BUSN- 310-8Monster Beverage Company PPT

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Monster Beverage Company business environments.

Monster Beverage Company is headquartered in Corona, California, U.S., and deals with energy drinks products. The company initially operated under Hansen's business name and used to sell juice products. In 2012, Hansen changed to Monster Beverage, and later in 2015, it sold its non-energy drinks brands to the Coca-Cola Company. The company held approximately 39% of the $5.7 billion U.S. energy drink market, the second-highest share after Red Bull (Rummo et al., 2020). The company operates in more than 100 countries globally, but most energy drinks are distributed in North America, Asia, Europe, and Australia. Monster Beverage Company's business environment has a direct impact not only on the company but also on other investors in the beverages and soft drinks business. The study aims to evaluate the political and legal environments or structures of the Monster Beverage Company and describe what exists about the company in domestic and global political-legal environments.

Political and legal environments have been essential in determining Monster Beverage Company's long-term profitability or loss in domestic and global market environments. The company distributes energy drinks globally in more than 100 countries, exposing it to different types of political environment and political system risks. For example, in Europe, the key markets are the UK, France, and Sweden. Some of these countries have legal frameworks and institutions that are poorly structured and cannot protect the intellectual property rights of an organization. Monster Beverage Company has different political and legal environments in its countries of operation.

Monster Beverage Company faces a high risk of military invasion in its domestic market due to the U.S. involvement in different wars happening in other regions, like the war on ISIS. However, the U.S. has contained such threats and enabled the company to enjoy smooth operations due to political stability and laws protecting investors. For example, the Securities Act of 1933 requires investors to receive financial and other significant information concerning securities offered for public sale. The company has also been considerate in identifying countries of operations. For example, the U.K. has a legal system that provides a high level of intellectual property rights (IPR) protection, enabling the company to operate smoothly.

The company is also favored by the pricing regulations in domestic and most global environments. According to the U.S. Office of weights and measures, nineteen states and two territories have unit pricing laws or regulations in force, and eleven have mandatory unit pricing provisions. In the U.K., the company is guided by the price control regulations through the inflation-X formula that requires it to only hike the prices with an inflation index less an X% reduction annually. Such laws protect consumers from price exploitations and allow Monster Beverage Company to gain customers' loyalty in different operations environments.

In the context of the domestic and global political-legal environments, specific regulations exist that protect employees working for the Monster Beverage Company. According to the U.S. Department of Labor, more than 180 federal laws protect employees working anywhere in the U.S. For example, the Fair Labor Standards Act requires the company to have standard wages and overtime pay. Also, the Occupational Safety and Health (OSH) Act that requires the company to comply and provide the employee with protective working tools and a conducive environment. In a global environment like the U.K., the company is expected to comply with similar regulations, such as the Working Time Regulations 1998, by observing the working hours and holidays.

References

Rummo, P. E., Cassidy, O., Wells, I., Coffino, J. A., & Bragg, M. A. (2020). Examining the relationship between youth-targeted food marketing expenditures and the demographics of social media followers. International journal of environmental research and public health, 17(5), 1631.

The U.S. office of weights and measures (2022). A Guide to U.S. Retail Pricing Laws and Regulations. National Institute of Standards and Technology U.S. Department of Commerce.

U.S. Department of Labor (n.d.). Summary of the Major Laws of the Department of Labor. https://www.dol.gov/general/aboutdol/majorlaws.