The economy has a great impact on everything that we do as consumers. In many ways the economy determines what our choices as shoppers’ may be. Because of this, businesses are heavily impacted by the economic environment that surrounds us. In regards to Tom’s Maine which is a very popular name brand that uses all natural and organic ingredients in its products, the economic environment will definitely have an impact on how many products are sold to the consumer. When the economy is performing poorly, and the stock market plummets, this lowers the propensity for individuals to go out shopping for certain luxuries, such being choosy as to what toothpaste this person may prefer. For example, because Tom’s of Maine uses all natural ingredients in its products, it tends to cost more per ounce than your average dollar store Aquafresh tube of tooth paste. Perhaps because the economy is affecting the consumer’s pockets, this very consumer will decide that in order to save a few extra bucks, they will decide to opt out of getting the Tom’s of Maine Brand, and perhaps just get a cheaper brand instead. Of course this not only affects the company, but the consumer as well, as their wants may not be as satisfied as they would like it to be, as well as the fact that many of those consumers who purchase Tom’s of Maine brand products are also those concerned with the environment or have strict diet guidelines; making their options limited.
Another very important environmental impact is that of socio-cultural bearing. The socio-cultural environment is very important when targeting certain groups of people for your product. This takes into account the set of beliefs, customs, practices and behaviors that exist within a certain population. This ca...
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...anic. In fact the USDA has a list of regulations that must be followed when specifying whether a product is indeed organic or not. For example in order for a product to be labeled 100 percent organic, it must indeed contain 100 percent organic ingredients, or else it must just be labeled organic or “made with” organic ingredients. This is good for consumers as it allows individuals to feel confident in the product that they are buying and rest assure that the labels added on these products are actually telling the truth. Another factor is the trade; there are several regulations that should be followed in order for trade to take place in other countries, such as required paperwork and fees. This affects consumer in that, prices of such products may increase because of fees involved in shipping the goods to other countries. The same is true for the business as well.
Organic products and non-organic products have been a subject of interest to me for a great amount of time because I have often questioned whether there really was a difference between the two types of products. I always wondered what the nutritional, economic, laborious, and pollution differences were, if any, in the creation of the two types of products. Through research, I have found several sources of information that allow me to determine more than a physical difference between the two. To start, labeling something as organic is specific and determined by the United States Department of Agriculture (USDA). The regulations set are extremely specific and it is relatively difficult to meet the standards.
Organic refers to the way agricultural products, food and fiber, are grown and processed. “It is an ecological system that at its core relies on a healthy rich soil to produce strong plants that resist pests and diseases. Organic farming prohibits the use of toxic and persistent chemicals in favor of more “earth-friendly” practices that work in harmony with nature. In the case of livestock, antibiotics are prohibited, opting instead for preventative measures for keeping animals healthy and productive. Organic production also prohibits the use of genetically modified organisms (GMO’s).” (Ameriorganic) To find organic products one must only look for the U.S. Department of Agriculture (USDA) seal. The seal certifies the product must be 95%
Steven Shapin is an expert when it comes to telling people the reality of the situation. In his, article “What Are You Buying When You Buy Organic?” Shapin exposes and explains the truth behind the word organic. He explains that our view on organic is not a reality. The small farms that we picture in our heads are really just big business in disguise and these big businesses are trying to do good by supposedly not using harmful pesticides. Which are supposed to not damage the environment but in reality they are probably not making any sort of difference. Some people care about the environment, while others are buying taste when it comes to organic food but using different pesticides are going to help the taste, only freshness tastes the best.
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.
