Have you ever wondered why each year there seems to be more of major natural disasters than previous years? How about the increase in prices on things such as, foods, clothes, and materials made with rubber? Ironically, un-enounced to most of the world, natural disasters, and price increases go hand in hand. However, it is global warming that is causing these natural disasters that affect businesses and the ending result is it affects their consumers as well, one way, or another. The book titled GEO-5 for Business Impacts of a Changing Environment on the Corporate Sector, authored by Grossman, David explains how everything we as consumers and businesses purchase, has a main ingredient that comes from a natural resource, such as metal and cotton. By the supply depleting from global warming, it affects business to obtain the supplies, to meet the demands of consumers, and from there, it affects a vast majority of things within businesses.
Therefore, in order for businesses to meet the demands of their consumers, they need these natural resources in order to operate, produce, supply, and market their products. However, all these things start at the very basis of available natural resources for businesses to be able to operate, such as, electricity, wood, crops, and water. Businesses are dependent on these resources in order to operate, the business sectors the book focuses on are: building, construction, chemicals, electric power, extractives, finance, food and beverage, healthcare, information and communication technology, tourism, and lastly transportation. Grossman states, “Similarly, climate impacts, resource scarcity, and resulting changes in population migration may have broader systems-level effects, destabilizing countries a...
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...d consumer relations, if they just prepare ahead of time. Grossman says it best, “in every sector, and in a myriad of ways, the impacts of changes in the environment on businesses are numerous, material, and imminent”. He then proceeds on how businesses that face the challenges and think ahead can prevent problems, “in many sectors and across geographies – are gaining competitive advantage by understanding environmental trends and taking action” (Grossman, D. pg. 45).
References
Grossman, D. (2013). GEO-5 for Business Impacts of a Changing Environment on the Corporate Sector. n.a.: United Nations Environment Programme.
Master, N., & Samiti, L. (2008, March 21). India Resource Center - Major Protest Demands Coca-Cola Shut Down Plant. Major Protest Demands Coca-Cola Shut Down Plant. Retrieved March 21, 2014, from http://www.indiaresource.org/news/2008/1034.html
Rio Tinto, whose headquarters are situated in Europe; London, United Kingdom a developed country. The corporation Rio Tinto brought on a stamped loss of biodiversity in the region, both because of the formation of the mining regions themselves and by the unsustainable misuse of the area. When MNCs guides their globalization endeavors to ranges of moderately poor countries with rich land and rich biodiversity, a low environmental standard will inevitably lead to habitat destruction and species endangerment. Rio Tinto has perceived the need to execute changes as a reaction of government regulation expanding. Their key initiatives are developing climate change scenarios and business implications for key regions, Engaging in research partnerships that are analyzing climate change impacts and Building climate risk awareness and expertise among business units and staff (Center for Climate and Energy Solutions 84). Rio Tinto has implemented risk analysis and management process which has been categorized into classes, one through four, four needing immediate attention. The risk analysis and management must consider the accompanying five sorts of monetary outcomes capital expenditure, schedule, operating cost, production volumes, and revenue. It likewise incorporates the outcomes of health impacts, environmental impacts, community
Consumers in today’s market are growing increasingly more aware of the need for companies to be socially responsible in order for consumers to show support through loyal business. Baby Boomers, The Silent Generation, Generation Y and Generation X cultures have embraced the megatrend of environmental and social consciousness of organizations, despite their many different generational characteristics (Kotler & Ketler, 2012). Home Depot has become more than just the orange home improvement store by continuing to effectively integrate multiple marketing strategies into its business plan. Home Depot targets a variety of consumers, helping gain a wide customer base to support the company even through economic swings (Home Depot, 2012). By focusing on all of the macro-environmental factors, Home Depot is now known as a company that helps all Americans create a personal sanctuary in their homes, regardless of their income (Home Depot, 2012).
Technological change, change in economic climate, natural occurrences and such-like are matters that concern the macro-environment of a business. These external, uncontrollable, influences can and will impact hugely on the success or failure of a business. One of the tools that are applicable in considering these factors is PESTLE. Political; Environmental; Social; Technological; Legal and Economic considerations will need to be engaged in order to prepare the business for macro-environmental influences. For this reason, PESTLE will be the most appropriate tool to use to identify and outline the main macro-environmental factors that may affect my business.
