Adapting to Global Market Forces
With the increase in the global competition, the multinational companies are also required to take appropriate action in the management and alterations of the organizational structures. The main aim is to enhance their current position for the purpose of taking the benefit of the opportunities arising in the international market. Market forces can be defined as the factors which influence the availability and prices of the products and services in a market economy. The global marketplace is diverse and therefore is affected by a number of forces. The businesses operating on a global scale are affected by global demand, supply, political, legal, economic, technological, competitive, social and cultural factors (Adekola and Sergi, 2016).
This report focuses on the manner in which the global market forces and marketers need to adjust to a changing environment, evaluation of the role of market forces and marketers as that of a critical catalysts and how the multi- national company leverages its leadership business areas for seeking new ideas.
The global market forces make the business environment dynamic leading to changes taking place on constant basis. Marketing can be defined as the process involving the identification of the needs and requirements of the current customers along with anticipating future changes. The global market forces such as competition, political, social, cultural, technological, economical, and legal factors keep on changing from time to time. These forces are required to be adapted by the marketers in order to survive in the market for a longer period of time.
Competition- When new firms start entering the marketplace, the business environment becomes more competitive. The marketers need to evaluate the environment from time to time in order to recognize the competition on timely basis. When the competition becomes global, it becomes imperative for the businesses to stay aware of the manner to be adopted for competing against them (Takata, 2016).
Economic Factors- Inflation and economic cycles are the economic factors that influence the operations of the businesses. There is a change in the spending patterns of the consumers as a result of inflation. Along with this, inflation also influences the production and distribution costs of the company. The marketers need to deal with it with the help of plans for adjusting costs and pricing models so that the economic climate can be dealt economically. With the change in the economic cycles, the business should prepare itself for adapting the schedules of manufacturing, distribution and marketing for keeping up with these changes.
Role of Marketers as Critical Catalysts
Politics and Law- the laws affect the business of every shape and size. The change in the business environment also affects the changes being brought in political and legal forces which in turn affect the marketing practices, operations and profits of an organization. Therefore, in accordance with the requirement, the laws also change which are required to be considered by the marketers from staying away from the legal issues in the business environment (Li & Kannan, 2014).
Technology- the changes in the environment requires the modification in the technological forces for meeting the needs of the businesses. In this way, technology creates solutions for the changing needs of the business. Marketers should make the best use of technology in order to stay ahead of the competitors.
Society- the first and the foremost element of the marketing environment is people. With the change in the demographics, customs and cultures, the purchasing habits of the customers also change. The marketers need to change the ways for reaching the target audience. The markers should aim at keeping the businesses at the top of the statistics in the target markets for staying competitive in the dynamic social environment.
The term catalyst can be defined as something that causes activity between two or more forces or individuals without itself being affected. Businesses are the result of the organized efforts of the entire enterprise for supplying the needed goods and services to the customer for a profit (Nickerson, 2017). The businesses are run by the individuals or are the combined efforts of the individuals. Businesses play an important role in the society. This is due to the fact that they are run on the basis of contributions made by the society. Today’s business is dynamic which keeps on changing from time to time due to the constant change in the needs and requirements of the customers. The market forces and marketers act as the critical catalysts between individuals, businesses and society. When the market becomes competitive with the number of businesses in the business environment, certain changes take place in the market forces such as formulation of certain laws and policies by the government for the effective regulation of such businesses. The marketers are required to take actions accordingly for the purpose of staying out of the consequences of such regulations. All the individuals working for the organization are required to make efforts for the achievement of the business objectives. Furthermore, the interest of the society is secured when businesses make contributions towards their corporate social responsibilities. The marketing techniques adopted by the marketers are also required to be focused towards the society such that they can get the attention of the customers. Therefore, market forces and marketers play the role of critical analysts between individuals, businesses and society.
