Global Marketing

This document provides an analysis of global marketing and explores the opportunities and challenges it presents. It focuses on the case of Danes Coffee, an Australian coffee shop planning to expand their business in Singapore. The document covers economic and financial analysis, political and legal environment analysis, social and cultural environment analysis, and technological environment analysis.

Running Head: GLOBAL MARKETING 0
Global Marketing
(Student Name)

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Executive Summary
Marketing analysis is one of the essential tools that are mostly used by the company. It is
majorly used while company entering with new product or enter in the new market. With the
help of the marketing analysis the company can able to analyze the risk factors and opportunities
involved in such market in an effective manner. One of the small coffee shops Danes Coffee is
planning to expand their business in the international market. Danes Coffee serves variety of
flavored coffee in the market that makes them competitive in the Australia. They can expand
their business in Singapore. The country is famous for tourist place where the number of visitors
is high. It will give new opportunity to the Café to target large number of consumers in an
effective manner. The political environment of the country is favorable as well as the GDP of the
country is high that represent that the business can earn high revenue in such country in an
effective manner. Moreover, the population of Singapore has collective nature with full of
emotions. It makes the company easy to expand their business in such country. The population of
the country is highly engaged in the activities of the internet. That will give new opportunity to
Danes Coffee to target their consumers through the pattern of digital marketing. Therefore, it can
be represent that Danes Coffee can expand their business in such country. They only need to
fulfill the laws that are required to entre in such market.

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Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Economic and Financial Analysis...................................................................................................3
Political and legal environment analysis.........................................................................................4
Social and cultural environment analysis........................................................................................6
Technological Environment Analysis..............................................................................................9
Conclusion and Recommendation.................................................................................................10
References......................................................................................................................................12

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Introduction
Danes Coffee shop is one of the Australian based coffee shops that are specialist in
coffee. They serve best coffee to their consumers that made such café more competitive in the
market. They are well known as specialty coffee roasters in Sydney, Australia. It was founded
by Paul Jackson in the year 1994. Danes Specialty Coffee has always been about flavor. Back
then the coffee was bitter burnt and over extract. Paul has recreated the coffee by added flavor in
it (Danes Coffee, 2019). Danes coffee is planning to expand their business in international
market to enhance their consumers. Singapore is one of the prominent countries for Danes
Coffee due to the reason. Singapore is known for tourist place therefore, they seek for innovative
product. Therefore it is one of the opportunities for the café to expand their business in such
market.
In the following part there will be detailed analysis of the Singapore market that is
required to expand the business in such country.
Economic and Financial Analysis
Some of the economic factors such as growth of economic, rate of interest, rate of
exchange as well as inflation rate have significant impact on the company how it works as well
as makes a decision. According to the analysis the per capita GDP of the Singapore is higher
than most developed countries. Singapore is one of the vibrant economy as well as the annual
economic growth of the country is 7.9% in the year 2007. The unemployment rate of the country
was also 2.2% therefore, the country is considered as one of the world fastest growing

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economies, the rate of growth was 17.9%. the food and beverage industry in Singapore is
growing at greater level as well as that is truly evident from the static collected represent that the
value of F&P services totaled approximately 603 million Singapore million dollars in the year
2013 that were approximately 2.9 percent more than what was estimated in the year 2012. The
Singapore has earned the title of the ‘Food Capital of Asia. The economy of the Singapore is the
least corrupt economy in the World (Durusu-Ciftci, Ispir & Yetkiner, 2017).
As estimated in the year 2018 the GDP per capita is $61, 766 and it has been ranked 8th in
the GDP in the year 2017. It has low tax rates and the poverty level is less than 3 percent
estimated in the year 2018. ITC can be said that the country has the good economic growth and
maximum population earned a good amount. The GDP growth of the country is 3.6 percent as
estimated in the year 2017. The country has the huge resources and it is the financially strong
state.
After the implementation APEC in the Asian Trading region had helped a lot in trading
and had boost the economic and financial situation of the county. APEC had helped in
implementation of the wide ranging regulatory and administrative reforms that had resulted in
the improved market access and had improved the market efficiency and it has reduced
impediments to innovation and competition. It had benefitted the governments, businesses and
consumers because of the implementation of the efficient and effective regulatory and the
administrative benefits procedures that will benefit to all the participants. It has reduced
administrative and compliance costs that has helped in domestic reform which has improved the
efficiency in various sectors. Despite the diversity there are various key elements that include
competition, a service culture and consultation (Abidin, Haseeb & Islam, 2016).

