Global Marketing: Strategic Analysis of Environmental Factors

This report analyzes the market opportunities and threats for global marketing in the international market. It evaluates the environmental factors that impact the organization, including economic, political, social, cultural, and technological factors. The report focuses on the potential entry into the Singapore market for the Byron Bay Cookie Company.

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Global marketing
System04116
9/5/2019

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Executive summary
In this report, the various market opportunities have been analyzed for the potential sales
and promotion of the product in the international market. For this purpose, the potential
opportunities and threats are evaluated that may influence the market entry into the country. The
analysis of various environmental factors is done in this report which has a major impact on the
organization. The environmental factors include the economic and financial factors; political,
legal, social, cultural and technological factors.
In the last few years, extraordinary economic growth has taken place in Singapore.
Nowadays, higher-income economy is considered for the growth of the country and various
factors are considered in the growth. The factors are private consumption expenditure, external
and local demand and the investments which have a high impact on the growth of the country.
The leading sectors of Singapore like as biscuit and cookies industry have the potential to
attract other nations to invest. In this report, the discussion is made about the external factors or
environmental factors that have an impact on Singapore. The strategic analysis of global
marketing is done.

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Contents
Executive summary.....................................................................................................................................1
Introduction.................................................................................................................................................3
Background of the company and country....................................................................................................3
Strategic analysis of environmental factors.................................................................................................4
Economic and financial...........................................................................................................................4
Political and Legal analysis.....................................................................................................................5
Social and Cultural analysis.....................................................................................................................6
Technological analysis............................................................................................................................7
Conclusion and Recommendations..............................................................................................................8
References.................................................................................................................................................10

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Introduction
Global marketing is the process of planning, producing, placing and promoting the
products of the company in the overseas market. The various marketing strategies are adopted
which for reconciling or taking commercial advantage in order to achieve the objectives. In this
report, the Byron Bay Cookie Company is chosen to investigate market opportunities for the
potential international promotion and sale of their products in Singapore. In this report, the
evaluation of various potential opportunities and threats is considered which influences market
entry into Singapore. In this report the various environmental factors will be considered which
includes the economic and financial; political and legal; social and cultural; and technological
environmental factors in Singapore. The various recommendations will be provided for the
company to enter into global market effectively.
Background of the company and country
Byron Bay Cookie Company was founded by Maggie and Gary In 1999 in the hinterland
of Byron Bay. Founders had a recipe in hand, and they started experimenting to bake cookies
with the ingredients which are available to them in local market and they named it as ‘pickles,
pies and petticoats’. They had changed the cookie market by cooking the two delicious decadent
cookies which include the white choc chunk and macadamia nut and triple choc fudge that
cookie has made the market forever. In Byron Bay, the white choc chunk and macadamia nut and
triple choc fudge are still available in market for the customers and it is favorable by many
people in that region. With the time they had grown their business from small operation to big
with the farmhouse stove and they had moved their production in industrial size baking house in
Byron Bay and after that it is named the Byron Bay Cookie Company.
Singapore has a greater market for cookies as the demand and supply of cookies is more
in this country as compared to the other countries. The cookie market of Singapore had total
revenues of $59.1m. The various cookie shops are opened in Singapore and they have branded
themselves differently.

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Strategic analysis of environmental factors
Environmental analysis is a strategic tool as it helps in identifying the various internal and
external elements which affect the performance of the organization. It includes the process which
helps in conducting research and formulates the strategy in the company. The various factors are
included for evaluating and identifying the relevant data for implementing an effective strategy.
The analysis of internal and external environments helps in implementing the strategies in global
market and the various analytic methods such as PESTEL analysis, SWOT analysis, and value
chain analysis. In relation to this report, the strategic analysis of the environmental factors needs
to be done to evaluate the potential opportunities and threats which may influence market entry
into Singapore (Pollock, 2019). The factors are:
Economic and financial
It is analyzed that the economy of Singapore is a vibrant free-market economy and the
same is increasing at a frequency range. In Singapore, the per capita income is upmost in the
ASEAN market. In cookie business, the corruption-free environment helps in supporting the
sector effectively. The various determinants of the economies are involved in economic factors.
Economic factors which are to be considered for entering into the new market are the interest
rate, credit accessibility, unemployment rates, foreign exchange rates, and the fiscal and
monetary policies of the country. For the diversification of the economy, Singapore government
has made the investment recently. The industry of cookies in Singapore can make the business
successful. Geographical location is the main reason for the progress of the business in global
market. In Singapore, the government plays an active and authoritative role and owns substantial
productive assets. In order to save the cost of labor, Singapore can adopt the strategy to have
cheap labor from neighboring countries and can have large excess to manufacture cookies at
large scale. But there are some limitations on Singapore’s economic performance which brings
threats for Byron Bay Cookies Company as there are shortages of labor that creates difficulties in
producing cookies in large numbers and due to this reason the cost of labors for these industries
raises and these results in declines in the productivity (Kreutzer, 2019). The revenue generated
from biscuit and cookies industries of Singapore is US$20.51 in 2019 which shows that exiting
companies of cookies are generating less revenue as compared to the other countries so it brings

