External Environmental Analysis of Vitasoy Corporation and Corporate Social Responsibility Practices

Running head: MANAGEMENT
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Executive Summary
The report has thrown light on analysing the external environmental analysis of Vitasoy
Corporation which helps in analysing the overall applicability and issues faced by the
company in the market of Hing Kong. Furthermore, the different corporate social
responsibility practices have been analyzed which helped in identifying the various kinds of
approaches which have been adopted by the company in order to improve the overall scenario
effectively. Additionally, it has been noticed that the company is looking forward by
encouraging the progress and there has been inclusion of the sustainability related practices
which will be beneficial for the overall growth of the firm.

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Table of Contents
Task 1.........................................................................................................................................2
PESTEL Analysis of Vitasoy Beverage Company................................................................2
Task 2.........................................................................................................................................9
Ethics and Corporate Social Responsibility...........................................................................9
Introduction............................................................................................................................9
Analysis of Relevance of Ethics and Corporate Social Responsibility..................................9
Implication of CSR and Ethics on Policies and Decision-Making Approach.....................13
Evaluation of Effectiveness of Response towards CSR Practices by Vitasoy.....................15
Demonstration of Areas of Effectiveness in CSR Activities...............................................18
Recommendations................................................................................................................20
Conclusion............................................................................................................................22
References................................................................................................................................23

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Task 1
PESTEL Analysis of Vitasoy Beverage Company
1) Political Environment
The governments are the external factors which create huge influence and impose the
overall requirements on Vitasoy Beverage Company. It has been seen that the tax related
policy is easy and convenient which leads to political stability in the overall economy. The
major opportunity gained by the Vitasoy is that there is inclusion of presentation of the
growth opportunities (Anton 2015). There are different regulations on food safety regulations
such as Food and Drugs Regulations and Frozen Confections Regulations which are followed
by the company to improve the intergovernmental cooperation.
Figure 1: Political Aspects of Hong Kong and Australia
(Source: Brammer and Pavelin 2016)

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Additionally, the trend of intergovernmental expansion has been able to foster stable
business environment and it helped in increasing the international cooperation in the different
areas. Moreover, there is high transparency in the political system and aspects of the country
which assists Vitasoy in increasing profitability in the competitive business environment. It
has led to increase the business opportunities and lower risks for Vitasoy in performing the
business (Cha, Yi and Bagozzi 2016).
2) Economic Environment
The performance of Vitasoy is directly linked to the economy wherein the company
have various opportunities for growth along with expansion which is based on the overall
economic stability of the developed countries such as Singapore (Chaudhri 2016). The
economic stability is one of the major opportunities as the tax rate of the country is
progressive in nature which contributes to 16.5% as Hong Kong and Australia follows
territorial principle of taxation as the individuals are being taxed when the income is earned
at Hong Kong and Australia.
Figure 2: Tax Rate of Hong Kong and Australia
(Source: Chen et al. 2016)

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Due to the low rate of inflation in the market in Hong Kong and Australia, it helps in
improving the economic performance of the economy such as it increased the investment. It
helped in providing a climate which is stable and more favorable and it includes the sustained
economic growth of the economy as well (Chen et al. 2016).
Figure 3: Inflation Rate of Hong Kong and Australia
(Source: Chen et al. 2016)
3) Socio Environment
In the present era, the higher health consciousness is the major threat to Vitasoy
Company as there are different concerns relating to content of salt, sugar and other fat related
contents in the products which are sold by the company. However, the respective social factor
can be taken into consideration to improve the different products and services sold by them to
address the respective concerns (Cheung 2016). Furthermore, Vitasoy can take advantage of
the busy lifestyles of the consumers around the entire world as they prefer the ready to cook
food items and health drinks which will be one of the major opportunities for the company.