Environmental Factors Essay

1564 words - 7 pages

Environmental Factors
The intent of this paper is to examine the environmental factors that affect global and domestic marketing decisions at PepsiCo and any company that operates in both domestic and global environments. Environmental factors such as economic interdependence, demographics, infrastructure, cultural conflicts, technology, social responsibility, political systems, and laws, such as The Foreign Corrupt Practices Act influence marketing strategy. The intent of this paper is to show how PepsiCo adapts its marketing strategy for global operations at its company.
Economic Interdependence
Global economic interdependence creates partnerships among businesses and is an ...view middle of the document...

Gathering this information for global business pursuits presents complications because of differences in cultures, language barriers, and laws that restrict some common market research practices. This information is necessary to avoid costly mistakes when identifying and marketing a product to an incompatible segment.
A country or nations infrastructure impacts the channels of distribution. It includes communications, transportation, facilities, and technology. An important environmental factor, physical infrastructure must undergo evaluation for feasibility of facilitating trade and marketing opportunities for economic growth.
Cultural Differences
“Companies that ignore cultural norms and differences can make some very expensive and embarrassing mistakes” (Marketing: An Introduction, p. 487). PepsiCo has adapted successfully to the local cultural values in the global economy without compromising its brand and image.
Businesses sometimes ignore an adverse effect of globalization that weakens some cultures. In an attempt to market American products, some cultures are inadvertently Americanized. Many people may believe that globalization causes some countries to lose its uniqueness and distinctiveness because of the marketing production and sale of the same products and services worldwide (Hitt, Miller & Colella, 2006, p. 87), but globalization provides worldwide economic growth.
Culture does play an important part in advertising. In addition, a lack of knowledge about a target country's language can cause problems also. Advertising slogans when not tested for transliteration can sometimes affect the outcome of an advertising campaign. Pepsi's "Come alive with the Pepsi Generation" translated into "Pepsi brings your ancestors back from the grave," in Chinese (Huggins, 2001). This is an example of how cultural differences cause barriers in advertising in the foreign market.
Social Responsibility
PepsiCo has made a promise to its consumers to be socially responsible by producing healthier products and becoming more environmentally conscience. New product lines are in development to encourage individuals to make smarter health and lifestyle choices. In addition to its vision for creating healthier products, PepsiCo deals with issues of business ethics and diversity at many levels. Understanding diversity is important to PepsiCo because they realize how employing people of various races, catering toward the needs and wants of diverse groups as well as doing business with vendors with multiple ethnicities gives them a competitive advantage.
Laws and Ethics
A good marketing strategy is socially conscience, ethical, and incorporates the laws of the domestic and foreign country where business is being conducted. While some unethical practices are completely legal, it is up to the operating company to make an effort to participate in ethical decision making while conducting business. For example, it is legal for under age children to...

Other Papers Like Environmental Factors

Environmental Factors Essay

1500 words - 6 pages Environmental Factors The global market has made a significant increase over the last two decades. More companies are making the step into the international market. Though risks are associated with this opportunity, the rewards can surpass the risks that are associated with it. When a company decides to join the international market there are many things that they need to keep in mind, including their marketing strategy and the environmental

Environmental Factors Essay

1257 words - 6 pages Environmental Factors Kelloggs cereal was started in 1906 by W. K. Kelloggs (Kelloggs, 2012). W. K. Kelloggs goal was to supply people with healthy breakfast cereal. Since the startup of Kelloggs, the company has grown and is known globally. Kelloggs is known in more than 180 countries and has nearly 13 billion in sales since 1997 (Kelloggs, 2012). To understand how Kelloggs has expanded its operation globally the factors of trade practices

Environmental Factors

1192 words - 5 pages Environmental Factors Paper Student Name MKT/421 June 10, 2014 Instructor Name Environmental Factors Paper Invented in 1886 by Dr. John S. Pemberton, an Atlanta pharmacist, Coca-Cola went on to become the world’s #1 selling sparkling beverage. Frank Robinson, who was Dr. Pemberton’s partner and bookkeeper, named the new beverage and designed the distinctive lettering which is still in use ("Coca-Cola History", n.d.). In 1916, it was

Tesco Macro Environmental Factors

2176 words - 9 pages Macro Environmental effects on TESCO Marketing Decision Making As macro environmental factors always effect the development and planning of every business, same as Tesco also has or will have some influences of macro environmental factors towards its marketing decision-making. Socio Culture Environmental Factors Demographic Changes Demographics are the study of the measurable aspects of population structure and profiles, including factors

