Unit 38 Business And Economic Environment P5 M3 European And Global Factors

The European Union is a group of European countries who combined together as allies after WWII for trade and peace reasons. It was established so countries in Europe would not create conflicts with each other to prevent the disaster of the two World Wars. They also signed trade deals to secure the countries in the EU would be financially stable and not go into depression and poverty like most countries did in WWII. Each country in the EU has to provide the EU with money to operate. In return, not only will they see trade with European countries, but the EU budgets will help redevelopment and regeneration of poor areas, seen in

In this assignment I am going to explain the effects of changes in the economic environment for Nissan UK. I am then going to analyse the impact that government policies have on Nissan UK. I am then going to evaluate the impact of changes in the economic environment to Nissan UK.

In this task I am going to look at how The business are impacted by European and international factors, I will also look at what impact these factors cause The business

• Consumer Behavior: In different countries consumers will respond differently to advertising, product positioning and the kind of distribution. Also the willingness to spend a certain amount of the income for cosmetics differs among countries. Another important factor is the consumer’s willingness to switch the brand.

Practitioners of most services can operate in all member countries. The cost of airfares, the internet and phone calls have fallen dramatically. By being the EU it affects Wal-Mart because as Wal-Mart is an international company it is easier to operate in the EU because the regulations are same and taxes are similar. Also the EU sets regional policies, so if a country in the EU is struggling and need help the EU will help. This affects Wal-Mart because their investment will be safer because the EU will not let the country collapse. For Tfl, being in the EU helps because as Tfl provides a transport service it needs to import the goods to improve the infrastructure of the London and being in the EU it is easier and with less paperwork to get the goods.

Expansion of a company is never easy, especially if the company were to expand overseas to a foreign country. The products or service the company offers or sells must fit into the culture and environment of the country. Ignorance to these factors can lead to a major downfall

The EU sought to simplify trade within European neighbors and to replace national currencies with a single shared currency that could compete with the dollar on the global stage. The members of the newly-formed European Union agreed to a fixed currency conversion rate when the Euro was adopted (Scheller). Initially, the EU only had 11 members, but membership has since grown to 25 member nations. These 25 member countries operate within what is called the Eurozone, over which the European Central Bank sets economic policy

Another alternative should be to create a plant in Europe so now they don’t have top ay all the taxes they have to pay so they can export their products, in that way they will be able to give better prices to their clients, and they will supposed to have a better service and more quality because they where the pioneers in those products.

In “P&G Japan: The SK-II Globalization Project” case study, the author Christopher Bartlett presents the P&G’s plan of pushing SK-II as a global beauty product. In late 1999, Paolo de Cesare, President of Max Factor Japan, had given an idea to the Global Leader Team (GLT) of P&G’s Beauty Care Global Business Unit (GBU) that whether it was a good idea for pushing SK-II to become a global P&G brand. Since the product was successful in Japan ($150 million in sales in 1999), P&G then was considering in expanding its SK-II to be distributed worldwide. There was also an effort of the Global Growth strategy of P&G at that time as an influence factor to

An external analysis looks at the general macro environment and industry attractiveness. A PESTEL analysis will be used to look at the macro environment and Porter’s Five Forces framework will follow to provide a clearer picture of industry attractiveness.

So, keeping those in mind the company can adopt a localization strategy in international markets; in every market that they have entered they may produce products just like they did to Asian people. Furthermore, lower prices can show products less qualified in international markets, especially in Europe and America, for those markets the company can came up with an alternative product line that is more niche.

L'Oreal is a cosmetic company, which makes some of the world's biggest beauty products. L'Oreal's success story begins in 1907. It has been the market leader in the cosmetics and toiletries market since 2001 (Euromonitor 2005). Their products are sold in about one hundred and thirty countries worldwide. L'Oreal is divided into four categories - consumer products, professional products, luxury products, active cosmetics. They mainly focus on skin care, make-up, hair care and fragrance. L'Oreal includes some important brands such as Lancôme Paris, Garnier, Mabelline, Softsheen Carson, Matrix, and Biotherm. L'Oreal invests heavily into its research and development which gives them competitive advantage over its competitors.

The EU is the world’s largest export and the second largest importer. It accounts for more than one-fifth of all global trade and claims a higher share of the US.

The features of economic environment have direct relationship with economic activities .Income and wealth is the components of the economic environment.

In Europe, between the 60’s and today, people are spending around 50% less for alimentation products. That is why, big retail store companies like Carrefour need to develop their strategy on the foreign markets and continue its advertisement on local market.