Document Type:Thesis

Subject Area:Business

Document 1

PESTLE analysis comes in handy towards evaluating the foreign markets and developing a model that matches the organizations' strengths with the capacity to thrive on the opportunities available. Coca-Cola HBC understands the benefits and challenges that come with international trade especially on the need to understand markets in isolation though they sell a global brand. Comparison between Developing and Emerging Markets Developing markets consists of nations that are on the struggle to establish economies reflecting the standards of developed nations through several parameters on the elimination of poverty, enhancing food security, providing drinking water and decent sanitation facility, and enhancing the per capita income (Daniels, Radebaugh, and Sullivan, 2010). The market calls for international organizations to evaluate the possibility of such economies having the requisite purchasing power that would effectively support the consumption of their product.

Sign up to view the full document!

The developing markets demonstrate a challenging but optimistic business environment on the evaluation of the political goodwill, economic prospects, social-cultural orientation, technological advancement, environmental, and legal factors that demonstrate the possibility of business growth (Daniels, Radebaugh, and Sullivan, 2010). Coca-Cola HBC should be equipped to evaluate the business prospects in such markets and determine on how to structure their operations to yield maximum gains across the challenging market experiences. Even though emerging markets paint a picture of the positive business environment that would effectively support the expansion strategy of any global organization, it is important to note that there are risks that might disappoint the prospects of growth in such economies. The elaborate infrastructure, expansive market inspired by the bigger numbers, incentives for foreign direct investment and an advanced financial services system which sets up a formidable capital markets growth (Robock, and Simmonds, 1989).

Sign up to view the full document!

The obstacles in emerging markets involve foreign exchange risk, non-normal distribution, complexities involved on the ease of setting up a business in the market, the threat of political instability and economic policies changes that might affect international business prospects among others. The existence of stiff competition in the market by several firms makes it challenging especially when it comes to dealing with an informed customer about the market and the desire to fulfill the expectations, tastes, and preferences. The social orientation of the emerging markets takes great exception to consumption of exports from international brands with limited prejudgment against the imported products. The countries consist of a dedicated workforce that gains significant inspiration on the need to develop a culture of hard work that is increasing their earnings and purchasing power.

Sign up to view the full document!

The social structures are better defined providing information on how better the established market segments to fit with product development. Cultural diversity makes it easy for an international organization to gain insights on how better to differentiate their product range in anticipation of asserting consumer satisfaction (De Mooij, 2009). The technological advancement has been developed by the emerging markets ingenuity in an effort to boost competitiveness that is inspired by technological models of enhancing business growth. The option is better since the market is too small to commit resources compared to having an alliance with local agents to facilitate effective distribution of the product. The export initiative will take advantage of the company strengths that offers a better distribution framework (Albaum, & Duerr, 2011).

Sign up to view the full document!

From $10 to earn access

Only on Studyloop

Original template