Essay about Global Marketing: Burberry in China, PESTLE analysis

2644 Words Nov 28th, 2013 11 Pages
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
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In-group considerations affect hiring and promotions with closer in-groups (such as family) are getting preferential treatment. Employee commitment to the organization (but not necessarily to the people in the organization) is low. Whereas relationships with colleagues are cooperative for in-groups they are cold or even hostile to out-groups. Personal relationships prevail over task and company. A collectivist culture such as China, will tend to have one overall goal in which everyone would work together to reach that goal, if you are a business trying to form a company in an individualistic culture, you may find it hard to adapt as, you may not have the same amount of help that you usually receive, this is where independence and the ability to take risks would be formed, however this type of ability and skill takes time to acquire, meaning training and research would be required if the business was to be successful. In individualistic cultures it is important for the business to realise that the workers prefer to keep their work life and private life separate, however within collectivist cultures there is no such division (Baumann, 2007).This will affect the marketing mix in many ways, we can examine this by deconstructing the 4Ps; Price, Product, Promotion Place:
Price: Burberry has a prestige to uphold, meaning it has to keep its prices at a reasonable high price to reflect the

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