International Marketing: PEST Analysis for Byron Bay Cookie Company

This report presents a PEST (Political, Economic, Social, and Technological) analysis for the Byron Bay Cookie Company, evaluating the potential for international expansion into the Singapore market. The analysis examines the political landscape, including government policies, trade regulations, and corruption levels, revealing a favorable environment for foreign investment. Economic factors such as GDP, per capita income, inflation, and unemployment rates are assessed, highlighting Singapore's strong economic performance and high consumer purchasing power. Social factors, including population demographics, cultural trends, and consumer behavior, are analyzed to identify opportunities for cookie sales. Technological factors, such as internet speed and digital infrastructure, are also evaluated, showing Singapore's advanced technological environment. The report concludes that Singapore offers a promising market for Byron Bay Cookie Company, providing recommendations to capitalize on identified opportunities and mitigate potential risks. The report provides specific figures and graphs in relation to these factors.

RUNNING HEAD: PEST ANALYSIS
Marketing

PEST ANALYSIS 1
Executive summary
The report focuses on the important aspect of international business. It suggests that
Byron Bay Cookie is a multinational company based in Australian. The PEST analysis suggests
that all the macro-environment factors will benefit Byron Bay Cookie Company with its own
aspects. It is assessed that none of the factors are offering threat to the company. However, these
are developing some sort of advantages and opportunities for the company. Thus, to fully utilize
these advantages, possible recommendations are given with respect to each macro environment
factor. It also provides specific figures and graphs in relation to these factors.

PEST ANALYSIS 2
Contents
Introduction......................................................................................................................................3
Company overview..........................................................................................................................3
Country overview............................................................................................................................4
PEST Analysis.................................................................................................................................4
Conclusion.......................................................................................................................................8
Recommendations............................................................................................................................8
Bibliography..................................................................................................................................10
Appendices....................................................................................................................................14

PEST ANALYSIS 3
Introduction
The research report is prepared for the title ‘Marketing’. It involves the various activities
undertaken by the company for the promotion of a product/service. It is the ability to influence
the customers with respect to product (Jobber, 2012). It includes activities such as advertising
and personal selling. It is one of the important aspects of the selling process because it involves
dealing with the customers. It is analyzed that choosing the right platform for marketing is very
essential as it can directly affect the sale of the product and company’s overall profit (Kotler,
2015).
The first section provides brief information about the ‘Byron Bay Cookie Company’ and
‘Singapore’. The body section provides detailed information about the economic, political, social
and technological factors of Singapore. It also comprises of the possible threats and opportunity
that will emerge for the Byron Bay Cookie Company due to analysis of these factors. The last
section provides effective and practical recommendations for the Byron Bay Cookie company to
overcome the possible threats and exploit the potential opportunities. The key purpose of the
report is to pour light on the major aspect of international marketing. It also provides an
opportunity to upgrade the knowledge based on the given title.
Company overview
Byron Bay Cookie Company is an Australian company founded in the year 1990.
‘Maggie Miles’ and ‘Gary Lines’ founded it. It has a market in 40 countries including England.
In the global world, it has also won several awards for its high quality and unique taste cookies.
It has won two silver and one bronze medal in the ‘Australia fine food award category’. In the
production process, it mainly relies on using locally sourced ingredients (Not A Trace , 2013). It
is mainly engaged in selling cookies of multiple varieties. These are gluten-free and soft
textured. Despite physical stores, it also operates via digital channels including Instagram
(Instagram , 2019). It is also represented by figure 1 given in appendices. It has annual revenue
of around $4 million (Stafford , 2013). It sells around 60 million cookies annually (Han , 2013).
It is analyzed that with the passing years, Byron Bay Company is reaching to higher level. It is
enhancing its customers by entering into international market (Cookie , 2019).

PEST ANALYSIS 4
Country overview
Singapore is considered as one of the prosperous nations in the global world. It favors
liberalization for the easy flow of international trade (Frost, 2013). In the category of developed
countries, it is one of the countries with lowest unemployment rate. It lays prior attention in
safeguarding the property rights. It provides high degree of trade freedom (Oswin, 2010).
Additionally, no minimum capital is required for companies to establish their business (Alsagoff,
2010). Thus, Singapore has effective rule of law, prosperous economy, supportive government,
fine population and high degree of economic freedom (Swee-Hock, 2012). As per the World
Economic Forum’s 2016, Singapore offers fine business environment to business corporations
(Mauraqz, 2017).
PEST Analysis
It is a strategic concept used to analyze the Political, Economic, Social and Technological
factors. It is mainly useful to recognize the opportunity and threats prevailing in the international
environment. It assists in scanning the environment and making effective plans as per the
environment analysis (Gupta, 2013). The company uses PEST Analysis before establishing a
business in the international market. It allows the company to work as per the factual information
rather than on assumptions (Shabanova, 2015). Thus, it helps the company to improve its
business performance. It is a tool for macro environment analysis and it provides an overview of
the external factors of a country (Yüksel, 2012).
Similarly, ‘Byron Bay Cookie Company’ is an Australian based company and it is
planning to establish its footprints in Singapore. Below is a list of factors that ‘Byron Bay
Cookie Company’ should consider before entering into Singapore. All these factors will assist in
analyzing whether Singapore is a favorable or unfavorable market for the Boss Bay Cookie
Company.
Political factors: While opting for the international market, these factors are given high
importance. This is because government policies have a high effect on business practices. It lays
emphasis on the role of government in the corporate sector. It includes tax rate, government
relation with foreign multinational company, trade tariff, government policies, tax rate and other
foreign trade policies (Cadle, Business analysis techniques, 2014). It is examined that Singapore

