Waste Management Incorporation - Dissertation Example

Waste Management Incorporation Waste Management incorporation is one of the largest waste disposal firms in United States and the world. This company has many subsidiaries in different countries across the world. Arguably, this company serves more than 2.5 million organizations and 26 million residents in Canada and United States. This company has segmented its geographic environment into five regions, which include the Southern, Eastern, Western and Midwestern United States and Canada. The company recycles the waste products and also uses it to generate energy (Waste Management, 2012). The company provides waste gathering, transportation, and reprocessing and disposal services. Waste Management incorporation carries on its activities as the world leader in waste management that range from medical and solid waste to extremely poisonous chemical waste. This organization has in the past been experiencing growth and increase in stock prices at healthy rates (Waste Management, 2012). The Marketing Environment A firm’s marketing environment consists of aspects that surround the marketing department (Lamb et al, 2012, p. 143). According to Palmer and Hartley (1999, p. 21), the marketing environment refers to the factor that affects the operations of the marketing department and the whole company operations. This environment is divided into two; the macro and micro environments. Macro environment refers to the factors that are beyond the control of the business such as the demographic segment, technological segment, political and legal segment, environmental segment, and the social factors segment. On the other hand, micro environment refers to the factors that the business has control over (Lamb et al, 2012, p. 144). Waste Management Incorporation operations have been profoundly influenced by both the micro and macro environments (Waste Management, 2012). Macro environment i. Political and legal Environment The political and legal environments are typified by marked volatility. These environments consists of an interacting set of laws that mange and supervise the day-to-day activities of the nation, company and individual thus influencing their behavior. A number of political and federal laws affect marketing decisions and activities. Federal regulatory agencies affect many marketing activities, including pricing, advertising, distribution and product development (Lamb et al, 2012, p. 144). The political and regulatory bodies have the power to enact laws, in addition to some “discretion in establishing operating rules and regulations to guide certain types of industry practices” (p. 145). The political environment of many nations directly influences the operations of Waste Management Incorporation marketing strategies. Since this company disposes waste that drift from normal consumer refuse to toxic industrial waste, drafting and implementation of new Legislations concerning the industry can have a severe economic effect on the organization’s outcome. The United States government has implemented laws and regulations that influence the company’s marketing strategies (Waste Management, 2012). The United States government has enacted many public, occupational and environmental health and safety associated acts that have impacts on waste disposal industry in the nation. The Solid Waste Disposal Act together with Resource Conservation and Recovery Act of 1976 are acts which transformed the industry of Waste Management Incorporation to the present state. Many organizations had to change and adapt to the new guidelines (Waste Management, 2012). In addition, the management of perilous waste was stipulated in Comprehensive Environmental Response, Compensation and Liability Act (1980). The Clean Water Act as altered regulates the discharge of noxious wastes into rivers, ground water, streams or any other surface water. This affects the development and sustenance of landfills which affects the operations of the business and its marketing (Waste Management, 2012). The political environment of United States substantially affects the marketing activities of Waste Management Incorporation. The Clean Air Act (1970) adopted by the United States government regulates the amount of noxious wastes that are discharged into the environment (Waste Management, 2012). This also affects the development and sustenance of landfills. On the other hand, the safety of employees working in Waste Management Incorporation is supervised by the Occupational Safety and Health Act (1970). This is because waste management is a physical operation that involves physical contact with the waste materials. This is imperative in ensuring the safety of the employees. Such an act requires the company to have safety equipments, which will increase the company expenses and costs thus affecting its prices (Waste Management, 2012). ii. Economic Environment The state of economy impacts on the demand for the types of products and services a company offers (Longenecker, 2005, p. 103). Countries with enormous economies are conducive to product and service movement. Growth in real income, pattern of income distribution, and change in the expenditure patterns are among the different economic factors that are of considerable significance to marketing (Lamb et al, 2012, p. 146). The consumption patterns are primarily affected by income levels. The economic environment focuses on the prevailing economic conditions within which organizations maneuver (Oldroyd & Chartered Institute of Marketing, 2003, p. 45). The United State’s economy is recovering from its earlier recession at a high speed. This can be attributed to the increase in technology that led to the dot.com rupture in the market. In addition, the housing industry has played a part in reviving the nation’s economy (Longenecker, 2005, p. 112). The interest rates on borrowing, which had been low for many years, are now high to