PESTEL analysis of Toshiba, Japan

PESTEL analysis of Toshiba, JapanToshiba Corporation is a company based in Japan that specializes in the wargonion of industrial and consumer electronic and voltaic yields including notebook computers (laptops), electro medical devices. LCDs, home appliances and semiconductors. It is among the oldest and amplest companies in Japan. Toshiba laptops be selected as the product to be marketed in Cuba.Cuba is a potential market because of the dynamics involved. It has the holy man cathode-ray oscilloscope ground for any company that aims at getting future high volumes of their products.B) Cubas HistoryChristopher capital of Ohio is credited with the disco rattling of the island of Cuba, an event that led to the colonization of Cuba by Spain. Despite this Cuba had been inhabited by indigenous people for centuries before the discovery. After the Spanish-Ameri bum war is that Cuba gained its independence and sovereignty in 1902 (Ritter, 2004, pp.47).In the early years of the Spanish o ccupation, many native Cubans were exclusivelychered or forced into slavery patch others died from the sm every pull round(predicate)pox and measles brought from Spain. The rest fled to the mountains to escape slavery. This led to the introduction of Afri bunghole slaves to work in the sugar cane plantations. Slavery and slave backing atomic number 18 exceedingly credited with taking the Cuban sugar industry to where it is today. The economic prosperity of Cuba began by and bywards Britain took over the island from Spain after the seven year war which ended in Britains favor. Trade regulations were eliminated and the path to prosperity was created.C) Geographical SettingLocationCuba an island that is located in the Caribbean Sea. The entire surface bea or island measures an estimated 48,800 squ atomic number 18 miles. The land has several highland regions the most notable of which ar the Guaniguanco, the Escambery and the Sierra Maestra. The island is located south fro m the famous Florida Keys (Cuba, 2010). The country has a coastline that extends for an estimated 3,700 kilometers. In relation to other countries, the country lies to the eastboundern side of the Gulf of Mexico and to the western side of the North Atlantic Ocean. The Yucatan Channel lies to the south east of Cuba.ClimateThe Cuban highlands, which argon about a third of the country, have an overbearing effect on the climate. The fact that the country is an island withal has ramifications on the tolerate and climate patterns experienced. The climate can be defined as equatorial climate with a dry period from the month of November lasting until April while the showery season lasts from May to around October. The country to a fault happens to lie at heart the path of major hurricanes and other destructive storms which are common in the months of folk and October. The average temperatures in Cuba vary between 23?C and 27C throughout the entire yearTopographyCuba has several archi pelagos but Cuba is the principal(prenominal) island. The island has a hilly or mountainous topography marked by several highlands such as the Sierra Maestra, the Escambery, and the Guaniguanco. The rest of the country is marked by plains the largest of which are in the provinces of Matanzas and Camaguey. The rest of the country is marked by coast lines.D) Social InstitutionsThe Cuban culture is a blend between African, American and European cultures. The European cultures were imported to Cuba courtesy of Christopher Columbus (Spain) and Britain. The American culture influence Cuba beginning from the period after the Spanish American war that rid Cuba of the Spanish colonists while the African heathenish influences as a result of the many slaves brought in to work in the plantations.1) FamilyThe family is an of the essence(p) social founding in any commonwealth, beau monde, or community. The stability of the family as an institution is reflected upon the wider society as the society tends to have better social institutions that borrow their moral fabric from the family. Cuba is no exception to these basic rules of nature. Most families in Cuba do it as extended families.a) The nuclear familyThe nuclear family had not had a very distinct role in Cuba until the post Fidel Castro era. The nuclear family is composed of a man, his wife, and their children. This path that in a rest home where there are three generations of a family, it is possible to have several nuclear families.b) The extended familyThe extended family is very important part of Cuban society. The family structure in Cuba is that up to three generations of a family live together in the same structure or household, a work out that makes it difficult to create a clear dividing line between the nuclear family and the extended familys role in the family setup. The leader or head of the family or the household therefore is the eldest parent figure in the family. This may be the grandfather or the Godmother within the family. He or she wields role over only(prenominal) the other family members and determines the role of each family member within the family.c) Dynamics of the family and parenting roles1) Parental Roles The role of parents is diverse depending on whether the family lives as an extended family