Marketing Management: Environmental Analysis of Old Chang Lee in China

The report is an overview of marketing management and put forward a discussion on the external environmental economy of the Chinese economy. The report commences with a discussion of the political, economical, social and technological factors that affects the Chinese economy and the business of Old Chang Lee, a food, beverage and snack chain that tries to get a foothold in the Chinese market.

Running head: MARKETING MANAGEMENT
Management and Operations
Name of the Student:
Name of the University:
Author Note:

1MARKETING MANAGEMENT
Executive Summary:
The report is an overview of marketing management and put forward a discussion on the external
environmental economy of the Chinese economy. The report commences with a discussion of the
political, economical, social and technological factors that affects the Chinese economy and the
business of Old Chang Lee, a food, beverage and snack chain that tries to get a foothold in the
Chinese market.

2MARKETING MANAGEMENT
Table of Contents
Introduction:....................................................................................................................................3
Discussion:.......................................................................................................................................3
Political Factors:..............................................................................................................................3
Economic Factors:...........................................................................................................................3
Social Factors:.................................................................................................................................4
Technological Factors:.....................................................................................................................4
Conclusion:......................................................................................................................................4
References:......................................................................................................................................5

3MARKETING MANAGEMENT
Introduction:
The report aims at providing an insight into marketing management in purview of
conducting an environmental analysis of a food industry. The company chosen here is Old
Chang Lee (oldchangkee.com 2018). The company represents an established food, beverage and
snack chain with its location based in Singapore. The firms specialize in making curry puffs and
other localized snack items. The report puts forwards a PEST analysis of the company in context
of China, which is the target market.
Discussion:
Political Factors:
China is impacted by both the informal and the formal rules. The country is represented
by a single party and is governed by Communist party of China. The country has higher tariff
and a stable political environment. The political factors play a key role in determining the
business expansion in the newer market (Fewsmith 2016). In fact, the political situation of a
country, region or market has direct impact on the outcome of a business. Given the present
political situation of the country, Old Chang Kee would experience a smooth movement.
Economic Factors:
In the last five years, the economy of China experienced a significant growth in GDP. .
This higher level of growth led to higher rate of inflation and a higher property prices. It is often
said that any kind of economic development causes a major impact on the industry and its
actions (Zhang and Da 2015). The rate of inflation raises not only raised the price of the food

4MARKETING MANAGEMENT
materials but also led to an increase in the fuel price in world market thereby causing the food
industry of Old Chang Kee to bear both cost as a part of its production. This in a way leads to the
rise in the unit prices thereby acting as a disadvantage in pulling newer customers.
Social Factors:
China is an economy where fluctuation in age distribution and population growth is a
common thing. This can lead to an alternation in the cultural values and social trends. Decision-
making is often impact through social behavior and size. China however represents a
collectivistic culture influenced by education, consumer lifestyle, religion, education and
immigration (Gifford and Nilsson 2014). The country has a higher literacy rate that is one of the
reasons for health consciousness amongst the customers. It is therefore necessary for Old Chang
Kee to develop newer food ideas for creating an appeal for the health aware customers.
Technological Factors:
The enhanced skills of the Chinese labors in the technological aspects made it an
attractive place for the global producers. This resulted in the rise of a significant level of income
in the Chinese households (Li and Liu 2014). The rise of disposable income of the consumers
had a positive influence on the sales of Old Chang Kee. Besides, the enhanced interest of using
information and communication technology by the teen and the younger generation have led to
the increase in sales of the food industry.

5MARKETING MANAGEMENT
Conclusion:
On a concluding note, it can be said that the political, economic, legal and the
technological factors bears a significant impact on the development and establishment of Old
Chang Kee in China.
References:
Fewsmith, J., 2016. Dilemmas of Reform in China: Political Conflict and Economic Debate:
Political Conflict and Economic Debate. Routledge.
Gifford, R. and Nilsson, A., 2014. Personal and social factors that influence pro‐environmental
concern and behaviour: A review. International Journal of Psychology, 49(3), pp.141-157.
Li, D.Y. and Liu, J., 2014. Dynamic capabilities, environmental dynamism, and competitive
advantage: Evidence from China. Journal of Business Research, 67(1), pp.2793-2799.
oldchangkee.com (2018). [online] Available at: http://www.oldchangkee.com/ [Accessed 28 Sep.
2018].
Zhang, Y.J. and Da, Y.B., 2015. The decomposition of energy-related carbon emission and its
decoupling with economic growth in China. Renewable and Sustainable Energy Reviews, 41,
pp.1255-1266.