Leveraging Leadership Business Areas for New Ideas
Multinational companies are the companies that operate in a number of countries. There are a number of organizations that operate in the multinational environment which, in turn, creates a number of challenges and opportunities for the multinational companies. Now, these multinational companies are leveraging on the environmental business area for the purpose of seeking new ideas and communicating its international strategy to the ultimate customers. These businesses are promoting environmental friendliness in society with the help of their business activities. One of the major environmental business areas covered by these organizations is contributing towards the betterment of the environment so that carbon emissions can be reduced and environmental issues can be controlled (Yin & Jamali, 2016). The companies are taking leadership in this context for winning the attention of the customers. For example, Mizohu Financial Group operates in a number of countries like Belgium, Russia, China, UAE, Saudi Arabia, France, Germany, etc. It focuses on the environmental business areas as a part of its social responsibility. The four environmental business areas covered by the group are environmental finance for the purpose of supporting funds to the organizations that promote environmental- friendliness and the businesses that contributes towards the decrease in the environmental business. It also provides finances for renewable energy projects, etc. It further allows this group to make the use of new ideas that can provide it success in the business (Escrig? Olmedo, Muñoz? Torres, Fernández? Izquierdo & Rivera? Lirio, 2017).
The communication of the international marketing strategy also becomes efficient when it comes to the environmental business areas. Furthermore, this approach also plays an effective role in the international environment. The companies that contribute for the benefit of the society and environment are preferred by the customers in the international market. Therefore, the success of such multi- national companies are ensured in the international market with the help of such practices. It improves the brand image of the company in the international market along with increasing the confidence of the stakeholders (Di Benedetto & Kim, 2016). The environmental- related activities also assist in building the relationships with the customers and helps in retaining the top talent in the organization. Lastly and more importantly, it helps the multinational companies in standing out from the competition (Goss, 2015).
Conclusion
Therefore, it can be concluded that market forces are the factors which influence the availability and prices of the products and services in a market economy. This report focused on the manner in which the global market forces and marketers need to adjust to a changing environment, evaluation of the role of market forces and marketers as that of a critical catalysts and how the multi- national company leverages its leadership business areas for seeking new ideas. The global market forces such as competition, political, social, cultural, technological, economical, and legal factors keep on changing from time to time. This requires the marketers to take the needed steps in order to survive for a longer period of time. The multinational companies also undertake the environmental friendly activities as the part of their strategy which, in turn, assists them in achieving a competent brand image in the international market.
References
Adekola, A. and Sergi, B.S., 2016. Global business management: A cross-cultural perspective. Routledge.
Di Benedetto, C. A., & Kim, K. H. (2016). Customer equity and value management of global brands: Bridging theory and practice from financial and marketing perspectives: Introduction to a Journal of Business Research Special Section. Journal of Business Research, 69(9), 3721-3724.
Escrig? Olmedo, E., Muñoz? Torres, M. J., Fernández? Izquierdo, M. Á., & Rivera? Lirio, J. M. (2017). Measuring corporate environmental performance: a methodology for sustainable development. Business Strategy and the Environment, 26(2), 142-162.
Goss, D. (2015). Small Business and Society (Routledge Revivals). Routledge.
Li, H., & Kannan, P. K. (2014). Attributing conversions in a multichannel online marketing environment: An empirical model and a field experiment. Journal of Marketing Research, 51(1), 40-56.
Nickerson, J. (2017). Market forces and CEO pay: Shocks to CEO demand induced by IPO waves. The Review of Financial Studies, 30(7), 2272-2312.
Takata, H. (2016). Effects of industry forces, market orientation, and marketing capabilities on business performance: An empirical analysis of Japanese manufacturers from 2009 to 2011. Journal of Business Research, 69(12), 5611-5619.
Yin, J., & Jamali, D. (2016). Strategic corporate social responsibility of multinational companies subsidiaries in emerging markets: Evidence from China. Long Range Planning, 49(5), 541-558.
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