Tuesday, October 8, 2019

The Advantage of Knowing the Business Environment Research Paper

The Advantage of Knowing the Business Environment - Research Paper Example As the discussion highlights  information technology has been the driving force of economic development, while reformist asserts that government contributes to changes in the environment through their monetary and fiscal policy. Government legislates regulation that the companies are mandated to follow such as labor codes, and health and sanitation; hence, the firms’ movement is restricted. Moreover, they are subjected to international and local policies that may alter their business strategies. Although globalization has been associated with the trends in technological innovation, it also signifies the penetration of an international firm to local markets. Business sectors that aim to expand their market size are governed by the political, economic, and social norms.This paper stresses that the view of Keynesian on the role of government is significant in studying the market. Government shapes the operation of a globalized firm. However, with the integration of the internet , global marketers have reached their prospect consumers where no boundaries are set. An example of a global firm is KFC, an American fast-food sector that successfully integrates the Chinese market.  Marketing research is the strategy used by firms to gather relevant information as their basis in devising a marketing plan. The purpose of marketing research is to gain competitive advantage and reduce uncertainty. Competitive Advantage Marketing research aims to study the environment of a particular area. The environment contains factors that can affect the business operation. In studying the local market, STEP analysis is employed. STEP stands for social, technological, economic, and political factors that are relevant in determining the success of a company. Social factors refer to the demographics (e.g. age, gender, and education), class, values, and etc. To effectively capture the target market of KFC, they must research on the lifestyle, values, and other social attributes necessary in formulating a marketing strategy. The target markets of KFC are younger generation, since they are opened for foreign influence compared to older people. Moreover, technology is utilized in selling products and services. For an instance, KFC must determine the number of households with online access and their pattern of using the internet to become their basis of choosing a medium for adverts. On the one hand, the economic and p olitical factors are relevant in shaping the marketing strategy of a firm. They are concerned with the macro and micro economics that may affect the stability of a company. Thus, the information gathered are compiled and studied to construct a comprehensive plan in winning the market. Gould (2008, p.4) suggests another method of ensuring the company’s success is through SWOT analysis. This analysis is centered on the strengths, weaknesses, opportunities and threats in the external and internal environment of firms. The company enables to know their weaknesses and devise a ‘defensive’ strategy to counteract the ‘offensive’ strategy of the competitors. Thus, if the competitors strike, the company

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