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Chapter 4: Exploring The External Environment: Mac Essay

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Below is an essay on "Chapter 4: Exploring The External Environment: Mac" from Anti Essays, your source for research papers, essays, and term paper examples.

 PESTEL Analysis
 Analytical tool which can be used to develop an understanding of the big picture of a firm’s external environment.
 POLITICAL factors: has a significant influence on business as well as consumer confidence.
• Entering new markets
• Stability of the political environment
• Governmental policies with respect to regulations and taxation
• Trade treaties
 Some countries are more or less favored
 ECONOMIC factors: both short and long term effects on the success of the strategies used by managers.
• Entering new markets
• Inflation rates
• Interest rates
• Tariff
• Growth of economies of scale (national & foreign)
• Exchange rates
• Unemployment rates
• Availability and cost of labor
 SOCIO-CULTURAL factors: varies from country to country
• Local languages
• Dominant religions
• Leisure time
• Age and lifespan of demographics
• Attitudes towards consumerism
• Coke & Pepsi have grown in international markets due to increasing levels of consumerism
 TECHNOLOGICAL factors: have major bearings on the threats & opportunities
• Does technology enable products to be produced more cheaply while maintaining quality.
 ENVIRONMENTAL factors: direct and indirect operating costs for firms
• Access to raw materials
• Footprint
• For Pepsi this means, waste management and organic farming practices in the countries from which raw materials are obtained.
 Pepsi was charged by villagers in India for consuming too much water in “parched” communities.
 LEGAL factors: go hand in hand with POLITCAL factors
• Whether the rule of law is well established
• How easily and quickly laws and regulations may change’
• Cost of regulatory compliance
• Coke’s market share in Europe is greater than 50%, as a result, regulators have asked Coke to give up shelf space to competitors in order to provide the consumers with more choices.
 Globalization
 Evolution of distinct geographic product markets into a state of globally...

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"Chapter 4: Exploring The External Environment: Mac". Anti Essays. 9 Dec. 2018

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Chapter 4: Exploring The External Environment: Mac. Anti Essays. Retrieved December 9, 2018, from the World Wide Web: http://cassandralynndesignllc.com/free-essays/Chapter-4-Exploring-The-External-Environment-75645.html