Environmental Factors Affecting Business †Free Samples to Students

Question: Discuss about the Environmental Factors Affecting Business. Answer: Introduction Philippines is emerging from its perception of juice as a children commodity as a result of awareness from health practitioners and also due to trends from wellness centers a move that has seen more consumers increase juice intake. In 2016, it was reported that the volumes of juice consumption rose by 5% a rate that was higher compared to the year 2015 that recorded 3%(Euromonitor).The rate of increase can be attributed to spending that originated from elections being held in the subsequent year. Also, it proved that more increases in sales volume of the juice during the election season was beneficial to commodities that were priced lowly such as juice products(Hill Hult). The prospects in the juice industry continue to increase as a trade off volume is expected to increase over the coming years as demand for juice continues to rise. The sustained campaigns and health awareness are some of the critical issues that have resulted in juice industry gain popularity in the Philippines. H owever, it is expected that over the coming years, there will be slow growth rate in the juice sector(Euromonitor). The mix and the juice blend and the lower prices charged for the products are some of the factors that will continue to support growth and stability in the beverage sector. PESTLE analysis Philippines experiences tropical marine climate accompanied with hot and humid atmosphere annually. The country experiences a rainy season in most months of the year. However, typhoons are common in September. The Philippines experiences hot summers something beneficial for fruits ripening and processing. One of the factors making Philippines ideal for Beast juice is the favorable climate for fruit production. In most cases, fruits are favored by certain weather conditions and the climate and Philippines has an ideal climate that is tropical with summer seasons during most times of the year. The availability of fruits as a raw material for juice processing and production entirely depends on the supply of fruits. The Philippines has a remarkable proven record of being a leading export of fruits to other countries. Therefore, the supply of raw materials for juice production is not a hurdle for the juice company. A constant supply of fruits for production of Beast juice makes the Philip pines a competitive advantage due to the availability of fresh fruit. The steady supply of fruits also ensures that costs associated with importing fruits are cut down. According to a report that was conducted as to the reasons behind high prices for fruit juices was due to importation fruits that have the effect of increasing production costs. However, that is not the case with the Philippines as it is richly endowed with fruits due to its favorable climate and weather conditions throughout the year. Thus, the Beast will not face production limitations as a result of limited supply. It also follows that most companies will relocate to other countries following ready supply of raw materials. The hot climate is also critical for a cold drink. Scientifically it has been proven that there is a link between hot weathers and the amount of water consumed by individuals. During hot days, a lot of water is consumed as opposed to the cold days. With Philippines weather, the demand for Beast juice will be ideal as more customers will consider juice as an option to quench their thirst. As a result, a ready market will be provided for the juice. As stated in the introduction, there have been increases of concerns by the clients over the need for being healthy in fact it is a trend that has been identified in the juice industry. Due to the rise of many maladies, health professionals advise their clients to utilize and make use of juices from fresh fruits. The Philippines happens to be one of the countries where consumers are concerned with maintaining fitness and as many such clients are looking for fresh juices that have been blended to suit their tastes and preferences. The Beast j uice would be a plus for many as it has been combined and comes in many types of fruits for different customers. The political climate in the Philippines is one characterized with a lot of calmness making it favorable for many investors wishing to establish investments as compared to other countries. One of the risks associated with creating premises in a foreign nation is the fear for political instabilities that may lead to the destruction of property and other key investments. However, Philippines experiences many years of peace and has not shown any sign of weakness whatsoever. In fact, it is one of the countries that exercise democracy something that other countries are striving to get(Jurevicicus, 2013). As such, there is 100% chance of calmness that would encourage the establishment of foreign investments and attract investment. It is in lieu with such a political climate that makes Philippines one of the best countries to establish the Beast Juice from Australia(Czinkota, Ronkainen, Moffet, 2011). Systems of government may inhibit investors in the case where the country is under dictat orship and business environment in such cases is controlled by powerful officials and cartels (Manager) that in most cases safeguard and protect interests in their domain. It is such persons that fear competition more so if a foreign firm is being established in their area of interest and as such may not accept entry of other firms. Over the past few years, it has been claimed that death squads under President Rodrigo crippled democracy. However, it is ironical that the country experiences robust economic growth and Philippines has been ranked as one of the growing economies in the global politics. The report was the latest from the World Bank, and the economy is expected to grow to 7.5 % increase from the previous which stood at 6.5%.