Question

Korean Company that makes cosmetics want to enter the Oman market. They know that analyzing the marketing environment is a very important task that needs to be done before they decide to sell their products in Oman. You may get information online or from other sources to supplement your answer.

QUESTIONS:

1. Identify and explain 5 macro environment factors or issues that this Korean company need to assess before they enter Oman.

2. Identify and explain 3 micro environment factors or issues that this Korean company need to assess before

they enter Oman

Answer 1

If a Korean Company that makes cosmetics want to enter the Oman market,so analysing the marketing environment is one of the important task before selling their products.

1. The 5 macro environmental factors or issues that the Koreab company need to assess before they enter Oman are:

• Socio-Cultural Environment-The social and culture values of an environment play a huge role in the functioning of the company. A change in social environment can have a direct or indirect effect on the company. Also the cultural forces have a significant impact on the success of a company in the long run. Cosmetics are selected in the framework of personal culture and rituals performed. Along with that the language and symbol on the package influences their selection.Today's globalization has converged the global teenage category tastes and preferences, as a reason global teenagers influence is on our country's teenagers which very important.

• Economic Conditions of the Market-The economic conditions of the economy and the performance of a business have a very close relationship. A business depends on the economy for all its inputs and factors of production. It also sells its products and services in the same market. If there is a boom in the market then all businesses will benefit from the favorable conditions. The income will be higher, rate of interests will be low, new capital will be available etc. Also, the opposite is also true in case of a bust.

• Ecology and Physical Environment- Ecology and physical environment play a huge part in the performance of any business. This is especially true for manufacturing/production companies. Weather conditions, topographical elements, geographical location, climate changes and other ecological factors are also important element in the macro environment of a business. Consumers and producers are becoming more open to the usage of natural cosmetics. This can be seen in them using a variety of natural cosmetic resources and materials. This fact is further supported by the trend of environmental and health awareness.

• Political and Legal Factors-The political environment of a country is the combination of three branches of the government – legislature, executive and the judiciary(Oman is absolute monarchy).The political environment of a country will mainly depend on the political beliefs and ideologies of the party in power at the state and central levels here it goes to one individual ideology.

  The legal environment refers to the rules, laws, regulations, and judgments etc. that affect the functioning of a business. And this will also include the taxation laws and the Budget for the given year. So stable legal and political government is really important if the business and the economy as a whole has to succeed

• Technological Environment- In the times we live in, technology is constantly changing it is important that the business can keep up with the changes. Technology does not only confine to computers and IT services. It includes products, manufacturing processes, techniques etc.The technological developments can be a huge advantage for a firm. But at the same time of the technology used by the firm becomes obsolete due to such developments, then it can also be a threat to the firm.

2.The 3 micro environment factors or issues that this Korean company need to assess before they enter Oman are:

• Customers-The main purpose for the existence of most organizations is to satisfy the needs and wants of the customers. The enterprise aims to please the customer and earn a profit in return.

  So the ultimate aim is to provide the best products/services to the customer at the best prices. Failure to do so may result in failure of the business.This is why it has become increasingly important to listen to customers and value their feedback. This is why customer consumer surveys have increasing importance in today’s markets. It says Oman has a huge number of buyers for cosmetics.

• Competitors-There are no pure monopolies in the world. Every organization, whether big or small, has competition and competitors. So the company has to keep a constant check on their competitors.The company must ensure that their products have a USP that makes them different and unique in the market. The products offered must also be better and cheaper than those of the competition.

• Employees

  Employees or labor is one of the most important factor of production for a company. Human resources are a significant factor in the success (or failure) of a firm. Hence employing the correct people, best suited to your firm is of vital importance. And training and development of these employees is also essential. If care is not taken in this matter the organization can never succeed, because employees are the back bone of every organization. So while assigniing jobs it should be given to someone who has knowledge about the current trend of cosemtics.