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Marketing Communication College - Essay Example

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This report is an attempt to identify and analyse the various PEST factors which affect the responsiveness of Tesco towards its corporate social responsibility of energy conservation, fight against global warming and reduction in carbon emission. After identifying the various factors, a threat and opportunity analysis was done to determine the areas which could be effectively used to both promote business and the goal of energy conservation…
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Marketing Communication College Essay
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Download file "Marketing Communication College Essay" to see previous pages... With the growing concern over environmental pollution and consequently its effect in the form of global warming has led every organization in the world to reconsider their strategies1. It is extremely essential that an organization considers its environment before beginning its existence and marketing process.
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As a matter of fact, environmental analysis should be incessant and feed all aspects of planning2. An Organization's Planning environment is effectively made up of: First, the internal environment, for e.g. staff (i.e., internal customers), wages, finances, office technology, etc. Second, the micro-environment, for e.g, the external customers, distributors, suppliers, agents, competitors, etc. and third, the macro-environment, for e.g., the Political (and legal) forces, the Economic forces, the Socio-cultural forces and the Technological forces, together being known as the PEST factors.3
The political factors have an enormous power over the regulations governing the retail business along with the control on the spending power of the consumer, the control over monopoly of a single large retailer in the market and the availability of such retail services to most customers situated across the country. The following issues or political factors can be looked upon as either threat or opportunity for Tesco in the next ten years:
1. Stability of the political environment -Threat and Opportunity - A government in power will formalize rules governing the business of Tesco and the influence that Tesco will have over a government, as an environment friendly business.
2. Government's position on marketing ethics- Threat and Opportunity - The rules laid down by the government to make a business more environmental friendly will have profound effect on the money spent to be more environmental compliant. However, this would also ensure that Tesco gains advantage by advertising its efforts to help global warming cause through advertisements and thus, gain popularity.
3. Trading agreement of Tesco with other countries - Threat - Given the global nature of Tesco's business, the different laws laid down by different Governments such as EU, NAFTA, ASEAN etc, can hamper the uniformity of Tesco's policies for being environmental friendly.
Economic Factors
The economic factors are the most vital ingredient for the success of a business. Marketers need to consider the state of a trading economy in the short and long terms, especially for planning international marketing. The issues of interest rates, rate of inflation, employment level per capita, the long-term prospects for the economy Gross Domestic product per capita, etc, can all affect the revenue of a company and thus the budgetary allocation on adopting environmental ...Download file "Marketing Communication College Essay" to see next pagesRead More
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