Essay about Macro-Environmental

3343 Words Jul 22nd, 2010 14 Pages
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 …show more content…
PepsiCo is a world leader in convenient foods and beverages, with 2006 revenues of more than $35 billion and 168,000 employees. PepsiCo presence in China dates back to the earlier days of the nation's reforms. In 1981, Pepsi-Cola became one of the first American investors in China by signing an agreement with the Chinese government to build a bottling plant in Shenzhen. To date, PepsiCo has established more than 40 joint or wholly owned ventures in China with a total investment over US$1 billion, directly employing 10,000 staff” (Official website of PepsiCo). 3.0Macro-environment Impact on Marketing Activities of PepsiCoIn analyzing the macro-environment, it is important to identify the factors that might in turn affect a number of vital variables that are likely to influence the organization’s supply and demand levels and its costs. A PEST analysis is one of them that is merely a framework that categorizes environmental influences as political/legal, economic, social/cultural and technological forces. Such external factors usually are beyond the firm's control and sometimes present themselves as threats. Use PEST tool to analysis macro-environment influence on PepsiCo in China is necessary. •The political-legal environmentBefore you play the game, learn the rules. Some businesspeople exhibit a remarkable lack of knowledge about marketing’s political-legal environment. Ignorance of or noncompliance with laws, ordinances, and regulations can

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