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Global Marketing: Burberry in China, PESTLE analysis Essay

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Global Marketing Assignment: Burberry need to scan their market segments in order to gain the most competitive advantage. Pestle analysis looks at the political, economic, social, technological, legal and environmental factors that affect an organisation providing a ‘comprehensive list of influences on the possible success or failure of strategies’ (Johnson, Whittington, Scholes, 2011). However, the three main changes that focused on in this essay are Economic, Social and Environmental factors. The economy within China is currently very stable; being a part of the 4 fastest growing economies in the world (BRIC: Brazil, Russia, India, China), it has made large strides in recent years in the business and industrial sector. , the country…show more content…
. Geert Hofstede (1980) describes culture as, ‘a source of conflict rather than synergy. Cultural differences are a nuisance at best and often a disaster’. Justin Paul (2011) also supports this view stating that, human beings tend to have an instinct ‘deep inside’ that all human beings are the same. Therefore, if one goes into another country and makes decisions based on how one operates in one’s home country-‘the chances are that he or she will make some very bad decisions’ (Paul 2011). Hence, different types of factors need to be understood to ensure that you and the business are readily available to adapt to any change in culture or environment, this will be shown by a number of examples involving companies that have successfully set up business and others that have failed significantly all due to the lack of understanding of CCM. Power Distance is the dimension that deals with the fact that all individuals in societies are not equal it expresses the attitude of the culture towards these inequalities amongst us. At 80 China sits in the higher rankings of power distance a society that believes that inequalities amongst people are acceptable, therefore subordinate-superior relationship tends to be polarized and there is no defence against power abuse by superiors. Individuals are influenced by formal authority and sanctions and are in general optimistic about people’s capacity for leadership and initiative. People
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