assist in slowing and curbing inflation rate. These high interest rates affect companies such as Waste Management Incorporation when they take loans for investment projects. Such high interest rates have resulted to postponement of plans and developments thus resulting to slow growth of the company (Waste Management, 2012). Gross Domestic Product affects the overall performance of an organization and the levels of disposable income among the customers. United State’s Gross Domestic Product was markedly affected by the recession which resulted to loss of jobs and the levels of disposable income declined. The level of disposable income determines the demand for waste disposal services. A high Gross Domestic Product results to high employment a rate which leads to high disposable income (Waste Management, 2012). A high disposable income implies that consumers will have an increased demand for these services. During the period of recession, Waste Management experienced a decline in the demand for its services resulting to low cash flows. However, the changes in consumer’s view on disposal of waste have increased demand for Waste Management’s Incorporation services. This affects the organization by increasing its cash flows (Waste Management, 2012). On the other hand, the increasing world oil prices have affected the operation of the organization. Waste Management Incorporation uses fuel to transport the waste products to landfills. For this reason, the organization incurs high transportation costs which increase the cost of operation of the company. Till the world oil shortage is resolved, the problem of high oil prices will continue to be a significant saddle on the proceeds of Waste Management Incorporation (Waste Management, 2012). iii. Socio-cultural Environment The view of the customer with respect to waste disposal is an imperative aspect for the survival of businesses in this industry. In essence, sociological factors such as cost structure, urbanization, tastes and preferences, attitudes and perspectives have far reaching effects on the business functioning (Palmer & Hartley, 1999, p. 24), Since the waste industry is a principal figure in United States, it has attracted the attention of environmental groups and government laws for a long period. This will increase proportionately with an increase in waste disposal prices and population. The increase in environmental activism is a force that should be considered. Anything that is created and implemented by the waste industry companies requires to be viewed by consumers as ethically and morally proper and follows the convictions of the customer. Otherwise, it will be discarded by a majority of the people and the government rules may stop the program completely. United States is becoming a recycling nation, but many people will only transform if they are forced to do so. This is the primary failure of recycling in some communities. If it does not cost the consumer any additional dime to throw the waste, the customers believe that they should not change to the system (Waste Management, 2012) iv. Demographic Environment The main purpose of a waste disposal company is to provide its services to customers, chiefly at their residential areas. This makes it imperative for the organization to comprehend the demographics of many areas in order to identify how to provide its services to these regions. The population and its structure are a tremendously significant aspect when identifying where a waste disposal company should operate (Waste Management, 2012). Demographic variables affect marketing decision making. These variables include age, sex, education, income level and geographical location. Lamb et al (2012, p. 146) asserts that the demographic environment is a key variable of interest to marketing management since people, channels, and businesses make up markets. By noting statistical shifts in the categories within these characteristics, marketing managers can both meet the needs of the present markets and identify future markets and the corresponding product and service opportunities. Companies monitor the different population sizes and structures to determine the most profitable regions. For this reason, the population structure and size significantly affect Waste Management Company. The current United States population stands at 293 million people. This nation is known for its high consumption and throwing of waste products to purchase new ones. This creates a large deal of waste that has to be collected and disposed. The elderly contribute to a high number of wastes in the society. Changes in demographics affect the functioning of Waste Management Incorporation through providing more waste in the form of construction and demolition debris (Waste Management, 2012). v. Technological Environment New developments in technology are significantly affecting business organizations. Whether information, communication, or production technology; these developments have a tremendous impact on our lifestyles, consumption patterns and economic well-being (Oldroyd & Chartered Institute of Marketing, 2003, p. 55). The emergence of new technology can displace, endanger, or kill the present or future market of a firm’s products or services (Longenecker, 2005, p. 109). Because of the increasing implementation of directives and environmental laws, new methods of waste disposal are on high demand. It is no longer cheap and straightforward to dig up a hole, put on waste and leave it. With the decrease in disposal locations, technological ways of disposing waste are on high demand. The creation and sustaining landfills are a challenging task because of the contemporary laws and directives that govern them. It is increasingly difficult to attain permit to construct a landfill in America and all other parts of the world. For this reason, Waste Management Incorporation has come up with methods of disposing waste products. The most common