MKC1 Study Plan
Analyzing the Environment-Ch. 2
1. What different levels of planning can organizations utilize? Organizations can utilize the following levels of planning; corporate level, business level, and functional level. 2. Give an example of and explain how a corporation that wants to help protect the environment can do so at its corporate, business, and functional levels. An example of a corporation wanting to help protect the environment while utilizing the following levels; corporate, business, and functional level would be the following. Pepsi Co has embraced this procedure in the past. The business level consists of identifying the business units. Pepsi Beverages which contain Pepsi Soft Drinks, Aquafina Waters, Tropicana Juices, and Gatorade Products. Pepsi Co American Foods which contain Frito Lay and Quaker Oat Products. Pepsi Co International which contains Pepsi Co.’s business in Asia, Africa, Europe, and Australia. To support Pepsi Co.’s overall strategy all three business units must develop strategic plans to profitably produce offerings while demonstrating that they are committed to society and the environment. The functional level consists of employees being responsible for different products or product categories such as beverages and foods. They may focus on developing healthier products and make their packages more environmentally friendly. For example, Aquafina is now using bottles which contain less plastic and have smaller labels. This reduces waste and helps the environment. The corporate level consists of decision making regarding whether a company will be an innovator or a follower. Innovators use first mover strategy and followers use second mover strategy. Their decision will be based on what is best for the company and the environment. 3. What factors in the external environment are affecting the “Big Three” U.S. automobile manufacturers? The three factors that played a role in the catastrophe of the “Big Three” were inflation, unemployment, and recession. 4. What are some examples of Wal-Mart’s strengths?
One of the main examples of Wal-Mart’s strengths is buying power. Firms that do business with Wal-Mart must be prepared to make concessions to them if they want their products on the company’s store shelves. Another example is that Wal-Mart has the capability of offering very similar products for a much lower rate. 5. Suppose you work for a major hotel chain. Using Porter’s five forces model, explain what you need to consider with regard to each force. The hotel chain business needs to consider the following regarding Porter’s five forces model; hotels, bed and breakfasts, dorms, and rental homes. Competition is a key factor to success or failure. 6. Why is competition important to maintain in an industry?
Competition insures that the consumer gets the best product at the best rate. 7. Which factors are parts of the economic environment?
Factors of the economic environment are as follows; employment, unemployment, inflation, recession, interest rates, and cost of living. 8. Which economic factors affect consumer buying power?
The factors that affect consumer buying power are as follows; prices, wages, employment, currency considerations, and availability of credit. 9. What are some examples of social-culture influences on marketing decisions? A few examples of social-culture influence on marketing decisions are family, social roles/status, and geographies. 10. What is environmental scanning?
Environmental scanning is careful monitoring of organizations internal and external environments for detecting early signs of opportunities and threats that may influence its current and future plans. 11. What is the difference between direct and indirect competition? Direct competition in a marketing situation is two or more firms trying to sell the same good, or service. Indirect competition are those firms that offer an alternative or similar good, or service that...
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