Question

In examining and analyzing the challenges faced by companies engaging in the global arena, there are political and social factors that could determine the successes or failures of such companies. With this in mind, discuss four (4) factors that characterise Social and Political Pressures of doing business abroad

Answer 1

Here are the four social and political pressures of doping business board which must be discussed, assessed and the planning by firms should be done accordingly:

Political Pressures:

1. The political pressures and associated factors influence the marketing efforts globally as the interest of the government, ideologies, interest of pressure groups and legal laws governing the system has to be analysed.
2. These factors are important as they impact the production capacity, cost, design & marketing of the product.
3. Licensing and various permits and approvals required for operating in a country define the importance of such political factors.
4. Various taxes, fees and tariffs have to be assessed to plan & implement the business model and marketing efforts. Various governments have different policies and all have to be taken into account while operating & marketing internationally.
5. The currency risk as a political factor plays an important role to plan marketing efforts as a wrong decision can lead to massive losses.

Social Pressures:

1. The social pressures and factors help to guide global marketing efforts. It makes business and marketing more socially responsible. The firms across the globe adopt an environment-friendly and socially beneficial strategy for creating products. It is important as pressure groups can impose challenges on the marketing system.
2. Language plays an important social factor in adopting the right marketing communication strategies.
3. The eating habits, routine and taste are important social factors deciding marketing strategy and the right product being introduced in the global markets.
4. Consumer habits help to profile customers and their personalities. Various societal and psychological factors have to be weighed to understand the taste of customers and plan marketing efforts accordingly.
5. Age and other cultural demographics help to plan marketing effort in the right direction. The percentage of the young and old population defines the value & choice of product & marketing strategy.

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