF CONTENTS PAGES Company Overview 6 Executive Summary 6-7 Marketing Strategy 7 Mission 7 Marketing Objectives 8 Marketing Mix ...
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...3.1: Explain how market structures determine the pricing and output decisions of businesses? How market structures determine the pricing and output decisions of Ollo: Firms’ pricing and output decisions depend onbarriers to entry and the behaviour of competitors.The actions of one’s competitors can easily influence the behaviour of afirm.This is proper for an oligopolistic industry whereby firms display mutual interdependence.Ollo is an oligopolistic business with Banglalion & Qubee as their major competitors.If Ollo sets a price higher than that charged by others, the company can expect to lose a lotof sales.Moreover, there are some barriers of entry Ollo must consider before expanding theirbusiness.Barriers to entry are obstacles that deter new firms from entering a market to compete withthe existing firms. They give firms a degree of market power such that decisions can bemade by existing firms without risking their market share.The most common types of barriers to entry are as follows: 1. Availability of key resources. 2. Government restrictions & legal barriers. 3. Exclusive rights & patents. 4. Initial capital cost. We must keep in mind that, the degree of barriers of entry can determine firms ‘pricing decisions. The wireless industry requires a big sum of capital and it uses mobile data network as its main resource.Ollo had to put down a lot of money just to enter this market still they must consider thefact that their competitor Banglalion...
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...risk assessment. Any organization contemplating a business venture into a foreign country could encounter multiple risks. Therefore, prior to embarking on an international expansion, extensive, in-depth research of the target country is a necessity for success in the foreign marketplace. Team A will conduct a risk analysis of Moldova and its winery production and analyze all aspects of risk involved from entry to an exit plan. This paper will also describe the market risks and include a SWOTT analysis of the country. Political, Legal, and Regulatory Risks BDSD will encounter several risks when entering Moldova on a business level. A political risk is the current inability of the country’s parliament to elect a president. The country, divided over the election of leaders, disenchanted with the current leadership, and facing ongoing power struggles with neighboring countries has caused political deadlock. In addition, Moldova faces internal uprisings and tense relations with other nations in the region. If the country does not elect a president this year then the Moldovan Constitution calls for the dissolution of parliament. Dissolving parliament could have the potential to cause an uprising of the population creating an uncertain political forecast for the country (BBC News 2011). The legal risks of entering Moldova include financial, security, and the success of the BDSD Company’s relationship with the Moldova business partners. BDSD’s legal counsel will identify the...
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