PEST ANALYSIS 5
government provides high degree of trade freedom to the business corporations (Tremewan,
2016). In order to promote Singapore's economic growth, the government promotes foreign
investors and multinational companies. It has a corporate tax rate of 17% that is below the
individual’s income tax rate. Additionally, it has subsequently low corruption level. It is
examined that its corruption rate is reduced to a major extent from the past years (Trading
Economics , 2019). This can be represented by the ‘figure 2’ presented in the appendices.
Moreover, it is analyzed that Singapore government provides multiple non-financial incentives to
foreign companies (Enterprise Singapore , 2019).
In relation to the previous paragraph, it is analyzed that Singapore’s government is highly
favorable towards foreign companies (Enterprise Singapore , 2019). From the political
perspective, Byron Bay Cookie Company will not face challenge to establish its business in
Singapore. It will provide ease to the company as it is a foreign company and it will receive non-
financial incentives from the government. Singapore also has low corporate tax rate. Thus, it will
benefit the company in cost-saving and it will contribute to higher profit
Low corruption level in Singapore will directly benefit the Byron Bay Cookie company.
It suggests that company will be able to develop positive business environment. Additionally,
Byron Bay Cookie Company will not face threats with respect to criminal activities in Singapore.
Economic factor: It attains utmost importance in the macro-environment analysis as they
have a high influence over the business performance. These factors have a direct impact on
business performance. It is very essential to understand these factors as these will directly hinder
the company in achieving its long-term goals. It includes factors such as Gross Domestic
Product, Growth rate, Per Capita Income, Inflation Rate, Unemployment level, Disposable
income, Interest rate and economic status. These factors denote the level of economy prevailing
in the country (Rastogi, 2016). The GDP of Singapore is $527.0 billion with a growth rate of
3.6%. The Per Capita Income is marked at $93,906. The high per capita income suggests that
people have high disposable income. It is examined that Singapore has an unemployment level
of 2.0%. Additionally, the inflation rate is marked by 0.6%. Its economy is considered as highly
developed (Heritage , 2019).

PEST ANALYSIS 6
Singapore's high GDP rate and Per Capita Income will directly benefit the Byron Bay
Cookie Company. This is because it ultimately gave rise to high disposable income. This in turn,
enhances the purchasing power of the customers. Thus, Byron Bay Cookie Company will not
face challenge in making sales of its cookies in Singapore (Newman, 2014). Singapore’s low
inflation rate will also benefit the Byron Bay Cookie Company, as it will not face any threats
with respect to high cost of borrowing and uncertainty in the work process. As mentioned above,
Singapore has low unemployment rate. This suggests that Singapore offers skilled and educated
employees for the companies. Thus, it will befit the company, as it will not have to lay high
efforts in retaining skilled and educated employees for the work process (Mathew & Fong,
2016).
Social factors: These factors attain high importance while considering the international
market. These have to be considered while implementing a marketing strategy as these factors
represent the individual’s social behavior pattern (Tsuji, 2016). It lays emphasis on factors like
demographics, population strength, cultural trends, norms, health status, buying behavior and
eating habits of the individuals (Cadle, 2010). It has population strength of 5.6 million
(Heritage , 2019). It is examined that tea is popular among Singaporeans (Malcolm , 2013). It is
analyzed that Singaporean’s show high cravings towards fast food (Lim & Wei, 2019).
Additionally, it is assessed that Singaporeans are not miser by their buying behavior. It is
assessed that Singapore has low degree of individualism (Hofstede Insight , 2019). Moreover, it
is examined that Singaporeans are health conscious by their eating habits. Thus, they opt for food
items that has a low-calorie rate (Khalik , 2018).
It is assessed that Singapore's social factors bring possible opportunities for ‘Byron Bay
Cookie Company’. This is because the company deals with producing cookie as fast food. Thus,
it will make it easy for the company to encourage selling (Chew, 2017). It will not have to add
additional efforts to develop demand as Singapore already has demand for food fast. Singapore's
good population strength directly generates an opportunity of high customer base for the ‘Byron
Bay Cookie Company’. As mentioned above, Singaporeans have high craving for tea. Thus, it
helps the company in raising demand for cookie as a complementary product for tea (Abels ,
2012).

