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MKT 421 Week 5 Individual Assignment Environmental Factors Paper

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Environmental Factors 1
Environmental Factors
MKT/421 Marketing
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November 16, 2010

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Environmental Factors 2
Environmental Factors
Environmental Factors can affect businesses and have an impact on marketing decisions.
The organization that was chosen for the environmental factors paper was Coca-Cola. This
company’s major marketing decisions are impacted by environmental factors. This paper is
intended to address the forecasts of high level global and domestic environmental factors that
may impact the company’s marketing decisions and will also address the forecasts of
technological change that will affect the organizations marketing decisions. An analysis of the
influence of the Foreign Corrupt Practices Act will also be discussed. The paper will be
concluded with a summary that will analyze the importance of social responsibility and ethics
related to Coca-Cola’s market offerings.
The soft drink company greets its consumers with an attractive picture of a bottle of
Coca-Cola on the website. The first thing a person sees is a picture of a cool refreshing bottle of
Coca-Cola. The company demonstrates the ability to successfully trade products within the
global market while still satisfying customers domestically. Whether global or domestic, Coca-
Cola can be seen on every billboard restaurant ad, and in magazines nationwide. Despite the
company’s success, environmental factors still exist that could change the future of the company.
One article titled “The Beginning of Coca-Cola,” talks about how Coca-Cola began
marketing in China in 1927. In 1979, Coca-Cola plants were introduced to China again after a 30
year absence since 1930. One environmental factor that the company faced in China was sales.
The company found their products were more successful in smaller markets than in larger cities
and larger retail chains. To counteract on this factor, the company developed an aggressive
marketing campaign that involved new products which were geared towards the people of China.
The organization had to also consider the people of China did not consume as much soda as other

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Environmental Factors 3
people in other parts of the world. The company developed a solution. New products were
introduced that were specifically designed for China. These new products consisted of non-
carbonated beverages and fruit juices that were tailored to the Chinese taste (Shankar, Ormiston,
Bloch & Schaus, 2009). The article shows Coca-Cola was successful with the new products that
were introduced in China. Although the company must never take anything for granted, constant
research is needed to remain successful in the region.
Since the World Trade Organization of 1995, all member nations are obligated to regulate
imported goods with all provisions which must be adhered to for domestic production. All
countries now have equal opportunities to trade among themselves.
With competitors of Coca-Cola, other entities may be set up around the world that could
hurt the beverage giant. As Coca-Cola continues to expand its market, more countries are
becoming familiar with the company, and welcoming the organization and the products.
Distribution was another environmental factor that the company faced. Distributing to
some retailers required drivers to work longer hours to get the product to the correct destination.
Drivers had to travel on badly managed dirt roads which presented a challenge. Sales tracking
was also difficult. The organization hired sales representatives to monitor the amount of products
sold at different locations. Once the amounts were captured, the results were entered into a
database. The representatives had problems finding the locations because of poor geographical
locations and much of sales of products were not captured in the database (Shankar, Ormiston,
Bloch & Schaus, 2009).
Technological change can influence a business both domestically and globally. Changes
in technology are needed to remain a step ahead of the competitor and maintain an effective
financial status in the business world (Perreault & McCarthy, 2005). By developing new

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