Week 5 Bee Jay+2

Environmental Factors 1

Environmental Factors Paper

Benedict T.M. Joseph

University of Phoenix

Marketing

MKT/421

Dianna Iobst

September 25, 2008


Environmental Factors Paper

Success in any endeavor whether it be , personal, private enterprise, or at the

governmental level will inevitably be impacted on by environmental factors. Organizations and

firms involved in trading will experience that their marketing decisions are influenced by

environmental factors domestically as well as internationally. This environmental paper will

therefore, focus on the Coco-Cola company as an organization whose domestic and global

marketing decisions, are affected by environmental factors. In this paper specific areas such as

the high level of domestic and global environmental factors that may impact the organization’s

marketing decisions and the impact of technology also on the marketing decisions will be

addressed. The paper concludes with the final section which will analyze the importance of

social responsibility and ethics as related to Coco-Cola’s marketing offerings.

A quick check on Coca-Cola’s website on an attractive home page, the slogan Welcome

to the World of Coca-Cola greets a visitor. As an organization which has demonstrated its

ability and capacity to trade successfully its products on the global market, the company has

been able to satisfy its consumers on the domestic market while its global appeal has been

soaring, thus making the coca-cola product the clear leader in the beverage industry. Some of

the high level domestic and global environmental factors which could possibly impact on Coca-

Cola’s marketing decisions are; economic influences, globalization, political climate, regulatory

requirements, demographic environment, and direct competition. Some of these factors will be

discussed in detail.

When analyzing the economic factors careful consideration must be given to the

dynamics involved by which countries now trade. Since the formation of the World Trade

Organization (W.T.O.) on Jan 1, 1995, all member nations are now obligated to regulate


imported goods consistent with all the provisions which must be adhered to for domestic

production. This agreement in effect has forced all the trading nations to dismantle any

preferential treatment which existed prior to the signing of the agreement, resulting in equal

treatment to all. All countries therefore, now have an equal opportunity of trading on the world

stage because trading blocs among some countries have been reduced. Other competing

businesses in the beverage industry such as Pepsi may set up entities anywhere in the world, and

this development may mean less growth for Coca-Cola especially in well established markets.

Interestingly, the Asian market is now well poised to allow expansion of the Coca-Cola product.

While the economic factors discussed in the last paragraph, have now aligned the world

to a restrictive free trading regime globalization however, can position Coca-Cola to attain

limitless expansion in the world. Potential franchise customers as well as the general population

can share reviews about the product, through the various technological avenues such as the

iInternet, and instant messaging. The advent of globalization can duplicate the international base

of Coca-Cola since as of July 2008, 153 countries were members and observers of the W.T.O.

The expansion and growth experienced by any organization in today’s world is indeed

welcome and while globalization presents this opportunity for Coca-Cola, political and legal

factors will indeed pose a challenge to the international company. In countries like Haiti in the

Caribbean which has been torn by many political upheavals, Coco-Cola will be reluctant to

expand its business in that country. Another example is Cuba, where the United States has

placed a trade embargo since 1962 so that U.S. companies are forbidden to do business with that

island, as a result restricting Coca-Cola’s expansion plans.

The three factors mentioned above which all have an impact on the domestic and global

environment on Coca-Cola’s marketing decisions are directly and indirectly impacted on by the


use of technology by the firm. Marketers of the Coca-Cola Company would obviously want to

maintain the firm’s position as the industry leader of beverages in the world and so the firm

would have to incorporate the use of the iInternet, efficient microprocessors, and other portable

information devices among other technology gadgets. The popular phrase time means money is

conceptualized by the Coca-Cola company together with the extensive use of technology by the

firm will ensure that rapid decisions can be made with respect to customers’ needs and

expectations, improvement to quality of the product, maintaining operational efficiency and

reduction of costs. Pitts and Lei (2000) state “the secret behind the success of the Coca-Cola

Company is in innovating new products and entering new markets no matter how prohibitive

they appear to be.” (p.28).

