Question

1. What kinds of environmental factors should a company consider when a company launches a new product? (you may think the concepts of product life cycle and/or Porter’s five forces - you can easily find the definition of concept via textbook and online sources)

  

2. Consider the current demographic, economic, natural, political, technological and cultural factors in the US market environment.  

How those factors influence business environments in general (pick one industry sector/business category)?

Based on your choice, how the companies should respond to those environmental changes so as to maintain their business in the market?  

Among those macroenvironmental factors, which factor would be the most important consideration in the chosen business?

Answer 1

1)

The following environmental factors should be analyzed before launching a new product by the company

• Waste disposal – If the new product is manufacturing of chewing gum , The waste disposal of manufacturing process will be

1. The scrap generated of raw material , work in process and finished goods in the manufacturing process
2. The rejection of finished product by the quality team due to defects or other reasons of finished goods of chewing gum
3. The water used in production and the disposal of the same after the production process

The scrap or waste or rejection of finished goods should be analyzed of following factors

• Whether it is bio degradable or not the chewing gum is not bio degradable
• The waste or scrap packing material is bio –degradable or can be used further
• Whether the waste water generated can be processed further and can be used again in the manufacturing process or can be used for human consumption
• Whether this waste or scrap can be used as raw material in other products

The government has strict guidelines of waste disposal policies and the new product can adhere to it without incurring heavy investment otherwise the product costing will become uncompetitive

• Energy consumption = whether the technology of manufacturing new product is energy efficient or not. It can be calculated by determine the output ratio to per unit watt consumption. The energy generation is limited due to consumption bio fuels like coal, crude oil and the resources will be exhausted. the alternative sources of generating energy are costly and limited as of now

The new product should use energy efficiently otherwise or otherwise should be discontinued

• Polluting measures = The new product manufacturing and its waste disposal adhere to government regulations of pollution in respect of following

1. Water pollution not impacting the nearby area of consumption of water by human and animal health
2. The agriculture produce should not have traces of chemical or other material harmful for human and animal consumption
3. The air pollution norms to be adhered , which has become a major concern for all stake holders like government , people , vendors etc