technology used by companies is recycling. If a company does not have access to recycling materials, then its operations will be disrupted since there will be no more ways to dispose the collected waste. Waste Management Incorporation has a recycling plant which allows the company to dispose waste materials (Waste Management, 2012). Micro environments i. Competition The business field is typified by stiff competition. Firms work double hard to survive and achieve business success. Competition comes in different forms. Some are obvious to firms while others are subtle and implied (Oldroyd & Chartered Institute of Marketing, 2003, p. 58). There are varied forms of competition as well as varied types of competitors. Competition refers to an economic condition where nations, communities, organizations, companies and individuals offer and sell similar products or services. Competitive forces are aspects that affect the competitive position of an organization in a market and also affect the marketing strategies to employ. Rivalry among existing competitors is the most significant factor that affects not only Waste Management Incorporation’s ability, but also other companies’ ability to serve its customers (Palmer & Hartley, 1999, p. 87). Competition often creeps into the industry and threatens to take away markets from firms. The waste disposal industry is typified by a high number of competitors. Waste Management Incorporation faces stiff competition from governmental and non-governmental organizations in the market (Waste Management, 2012). In North America, the North American branch faces competition from local and small regional firms. The major corporations in the industry have large landfills. For this reason, such companies bid lower prices to community disposal contracts. Since most of the services rendered by the companies are homogeneous, much of the rivalry is based on prices (Waste Management, 2012). In this case, competition threatens to take Waste Management’s market due to the low prices offered by the rival companies. ii. Suppliers Suppliers are individuals or businesses that provide the required raw materials to other companies to be able to produce goods and offer services. Lamb et al (2012, p. 147) notes that suppliers are vital as they allow the companies generate products and services to satisfy customer needs. The suppliers in the value chain of Waste Management incorporation are few, but immensely significant. The large disposal companies such as Waste Management Incorporation own their own convoy of trucks used to transport the waste materials for disposal in United States. The main suppliers in the industry are the fuel, truck and land suppliers. For the minor companies, they may have to seek the supply of trucks to transport the waste products. In addition, companies such as Waste Management Incorporation may seek the supply of trucks when the demand for waste disposal services is high (Waste Management, 2012). On the other hand, the fuel suppliers have created a challenge where they charge high oil prices. This results to high transportation costs and low profits for Waste Management Incorporation. For Instance, Waste Management Incorporation incurred high transaction costs at the start of this year due to increased oil prices (Waste Management, 2012). While there seem to an adequate supply of trucks, there is a limited supply of land for landfill expansion. The process of obtaining land for landfills experiences opposition from consumers and the government through its regulations. Waste Management Incorporation was not able to acquire a piece of land last year when it needed to expand its activities. In addition, it is not easy to acquire land in a favorable location to assist in minimizing the transportation costs (Waste Management, 2012). iii. Customers Competitors continuously compete to capture a bigger share of the market. Customers make the market (Lamb et al, 2012, p. 149). These are the people who buy goods and services provided by the company. Consumers are the focus of company’s business plans and programs and the thrust of their strategies. Because of the changing needs of the customers, it is essential to employ various strategies to ensure customer loyalty and patronage. Waste management’s customers are the household and the commercial consumers. Waste Management Incorporation ensures that it attains customer satisfaction and delight. Because of the changing nature of the needs of the customers, Waste Management incorporation uses modern technology and offers favorable contract prices to the customers. Conclusion The marketing environmental forces affect the marketing function of a company to a certain extent but not all the time. In most cases, a company should monitor, react, and adjust to the marketing environment. It is difficult for a firm to influence geographic population shifts, change the economic environment or manipulate the cultural values. Most of the time, the company is unsuccessful and would just waste millions of money for doing so. The marketing environments affect the target market and consumers. In order to sell and promote its products, companies should first analyze the macro environment which consist of the demographic, technological, economic, social and cultural environments References Lamb, C. W., Hair, J. F., & McDaniel, C. D. 2012. Essentials of marketing (7th ed.). Mason, Ohio: South-Western Cengage Learning. Longenecker, J. G. 2005. Small business management: An entrepreneurial emphasis. Princeton, N.J: Recording for the Blind & Dyslexic. Oldroyd, M., & Chartered Institute of Marketing. 2003. Marketing environment, 2003-2004. Amsterdam: Butterworth-Heinemann. Palmer, A., & Hartley, B. 1999. The business and marketing environment. London: McGraw-Hill. Waste Management 2012. Company Profile. Waste Management Incorporation. Retrieved October 31, 2012, from https://www.wm.com/about/company-profile/index.jsp Read More