Also, to save and recycle the usage of water. To defuse further boycotts or demonstrations against their products, they need to set up specific funds to have people cultivated on certain awareness, help fund agricultural products and set up seminars in schools to make people aware of certain information they need to know. The furor will definitely subside in long-term if Coca-Cola doesn’t talk to the people but the best way is to face the situation directly by giving a statement to the
This paper will discuss the five environmental factors that influence global and domestic marketing decisions that organizations must make. These five environmental factors are technology, demographics, government, culture and economics. Companies are affected differently by these factors depending on the industry they are in and the size of the organization. I will be using the Washington Plaza Hotel to illustrate how these environmental factors affect the hotel industry's marketing decisions. The Washington Plaza Hotel is a hospitality business located in Washington, DC. They offer services such as lodging, restaurant, bar, catering and meeting space rental. The Washington Plaza Hotel's major customer base is government, tourist, non-profit organizations, local businesses and some corporate clientele. Let's now take a look at how these environmental factors affect the marketing of the hotel.
Environmental – External environmental factors are forces or trends that can affect a business whether it is an opportunity, threat, or constraint. They can be divided into three interrelated subcategories of remote, industry, and operating environments. The remote environment includes factors beyond a company’s operating situation such as the economic, social, political, technological, and ecological factors. The industry environment includes factors that have more of a direct influence on a company’s business such as entry barriers, competitor rivalry, the availability of substitutes, and the bargaining power of buyers and suppliers.
As environmental concerns become more of an issue for consumers, they will be more aware of the impact that a company has on themselves and the environment and therefore be more conscious of who they support with their dollar.
Daniels, John (2010). International Business: Enviroments and Operations 13e. pg 620-625. New Jersey. Pearson Education Inc.
An Analysis of the Impact of Increased Climate Change on Building Merchant Industry, Its Effect on the Marketplace and the Future Strategies of E.H. Smith
The more experience you have putting these tips into practice, the more they will become instinct. And by making informed decisions and ensuring that the product’s claims are accurate, you can feel good about the choices you make and their positive impact on the environment. If more greenwashing means that marketers are increasingly responding to the demand for sustainable products, this could be a positive trend. If left unchecked, greenwashing creates significant risks. Consumers will give up on marketers and manufacturers, and give up on the hope that their spending might be put to good use. Recent developments suggest companies should be prepared for the new wave of measures. Greenwashing has become a buzz word for consumers and the media. Unfortunately, the rules are not always clear when it comes to responsible environmental marketing.
Jeff Butcher and Rachel Hill pointed out the impacts of businesses on environments, by stating “The more of a product that is consumed or produced, the more of an externality that results” (Butcher, Jeff, & Hill, Rachel, 2006). Obviously, we can see that one product produced will bring benefit to consumer, sellers, and manufacturers. Meanwhile, one produced and consumed will cause negative externalities for environment. There is one fact we cannot deny that the more social life develops, the more externalities will be produced to the society. Daily living garbage, industrial wastes, carbon dioxide from factories are most outstanding examples to describe negative externalities to environment (Butcher, Jeff, & Hill, Rachel, 2006). In “The tragedy of the Commons”, Hardin showed us causes of negative externalities. He proved that people assume a...
Our planet has managed to survive and thrive for about 4.54 billion years. In the last 2 million years we have caused enough damage and destruction to make our world “broken” beyond repair. We will not be able to get back the world we once had. The reason behind this is global warming, specifically, the increase of the global temperature due to the burning of fossil fuels and the release of greenhouse gas emissions into our atmosphere. If we do not make the issue of global warming a priority in today`s society, our entire way of life will be at risk. There are many reasons why so many people believe global warming should be a concern. Thoroughly examined points include: scientific predictions, rising temperatures, human causes, drastic climate changes and animal adaptations. Though there are several points arguing how global warming should not be a concern, the reality of the matter is that it needs to be taken into consideration on a global scale before it is too late, as to do nothing would have devastating implications on humankind.
The importance of Environmental Analysis lies in its usefulness for evaluating the present strategy, setting strategic objectives, and formulating strategies. The political environment can affect organizations. Political components influence buyer certainty and purchaser and business spending. Stability of the political environment is essential for organizations to enter new markets.
Global warming is one of the most serious issues that the human species face today, yet the majority of the population does not pay attention to it. People are not aware of the dangers and do not care about it much because the main effects will affect the next generation and not themselves. Global warming is happening and it is the reason for changing weather and weather extremes such as earthquakes, floods and wildfires. Global warming is caused by societies lifestyle and these lifestyles destroy the environment and affect the whole world. The use of cars, trains, planes, as well as wasting energy for people’s entertainment has a price; this price is that society is in danger.
For many years climate change has become a crucial issue around the globe. The environment has considerably deteriorated by the change of climate: seasons are shifting, the earth 's climate is changing, sea levels are rising and ice is melting. Global warming and the greenhouse effect is a topic that is becoming more and more concerning and a lot of research is done in order to examine what the issues are and how these affect the economy (Stern, 2006; CCRA, 2012) but also business industry and politics (Hanley & Owen, 2004). This phenomenon is a result of approximately 100 years of carbon-dioxide emission (amongst other greenhouse gases) in the atmosphere (Stern, 2006). It is a serious phenomenon affecting the environment and living organisms.