Environmental Factors Paper

1649 words - 7 pages Environmental Factors Paper Ashley C MKT/421 February 24, 2012 Gary White Environmental Factors Paper Wal-Mart is one of the world’s largest retail stores across the nation. They are the leaders in employment opportunity, sustainability, and corporate

Micro and Macro Environmental Factors of Stacrbucks

5882 words - 24 pages UNIVERSITY OF KARACHI KARACHI (EXAMINATIONS DEPARTMENT) Candidates bearing the following seat numbers are hereby declared to have Passed B.A. Part- II & Both Parts (External) Annual Examination 2009. Positions in order of merit as per rules. Seat Nos. 115285 Name Father’s Name MUJEEB -UR-REHMAN S/O SYED ABDUL KLARIM SHAH ZEESHAN KHAN S/O FREZAM KHAN MUHAMMAD IKHLAQ S/O NOOR AHMAD Marks Obtained 775/1000 Position Stands First 115785

Naomi Project Analyze A Selected Organization’S Environmental Factors (Legal, Social And Economic). Discuss The Operational, Managerial And Financial Issues. Provide A Discussion On The Impact Of...

1765 words - 8 pages Naomi Project BUSN300: Lower Division Capstone American InterContinental University Dolce & Gabbana is a legendary company doing business with expensive perfumes and fashions. Companies like this can keep this status by knowing how to adjust to the economic and social environment. These companies are hasty in resolving any issues that steam from a number of things such as operational, financial, or managerial areas. This paper will be

Hsm Checkpoint 2

280 words - 2 pages Week Two: Checkpoint – Environmental Factors In order for an organization to achieve optimal function, they want to make the most of their surrounds and environments. Four external environmental factors are the economy, the government, the legal aspects and technological advances that are being made. The six internal environmental factors are the employees, distributors, shareholders, suppliers, partners and labor supply. All of these

Environmental Psychology

1414 words - 6 pages Psychology, 2004). Different factors have evolved to produce the concerns that are important to environmental psychologists today. One related aspect that environmental psychology focuses on is attention of physical characteristics of the environment in which human behavior occurs. Another aspect of environmental psychology is its relationship between other fields of environmental study. Also, environmental psychology has adopted a wide variety of

Crime Prevention Through Environmental Design

321 words - 2 pages there were many factors involved in the process. The factor covered in the following paragraphs is human environment relationships. Human Environment Relationships There are a few aspects that make up the environment that in return correlates human behavior. These aspects are environmental cues, territory, landscape, and visual bubbles. By compiling an analysis of these different relations, criminal justice professionals are able to better solve

Environmental Essay

633 words - 3 pages environmental force. I will discuss how the current state of the economy will impact completing an environmental scan. In order to evaluate how the economy will impact the completion of an environmental scan, it is essential to cover the concerns that affect the economic aspect whether people want to believe it or not. The first concern is the macroeconomic level or factors which cannot be controlled. Leo Sun describes macroeconomic factors as national

Related Essays

Environmental Factors Essay 1162 Words

1162 words - 5 pages Environmental Factors University of Phoenix MKT 421 Environmental factors can influence the decisions that are made in the domestic and global market. Concern for these environmental factors that influence the marketing decisions is essential for organizations that have businesses within the global market that set goals to please its customers. It is a good idea to have a detailed analysis of the target market to see the vision of a

Environmental Factors Essay 1563 Words

1563 words - 7 pages ENVIRONMENTAL FACTORS your name Class Date Instructor ENVIRONMENTAL FACTORS Environmental Factors on Marketing Decisions of Costco Wholesale Corporation Environmental factors are made up of all the factors and activities that have a significant effect on managing a business. These factors have a strong influence on operating any business, particularly in marketing options (Pagell & Halperin, 2000). Environmental factors

Environmental Factors Essay 1158 Words

1158 words - 5 pages Environmental Factors The company chosen for analysis in this paper is Johnson & Johnson (J&J). J&J was founded in 1886 in New Brunswick, New Jersey. Over the years they have grown into a world-wide company with several divisions and thousands of employees. This paper will attempt to analyze how various environmental factors affect global and marketing decisions of this leader in the healthcare industry. Economic interdependence and trade

Environmental Factors Essay 1122 Words

1122 words - 5 pages Environmental Factors Paper In businesses today marketing professionals are not only concerned about the marketing mix, marketing plans or targeting the right consumers, but also the rapid changes in global society. This paper will discuss Wal-Mart and describe the high-level domestic and global environmental factors that may impact the organization's marketing decisions. The discussion will also explain how Wal-Mart’s marketing