Finally the successes and challenges of global and domestic environmental factors and

the impact of technology of marketing decisions by the Coca-Cola Company, comes with a level

of social responsibility and ethics which must be adhered to by the firm. Historically Coca-Cola

has been renowned and associated with the production of a soda drink however, as the firm has

expanded so too has its product line been modified to satisfy the needs of consumers in different

jurisdictions where the company operates. This product diversification by the Coca-Company is

demonstrated in 400 other brand of product in 200 countries such as ‘Inca Kola, a soft drink

found in North and South America, and Samurai, an energy drink available in Asia; ……(The

Coca-Cola Company, 2007). Regarding its ethical responsibility Coca-Cola, must ensure that no

ambiguity exists regarding its product information, a clean and safe environment must be

maintained in all areas of its operations, and any negative sales promotional activities must be

stopped if they exist.


In conclusion it must most strongly be emphasized that though the Coca -Cola Company

is a giant in the beverage industry however, due to the complexity of world trade the company

must respond to the domestic and global environmental factors, the impact of technology, and

societal and ethical responsibilities which all affect the firm’s marketing decisions in many

ways. If the Coca-Cola Company is able to adapt to the various challenges and opportunities of

the factors highlighted in the paper, then the continued growth and expansion of the organization

is guaranteed.


References

www.collegian.psu.edu/archive/1997/07/07-29-97

Coca –Cola Company. (2005). A Global Business. Retrieved September 27,2008, from

http:www.2.coca-cola/heritage/chronicle_global_business.html.

R. Kerin, S. Hartley, E. Berkowitz, W. Rudelius: Marketing, edition, Mc Graw-Hill 2006

www.wto.org/english/theWTO

Prepare a 700-1,050-word paper in which you identify the environmental factors that affect global and

domestic marketing decisions. In your paper be sure to address the following:

a. Select an organization with which you are familiar that conducts both domestic and global

marketing.

b. Discuss the high-level domestic and global environmental factors that may impact the

organization's marketing decisions.

c. Explain how technology impacts the organization's marketing decisions.

d. Analyze the importance of social responsibility and ethics as related to the organization’s

marketing

Course: MKT421 Paper: Week Five Grade: 14.1/15 nice job!


ComponentPossible Score

Earned Comments

Content & Development 50%

All key elements of the assignment are covered in a substantive way.

Content is comprehensive, accurate, and/or persuasive.

Major points are stated clearly, are supported by specific details, examples, or analysis, and are organized logically.

Where appropriate, the paper supports major points with theory relevant to the development of the ideas, and uses the vocabulary of the theory correctly.

Theory and practice are integrated, whereby the writer is able to link theories to practical experience Research is adequate and timely for the topic.

The context and purpose of the writing is clear.

7.5

7.2

Bee Jay I really enjoyed your paper on Coke, but I felt that you glossed over social responsibilities and ethics a bit. You could have talked about things like community involvement, safe work conditions in other countries, and more specifics on the environmental responsibility.

Organization 20%

The structure of the paper is clear and easy to follow.

The paper’s organization emphasizes the central theme or purpose and is directed toward the appropriate audience.

Ideas flow in a logical sequence.

The introduction provides sufficient background on the topic and previews major points.

Paragraph transitions are logical and reinforce the flow of thought throughout the paper.

The conclusion is logical and

3

3

Well organized, logical flow, easy to follow.


flows from the body of the paper.

The conclusion reviews the major points.

Format 10%

The paper, including citations and the reference page, follows guidelines given here and in the University of Phoenix-approved style guide, APA format.

The paper is laid out effectively and uses reader-friendly aids, when appropriate.

The paper utilizes references appropriately.

Features such as headings and italics aid in the readability of the paper and are not overused.

The paper is neat, with attention given to format requirements.

1.5

1.5

Grammar, Punctuation, & Spelling 5%

Rules of grammar, usage, and punctuation are followed.

Spelling is correct.

1

.9 See paper

Readability & Style 5%

Sentences are complete, clear, and concise.

Sentences are well constructed, with consistently strong, varied structure.

Sentence transitions reinforce the flow of thought.

Words used are precise and unambiguous.

The tone is appropriate to the content and assignment.

1

1

Strong, varied sentence structure.


Bonus Points Awarded

Outside references

Exceptional insight

Related to other disciplines

Other

1

.5Shows good understanding of materials and good integration of sources.

14 pts is the highest possible score for just meeting the requirements of the assignments. The last 1 pt is reserved for truly exceptional work.

Week 5 Bee Jay+2

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