BUSN- 310-8Monster Beverage Company PPT

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Monster Beverage Company business environments.

The study aims to evaluate Monster Beverage Company's business environment to learn why it is not successful and apply successful company strategies and business theory to recommend a successful strategy for the company. It will focus on the socio-cultural environment, and Hopp & Stephan (2012) define it as the social surroundings that affect the growth and operation of a business directly or indirectly. The socio-cultural environment consists of how consumers, stakeholders, and communities behave and their beliefs. The socio-cultural environment consists of aspects like language, aesthetics, education, religion, attitudes, values, social groups & organizations, and business custom practices. To achieve the main objective, the study will compare the social and cultural environments of the domestic and global cultures of Monster Beverage Company.

Thornton, Ribeiro-Soriano & Urbano (2011) suggest that society’s culture and the way community members and other stakeholders behave impact an organization's culture in that specific environment. In Monster Beverage Corporation, shared beliefs and attitudes of the population contribute to its success or failure. The company marketers depend on customers' beliefs and behaviors based in different environments to design the most attractive marketing message for their beverage products. Using the PESTEL analysis, the study can identify the major external environmental forces that shape the strategy and competitive landscape and support Monster Beverage Corporation's strategic decision-making process.

Monster Beverage Corporation's domestic operation environment is the United States, while the global environment involves more than 100 countries in North America, Asia, Europe, and Australia. Since the global environment is too wide, the study will focus on the United Kingdom since its ranked second after the United States in terms of per-capita volume sales in the energy drinks market worldwide (Statista, 2021). Based on the PESTLE analysis, the common social-cultural factors that impact Monster Beverage Corporation within its domestic and global environments include, first, demographics and the skill level of the population. The company has been doing well in the US compared to the UK because there is a well-distributed skilled population of diverse ages and genders working in the company in the US. However, in the US, there is a lot of racism compared to the UK, limiting the company from employing talented and competent employees to perform better.

Second, class structure, hierarchy, and power structure in the society. Americans are divided into the upper class, middle class, and lower class in the domestic environment. At the same time, in the United Kingdom, people are categorized as lower class, working class, middle class, upper class, and aristocrats. This has enabled the company to identify its market segments and set prices for its beverage products based on these classes. However, some community members feel demoted and opt to consume products from other competing companies. Third, entrepreneurial spirit and broader nature of the society. Both environments provide the company with a conducive working environment with friendly trading policies, allowing it to perform well. Fourth, attitudes such as health and environmental consciousness. In both settings, employee morale is impacted positively or negatively by the workplace environment, while customers' willingness to buy is affected by how they perceive the company. Employees and customers value their health, and the company reciprocates by providing a safe working environment and quality beverage products. However, the company has been sued several times for failing to warn against consumption by minors, people with heart conditions, seizure disorders, and diabetes. This has occurred mainly in a domestic environment, affecting the company's performance and public image. For example, In June 2012, a healthy 42-year-old Kansas City man named Shane Felts died after consuming one Monster Energy drink a day for just two weeks.

References

Hopp, C., & Stephan, U. (2012). The influence of socio-cultural environments on the performance of nascent entrepreneurs: Community culture, motivation, self-efficacy, and start-up success. Entrepreneurship & Regional Development, 24(9-10), 917-945.

Statista (2021). Per-capita volume sales worldwide in the energy drinks market, by country in 2021. https://www.statista.com/forecasts/1274837/worldwide-per-capita-consumption-energy-drinks

Thornton, P. H., Ribeiro-Soriano, D., & Urbano, D. (2011). Socio-cultural factors and entrepreneurial activity: An overview. International small business journal, 29(2), 105-118.