or as a nuclear family. In the nuclear family setup, the father is the bread winner in the family while the mother is resigned to the role of care giver and is responsible for maintaining discipline within the family. In addition, family customs and traditions are passed down under the watch of the mother. In the extended family, the elder is in charge of the family. If the elder is a man, he is also the main breadwinner in the family though he is assisted by other family members. If the elder is a woman, she mainly serves as an overseer in the family and offers her guidance while the men in the family serve as the breadwinners.2) Marriage and Courtship The Cuban society still takes courtship as primarily the role of the man. Dowry is paid based on the individual customs of the bride. The weddings are angiotensin converting enzyme day glamorous events that showcase a lot of Spanish influence.2) Educationa) Education serves as a way of socializing the individuals into the ways of the society in a way that the family as an institution cannot. The educated people are the ones in positions of power and they are held in high regard within society.1) Primary, alternative and university education and literacy rateThe Castro political science made patriarchal education compulsory. In addition, school uni humankind figures are also a necessitatement for altogether students and are used to denote the grade level of a student. In the Cuban education corpse primary education takes six years. Secondary education is divided into two categories. The first category is the basic secondary education where students learn basic skills such as language, art, arithmetic, and the sciences. This follows primary education and is almost compulsory for all. The second category is the pre-university education which prepares one for entry into university. After the completion of pre-university education, the students are awarded what is referred to as the Bachillerato in Cuba (C.I.A 2010). It can be compared to a diploma in other education systems in other countries in the world. After the pre-university education, an individual has two options, to pursue either skilful education where one will gain skills to enable them gain employment or to pursue professional education at the university level.b) Literacy rate.The literacy levels in Cuba are flyer at 100% although the figure is disputed. The country also reports an enrolment/attendance rate of 98% in primary schools.3) Political systema) The political system in Cuba can be defined as socialist. The presidency has executive power which is vested in the Council of State and the Counc il of Ministers. The legislative role is assigned to the National hookup of peoples Power which is recognized by the constitution as having the highest authority in the country. No voting is done in respect of the positions of prime minister and president.b) The communist Party of Cuba is the leading social force of the nation (C.I.A 2010). thither is widespread censorship in Cuba with a system that is highly authoritarian. The communist party screens all candidates vying for seats in the legislative assembly.c) The occurrent government has been in power since 1959 when Fidel Castro ovethrew the dictator government. It can be described as stable because his successor, Raul Castro, has managed to keep the country at peace and with improved management.d) Special taxes not commone) Local government severely influenced by the ruling party4) Legal Systema) The main judicial organ is the Peoples Supreme Court. All judges according to the law are not subject to any other authority but the law. They can be elected or replaced and are accountable for their actions. Cuba has been sub divided into fourteen provinces which are further subdivided into 170 municipalities. Representatives to the municipalities and provinces are elected to serve equipment casualty that extend for two and a half years.b) The country is socialist.c) The authoritarian approach has affected patent and conventions. They are tightly regulated5) Social organizationa) The aim of groups which can lead to the creation of group behavior or culture is not a common occurrence in Cuba.b) The main aim of the government in relation to the existing social order is to create a classless society where income, race, sex or occupation are used as a definitive means of determining rewards or other favorable allocations.c) In addition, the government prohibits the formation of classes or clubs that may create lines along which the society may be stratified.6) Business in CubaTour guides, barmen, and waitresse s require to be tipped although there are no prescribed tipping place. Tipping allows for one to receive extraordinary service from the individuals receiving the tips. Business hours in Cuba are officially between half past eight and half past noon and half past one to half past four during weekdays. Some moving ines however opt to open during weekends where the hours of business are between 8 am and 5 pm for interchange Saturdays.E) Religion and aesthetics1) a) The low number of Protestants can be attributed to the late arrival of protestant doctrines and beliefs to Cuba.b) Cuba is also cognize to be home to other minuscule religions which have their roots