Macro Environment of International Market PDF

Added on -2020-11-12

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Marketing
Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Analysis macro environment of international market ...........................................................1
Company situation analysis ...................................................................................................3
Identify countries with high market potential .......................................................................4
TASK 2............................................................................................................................................5
Advantage and disadvantages of standardization, adaptation and glocal approach...............5
TASK 3............................................................................................................................................7
Compare use of Porter's Generic strategies and Ansoff's growth matrix ..............................7
TASK 4............................................................................................................................................9
Marketing mix of Primark......................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
INTRODUCTION
Marketing is the research and direction of exchange relations. It is business procedure of
making relations with and satisfying consumers. It is about satisfying requirement and needs as
well as social wants of human being. In order to that, marketing practices tended to be looking as
creative in the ago that involving advertising, distribution as well as selling. The marketing
concept suggests that in relation to satisfy objectives of organization (Jones, Reynolds and
Landers, 2015). This study is based on Primark. It is an Irish fast fashion retailer and subsidiary
of Association of British Food Plc. Now company will expand their brand in Romania. This
report will analysis company's situation analysis, macro environment of international market and
high market potential form different countries. It will explain advantage and disadvantage of
standardization, adaption and glocal approach to international market. Furthermore, report will
compare the use of Porter's Generic Strategies and Ansoff's growth matrix as apply in chosen
organization.
Background of Primark
Primark is also known as Penneys in the Republic of Ireland is an Irish fast fashion retail
headquartered in Dublin. It is also subsidiary of Association of British Food Plc. They offer
various range of goods such as clothing, footwear, beauty product etc. Primark opened large
store in Belfast City Centre in 1971 and one in Derby, England in 1973. Company opened
current global headquarters in 2015 in recreate Dublin building, Arthur Ryan House formerly
Chapel house. The building was former bank with historical value that had been renovated early.
Primark welcomed Sephora goods which are being sold starting in 2014. Company owns over
356 stores. The biggest Penneys store is situated on Market Street, Manchester, England working
of retail space across three floors. In May 2006, the first Primark store outside Ireland and UK
opened in Madrid Spain. A chain of around 40 stores in Spain after 10 years of constructing in
October 2015 the second largest in the chain. Company joined Ethical Trading Initiatives (ETI),
collaborative company brining together businesses and Non-profits-Organization to perform on
labour rights issues in their supply chain. Members of ETI move to work towards apply of code
of conduct based on core conventions of International Labour Organization.
1
TASK 1
Analysis macro environment of international market
Macro environment refers to all units that are portion of larger social club and affect
micro environment. It involves conception like economy, socio-culture, technological, political,
legal and environment. These factors are known as PESTLE. In this context, any of organization
identify these factors affected externally for expansion of business. In order to that, Primark
which is the largest fast fashion retail firm. They operate their stores in many countries such as
Spain, Germany, Poland and so on. Therefore, they expand their brand in Romania.
Political Factors:
Any of company requires considering political environment of international market when
they expand their business. It includes taxation policy, trade laws, government stability,
unemployment policy, political stability etc. In this context, Primark is the fast fashion retail
company that operates many nations, now they expand their business in Romania. Therefore,
firm needs to identify that political stability and government rules and regulations etc. that
impact on expansion of selected company (Ramanathan, Subramanian and Parrott, 2017). The
legal framework and targeting strategic of Romania that is protection of environment that
impacts on Primark in relation to business expansion. On other hand, lack of support mechanism
for investors in chosen international market.
Economic Factors:
Any organization needs considering all the variables that impact spending and purchasing
power to consumer. It includes different elements like interest, inflation, growth of power of
spending etc. In this context, the economy of selected nation has experienced growth that is 7%
in 2017 as compared to 2016 that is 4.8%. In order to that, the GDP is 189.05 Billion in 2016 and
211.88 Billion in 2017 is increased as compared to previous that impact on selected organization
in relation to business expansion. It includes living of standard improvement and social
development that lead to sustainable economic growth.
Social Factors:
Any company requires considering all factors effective customer attitude, value,
education, lifestyle and time orientation etc. that impact on business. In this context, Primark
expand their business in Romania. So that, they identify these factor in selected country that
impact on business expansion (Mackintosh, Brantley and Gonzalez, 2017). Social factor includes
2

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