F&N’s Sales and Marketing Expansion: PESTLE Research Paper

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Fraser and Neave, Limited (F&N) is among the most established and successful Singaporean companies operating in the food and beverage industry. The range of brands that the company markets are widely popular in the Asian market, and they have the potential of being successful in other countries. The two countries chosen for expanding F&N’s marketing and sales operations are Germany and Canada, as related with a range of positive opportunities for doing business.

Specifically, Germany has global recognition as an economically and socially advanced nation, a leader in technology, a high GDP, as well as a large consumer market, all of which can facilitate F&N’s successful integration into the European market. In addition, Germany’s favorable strategic position and geographic location, as well as the prosperous economy can facilitate F&N’s strengthening of its position in the region and further expand to neighboring countries. In terms of the benefits of expanding sales and marketing to Canada, the country is characterized by the continuous lowering of corporate tax rates, having a stable economy, having an affluent consumer base, and an interest in trade agreements with different global players. For comparing the two countries identified for F&N’s sales and marketing expansion, a table including a list of sub-factors (based on the PESTLE framework) is presented below.

PESTLE FactorsGermanyCanada
Political
  • Maintains alliances with its European neighbors;
  • Is among the most powerful countries in the EU and the most significant contributor to the union’s budget;
  • A strong US ally; bridges relations between EU countries and the United States.
  • In good relationships with international players, strong connections with the US;
  • Has good political stability;
  • Is among the safest countries in the world;
  • Low crime rates and a favorable environment for business and tourism;
  • Internationally, Canada focuses on peacekeeping between nations.
Economic
  • Low unemployment rate;
  • One of the highest GDP in the European Union;
  • Large consumer market;
  • Strong economic centers and the best trade fair location.
  • In the top ten trading nations;
  • Has trading agreements with EU countries, the US, Mexico;
  • A highly developed mixed economy.
Social
  • Considered among the best places to live;
  • A cosmopolitan country with diverse population lifestyles;
  • Population consisting of multiple different cultures;
  • High emphasis on ethics.
  • Consistent population growth rate;
  • A diverse population;
  • A flexible immigration system;
  • Welcomes skilled workforce to the country.
Technological
  • Known for its advancement in science and technology fields;
  • Among the leaders in information technologies;
  • Leader in scientific research, military technology, engineering, medicine, and infrastructure.
  • Technology is one of the fastest-growing sectors (CB Staff, 2019);
  • Favorable conditions for facilitating entrepreneurship advancement;
  • Technologies are embedded into different industries and offer businesses and individuals opportunities for business expansion.
Legal
  • No difference for Germans and foreign players concerning investments and business establishment;
  • Open approach: promotes the formation of all business types.
  • Diverse legal framework supporting business operations of local and global players;
  • For international companies, corporation is the most favorable/popular entry mode.
Environmental
  • Highly focused on tourism as an important contributor to the country’s prosperity;
  • Consistent initiatives to address environmental challenges (e.g., air and water pollution, emissions from industries) (BMU, 2018);
  • Works on reducing the use of resources without compromising on population’s quality of life.
  • Rich in tourism sites (e.g., Niagara Falls);
  • Environmental challenges include air pollution, smog, and acid rain;
  • Governmental programs aimed at decreasing air pollution and greenhouse gases emissions.

References

BMU. (2018). Environmental awareness in Germany 2018 results of a representative survey. Web.

CB Staff. (2019). . Canadian Business. Web.

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