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great opportunities for Byron Bay Cookies company to make entry in the Singapore market for
selling their home-made cookies with different flavors though there are some threats to enter this
market as inflation rate in Singapore is on rising and unemployment rate is increasing which
results in low production. The state of Singapore and unemployment rates can impact the Cookie
industry. Healthier alternatives to Cookies are pricier compared to cookie or easy to make
biscuits or cookies. Not only can that, but the convenience of readily made cookie despite the
unhealthiness outweigh the trial and error of making cookies from scratch. It has permitted larger
expansion of cookie stores over the last decades. The disposable income, rate of interest,
spending of consumer, inflation, unemployment, monetary issues, taxation and present economic
recession in Singapore affect the biscuit and cookies industry. The cookie industry in Singapore
uses various channels for the sale of their cookie that are mail order, specialized stores,
supermarkets and direct sales (Kanchana, 2018). These economic factors can help to grow Byron
Bay’s cookie business and they can play important role in rising demands of the customers.
Political and Legal analysis
In Singapore, the risk in political and legal factors is quite low as compare to other
countries as it is a democratic country and companies that are doing business in Singapore have a
low political risk in the market. In Singapore, the people choose to elect the representative for
leading the country who has the potential to cherished relative political stability.
The government implements the policies against the biscuit and cookies industry due to
the constant needs of the customers for different types of biscuits and cookies that limiting the
development and growth of the biscuit and cookies industry (Prakash, Et al, 2018).The
companies influence the customers with products and the biscuit and cookie industry that
indirectly affecting the profitability of the cookie business sector and due to this reason Byron
Bay Cookies company faces challenges while entering into the new market of Singapore for the
same products but there are opportunities for this company as it offers different flavors of
cookies which are not easily available in the market of Singapore so that it will help in coming
out with the occurred issues or challenges related to the profitability or growth of the company in
new country (Greer, 2018). In recent time, political stability helps in translating the peace and
provides the better living standard which results in high demand for the cookies of Byron Bay
and they can provide the products of better quality and moreover it also transformed into the

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improved opportunities of cookie business in Singapore for Byron Bay Cookie Company
(Senechal, 2018). At that instance, the threat for Byron Bay is arises as according to ministry of
heath 2011, the government come up with the direct policies to limit the growth of the biscuit
and cookie in societies of Singapore when the intake of these items becomes increasingly famous
and the health conditions of people have deteriorated based on the statistics from the relative
agencies of health (Davidson, 2018). But somehow it becomes the opportunities for it as Byron
bay provides the home-made different flavored cookies which contain local ingredients and does
not affect the health can take an initiative to sell their products in such situation (Pollock, 2018).
There is greater pressure on the cookie industry as stability of government increases the
economic activities in Singapore and the government makes various different regulations to
control the activities of cookie business in Singapore (Lopezdominguez, Et al, 2019). The
government needs to create awareness among the people who are living in Singapore about this
varied trend as they want to make their people healthy and makes policies for the biscuit and
cookie industry. The government has sense of health policy in Singapore which encourages the
biscuit and cookie industries to grow healthy cookies or biscuits for its people and this will create
comparatively simple and convenient legislation to enhance the population in Singapore
(Chaves, Et al, 2018). The business of cookies is greatly impacted by the policies of the
government and their trend of business can be changed.
Social and Cultural analysis
Social factors in global marketing differ in each country and it includes the distinctive
mindset and its impacts on the business. In Singapore, the traditional family values and culture
and has some traditional taste and preferences. It is stated that young generation of Singapore
follows the western culture and the values (Ramanathan, Et al, 2019). The factors which are
considered include the cultural implications, lifestyles, and distribution of wealth.
Local community leads a fast-paced lifestyle which is demands efficiency and speed as
many companies in biscuit and cookies industry adopt fast-paced lifestyle and it becomes a threat
for Byron Bay Cookie Company as they adopt traditional style of making the products. However
the young people in Singapore more attracted to the traditional designs of cookie and home-made
taste they are used to with modern products and similar kinds of designs so 65% youth in
Singapore prefer home-made products with different flavors (Burns, Et al, 2018).The cultures