in western Africa and the slaves who were taken from the region to work in the sugarcane plantations in Cuba.c) Cuba is for the most part considered as a catholic nation though the Catholic faith practiced within Cuba is modified to suit Cuba. There are also Jews and evangelical Christians amongst the population in the sta te.d) well-nigh 60% of the population is made up of catholic adherents while an estimated 6% are Protestants.e) Santeria which may be referred to as a cult has its origin in Nigeria in western Africa and is widely practiced in and around Cuba.2) Aestheticsa) Cuba has a strong heritage and history which reflects its visual arts potential.b) The country has numerous galleries, cultural centers, and art museums which have been used for the storage of artistic material from the citizens of Cuba. The government is supportive of art and is known to provide all kinds of assistance to artists in the country.c) medicinal drug dance and folklore in Cuba is very rich and displays the three main backgrounds that determine and continue to influence the Cuban society.d) There are influences of African, American, and Spanish elements that are derived from the fundamental interaction of Spaniards, Americans, and Africans in the history of Cuba.F) Living conditions1) a) Many surveys conducted show that Cubans on average consume too much sugar and eat inadequate fruits and vegetables. There are rising cases of diet related anemia and obesity which can be regulated or checked by simply a change of diet.b) A typical meal includes bread, ham, cheese, and rice and plenty of soft drinks with and between meals.c) The government cannot guarantee adequate nutrition for its population and this is considered as one of the failures of the Castro administration.d) The foods made on tap(predicate) to the public by the government are as follows rice, beans, cooking oil, plantains, brown sugar, milk and soy yoghurt which are provided on a monthly al-Qaeda to holders of ration cards. Other products such are chicken, beef, soy/meat blend and frankfurters are provided based on their availability.2) a) In Cuba, housing is relatively cheap but in the same breath the housing structures are sparse. Most dwelling places are either in poor condition or are bad in one way or another that makes them unsuitable for dwelling in.b) Most dwellings occupied on a rental basis. The houses have some form of supply of electricity and water and are therefore a bit habitable.c) In most cases houses are occupied are more than one family.3) The tropical wealthier requires light dressing to cope with the heat and humidity levels.a) A form of dress that can be identified with Cuba is the Havana shirt otherwise known as a Guayabera. The shirt has an array of designs but in general has two or four pockets and largely a casual dress that does not require the wearer to tuck into his trousers. There is a traditional dress made for women in place of the Guayabera and it is very popular all over Cuba although it has been rejected on grounds of being indecent in some cultures.b) The dress code at work is no different from that in many western countries. Employees/workers are expected to maintain a formal dress code.4) a) In leisure and recreation activities and sports, Cuba is well endowed. To begin with, Cuba is an ideal destination for hiking, snorkeling, climbing, fishing, and caving. The sport is used to play equality in society as well as freedom. The country also has rich soccer traditions among the Caribbean countries. Cubas national team has been to the FIFA world cup where they managed to fill out in the seventh position. The beach provided by the long coastline of Cuba provides ample grounds for leisure activities such as skiing, diving, swimming, and sun bathing which are common in almost all of Cuba.c) Most sports and recreational activities in Cuba are carried out in open spaces and often require little or no equipment. baseball for example is compete even on streets by children and thus very low amounts of income are channeled towards sports unless when organized sporting teams are involved and where there are competitions to be won at stake.5) Social protective coveringThe social security system in Cuba represents the general values of the wider society wher eby there is equality among all beneficiaries. There are no discriminations or preferential treatment for certain individuals based on sex, race, or gender. The Cuban social security system is very efficient. There are an estimated 360, 000 retirees within the population which represents close 10% of the population. Each of the retirees in Cuba is paid on a monthly basis. Under the social security system, the government through its social security system pays benefits to an estimated 1.5 million people on a monthly basis. The social security covers areas such as temporal illness, accidents, maternity, and social care for the elderly people within the population.G) LANGUAGE1) The main language used for communication is Spanish. The language was brought to the island by the Spaniards during the early occupation after Christopher Columbus discovered the island. Spanish is however recognized as the official state language of the people of Cuba.2) Other languages that are prevalent in Cuba