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Singapore has been considered a free trade barrier market where the 99 percent of the
imports entered into Singapore are duty free. But due to the environmental and social issues
Singapore levies high excise duties on the tobacco, wine, gasoline and motor vehicles. The
companies of US faced the technical import barriers for the beef, poultry products, pork and
service barriers that includes the use of satellite dishes, pay television, direct to home satellite
TV services, legal services, banking and healthcare procedural transparency (Lim & Zhu, 2017).
(Source: Moody Analytics, 2019)
Political and legal environment analysis
Political Factors

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(Source: Singapore Election Watch, 2019)
Philosophy of the party in power: the politics of Singapore takes the form of
parliamentary representative demographic republic whereby the president of the country is the
head of the state. The Prime Minister of Singapore is the head of the government and of multi-
party system
Stability of Government: The political factor is to what extent the intervention of the
government in the economy. Singapore is one of the stable countries with low social risk. The
country is considered as low corrupted area among all over Asia.
Nature of the underpinning of power: the political system in such country is defined as
the key values like the inalienable right of the individual to change the government, the one-man-

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one-vote principle, multiracialism, zero tolerance system for corruptions as well as high quality
government.
Nature of Government: Similarly the government of Singapore is also encouraging
more as well as more tourist to the Singapore and they have taken various steps to attract the
tourist at greater level. In government agencies in Singapore play a crucial role in promoting the
country as a global destination under the guidance of Singapore tourism board (Chen, Li, Luo &
Zhang, 2017).
Desire of Government to control over the trade flows tends to be motivated by
Financial Issues: In the year 2017, the country is ranked as the world top maritime
capital. The country has retained their status as the premier port of call in the Southeast Asia. As
a global financial centre, the country is ranked as fourth behind London, Hong Kong, Tokyo as
well as New York. The total asset under management of the country is stood at $2.7 trillion in
the year 2016.
Security and Safety Issues: the country is free from security and safety issues that made
the visitors attract to visit such place. There are rare cases that occurred in the country that made
the country safer than other countries.
Health Issues: in the recent, the individuals of the country are facing the issue of diabetes
and blood pressure that make them health conscious in such country. However, such country is
considered as the wealthiest countries in the world. The life expectancy at birth is 82.3 as well as
the infant mortality is 2.7 % which is considered as healthiest people in the country (Carbonara
et al., 2017).

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Protection issues: to protect the rights of human and employees the government of the
country has introduced various laws that is required for the companies to follow such while
running business in such country.
To run business in Singapore, Danes coffee is required to apply for Food Shop Licence as
the coffee shop will sell food and drinks at their shops. National Environment Agency basically
regulates the beverage and food industry in Singapore. The body has set certain food hygiene
standards that must be required for Danes Coffee to meet such standards and need to certify from
such agency.
Working Hours of employees: the employees are allowed to work for 6 consecutive
hours excluding break within an average pay of $5000 per month. Therefore, Danes coffee is
required to manage their employees accordingly (Canu et al., 2018).
Social and cultural environment analysis
Hofstadter’s six dimensions of cultural differences
 Power Distance Index: Singapore score high dimension in power distance index. They
generally have syncretic approach to religion that is the dominant approach in Singapore.

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 Individualism versus collectivism: Singapore is the collective society that represents
that they prefer to work together rather than individual.
 Masculinity versus feminist: Singapore scored 48 points that represent it is the middle
of the scale however, the country more represent Feminine side. It mean that the country
represent softer aspect of culture such as levelling with other consensus, sympathy for the
underdog are encouraged as well as valued (Oc et al., 2015).
 Uncertainty Avoidance Index: the country score low in such dimension. In the country
individuals abide too many rules not due to the reason they need for structure but because
of the high PDI.
 Long versus short term orientation: the country has scored high points in such segment
that represent that the cultural qualities support the long-term investment such as
sustained efforts, perseverance, thrifts, having sense of shame, being sparse with the
resources.
 Indulgence versus restraint: the country represent them as the weak indulgence control
therefore, it is not preferable to determine a preference on such dimension (Caleon et al.,
2015).
Trompenaars’ dimensions of cultural differences
 Sequential versus Synchronous time: Singapore has synchronous culture in their
country in which the flow of time is viewed as a sort of the circle, with the past, present
as well as future all interrelated.
 Neutral versus Emotional: the people of Singapore are emotional. They express their
feelings in better manner to each other.