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and societies in which the people live in with the various types of individual they have contact
with who influence cookies choices. In Singapore it is observed that media as part of daily life
influence the people to make certain flavors of cookie choices. The type of job, lifestyle and
education, size of the family and the hospitality importance within the social groups are also
essential when Byron Bay Cookie Company enters into Singapore market and people make
choices (Reynolds, 2015).
In an affluent country like Singapore, the advertisement biscuits and cookie is
everywhere each day they are exposed to thousands of advertisement text, images and sounds
from magazines, billboards, cinemas, radio, internet, and TV. Much of the biscuit and cookie
advertised through media is lesser in nutritional value as compared to its unprocessed refined
alternatives. However these cookies are presented as a very happy lifestyle and healthy basis.
The peer of individuals is people in roughly a similar group of age with a similar social status.
The impact of peer group is harder during adolescence (Bade, Et al, 2016). The requirement for
acceptance makes the young generation eat what and when their colleagues eat rather than what
their family thinks they should eat. The trial of new things like different flavors cookie instead of
regular tastes is safer in a peer group and sell of cookies in this group is best way to start with
(Pan, Et al, 2018).
Technological analysis
Technological factors are an essential factor as it helps for the development and growth
of the biscuit and cookies industry. The cookie industry in Singapore does not depend only on
the attractiveness of their cookie or biscuits quality (O'sullivan, 2016). The services of customers
and convenience are also big factors affecting the sales of the cookie for Byron Bay in the new
market in Singapore. The technological factors have varied already the way Byron Bay served
and engaged with their customers in their own country adopt same way in Singapore. They also
influence advertising and marketing of the Byron Bay for their different flavors of cookie which
is rare in Singapore as per the research (Anthony, 2019). The social media and order online have
changed the way of customer service which has direct impact on the entrance of Byron Bay in
Singapore.
The channels of social media became the most important venue for customer
engagement. The use of kiosks and digital displays affected the ordering and labor costs.

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Technology entirely has proved to be something crucial (Stich, Et al, 2019). It has helped Byron
Bay serve customers through innovative channels and in innovative ways. The Byron Bay cookie
company has become innovative in other areas also. They engage their customers on channels of
social media and collects feedbacks through the various channels. A competition in biscuit and
cookie industry is higher as compared to other bakery items in Singapore (Alava, 2018). This is a
reason also that technology has become essential for the organization. Technological
advancement is the main reason behind the change in quality of life and lifestyle. For the
advancement in Singapore, the internet plays an important role in business. It helps in making
the communication easy and also helps in enhancing the connectivity with customers. It helps in
lowering the cost and time in the business of cookies. It also increased social networking. Byron
Bay could easily connect to the rest of the world. With technology, it helps Byron Bay Cookie
Company to reach the customers in new and the simplest methods. They can have online bakery
that delivers fresh and different flavor cookies r biscuits to the consumers quickly (Martins, Et al,
2017).
Conclusion and Recommendations
Thus, from the above analysis the conclusion is made:
 In Singapore, the small scale industries can enter into the market and make the profits in
business
 External forces cannot affect the growth of the Biscuit and cookie industry in Singapore.
This industry has succeeded in Singapore extremely from the last few years and it still
growing phenomenally.
 In Singapore, businessman and entrepreneurs can follow the process of buying, installing
the new cookies line should keep following the points in mind apart from the legal
requirements of industrial licenses pollution clearances.
 The product in Singapore is nearby to the level of the increasing stage.
 Cookies of Byron Bay are a unique item with different flavors and traditional taste that
includes the mixture of salty and sweet and has a blend of two separate entities.
 In Singapore, the business can focus on those markets and customers who prefer to have
good quality cookies at lower prices.

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 Along with the several other intersecting sectors, biscuit and cookie marketing impacts
the diet and health prospects of the youth and children.
 The marketing practices in Biscuit and cookie industry in Singapore can be geared to
youth and children for balancing out the healthy diets for people and contribute to an
environment that puts their health at the risk.
 Byron Bay Cookie Company has the potential for offering creative and developing and
promoting the cookies which maintain the healthful diets for the youth and children.
 Businesses can focus on the healthful diets for youth and children for sustainability in the
market, multisector and integrating the efforts which include initiative and leadership in
the sector of biscuit and cookie.
 Incentives and public policy programs do not recently have the authority and support to
address several of the presents and developing marketing practices which affect the diets
of the youth and children.

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