PEST ANALYSIS 7
Additionally, Byron Bay Cookie Company will not face a challenge in pricing its product
(cookie) because Singaporeans are not miser by nature. Thus, company can easily set price as per
their knowledge. As mentioned above, Singaporeans are not individualistic by nature. Thus, it
will benefit the Byron Bay Cookie Company in making cookie sales in large quantities, as
Singaporeans are followers of collectivism. This will also affect their buying behavior. Thus, it
suggests that they will choose products in large quantity as they consider themselves as a part of
a group and believes in group benefits (Thangamma, 2012).
It is analyzed that Singaporeans are giving prior attention to their health status. Thus, it
does not develop a challenge for Byron Bay Cookie Company because it provides glutton free
cookies. However, it develops an opportunity for the company to enhance the production of low
calorie and calorie-free cookies. It is assumed that developing cookies that do not contribute to
lowering health status will absolutely gather demand among the Singaporeans (Fedo, 2012).
Technological factor: These factors assist the company in its work process. It is assessed
that the availability of these factors eases the work process of the company. It will also help the
company in becoming technologically advanced and up to date (Spieser, 2014). These factors
represent the level of technological, research and development and infrastructure and automation
prevailing in the country (Zanoni, 2010). It is examined that Singapore is developing high degree
of innovation and technological advancement. It provides high digital connectivity. It is also
represented by ‘figure 3’ presented in the appendices. It provides high internet speed with 181.47
Mbps (Chin , 2018). Thus, its effective digital connectivity makes it ideal destination for
business corporations (Mauraqz, 2017). It has high degree of technology and digital
competitiveness in respect of other countries (Today Online , 2017).
It is examined that Singapore offers a tremendous technological environment for Byron
Bay Cookie Company. As mentioned above, Singapore has a high internet speed. Thus, it will
help the Byron Bay Cookie Company to easily reach its customers through digital channels (John
, 2014). It will also help the company to serve better its customers. Singapore has effective
automation and it is still giving rise to number of new technologies. It offers opportunity to
Byron Bay Cookie Company as developing the use of upgraded automation will help the
company in reducing its workforce requirement. Thus, it will ultimately result in cost reduction
(Wagenaar, 2016).

PEST ANALYSIS 8
Conclusion
The report summarizes the title of ‘Marketing’. Thus, the above discussion concludes that
there is not high demand for cookies in Singapore. However, it also suggests that Singapore
offers multiple opportunities for Byron Bay Cookie Company. It is analyzed that there are
multiple opportunities prevailing in Singapore for the Byron Bay Cookie Company. Hence,
Singapore acts as an attractive international market for Byron Bay Cookie Company. Thus, it is
suggested that Byron Bay Cookie Company should enter in the Singapore market.
In order to reduce the emerging threats and possible opportunities for Byron Bay Cookie
Company, practical and feasible recommendations are provided.
Recommendations
A list of suggestions is given to lower the effect of threats and fully utilize the opportunities.
 It is suggested that before developing its physical stores, Byron Bay Cookie Company
should initiate its business practices through digital channels. It should offer its products.
This will provide dual benefits to the company. Firstly, it will help the Byron Bay
Company in cost-saving. Secondly, conducting sales through online channels will assist
the company in determining estimated demand or its product. It will provide an idea of
Singaporeans preference, choices and taste (Shenkar, 2014).
 It is recommended that Byron Bay Cookie Company should offer free samples in specific
events to acknowledge the Singaporeans with the unique and delicious taste of its
cookies. However, this activity should be conducted in the popular areas of Singapore
(Shenkar, International business, 2014).
 Byron Bay company should provide its customers with the detailed information of the
content of the cookie through digital channels. This will help the company in gathering
the attention of health-conscious individuals in Singapore (Inc, 2013).
 In order to market its product, Baryon Bay Cookie Company should develop the use of
YouTube and Facebook. This is because these are top used social media channels in
Singapore (Hock , 2012).
 It is suggested that Baryon Bay Cookie Company should recruit individuals from
Singapore itself. This will help the company in easily understanding the taste, preference,

PEST ANALYSIS 9
likes and dislikes of Singaporeans. Further, it reduces the requirement of market research
for the company with respect to Singapore (Kolk, 2010).
 It is suggested that the Baryon Bay Cookie Company should strengthen its social media
presence. This is because Singaporeans prioritize the use of social media. Thus,
developing positive brand image on social media will lays high emphasis on the mind of
Singaporeans (Doz, 2011).
 Despite the above suggestions, it is recommended that Baryon Bay Cookie Company
should lay prior attention in not hindering the cultural interest of the Singaporeans in an
aspect. This is because Singaporeans prioritize their cultural value. Thus, any
discontentment with cultural interest may heavily affect the demand for the product.
Further, it will also lower the interpersonal relationships between the Baryon Bay
Company and its customers (Ortmann, 2011).
 Lastly, it is recommended that in the initial phase, Baryon Bay Cookie Company should
set a low target. This will provide ease to the company in establishing its business
(Picciotto, 2017).

PEST ANALYSIS 10
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PEST ANALYSIS 11
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