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 Achievement versus Ascription: Achievement is highly recognized in the country than
ascription. The society of the country prefers to reward the individual for their
performance in a given activity.
 Internal direction versus External direction: the country also prefers internal direction.
They majorly believe in education as the key to the success of any business management.
 Universalism versus Particularism: the people of Singapore prefer universalism in their
country. They respect to relationship and rules
 Individualism versus Communitarianism: the people of Singapore identify themselves
as a member of a group or community that made them feel more motivated
 Specific versus Diffuse: Singapore belongs to the diffusive societies. They have small
degree of privacy as well as share the public sectors very easily as well as freely with the
members of such areas (Low, Roberts & Whiting, 2015).
Maslow’s hierarchy of needs

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The Maslow hierarchy needs represent the needs of human that are structured as well as
incrementally fulfilled. The individuals of Singapore are expressing a desire for less competitive
as well as more compassionate society. The country is also consider the emergence of a greater
number of ordinary Singaporean championing non-economic, organic caused such an anti-death
penalty campaign, LGBT rights as well as freedom of internet. The people of Singapore are
capable of self-actualising even if we have not slept nor ate enough.
Psychic Distance
There are certain factors that make the home country from foreign market as they are:
 Singapore has attractive tax regime
 The country has strategic location with great connectivity
 The skilled and multilingual workforce easily available in Singapore
 The country has conducive environment as well as highly developed infrastructure
Key Cultural Difference
Singapore has very vibrant cosmopolitan culture. The country has very string education
system and every individual is comfortable in English. It has great facilities for the leisure
activities such as casino, resorts, and shopping mall along with the business tourism. That
represent that the social factor in such country is supportive in nature. There are friendly
environment in such country and the country consist with different religious that represent that
the country is mixed with different culture (Chib & Nguyen, 2018).

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Technological Environment Analysis
(Source: Cloudrook, 2019)
Technical factors include the technical aspects which include Research and Development
activity, speed in technological change, technological incentives as well as automation. It affects
the cost of quality as well as also leads to the innovation in an effective manner. It has been
examine that 80% of the population in Singapore uses the internet. Mostly between the range 25-
34 years old age are using the internet at greater level. Moreover, the country more time on the
computer as compared to the smartphones per day. They have highest download\ broadband
speed in the world. It represent that the country have taken great steps towards the technology. It
would help the company to target their consumers in more effective manner. The businessman in
such country uses effective digital marketing method to target their consumers. It has also been
analysed that the online shopping of the consumers has reached at higher that created an

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opportunity for the business to target their consumers in more effective and efficient manner.
Both genders use Facebook almost equally with 51.7% Males as well as 48% Females that use
the Facebook between the age group of 15-55 (Santamouris et al., 2017).
(Source: Cloudrook, 2019)
The population of Singapore majorly uses the internet to help them make purchase
decision with the highest percentage using it for comparing the choice. In the recent there has
been an increase in the demand for the digital marketing candidates in the country. The
companies have taken various steps to target their consumers digitally. Search Engine
Optimization, a niche yet essential aspect of any digital strategy that has been steadily gaining
the popularity in the country Singapore. Furthermore, it has been expend that the country with
grow further in term of technology that will make the country technological advanced in the

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international market with the great efforts of the business in such country (Bhati, Hansen &
Chan, 2017).
Conclusion and Recommendation
From the above macro environment analysis it can be concluded that expanding business
in the international market play a crucial role for the company at greater level. One of the Coffee
shop Danes has planning to expand their business in Singapore. Danes Coffee has already set up
their business in Australia and earn great image. The company can expand their business in
Singapore in an effective manner. The country is well known for the business due to the reason
of high volume of visitors visit such place that will give new opportunity for the Coffee Shop to
expand their business in such country.
Therefore according to the analysis of market, it is highly recommended that Danes
should expand their business in such country and should analyse the laws and regulation of the
country deeply. They should open their business at small level as a star-up then can expand in
later after earning the profits. The macro environment are favourable in nature thus, the Coffee
shop is required to make attractive marketing strategy to target their consumer at greater level.

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Southeast Asian nations economic community: An analysis of Malaysia-Association of
Southeast Asian nations exports. International Journal of Economics and Financial
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Bhati, A., Hansen, M., & Chan, C. M. (2017). Energy conservation through smart homes in a
smart city: A lesson for Singapore households. Energy Policy, 104, 230-239.
Caleon, I. S., Wui, M. G. L., Tan, J. P. L., Chiam, C. L., Soon, T. C., & King, R. B. (2015).
Cross-cultural validation of the Academic Motivation Scale: A Singapore
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Canu, I. G., Schulte, P. A., Riediker, M., Fatkhutdinova, L., & Bergamaschi, E. (2018).
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Chen, C. R., Li, Y., Luo, D., & Zhang, T. (2017). Helping hands or grabbing hands? An analysis
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Chib, A., & Nguyen, H. (2018). Mobilities, Communication, and Asia| Essentialist Identities as
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id=966921
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