(Bush, 2017)In 2017, GDP reached 12.4% demonstrating a healthy economy accompanied by low inflations and low debt signifying a stable macroeconomic atmosphere. Such elements of the economy sustain a healthy demand something that has boosted exports. By April this year, exports grew by 12.1% and translated to $4.8 billion. Using the above illustrations, it is evident that the Philippines pose a good ground for selling Beast juice. One of the key elements used by firms when entering new markets is the condition of the economy(SunStar, 2016). GDP is one of the measures used in communi cating the status of the economy. As for the Philippines, the GDP already proves beyond reasonable doubt that it would provide a ready market for the Beast juice(SunStar, 2016). Availability of households with average disposable incomes is one assurance that the juice already has a ready market. A healthy economy has the benefit of offering better prices for the commodities offered in the market(SunStar, 2016). As such it ensures reasonable prices for the producers and other relevant stakeholders. Technological environment Amidst major developments in global operations as a result of platforms such e-business and e-marketing and the use of social media, business is no longer the same. Globally, the number of people having access to the internet is magnanimous and also partly because many people are literate making them demand internet services from network providers(Warner, 2010). The rise of the web has had significant benefits to businesses and creates more opportunities that would not be identified were it not for the web. A good example is advertising through social network blogs such as Facebook and Twitter. Recently, in the wake of the internet, we have seen businesses seeking solutions through such social platforms(Professional Academy). Philippines prides itself of a literate population where the majority of the people are ardent users of the internet. As a global trend, businesses are operating their services through the internet, for instance, offering advisory services on the products they s ell and where they can be found, and in some instances, they will require an address to deliver the product to their clients. Beast juice is no exception in being advertised and popularized through the internet. Being a new product requires massive campaigns and advertisements to popularize and advertise the product so that customers will be acquainted with the product. Also, social platforms such as facebook and twitter have the effect of making people feel like part of the company by sharing on how they feel about the product and what things they may want to be changed(Professional Academy). Beast juice can use such avenues in the Philippines to make consumers feel part of the company and develop customer loyalty. The Philippines is among countries in the world that have many internet subscribers and as such creates a good social media platform for the launching of the beast juice and such a strategy of using social media would bear desired fruits in increasing results for the com pany. Environmental concerns A country like the Philippines is increasingly creating awareness for the producers and manufacturers of various products due to issues such as pollution and emission of greenhouse gases that have led to global warming something that world leaders are trying to fight(Bush, 2017). Each country has been given a role and responsibility in reducing the greenhouse emissions. Businesses are urged to conduct their activities ethically to ensure corporate responsibility on their part to the surrounding societies and communities. For instance, in the Philippines, there is a carbon target footprint that the government has set for companies and the business sector(Posner Applegarth, 2014). Looking at Beast juice, it uses raw materials such as fruits in their natural setting meaning there are less harm and emission of gases to the atmosphere(Dlabay Scott, 2011). In such a case of the beast juice, it will not suffer from compliance issues in a nation such as the Philippines. Consumers of late h ave been demanding products that promote a green economy and fruits are some of the goods supporting a green economy. The availability of packaging containers that pollute the environment less in the Philippines is a plus for establishment for beast juice operations. Glass and plastics are easily recycled and pollute the environment less compared to other materials. Legal frameworks Legal considerations are important of an external analysis as they lay down the required processes for setting up operations in foreign markets. Such factors include consumer rights and product safety among others such as health and safety(CIPD). It is important for business firms to understand of what composes legal aspects in another country. However, Philippines legal frameworks have been known for instituting some of the best legal practices that favor the business community(Czinkota, Ronkainen, Moffet, 2011). For instance, it is mandatory for companies to label their products and show the ingredients used as part of ensuring that there is complacency on the part of the company. Such a policy protects consumers from false advertisements evidenced in other countries. Such a policy will help and promote Beast juice since it is natural with no other chemical ingredients something that many consumers are avoiding especially now that many cancers are attributed to consumption of chem icals. Issues dealing with employment relations are enshrined in Philippines Constitution ensuring equal job opportunities for all people with no