Macro-Environmental

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Executive SummaryThe macro-environment consists of larger societal forces that affect entire micro-environment. The six forces making up the company’s macro-environment include demographic, economic, natural, technological, political/legal, and social-cultural forces. Companies must constantly watch and adapt to the marketing environment in order to seek opportunities and ward off threats. “The marketing environment comprises all the actors and forces influencing the company’s ability to transact business effectively with its target market” (Armstrong and Kotler 2003, p.149). In this report, use PEST to analyze macro-environment forces how to impact on PepsiCo in China. As we know, the PepsiCo was the first U.S. company to distribute its products in China after China implement reform and opening up policy in 1979. Through many years business operation in China, the company fully understands their development worldwide must adapt China’s macro-environmental various forces and must put into practice their localization strategy “Think local, Act local”. In this report, by serious study and literature review, with refer to relevant books, journals, search information from internet. First, the company’s background is being showed. Followed by macro-environment impact on marketing activities of PepsiCo in China and macro-environment forces on PepsiCo’s marketing activities, finally, one conclusion is presented. Our conclusion that the best products and technology may fail to meet with acceptance in markets around the world because of lack of local macro-environmental awareness. Table of ContentsPageExecutive Summary 1Table of Contents 21.0 Introduction 32.0 Company Profile 43.0 Macroenvironment Impact on Marketing Activities of PepsiCo 44.0 Macro-environmentForces on PepsiCo’s Marketing Activities 75.0 Conclusion 12List of Reference 131.0IntroductionIn economic globalization, all companies must identify, analyze, and monitor external environmental forces and assess their current and potential impact on their business activities. Jobber (2001) stated clearly that macro-environment consist of a number of broader forces that affect not only the company but also other actors in the microenvironment. These can be grouped under demographic, economic, social-cultural, politicallegal, natural and technological forces. According to Kotler and Keller (2005), in the demographic environment, marketers must be aware of worldwide population growth, changing mixes of age, ethnic composition, educational levels and the move to micromarketing and away from mass marketing. In the economic arena, marketers need to focus on income distribution and levels of savings, debt, and credit availability. In the social-cultural arena, marketers must understand people’s views of themselves, organizations, society, nature and the universe. They must market products that correspond to society’s core and secondary values, and address the needs of different subcultures within a society. In the natural environment, marketers need to be aware of raw materials shortages, increased energy costs and pollution levels, and the changing role of governments in environmental protection. In the technological arena, marketers should take account of the accelerating pace of technological change for innovation, varying R&D budgets, and the increased governmental regulation brought about by technological change. Finally, in the political-legal environment, marketers must work within the many laws regulating business practices and with various special-interest groups. In this report, use PEST to analyze macro-environment forces how to impact on PepsiCo in China will be presented. Through many years business operation in China, the company understands their development worldwide must adapt Chinese macro-environmental various forces and must put into practice their localization strategy “Think local, Act local”. 2.0 Company Profile“PepsiCo was founded in 1965 through the merger of...
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