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1. Running Head: ENVIRONMENTAL FACTORS 1
Environmental Factors
Edward Charfauros
Marketing MKT/421
April 24, 2012
Shane Akagi

2. ENVIRONMENTAL FACTORS 2
Environmental Factors
Environmental factors may hinder organization’s success when organizations attempt
marketing products and services. Global, governmental, and technological factors can build and
destroy successful organizations within the United States as failures upon foreign markets.
Marketing managers require care when strategically determining when global markets benefit an
organization. Thorough research and development assist organizations in determining whether
to enter financially into the international marketplace or not. Target successfully triumphs within
the retail market within the United States through a marketing campaign of innovation.
Political System Affects and International Relation Influences
Target’s marketing campaign increases its capital, acquires components, obtains
materials, manufacturers products, and distributes its goods where consumers inquire it. Upon
exporting to foreign nations, organizations deal with trade restrictions during negotiations.
Foreign national governments charge tariffs and tax specific import products design for raising
revenue to protect domestic businesses. Furthermore, American businesses deal with exchange
controls limiting foreign exchange amounts and the exchange rate versus foreign currencies.
Organizations may deal with nontariff trade barriers (biases) against the United States
business bids, regulations, and restrictive product standards. These regulations protect
consumers, international, local, and business organizations from buyers, logistic affiliates, and
merchants alike. Target continues proving its corporate responsibility through its continual
charitable donations and environmental friendly practices.
According to the corporate responsibility report upon Target’s corporate website (2012),
“in addition to our U.S. retail operations, we have offices in over 40 countries throughout the

3. ENVIRONMENTAL FACTORS 3
world to support our global sourcing initiatives” (investors section, p. 1, para. 1). For example,
Target continues thriving in India by expanding operations with a third store with intentions on
expanding operations in Canada in 2013. According to Target’s India website (2012), “in India,
we have awarded grants to several nongovernmental organizations (NGOs), including Christel
House India, SOS Children's Village of India, Makkala Jagriti, the Karnataka branch of the
National Association for the Blind, SMILE Foundation, and Child Survival (serving
communities section, para. 1). Target currently employs 355,000-plus team members around the
world.
Demographic Importance
Managers must be sensitive to audiences when addressing any demographic. Societies
continue influencing marketing decisions within households. Marketing managers take
responsibility and appropriate actions when marketing products because marketing influences
consumers. Target’s initiatives remain sensitive toward communities, schools, and homes
reflecting a strong indication of bettering cities.
Physical Infrastructure
After the first Target store opening in Roseville, Minnesota, provides customers with
commodities, groceries, and apparel. Target engages its customer’s shopping experience by
reinventing its stores (layout, merchandise assortment, and presentation) through renovation.
With attractive stores offering merchandise to meet current trends at affordable prices Target
meets or exceeds consumer discount shopping expectations.
Assisting Target’s brand promise is reliable cost-effective technology: Microsoft’s
windows server 2008 datacenter and hyper-v virtualization technology. Target’s store server

4. ENVIRONMENTAL FACTORS 4
infrastructure supports 15,000 virtual machines throughout its corporate infrastructure operating
mission essential software applications.
Foreign Corrupt Practices Act of 1977 Influences
According to the United States Department of Justice website under fraud section (2012),
“the Foreign Corrupt Practices Act of 1977, as amended, 15 U.S.C. §§ 78dd-1, et seq. ("FCPA"),
was enacted for the purpose of making it unlawful for certain classes of persons and entities to
make payments to foreign government officials to assist in obtaining or retaining business”
(foreign corrupt practices act section, para. 1).
The FCPA requires issuers to register with the Securities and Exchange Commission
(SEC) to responsibly maintain an internal accounting control system. Furthermore, the FCPA
prohibits briberies from foreign officials and American corporations. Official third parties
handle organizations attempting to proceed around the FCPA law. When organizations proceed
globally, challenges such as bribery arise during expansion as it remains a corporate issue.
Other nations adopt similar laws and regulations like the FCPA. Laws are in place for
security against unethical and unfair business practices. Target upholds its socio-economic
responsibility while conducting its business within every community in a respectable manner.
Local, National, and International Legislation Influence
Comprehending both ethical and social aspects while identifying with target audiences
and markets can be complex. Consumerism is an organization movement consisting of
government agencies and citizens improving buyer’s rights and power. Environmentalism is an
organization movement concerning government agencies and citizens improving and protecting
people’s living environment. These groups protect the rights of the public through product
education, consumer services, and environmental care operations.

