Macro environment how to impact on business operation of the company that you choose

Essay by zuyanhuangUniversity, Master'sB, October 2007

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Executive Summary

The macro-environment consists of larger societal forces that affect entire micro-environment. The six forces making up the company's macro-environment include demographic, economic, natural, technological, political/legal, and social-cultural forces. Companies must constantly watch and adapt to the marketing environment in order to seek opportunities and ward off threats. "The marketing environment comprises all the actors and forces influencing the company's ability to transact business effectively with its target market" (Armstrong and Kotler 2003, p.149). In this report, use PEST to analyze macro-environment forces how to impact on PepsiCo in China. As we know, the PepsiCo was the first U.S. company to distribute its products in China after China implement reform and opening up policy in 1979. Through many years business operation in China, the company fully understands their development worldwide must adapt China's macro-environmental various forces and must put into practice their localization strategy "Think local, Act local".

In this report, by serious study and literature review, with refer to relevant books, journals, search information from internet.

First, the company's background is being showed. Followed by macro-environment impact on marketing activities of PepsiCo in China and macro-environment forces on PepsiCo's marketing activities, finally, one conclusion is presented.

Our conclusion that the best products and technology may fail to meet with acceptance in markets around the world because of lack of local macro-environmental awareness.

Table of Contents


Executive Summary 1

Table of Contents 2

1.0 Introduction 3

2.0 Company Profile 4

3.0 Macro-environment Impact on Marketing Activities of PepsiCo 4

4.0 Macro-environment Forces on PepsiCo's Marketing Activities 7

5.0 Conclusion 12

List of Reference 13


In economic globalization, all companies must identify, analyze, and monitor external environmental forces and assess their current and potential impact on their business activities. Jobber (2001) stated clearly that macro-environment consist...