Q1. Suppose Walmart has decided to start its operations in Pakistan. Explain how Factors of macroenvironment affect its marketing decisions (2.5 marks)
One of the macroenvironment factors is politics. Before Walmart establishes its branch, it needs to analyze the politics of that country, which will influence the marketing decisions. Each country has its own rules and Walmart, therefore, needs to analyze the rules and make a decision from them. Politics gravely affect a business. For example, if there are political clashes in a country, a business is bound to fail. Another thing that Walmart needs to consider is the socio-cultural factors. If Walmart decides to sell things such as clothes, it needs to know how the people dress and sell that to them. Walmart is an American company, so introducing American apparel will not work in the company. Walmart needs to, therefore, analyze the situation and ensure that these factors are considered.
Another thing that Walmart needs to consider is the economic factors. The economic factors such as the gross domestic product of the country determines the number of sales that the company will get. It needs to analyze the factors of production and how they affect the company revenue. From there, Walmart can make a decision that Is favourable. It would be in the best interest for Walmart to do a thorough analysis before setting prices for their goods. Another thing that it should consider is technology. The technology used in the united states is not the same as that which is used in Pakistan. Walmart needs to ensure that it has adequate technology for the effective running of the business. Walmart also needs to consider factors such as the level of internet use in the country. In some country, remote areas have no access to technology (Chuang et al., 2011). The company, therefore, needs to consider these factors and ensure that there is efficient and effective delivery of goods and services.
The company also needs to consider ecological factors. As its products and sells its goods, the process should be eco-friendly. Any pollution to the environment can affect the company negatively, increase bad publicity, which can gravely affect sales. The company, therefore, needs to strategize and work towards working in an environment that is safe and conducive for everyone. Generally, there are companies that have shut down once they opened their branches in other countries because their processes were not kind to the environment. The company needs to also review their laws on the protection of the environment and how businesses can minimize the damage.
In conclusion, it is in the best interest of Walmart if the company worked to ensure delivery of goods and services. Moreover, the company needs to analyze the microenvironment and determine how it affects service delivery. The macroenvironment factors, therefore, need to be well incorporated in the system for business to achieve growth. The company also needs to analyze such factors before establishing a branch.
Chuang, M. L., Donegan, J. J., & Ganon, M. W. (2011). Walmart and Carrefour experiences in China: resolving the structural paradox. Cross Cultural Management: An International Journal.