5. ENVIRONMENTAL FACTORS 5
Influence of Global Economic Interdependence and Effect of Trade Practices and
Agreements
Executives and managers upon every level do not require dealing with legal uncertainties,
language barriers, varying politics, government regulations, and unstable currencies. However,
Target considers its strategic positions within the marketplace as strong on a national (rank
second behind Walmart in discount retailing) and international (fourth most-visited website
worldwide with 25,000,000 unique visitors) basis. Marketers continue learning about global
populations by researching the continual changing mixture of age groups, ethnicities,
geographical shifts, and nontraditional family education. Global competitors contend against
Target’s home markets through product offerings and lower prices. Moreover, local
organizations slow resources requiring one organization to operate because of Target’s size.
When organizations go international, evaluating nation’s economic conditions, country
environments, international political standpoint, and government regulations with the United
States is vital prior to expanding operations. Target requires weighing various risks prior to
venturing abroad.
Influences of Cultural Differences
Products and services become successful in nations by marketers comprehending
targeting audiences and markets. Sellers require fully comprehending buyer behaviors, cultures,
cultural differences, and norms. Comprehending cultural nuances remains Target’s advantage
during product positioning and international marketing mix development. Marketing throughout
nations and its cultures requires understanding cultural differences. Lacking knowledge about
any society Target enters results in failing to thrive within the nation. Additional factors for

6. ENVIRONMENTAL FACTORS 6
consideration are availability, business cycles, cost of goods, and taxes versus a nation’s
disposable income.
Social Responsibility Importance and Ethics Versus Legal Obligations.
Marketing in society shapes decisions within majority of households. Marketers are
responsible during marketing campaigns when marketing products. Target assesses its global
ability politically and societally when handling its business affairs. Target must remain sensitive
and flexible to its ethical and social business aspects when continuing business with customers
because Target influences households. Considering an ethical obligation remains constant.
Target prides itself through employee diversity and its community outreach programs
worldwide encouraging opportunities through its corporate responsibilities. With practices in
place, Target ideally places itself within cities (rural and urban areas). So long as the nation,
cities, and internal infrastructure remains adequate for products through logistics. Target
continues its positive effects upon neighborhoods. Target inquires additional information
regarding exporting and importing when concerning trade agreements.
Ethics continues increasing within organizations upon dealing with ethical marketing
issues. Marketers must comprehend audiences, product markets, and societies keeping in line
with society’s values and subcultures. Additionally health care and employment laws continue
affecting Target and its employees. Legal and political environments consist of challenging
groups, governmental agencies, and laws influencing and limiting individuals and various
organizations. These laws ensure businesses protect consumer’s interests upon unacceptable
business behavior.
Effects of Technology

7. ENVIRONMENTAL FACTORS 7
Technology implications have downfalls and successes. Target’s operations and its retail
locations thrive in its technological efforts. Target provides products online beyond its physical
locations even though Target requires nations to conduct business at a functional level to meet
Target’s needs.
Target manages 300,000 plus endpoints throughout its retail network by deploying the
Microsoft System Center data center. With the Microsoft Virtualization solution, Target saves
millions of dollars in maintenance, hardware, and electrical costs.
Conclusion
Conducting business globally requires extensive research, as an analysis within the
organization must be done. Many factors exist (internally and externally) requiring
consideration through a strengths, weaknesses/limitations, opportunities, and threats analysis.
Through a strengths, weaknesses/limitations, opportunities, and threats analysis Target
determines if its strong enough to expand, and through a political, economic, social, and
technological analysis determines if specific nation’s external environmental factors affect
Target’s success within that chosen nation.
Comprehending customer’s buying behaviors remain essential within marketing.
Adherence to environmental laws enhances Target’s business. When focusing on target
customers, Target can focus on its brand to strengthen its market share to satisfy shareholders.
Evaluating its external factors after comprehension prior to decision-making remains
important before commencing global operations. Through extensive research, development, and
comprehension of various consumer behaviors, Target’s success will continue.

8. ENVIRONMENTAL FACTORS 8
References
Target. (2012). Corporate responsibility report . Retrieved from
http://investors.target.com/phoenix.zhtml?c=65828&p=irol-IRHome
Target. (2012). About target. Retrieved from http://india.target.com/site/en/corporate/page.jsp?
contentId=PRD03-004529
United States Department of Justice. (2012). The foreign corrupt practices act. Retrieved from
http://www.justice.gov/criminal/fraud/fcpa/