BUSN- 310-8Monster Beverage Company PPT

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Monster Beverage Company economic environment.

The study aims to discuss the Monster Beverage Company's economic environment and hopes to utilize PESTEL analysis as a strategic tool. PESTEL is an acronym that stands for Political, Economic, Social, Technological, Environmental & Legal factors that impact a company or an organization. The study will focus on the Economic factors to analyze the macro environment of Monster Beverage Corporation. As noted in the previous studies, Monster Beverage Company's domestic environment is in the United States, while its global environment is in more than 100 countries. The study will utilize the United Kingdom as the global environment, having been ranked second after the United States in terms of sales made by the company (Ridder, 2022).

` Kotabe & Helsen (2020) argues that the economic environment consists of external factors in a business market and the broader economy that can influence a business. Therefore, the economic environment can be categorized as a microeconomic environment, referring to factors that affect business decision-making. For example, what actions a company like Monster can employ to ensure their customers remain loyal and satisfied. It can also be categorized as the macroeconomic environment, referring to factors that affect the economy and participants. For example, economic outputs, unemployment rates, and inflation.

Various economic and environmental factors affect Monster Beverage Company's domestic and global environments. First is exchange rates. In the US, exchange rates are volatile, affecting the company's short and long terms investment plans. In the UK, exchange rates have a significant impact on many businesses, and Monster company, an exporter, has received more pounds for its money since it pays less for the UK's products. Second is the economic performance of the country of operation. The company has enjoyed smooth operations in the US since its economy has been stable compared to other regions of operations. This has resulted from vast government expenditures, well-distributed disposable income, and increased investment. In the UK, the company has not been doing well as in the past due to the struggling economy caused by the Covid-19 pandemic. However, the country is recovering, and its economy is expected to reach pre-crisis levels in the next five years.

The third is consumer spending behavior. In both environments, there is a good distribution of disposable income, but there is still a considerable gap between members of the society. This has affected consumer spending behavior, and some people cannot consume Monster Beverage company products regularly. Fourth is trade policies. In the US, the government has increased the liberalization of trade policy using quota systems, tariffs, and subsidies. This has protected domestic industries and helped Monster Beverage to invest more in other states which were off-limits. In the UK, the company has been favored by how businesses operate since there are no significant trade or investment barriers and restrictions. The country employs free and fair trade as the major trade policy, allowing the company to offer employees higher wages. Such a policy has enabled the company to provide various products at reasonable prices, such as Monster Energy, Monster Ultra, Java Monster, and Juice Monster. This has allowed many customers to consume its products as they can afford.

The last economic environment factor is the nature of the financial markets. In the US, the company has experienced the efficiency of financial markets due to the availability of liquidity in the equity market, enabling it to expand domestically and globally. In the UK, the county provides Monster company with one of the largest markets in the world for fund management, allowing it to perform effectively.

References

Ridder, M., (2022). Monster Beverage Corporation - statistics & facts. Statista. https://www.statista.com/topics/2535/monster-beverage-corporation/#dossierKeyfigures

Kotabe, M. M., & Helsen, K. (2020). Global marketing management. John Wiley & Sons.