discrimination in work places(Dlabay Scott, 2011). It is due to such considerations that make the Philippines one of the ideal countries for Beast juice.' The ease of obtaining business makes the Philippines a safe country for investing especially in the case where there is a partnership with Pilipino. Partnerships with the locals are highly encouraged as a means of establishing foreign businesses in the Philippines. Social factors Philippine population continues to rise, and in the year 2017, it is expected to be 105,760,000 as per reports population commission. According to data by Statistics Authority women of reproductive age are projected at 27,300,400 and women in this category are beneficiaries of health services under Health Law. Some adolescent girls are also expected to increase to over ten million in the coming year. The Philippines center of data expects that the number of adolescent girls expected to give birth by December 2017 is estimated to be over 200,000(SunStar, 2016).The number of women of reproductive age continues to rise, and the trend is expected to continue all the way to the year 2022.The increase in population is as a result of an increase in fertility levels among women were on average a woman is expected to give birth to three children. It has also been proved beyond reasonable doubt that there are more males born per woman as compared to the number of females born per minute in the Philippines(SunStar, 2016). A large population is beneficial to businesses in any country as they provide a market for the goods and services in such a country. As for Philippines large market, such a market is important for Beast juice as it means a ready and a large market for the juice industry. Also, a large population is critical as it provides a large pool of labor that is cheap. Philippines population comprises of many youths, and as such, it is an active labor force that is engaged in work(McDonough, 2017). The Philippines is also a source of cheap labor due to the huge population making a supply of labor in the surplus and according to labor economics, whenever the supply of labor of labor exceeds demand, then the wages fall making labor cheap. Del Monte Philippines, a major competitor and distributor of juice, dominated the market in 2016 and commanded a market share of 32%.The Company boasts of a popular image as a result of marketing campaigns and also from a sound manufacturing policy adopted by the company(Mourdoukoutas, 2017). The company has also mastered the concept of blending classic flavors for many seasons something that has benefited the company regarding commanding a large market. The packaging by the company is also another strategy used in ensuring it continues to lead in the market as it uses 1-liter liquid packets since 2013.Del Monte in the Philippines has made an extension of the line of products it offered for instance in 2013, the company introduced pineapple blueberry and strawberry and also launched pineapple pomelo and lychee in 2016. Beast juice faces significant hurdles in penetrating the Philippines market due to the already presence of Del Monte and other relevant stakeholders in the market for juice. One huge opportunity for Beast juice is the fact that the company has competitive prices as compared to juices from Del Monte. In fact, Beast juice favors many customers due to the economical prices it offers that are affordable to many people as a large proportion of the proportion is composed of low and middle-income incomers and such segment will form a large market for Beast juice in the Philippines(Daneils, Radebaugh, Sullivan). Also, the large population in the Philippines is ideal for providing a work force that is second cutting down the costs of productions(Marmol, Feys, Probert). The Philippines has also been on the forefront as a tourist destination, and the presence of tourists makes it ideal for launching such a product(Focus). Also, Beast juice has been blended in other tastes to quench and serve varying customer needs. Customization of the juice makes it possible to have a large audience to be served making sure those different tastes and preferences are served. Recommendations It would be necessary for Beast juice to be packaged in packets just like Del Monte to ensure that such a product competes favorably in the market. Also, appropriate pricing strategy is critical for a new product in a new market such that such prices take into consideration operational costs among other costs. The use of relevant advertising is also essential to make sure that the business popularizes its products and creates awareness among consumers of the existence of such a product. The use of social media platforms helps identify with customers and make them feel part of the business. Conclusion From the above illustrations, it is evident that the Philippines is an ideal country for the launching of Beast juice due to factors such as the comparative advantage of a warm climate that favors production of fruits. Despite stiff competition from companies such as Del Monte, it is evident with running campaigns trail and marketing; the Philippines could offer a lucrative market. References Bush, T. (2017). PESTLE Analysis:Environmental Factors Affecting Business. Retrieved August 22, 2017, from pestlenalysis.com: https://pestleanalysis.com C, H., C, W., Udayasankar, K. (2016). International business. Singapore: McGraw Hill Education Asia. CIPD. (n.d.). PESTLE Analysis:Factsheets. Retrieved August 22, 2017, from CIPD: https://www.cipd.co.uk Czinkota, M., Ronkainen, I., Moffet, M. (2011). International business. Hobonken(N.J): Wiley. Daneils, J., Radebaugh, L., Sullivan, D. (n.d.). International business. Dlabay, L., Scott, J. (2011). International business. 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