The Modern Management Scholars - Essay Example

Importance and Application of PESTLE Analysis Importance and Application of PESTLE Analysis The PESTLE analysis also known as SLEPT analysis is used to study Political, Economic, Social, Technological and Employment related factors of a certain community (Flint, et al., 1997). Ideally, the societies which have strong economic characteristics such as higher per capita income and stable governmental policies are considered suitable for doing business by the companies. However, positive and grooming fiscal conditions are not a guarantee for housing successful commerce (Grönroos, 1997). The modern management scholars are of the view that the companies must evaluate society’s law and order situation because they need to have a secure national system. The security is important because it will minimize the possibility of property loss due to unaccepted accidents and terrorism (Azman-Saini, et al., 2010). The readers must not understand every aspect of PESTLE analysis as beneficial for the companies because presence of tighter employment regulations means that the organizations may have to provide workers with reasonable payments whereas, they may be entitled to have insurance from their employers. The companies traditionally look to find societies that have a stronger legal system emplaced but they should lack strict tax policies in order to qualify as an option to house organizational operations. The organizations need to conform to societal standards and cultural norms because they have to act as a regular citizen of the community in order to do effective business with the people of a particular country (Dimitratos, et al., 2012). Additionally, the organizations have to abandon ways of their native area so that the people of the host location can have enough reason to consider companies as part of their own society. The marketers have to understand the value and importance of offering culturally and socially acceptable products and services (Melles, et al., 2011). The hotels, cafes and restaurants cannot think about offering wine, beer and pig’s meat in Islamic countries (Stephenson, 2014) because the local laws do not permit that and the people will respond to the offering furiously and therefore, they may burn down the outlets of the facilities sporting forbidden products. The forbidden items are offered but they are done so secretly. Recently, world leading food chains have to offer vegetable burgers and stakes in India (Yeu, et al., 2012) because people were not willing to buy and consume meat products. Similarly, many American wives killed themselves when they had to live in China (Canetto, 2008). The cultural sensitivity is the most important thing to have for any organization and for multinationals; it may become a matter of life and death because they have to win the hearts and minds of the population of a foreign culture in order to save the investment of millions of dollars. The marketers are required to integrate every aspect of PESTLE analysis in the process of making a successful product. The marketers are expected to design a product that offers sufficient utility to people while, remaining within the buying power of the local population (Nueno & Quelch, 1998). The technology level of the society must also be kept in the view because the companies in the field information technology must offer products that are easy to use for the target population (Legris, et al., 2003). The companies such as Apple, Samsung and Nokia offer multiple language options so that individuals from different cultures can use their products with ease. The marketing professionals and scholars argue that advertisements must be made in the local language so that they can be understood by masses (Mittal & Baker, 2002). The cultures where males are dominant need a marketing plan with ads featuring men. The female oriented products should be promoted by celebrity endorsement as women usually idealize prominent figures. In societies where gender discrimination is lower, the companies have to promote the products by linking them with the daily life of the people (Dellaert & Benedict, 2005). The educated and practical people want some utility out of each buying decision they take and therefore, in abovementioned types of communities, the companies cannot promote their products and services with the help of celebrity endorsement but they need to present proper logic in order to convince the people to buy and use the offerings. The companies working in all walks of life were targeting people of the developed nations but with the passage of time, they came to know that they were indeed working on the wrong population. The developed nations’ population is known to apply economic rationality in their lives and because of this reason, they avoid using luxuries whereas, the people of developing countries want to relate themselves with celebrities by dressing like them. The literacy rates are low in the featured societies and that is why, people are prone towards exhibiting impulsive buying behaviors (Kecan & Lee, 2002). The propensity to save is also negligible and due to this trend, the companies that operate in the business of luxuries had to target developing nations. The recent opening of Disney Land in India is a small element of a much larger puzzle (Milman, 2010). The philosophy of marketing is changing rapidly and the stronger fiscal position of the society is no longer the driving force of organizational new market development process. The managers are well aware of the fact that per-capita incomes have dropped significantly in all parts of the world and they are expected to drop even further in coming years. The reduction in per-capita incomes signify the need for marketers to find something else to base their product offerings because their traditional approach of offering new products to prosperous economies as there are none in the modern era of the 21st century. The companies are now planning to use Maslow’s need theory in order to keep things working for them. Maslow argues that the organizations can boost profitability and sales by designing products that have a psychological value for the concerned clientele (Seeley, 1992). The population of the developing nations wants to live a lifestyle of developed countries. They need to have fast cars, state of the art razor blades and a big house so that they can impress the neighborhood. All of the aforementioned sorts of needs are used to promote and sell products and services with no or marginal level of application in human life. The social need and want to appear wealthy and superior to others are being cashed by the multinationals. In this way, the companies are successfully attempting to use social attributes of the developing societies to their advantage. In the past, the art and science of marketing was called the fulfillment of client’s needs and wants with profitability and this definition was used to conceptualize products that had practical applications in customer’s life. However, the modern marketing does not fulfill the conventional requirement of successful social exchange in which both of the parties won. Nowadays, organizations do not focus on making repeat customers by winning the trust of the buyer and rather than that they simply focus to close the deal at hand (Dellaert & Benedict, 2005). The lacking commitment and attachment of organizations with the notion of a quality is resulting in growing number of product failures in the international market. The product failures are growing as people do not find the products much of a use in their daily life and therefore, the repeat sales do not take place (Flint, et al., 1997). The lack of repeat sales does not give retailers any reason to order new intake and in this way, the so-called novelties rot in the warehouses of the producers. The companies have to enlighten themselves about the need to partially reversion towards the designing of applicable products because the customers always repeatedly purchase the items which they require to use in their daily lives. The companies are anticipated to make their offerings important for customers to a level that while; discarding unnecessary things in their lives, people should not be able to convince themselves to consider a particular item with no value. The previously explained goal cannot be obtained and achieved without designing applicable products. The psychological value must not be considered useless but they should be applied in addition to practical application of the product. The wise marketing managers always come up with products and services that are closely linked with necessities of life (Melles, et al., 2011). The trend of school buses and student pick and drop services are a few examples of offerings which has a link with important task of human life. The daycare centers are there to help working women. The customers of the developing nations are not naïve to see the actual practical value of the product in their life, once they have consumed it. The application of psychological value is leading to the defiance of organizational need to create repeat customers. Conclusion This paper has reviewed and analyzed the application of PESTLE Analysis and found that the English community needs cheaper necessities of life in order to make through the rough time which the local economy is experiencing right now. The paper also discussed some negativity that is associated with use of psychological value in the modern science of marketing and advertising. The global economy requires products that must have some practical value in the eyes of the customers. Finally, marketers are guided to design more of the practical products. References Azman-Saini, W. N. W., Baharumshah, A. Z. & Law, S. H., 2010. Foreign direct investment, economic freedom and economic growth: International evidence. Economic Modelling , 27 no. 5, p. 1079–1089. Canetto, S. S., 2008. Women and Suicidal Behavior: A Cultural Analysis. 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