Research a company that has recently expanded internationally. Apply the PESTEL
ID: 387936 • Letter: R
Question
Research a company that has recently expanded internationally. Apply the PESTEL model to discuss some of the risks and issues that the company had to consider prior to making the decision to expand and how that may have impacted the mode of entry (export, license, franchise, etc.). What considerations had to be given to the host country's culture prior to making the decision to expand? How did those considerations impact the type of strategy it employed (e.g. multi-domestic, global, or transnational)?Explanation / Answer
Monsanto is a world leader in production of Agricultural and vegetable seeds well known for producing quality that as well as providing Chemicals for protecting the crops. Monsanto is also very well known for improving the life of farmers.
Genetically modified organisms are considered as a bad term in the market today. Action forces that are directly affect the genetically modified organism can be defined as political as well as economical factors. Specific factor provide the barrier to the development of the genetically modified organisms. Organisation space and economical and inability in developing the genetically modified organisms. these specific factors influencing genetically modified organism market buy a great margin.
Genetically modified object face the socio-cultural issues as well as ethical issues because this specific modifications are not considered as ethical in many of the countries across the globe. While having a genetically modified object can increase the overall productivity of the specific organism, this is Pacific GMO industry also peace is a large criticism from various economic and as well as organic Industries across the globe.
External Audit for monsanto using PEST framework
• Political
Monsanto does not use that much political influence as compared to the other means Din companies would be used in grilled food products. Is dealing in the seeds, government allow this company to deal according to their own system. Genetically modified organism can be a difficult task to title in the political aspects of different countries across the globe. Monsanto management system has been successfully dominating this field as well.
• Economical
Economically monsanto is the biggest revenue generator in the seed market across the globe and external factors like economic deprivation does not affect companies overall economy. The growing market like India and China which are highly people of buying stuff from monsanto are affecting the company overall economy and company is finding trouble to increase its overall business inside the specific countries.
• Sociocultural
Also creating trouble for the company. As most of the Other organic company that projecting monsanto as a genetically modified organism company which is unethical to the society. Having this kind of production company is facing some rejection from its customers across the globe.
• Technological
The biggest influencing factor of this company is technology. Customer are not directly attached with the technological town company is facing a huge drawback in terms of the technological implementation into it system as well as the customer relations. These are one of the main external factors which are affecting the company is overall says as well as business structure in two different field. Technical implementation of monsanto is directly affecting the overall efficiency of the system.
Monsanto has an opportunity to operate in a developing countries and benefit by the same situation their availability of operation as well as implementation of new strategies can create huge changes in operational capabilities of monsanto. Is type of approach would provide extensive advantage in operation and also enable it to generate better revenues from the similar market.
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