ASSIGNMENT

Global Marketing Assignment



Introduction3

Discussion3

Company Overview3

Question1: Analysis and evaluation of the global macro environmental variables4

The Environmental Variables in PESTEL5

Recommendations5

Question 2: Impact of Culture on H&M6

Hofstede' cultural model6

Power Distance7

Individualism vs. Collectivism7

Masculine or Feminine Culture7

Uncertainty avoidance8

Long term orientation8

Impact of Cultural Factors on the marketing Mix 7P's8

Recommendations9

Question 3: Techniques for Identifying Market Potential10

References17

Global Marketing Assignment

Introduction

In today's world, businesses strive to expand by going international. Entrepreneurs want to explore new markets around the globe. It introduces them to new sets of opportunities in the global markets. The rationale for internationalisation can be the local market saturation. In order to capture new business opportunities, it is essential to consider a number of factors. These factors determine the success or failure for an international marketer.

In this assignment, the discussion analyses the global marketing considerations. The assignment has three questions. The chosen company is H&M. The first question illustrates the significance of macro-environmental variables for a business. The second part discusses the impact of culture in global marketing campaigns. The third section deals with assessing the market potential for H&M.

Discussion

Company Overview

H&M (Hennes & Mauritz AB) is a retailer of fashion clothing. It is a Swedish company which has around 3000 stores. The company has its operations in 53 markets of the world including Great Britain, and UAE. The company's global presence is evident through its large number of the employee base. H&M group employs around 104,000 employees in distinct locations. The company has huge stores showcasing & selling fashion clothing for women, men, teenage, & children. The stores sell fashion accessories like jewellery, bags, glasses, hats etc. H&M is expanding new market opportunities by extending its stores to distinct countries. The group has expansion plans in Hong Kong. In the following section, we analyse the macro environmental for H&M. It is essential to analyse how different factors impact the company's business on a foreign land.

Question1: Analysis and evaluation of the global macro environmental variables

In business dictionary, macro-environment relates to the external operating environment of a company. In other words, macro-environment illustrates a macro picture of the operational environment. Macro-environmental factors have a huge impact on company's business model & associated decisions. It affects the business performance of a company in terms of revenues & profits. Further, a company has to align its strategies in accordance with the macro-environmental factors. The purpose of macro-environmental analysis is to identify the consequences of their influence. In this way, a company can formulates strategy to pursue its business in an efficient manner.

Macro environment factors include demographics, economic conditions & policies, political situation, and many other environmental variables. PESTEL analysis assists in analysing the macro environment. PESTEL documents political, economic, social, technological, environmental, and legal factors. The analysis helps in decision making process for the branding & business strategies (Lorat, 2005, p.6).

Figure 1: PESTEL Analysis

The Environmental Variables in PESTEL

H&M is a clothing retailer. Therefore, the business is likely to be influenced by the social and environmental variables. Further, economic factors will also influence the business plans for ...