Environmental Factor in Marketing

In today’s business world, the marketing managers are facing great challenge due to constant changes in technology, economy, and government laws. Further more, they must take legal issues, ethics, and corporate social responsibility in to consideration when formulating and implementing marketing strategy or plans. In order to be successful, they must pay closer attention to strategic marketing strategy. For the purpose of this assignment, I have selected ABB as choice of organization. In paragraphs to follow, I will cover impact of technology on marketing and domestic and global environment factors that impact organization marketing decision.
ABB was formed with merger of two European companies. Asea was founded in 1890. Brown Boveri which was founded in 1891. In 1987 both of these two companies merged resulting in creation of ABB. The creation of ABB was unique as the reconstruction and organizing of the company globally was a great challenge. Today ABB generate revenue of more than 30 billion dollars and employs over 100,000 people around the world. Focusing on ABB’s marketing, it started out as simple sales department performing typical task to keep the sale growing. However, as ABB grew so did the Marketing. Ever since making of large marketing, ABB has had good successes. On the other hand, even with the complex organization, marketing managers through out the world, marketing organization has proven to be very successful.
Corporate Social Responsibility is an additional corporate role beyond making money. It includes legal, ethical, and voluntary responsibilities. Legal responsibility of business is to obey local, federal, and international law. Ethical responsibility of business is to do what is right, just, and fair. Voluntary responsibility of business is to participate and support community. Basically, managers should consider human needs in their business world in the same way they consider business needs in economy.
Many people believes that a big company should do more than just gives community money to solve social issues. They think that a big company should get involve, participate in social problems, and perhaps even help solve those problems. In my opinion, I also believe that companies should participate in a community and take social responsibility. I also feel that, its not just the responsibility of a company but all people as well. Lets face it, all people use resources from around the world so why not take care of planet and the environment by taking social responsibility as an employee of the company as well as on a personal level.
Globalization is the worldwide interdependence of resource flows, product market, and business competition that characterizes our new economy. (Schermerhorn, Hunt, Osborn, 2005) For example company such as ABB is represented in over eight countries with around 120,000 employees. As the company becomes large and establishes global presentation, company has to consider multicultural workplace and job migration in to consideration. Multicultural workforces include workers from diverse ethnic backgrounds and nationalities. (Schermerhorn, Hunt, Osborn, 2005)
Diversity is also another factor of Organizational Behavior which can effect Marketing at ABB. Diversity is basically difference in gender, race, and ethnicity, age, and sexual orientation. As a core value, ABB embraces diversity in all its forms. Diversity of race, gender, ideas, ways of living, cultural and business practices provide creativity and innovation essential to the corporation’s economic growth. ABB has equally diversified its product line to in all its industries. These products vary by country and industries. ABB has also implemented a supplier diversity program that has been able to provide equal access to procurement opportunities for both minority and woman-owned enterprises. Planning and organization also has to be diversified due to the many establishments in different countries. As the company becomes global, it faces many verity of diversity issue with-in the organization. Each corporation has to take responsibility of not only understating impact of diversity but rather balance diversity in way that it has unlimited positive effects.
Technology is constantly being improved. Computers are getting far more advanced. For example, its rate of speed is doubling annually. Graphics are getting better every year. For software are being development and made available to consumer for almost any purpose. For these reasons, it is crucial to marketing manager at ABB to keep up with new technology as it has big impact on decision.
In conclusion, there are many factors that impact marketing decision in constant changing world. Some factors within ABB are social responsibility, diversity, globalization, and technology. These factors together have huge impact on marketing decision. As marketing manager, one should be more caution and hopefully takes this factor, problem and turn them in to potential opportunity, creating successful marketing plan.

References
Organizational Behavior (9th ed.) J.R. Schermerhorn, Jr., J.G. Hunt, & R.N. Osborn
Wiley, 2005 Hoboken, NJ