Pest Analysis Marketing

Topics: Japan, Potato chip, The World Factbook Pages: 6 (1591 words) Published: October 17, 2012

International Marketing

Part 2
Chosen market profile


Kate Steen – C08333301
DT 364-3

Declaration of Work

I declare that all the work included in this assignment has been completed by myself, as where referenced.


- Environmental analysis
- Consumer characteristics

Executive Summary

For the analysis of bringing Tayto into Japan I used A PEST Analysis.

PEST Analysis

Political Analysis

Role of the Government

Japan is a democratic country with a constitutional monarchy and parliamentary style government. The Emperor of Japan, Akihito, is a symbol of the state and unity of the people (CIA World Factbook-Japan, 2011). The Emperor has little power since the decision making process is adopted by the Prime Minister (Yoshihiko Noda) and his elected National Diet (CIA World Factbook-Japan, 20011). The Prime Minister is elected by the Emperor for the term of 4 years (MIEPA, 2009). However, due to the large amount of political turbulence, it is common to have an incomplete term. Yoshihiko Noda, became Japan’s sixth premier in five years in early September of this year. (The Irish Times 2011).This turbulence indicates that there is political instability that is unfavourable from an investing perspective. In fact, in 2009, there was a change in the leading governmental party. After 54 years of ruling, the Social Liberal Democratic Party has lost their power to the Conservative Democratic Party (MIEPA, 2009). This indicates that there will be profound changes in the conduct of Japanese politics. Since these changes are recent and currently unpredictable, Tayto should be wary of political instability if entering the market. According to the Corruption Perceptions Index in 2010, Japan is tied with the USA at 18th in the world. There has been a Political Funds Control Law implemented in order to decrease corruption. This intervention displays the efforts of the government to decrease corruption which makes it more favourable for Tayto from an investment perspective.

Legal System
The Japanese legal system is largely based on the Civil Law of Europe with English-American influence (MIEPA, 2009). Their law is based on a collection called the ‘Six Codes’ (MIEPA, 2009). • Their constitution encompasses equality and democracy which is similar to that of Irelands and thus is somewhat familiar to Tayto. • Japan also has many labour laws in place similar to those in Ireland that make the country a favourable place for investment in terms of being ethical (MIEPA, 2009).

Economic Analysis

Since World War II Japan has become the third largest economy in the world with a GDP of over $4.3 trillion US. Mainly due to Government-Industry co-operation, mastery of high technology, strong work ethic and only spending 1% of their GDP on defence - this allowed money to be spent elsewhere. These factors contributed to the growth that Japan experienced between 1960 and 1990 (MIEPA,2009). Soon after, the Asian Financial Crisis hit Japan hard as the debt to GDP ratio was horrific.

• In recent years, Japan’s growth has slowed down as 2008 marked a recession. This recession was a knock-on effect of the global financial crisis as business investment and the demand for Japan’s exports decreased. In an effort to stimulate the economy 0% interest rates were again adopted (CIA World fact book-Japan, 2011). • Imports soared 12.1 percent to 5.68 trillion yen, rising for 21 straight months mainly due to higher energy prices.

But the figure was 61.2 percent lower than the level seen last year, reflecting the severe damage done by the March earthquake and tsunami, particularly to the supply chain. (Trading Economics...

Bibliography: Central Intelligence Agency. (2011). The World Factbook. Available: Last accessed 14th Nov.
Jones, R. (2009). Business Etiquette. Available: Last accessed 14th Nov.
Mckeever, MP. (2009). Japan: Economic Policy Analysis. Available: Last accessed 14th Nov.
Reuters. (2011). Japan 's prime minister vows to curb debt,. Available:
Wikipedia. (2011). Shinto. Available: Last accessed 14th Nov.
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