GLOBAL MARKETING

Global Marketing

Global Marketing

Part 1

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Report on: Starbucks in China

Critical Evaluation of the Global Macro environment Variables

Global macroeconomic environment refers to the overall international conditions that are prevalent for businesses. The concept of Globalisation refers to the growing interdependence of countries worldwide through increased trade, increased capital flows and the rapid diffusion of technology (www.imf.org, 2013). The most popular and widely used assessment tool is known as the PESTLE analysis. The factors analysed through these tools include political, economic, social, technological, legal and ecological/environmental.

PESTLE Analysis of Starbucks

When a multinational organisation such as Starbucks operates in another country, there are various factors which need to be analysed if the operations are to be made successful. All the four five of PESLTE Analysis will be discussed in the following paragraph that includes Political, Economical, Social, Technological, Legal and Ethical.

Political

In a PESTLE analysis, the most dynamic factor is the political. The political environment is different for each country. For instance, if there happens to be a liberal government in place which promotes business-friendly and economic liberalisation policies, it may find itself unable to complete its term if conservative parties rally and exert political pressure under the slogan of nationalisation. If Starbucks is to face such a situation, it may find itself in a difficult position to formulate a durable and sustainable long term strategy.

Economical

Economic factor is another significant feature of the PESTLE. If the economic policies of the government are not stable, it is highly probable that a business of the likes of Starbucks would fail to function in that particular country. Starbucks would easily survive under the economic liberalisation policy.

Social

An analysis of the factors of social issues is another pertinent area. People find it difficult to spend leisure time with their families as there are less for decent place of gatherings. Starbucks provides an ideal solution for these issues.

Conclusion

PESTLE Analysis is a mandatory requirement when it comes to assessment and analysis of the external environment of any country where the company desires to operate. It is only after a thorough assessment that a company should decide whether to move forward with investment or not.

Recommendations

Companies need to strike a deal with government or make their policy preferences known to them. This can be done in a number of ways:

Multinational companies such as Starbucks should negotiate their terms for investment. These can include export, taxation and finance agreements.

Multinational companies should lobby with the government so that the situation can be manipulated into their advantage. Multinational can warn of investment withdrawal if their conditions are not being met.

Part 2

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Report on: Hofstede's Cultural dimension factors

Critical Discussion of the Culture

Hofstede's cultural model analyses the role of national norms and culture in an organisation after an investigation on a large scale regarding the cultural attitudes of the IBM employees in the 1960s and 70s. Hofstede had identified and categorised a number of factors that formed cross-cultural differences in beliefs and ...