Environmental Changes and How Firms Are Affected - Essay Example

?Environmental Changes And How Firms Are Affected “Judge Orders Tobacco Companies to Say They Lied.” USA Today. November 27, In this case, the firm in question is Phillip Morris. The environmental influence is the public pressure upon tobacco companies who have allegedly lied about the destructive influence tobacco products have upon public health. Another environmental influence is the detrimental public health issues that are caused by tobacco companies. This article states that Phillip Morris, and other tobacco companies, must not only make a public statement that they lied about the health issues caused by tobacco, but must also make a public statement that discloses the danger of smoking, including the fact that smoking is responsible for 1,200 deaths per day. Also included in the statements are that smoking kills more than AIDS, car accidents, suicides, murder, drugs and alcohol combined and that second-hand smoke is responsible for 3,000 deaths per day. The environmental change in this case is the changing landscape of public opinion about tobacco companies. Another environmental change is that there has been more evidence about tobacco’s detrimental influence upon public health. A third environmental change is the increasing amount of evidence that tobacco companies have lied, for many years, to the public about the adverse effects of tobacco on the public health, and that they have also lied regarding the addictive nature of cigarettes. The impact of these environmental changes upon Phillip Morris, and other tobacco companies, is that cigarette smoking will become even less de rigueur than it already is. The anticipated impact upon these companies is that they will suffer some degree of public humiliation because of their previous stances, and the fact that they previously lied to the public, and their sales will suffer accordingly. “Fox News Suddenly Loves Illegal Immigrants.” Business Week. Elizabeth Dwoskin. November 26, 2012. This article regards the changing environment on the Fox News Network in America. The changing environment is the 2012 Presidential and Congressional election. Before the Democrats won back the Presidency and the Senate, there was a general consensus in the Fox News Network, which is considered to be a conservative network, that there should not be a path to citizenship for illegal immigrants. However, in the 2012 election, President Obama won back the presidency with an overwhelming percentage of Hispanics. The theory is that the hard-line position that the Republicans have taken regarding illegal immigrants, which his that they are either to be deported, or they should self-deport, but, at any rate, they should not be offered a path to citizenship, is much of the reason why Mitt Romney, the Republic nominee, lost the election. Because of this, Fox News has softened their stance on illegal immigration. This is how the evolving environment regarding illegal immigrants, and the election, has impacted Fox News. In this article, the changes at Fox News regarding illegal immigration is highlighted. For instance, Sean Hannity, who has his own show on Fox News, has recently stated that his own views regarding illegal immigrants has evolved – he now agrees that illegal immigrants should have a path to citizenship. The article notes that the previous position that Hannity has taken on the 11 million illegal immigrants in the United States is that deportation was the only option. The article also said that talking heads, like Hannity, are the main reason why there has not been immigration reform until now. “Conagra Sinks Its Teeth Into Growth Market.” Wall Street Journal. November 27, 2012. Miriam Gottfried. In this article, the changing environmental influence is the higher price of food. Another changing environmental influence is that retailers, such as Wal-Mart and Costco increasingly rely upon private labels, which means that these stores, and other stores, sell products under their own line. For instance, Whole Foods sells 365 Brand, which is the Whole Foods brand. Wal-Mart sells its brand as Great Value. The selling of private labels, which enables the retailers to slash the price of the items, is a changing environmental influence which has a great impact upon ConAgra Foods, which is a large food producer in the United States. This article states that Conagra has purchased Ralcorp Holdings, which is the largest producer of private label items in America. The article goes on to state that the sales of private labels have increased by 5% over the course of the last decade, which is twice the growth rate of food in general. Conagra has purchased Ralcorp Holdings for almost $5 billion. This environmental influence is significant, because it shows that private labels is the increasingly the way that consumers shop for products. As times are tough, consumers are looking for bargains, and this is the reason why private labels have become so popular. Moreover, the United States, the article states, the food market is fractured. By obtaining a firm that is prominent in private label production, Conagra is able to consolidate much of its resources and power in the market, so that it will not only be able to capture the sales of its own label, but also will be able to capture the sales of the private labels that are produced by the Ralcorp Holdings. This will mean that Conagra will have a much more enhanced market share in the food business. “Black Friday’s Shopping Rush Starts Early, But Numbers May Be Down.” The Guardian. November 23, 2012. Simon Neville. This article talks about the changing environment on retailers, who are under pressure to move merchandise over Black Friday, which is the Friday after Thanksgiving. Specifically, the article notes that there is pressure upon brick and mortar stores to show that they are still relevant, as on-line purchasing has become so popular over the years. They state that the consumers represents a “finite pie,” which means that, if online retailers get a larger share, then it means that the brick and mortar store will get a smaller share. That said, there is indication that the fact that online shopping becomes ever more popular in the UK and in other countries, means that shoppers may increasingly stay away on Black Friday. In fact, the sales for the Black Friday is less than last year’s Black Friday, in part because the online sales grow every year. One analyst states that individuals are liable to find products that they want in the store, and then would go online to purchase these products, instead of buying the products in the store. The article specifically mentions the firm Amazon.com. This is an online retailer introduced Black Friday to the UK market in 2010. It has been running deals all week, to end on Monday, November 26, as this is Cyber Monday, which is another sales holiday. The implication is that Amazon.com is one of the online retailers that is affecting the sales of the bricks and mortar stores, as it runs sales and deals, and this is one of the places where consumers will spend their holiday dollars. This changing environment is very significant for the brick and mortar retailers. This is because, if more and more people buy their products online, the brick and mortar stores become less and less relevant. They need these Black Friday sales events to bolster their standing amongst consumers, who increasingly will look at the items in the store, and buy them online. Amazon.com, which is one of the firms mentioned in the article, is a part of this. In turn, if the brick and mortar store become less relevant to consumers, firms such as Amazon, which operate online, will necessarily become more relevant to consumers, and their sales will be more positively affected by the changes in consumer buying habits. Sources Used “Judge Orders Tobacco Companies to Say They Lied.” 2012. USA Today. 27 November, viewed 27 November 2012, Dwoskin, E. 2012. “Fox News Suddenly Loves Illegal Immigrants.” Business Week. 26 November, viewed 27 November 2012, < http://www.businessweek.com/articles/2012-11-26/fox-news-suddenly-loves-illegal-immigrants#r=read> Gottfried, M. 2012 “Conagra Sinks Its Teeth Into Growth Market.” Wall Street Journal. 27 November 27, viewed 27 November 2012, < http://online.wsj.com/article/SB10001424127887324784404578145541337060884.html> Neville, S. 2012 “Black Friday’s Shopping Rush Starts Early, But Numbers May Be Down.” The Guardian. 23 November, viewed 27 November 2012 < http://online.wsj.com/article/SB10001424127887324784404578145541337060884.html> Read More