GLOBAL MARKETING 11
Havinga global presence is an aspiration of different companies because ithelps in expanding the revenues of an entity, as well as the clientsthat would aid the organization to earn more revenues. Thus, as Mr.Bean seeks global expansion, it would be in a position to increasethe number of customers and the revenues that it would earn. TheUnited States and Asia offer an opportunity for the organization torealize its objectives since these markets are good in terms ofpositioning and clients (Callingham, 2014. P. 84). For instance, Asiais one of the places where there is a high population which can helpthe entity in making more resources. In its expansion plans, theorganization would need to analyze its macro environment, which wouldhelp in obtaining the real opportunities in the market. The purposeof this report is to analyze the macro environment of Mr. Bean andoffer recommendations for the company as it expands to the U.S. andAsian markets. The PESTEL framework will be used in discussing theeffects of macro-environmental factors on Mr. Bean.
PoliticalFactors Affecting Mr. Bean Success
Thepolitical climate of a country is essential to the operations ofbusiness. When there is peace in the society, entities have afavorable environment to undertake their daily transactions, whichenable them to achieve their targets. However, in situations ofpolitical turmoil, it is hard for businesses to carry out theiroperations a move that hinders the attainment of their objectives.Thus, a company is likely to be successful when there is stablepolitical setting. In Asia and the United States, where Mr. Beanplans to operate, there is stability in the political area, whichimplies that the situation is excellent for Mr. Bean to conductbusiness. However, the United States has a more stable politicalenvironment compared to Asia (The Economist Intelligence Unit, 2014).Nevertheless, with an election of a new president in the UnitedStates, there is likely to be a change in the policies in the foodindustry. This is because the new president may come up with newregulations that may affect the operations of Mr. Bean. Thus, theremay be new challenges in entering the U.S. market (Fusaro,2016 p.1).
Regulatory/LegalFactors Affecting Mr. Bean Success
Regulatoryfactors with respect to stern regulations in the food industry poseproblems to businesses that exist, as well as new entrants (Blick,2011. P. 83). At different levels, the governments have enacted lawsand continue to make others, which target at regulating operators inthe sector. As more consumers depend on food prepared out of theirhomes, food policies will continue to be strengthened and enforced.Reports indicate that stern laws in the food industry, in the recentyears, have made it hard for organizations to operate. Therefore, thelegal environment for the food industry is challenging, but it is notonly meant for Mr. Bean but for all firms operating in the field. Forinstance, in the U.S. market, the Food and Drug Administration hasstrict policies that entities in the food industry must follow (TheEconomist Intelligence Unit, 2014).
EconomicFactors Affecting Mr. Bean Success
Theeconomic influences of a country are exceedingly critical indetermining how successful organizations are going to be. When theconditions are favorable, firms have the tendency of realizing theirobjectives. However, in unfriendly economic situations, businessesusually have difficulties in attaining their goals. In itsoperations, Mr. Bean is impacted by economic factors such astaxation, consumer demand, and inflation. The economic performance ofAsia and the United States, where the company plans to operate, hassupported the achievement of the entity. The average wage for OECDcountries such as the United States is favorable for the futureoperations of Mr. Bean since such nations provide high consumption ofdisposable income (Better Life Index 1). Furthermore, according toPhelps & Crabtree (2016), United States has a high median annualhousehold income, which gives the organization an excellent businessenvironment. Nevertheless, indicators such as job security,unemployment, and inflation are likely to have an effect on thefuture performance of the company (Zikmund&Babin, 2013. P. 42).
SocialFactors Affecting Mr. Bean Success
Thedevelopments in the social environment are very vital in influencinghow Mr. Bean is likely to plan its business strategy for the purposeof the current and future operations. According to Blick (2011),external pressures to get involved in social and environmentalresponsibility have impacted Mr. Bean and other similar firms thatoperate in the food industry. From the Hofstede’s (2015) study, theAsian markets are more collective compared to the United Statesmarket, which is more individualistic, when buyers are making foodand beverage purchases. Therefore, in Asia, marketing communicationshould be based on group purchases while, in U.S., it should begrounded on the rationale of individual health benefits upon theconsumption of soya products.
TechnologicalFactors Affecting Mr. Bean Success
Changesin technology have facilitated in making things easier in the foodindustry. Indeed, it has assisted firms to engage with consumers in abetter way. Most services such as contacting consumers and bookingreservations are now done through technological devices a move thathas enabled companies operating in the food industry to enhance theirservices (Global Sourcing Workshop et al., 2012 p. 62). The rate oftechnological advances in the areas that the entity has itsoperations is exceedingly high, which implies that the firm is in aposition to acquire efficiencies. Therefore, it can be indicated thatthe company operates in an environment that is friendlytechnologically. Furthermore, in the future, technology will emergeas a significant factor that will have a major impact on theperformance of the food industry. According to Internet World Stats(2016), Asia has a high internet penetration, which offers a nobleopportunity for the expansion of Mr. Bean in the Asian countries.Indeed, compared to the rest of the world, Asia has a higherpercentage in the number of internet users. However, in terms ofinternet penetration, American market ranks higher than the Asianmarkets. Thus, Mr. Bean would need to arrange the marketing plan itwould use in the regions.