Kraft Food Group has some areas in which it can grow. The company needs to fix its debt-to-assets and debt-to-equity ratios. The profit margin has been sporadic for the last five years. This is not a good trend for the company. This industry has some very external factors that can devastate the profit margin such as drought and other Asian market trends that can hurt the bottom line for this industry and company. Weather cannot be controlled. This company has a lot of different products which can be good by not putting all of your eggs in one basket approach. This can also lead the company to be stretched and pulled into many directions. The food industry can be a very up and down market because of external forces. Kraft Food Group has some problems with putting chemicals in some of their products that are now prohibited by the government. Kraft Food Group has food scientists, engineers and chemists to combat these chemicals and to develop new products and provide consistent quality of products so they can grow through sales and profits. Kraft Food Group has a high standard of quality and respect from its customers. Kraft Food Group could lose financially by food contamination. This company will continue to grow in the future if they continue to make improvements, make investments, and produce quality
Assuming a country had a favorable political, legal and economic environment; its cultural environment was evaluated. Culture impacts demand and the marketing mix; therefore, if a country's culture was deemed unfavorable, it was not included in the top ten ranking. Similarly, if a country's culture seemed especially favorable, that aspect is denoted later in the analysis. Cultural factors considered in this analysis:
Like many other topics, organic food brings up many controversial opinions. A new study out of Stanford University showed how organic fruits and vegetables are the same as conventionally grown products by countering their nutrients intake. Their study included humans that were tested between two days to two years. In the end of their study they concluded that organic goods are no more nutritious than lowly conventional foods. Also, when it comes to meats and dairy production, they claim that they didn’t find any apparent health advantages. To end up with this conclusion, the specialists made thousands of research that included 17 studies of the population that consume organic and non-organic foods in their diet and 223 studies that contain comparisons between the nutrients levels, pesticide, hormones, and bacterial contamination in different organic and non-organic products ( vegetables, fruits, milk, and meats). They strengthen their theory by saying that no long-term studies showed any health difference between people that consume organic foods versus people that eat non-organic products. But still, they said half-heartedly that they found in organic food more phosphorus than in conventionally grown food and higher levels of pesticides in non-organic products. But they quickly covered this by saying that the “pesticide levels were always within health regulations and below the dangerous levels” (USDA).
The term “organic” is almost everywhere in modern society, whether it’s used to promote a product or it’s debated on whether it really benefits the human diet. Organic food is heavily debated on as it appears more and more in local grocery stores and farmers markets begin to populate, it raises questions such as “Is organic food better than food grown with pesticides and biologically engineered genes?” and “Are there benefits to eating organically over foods grown in any other way?” In terms of what data and results show in research may help lead to answers to most of the heavily debated issues throughout discussions on organic food.
The basic difference between organic foods and natural foods lie in the label. The label organic means that it is free from harmful heavy metals which are used during the production of food. There are some criteria for organic foods to be labelled as organic foods. They must be grown in the conditions labelled by USDA. Synthetic fertilizers, pesticides and insecticides must not be used. Toxic persistent pesticides, genetically modified food, antibiotics, growth hormones and sludge and irradiation are all prohibited according to the standards set by USDA. Whereas the advantages of using organic foods are animal welfare requirements, cows required to be on pasture for pasture season, lower levels of environmental pollution, audit trail from farm to table, certification and inspection for proper follow of rules and legal restrictions on allowable materials.
As culture may impact people's behaviours generation by generation, in other words, the consumer's need of business in some level depends on cultural influence. Cultural influence lies in a variety of forms, from laws, regulations, religions to personal interests.
Thirty years later, organic farming was in high demand, but suffered developing pains. Although there was agreements being made, there was no regulations put forth towards organic farming. Fast forwarding to present time, many consumers are starting to purchase organic food products even making it a trend. Written in Inouye, Alena, and McCauley’s 2006 article “Organic Farming Should Be Pursued”, “organic farming is gaining in popularity due to Americans ' increasing concern about food safety and environmental protection.” This quote assumes the reasoning behind the sudden popularity in organic farming is society’s attraction towards the idea of a cleaner food industry and environment. The article also mentions, “As a result, sales of organic foods in the United States have increased by more than 20 percent every year since 1996, reaching $7.8 billion in 2000.”(Inouye, Alena, McCauley) The fact that popularity towards organic farming grows at a rate of 20 percent every single year further proves how its movement has such an impact towards the consumers of
Organic food is food that is grown without any pesticide or fertilizers. In recent years, sales for organic foods are increasing every year. A lot of people go to supermarkets in order to buy some organic foods, because they think that organic foods are healthier than conventional foods. People purchase organic foods for different reasons such as personal health, the quality of organic foods, and taste, but the most important reason is personal health. The topic that whether organic foods have more benefits or not is very controversial for a long time. Maybe some people believe that organic foods are beneficial to human health, but some other people disagree with the viewpoint, so buying organic foods depend on people’s choices. People believe organic foods are healthier because they generally think organic foods have less pesticide and fertilizer residue, more nutritional values, and are beneficial to environment.
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.
Even environmental and social link in this case study of PESTLE Analysis factors. For the example of CO2 emissions, is an Environmental ingredient which has Political & Legal influence, it has an Social impact in the UK culture where the customer is more Green consumers they like to use the goods and services which are more eco-friendly which also have less impact on the environment study case
Environment and the people giving service at that have an effect on customer to make a decision on buying the product.