EnvironmentalFactors Affecting Mr. Bean Success
Theresources that the organization uses are exceedingly critical for itsexpansion plan. It is the desire of a company to be in a position tosupply the resources within good time while they are still fresh toits destinations. One of the advantages the company will have is thatit will be capable of getting soya beans fresh from the farm becauseit buys this product from the U.S (Singapore Press Holdings Ltd,n.d).
Mr.Bean will have an opportunity of expanding well in the Asian and U.S.markets since there is a great potential in the markets. From thePESTEL analysis, it is clear that the environment is favorable forthe company to succeed. However, there are challenges that thecompany will meet in the markets. For instance, the policies of thefood industry in each country will pose a challenge to the company.
Effectsof the Marketing Plan
Themarketing plan will be effective since the company will use thesocial media as well as famous individuals in the countries. Thiswill make the company be in a position to reach a large number ofclients in the markets.
Opportunitiesand Recommendations for Mr. Bean in Asia and US Market
IfMr. Bean is to gain a solid footing and develop a competitive edge inthe vast U.S. and Asian market, it needs to maintain and reinforceits brand, while offering a high quality of service as it implementsthe strategic successes it has accomplished in other places. Thedifferentiation strategy will be critical in this area. In order toexpand in the US and Asia, Mr. Bean should respond to the values aswell as demands of the American and Asian buyers. In Asia and U.S.Markets there is the need to check at the lifestyles of the people.Here, the company can consider using differentiation strategy. Thismeans that the products that the company prepares have to concentrateof lifestyle. Stores may grow their basket size to existing consumersand add fresh ones by providing healthier alternatives in itsbeverage. It is recommended that the entity should provide a menuthat takes the considerations of these people. This is likely toportray the company as a firm that values healthy lifestyles.
Fromthe analysis of the Asian and the U.S. markets, it is apparent thatthere are different cultures that exist in both markets. Theexistence of varied cultures is an opportunity to the company to growits business. It is recommended that the company needs to focus onwhat every culture in these markets values. Knowing the preferencesof these cultures would be an added advantage to the entity since itwill be in a position to appeal to customers to buy their products.Once the company establishes the preferences for the variouscultures, it should use this for the customization of the commoditiesin an attempt to catch their interest. This would offer a goodopportunity to make customers in the markets interested in thecommodities of the organization.
Inaddition, the marketing approaches that the organization uses will bevery critical in ensuring its success. It is recommended that thecompany should focus on using players, who are associated with theregions where the company will have its business. For instance, inthe United States, the company can consider marketing its productsthrough players such as Tom Brandy and Adrian Peterson, while inAsia the company can use players such as Shinji Kagawa and ShinjiOkazaki.
Byconsidering the lifestyles of the people in the U.S. and Asianmarkets, the company will be in a position to have an opportunity toreach out to a vast number of clients since most of the clients wouldvalue having items that favor their health. Thus, it is recommendedthat the company should use the lifestyle tactic in the markets.
Challengesfor Mr. Bean in Asia and US Market
Oneof the challenges facing the company is legal aspect. The foodindustry has challenges because it has a lot of controls. In Asia andthe U.S., the company will face problems in making its brandrecognized. Another problem will be government policies, which mayimpact the operations of the business. In every country, there arelaws that govern the functioning of the business. Such policies mayhave an implication on the business. However, there may be favorablethings that may favor the company. One of the issues that favor theentity is the population of the Asian and American people, as well asthe culture of these individuals. The company will be in a positionto establish its presence in Asia and America.
TheUnited States and Asia offer an opportunity for the organization torealize its objectives since these markets are good in terms ofpositioning and clients. For instance, Asia is one of the placeswhere there is a high population which can help the entity in makingmore resources. In its expansion plans, the organization would needto analyze its macro environment, which would help in obtaining thereal opportunities in the market. If the company is to gain a solidfooting and develop a competitive edge in the vast U.S. and Asianmarket, it needs to maintain and reinforce its brand, while offeringa high quality of service as it implements the strategic successes ithas accomplished in other places. The political climate of a countryis essential to the operations of business. When there is peace inthe society, entities have a favorable environment to undertake theirdaily transactions, which enable them to achieve their targets.However, in situations of political turmoil, it is hard forbusinesses to carry out their operations a move that hinders theattainment of their objectives (Sterri, 2014. P 86).In the globalexpansion, all the countries are peaceful. In order to expand in theUS and Asia, Mr. Bean should respond to the values as well as demandsof the American and Asian buyers. In Asia and U.S. Markets there isthe need to check at the lifestyles of the people. This means thatthe products that the company prepares have to concentrate oflifestyle. Stores may grow their basket size to existing consumersand add fresh ones by providing healthier alternatives in itsbeverage. One of the challenges facing the company is legal aspect.The food industry has challenges because it has a lot of controls(Malhotra, 2016 p.106). In Asia and the U.S., the company will faceproblems in making its brand recognized. Another problem will begovernment policies, which may impact the operations of the business.In every country, there are laws that govern the functioning of thebusiness. Such policies may have an implication on the business.However, there may be favorable things that may favor the company.One of the issues that favor the entity is the population of theAsian and American people, as well as the culture of theseindividuals.
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