are English and Creole which represent the different heritages and traditions of Cuba.3) It is important to note the Spanish that is spoken in Cuba varies in some cases from that spoken in Spain and other countries. This is largely because of the French and west African influences that have affected the language. English is mainly spoken as a result of tourist influences.II) ECONOMIC ANALYSISA) world1) The population of Cuba stands at an estimated 11.5 million people as of this year and will reportedly continue to grow at an estimated rate of 0.2%.a) The birth rate in the population is 11.1/1000 which is relatively low even amongst countries of the western world.b) The grandness rate for every woman is estimated as 1.43 children. This represents a drop in fertility rates which may explain why the harvest-tide in population has been very low for the last few years.c) Abortions in Cuba are also responsible for the population decline with an estimated 50 abortions for every 100 0 pregnancies in the population.2) a) The population is evenly distributed as only 103 people live in every self-coloured kilometer in Cuba.b) The life expectancy is relatively high at an average age of 77 years. The ethnic composition of the population is very vary though there are not many ethnicities.c) The population composition is such that the majority is men and boys for all ages but after the age of 65 years, the number of women outstrips that of men. This fact can only be explained by the lower life expectancy rate for men as compared to women.d) Many Cubans have in one way attempted or plan to attempt illicit migration with the most favored destination being the United States. The rest of the population has a majority that is intent on moving to urban areas. The situation is such that the larger portion of the population is housed in urban centers all over Cuba.e) Mulattos account for roughly half the population while whites account for 35% of the population. The rest o f the inhabitants is generally collected of blacks and Chinese with the Chinese forming the smallest ethnic group in Cuba.B) economical Statistics and activity1) Gross National Product/ Gross Domestic Producta) Cuba reported a gross domestic product per capita that stood at an estimated $111.1 billion.b) This translates to a per capita income of nearly $9,700 for the year 2009. The estimated real growth rate (nominal growth rate less inflation) was an estimated 1.4%. This is very ideal but there is plenty of room for improvement in particular since the growth rate or the GDP or even the per capita figures do not show the situation on the ground2) People live on less than the expected $9,700 per annum. Businesses publicly owned enterprises lies at 78% to a dismal 22% representing private enthronisation or privately owned enterprises.3) average out family income is dependent on the ratio of breadwinners to the relative size of the family.2008 estimates were $218.4) Distribution o f wealtha) Income classes. Three major classes exist, the highest is elect and military personnel. The second tier is business magnates and the last is the general workforce.b) Proportion of population to each class. The top tier is about 1/8ths of the total population, the second is and the rest is the general workforce.c) Priority is given to the elite classes and the military. The rest of the workforce is structured in respect to the demographics of income and position5) The country has deposits of cobalt, iron ore, nickel, copper, salt, manganese, silica, timber, petroleum and farming land.6) a) The transport system in Cuba comprises of nearly 4200 km of public railway network and a further 7700 km that is set aside for use by sugar cane producers. The highway network consists of nearly 61,000 km of tarmac spread all over the country.b) The country also boasts of waterways that extend for 240 kilometers. The country also has several ports that are used for commercial purposes. There are three main ports. There are also 170 airports as reported back in 2006c) Because Cuba is an island, the usage of waterways is a major transport form. Nearly half the population uses the train network to go to work. Only about a third drive to work.7) Communication Systemsa) Main types include Print newspapers, receiving set stations and television stationsb) Internet usage widespreadc) Media heavily restricted by the government8) Working conditionsa) 78% of employees work for the governmentb) high-priced employee-employer relationshipc) Employees entitled to benefits and good remuneration9) Principal industriesa) Petroleum, Construction, sugar, tobacco, nickel, pharmaceuticals, agricultural machinery and make cement accounted for about 37% of the total GDP.b) Principle industries include petroleum, Construction, sugar, tobacco, nickel, pharmaceuticals, agricultural machinery and steel cement Most industries are government owned. Estimated ratio of 2110) Foreign investme nta) Direct foreign investment is restrictedb) Potential for investment in Housing and food industries11) International trade statisticsa) 1) Major exports include sugar, tobacco, nickel, fish, coffee and citrus. At $ 2.4 billion.2) The trend for exports is posititve as the government opens up the Cuban providence to private companiesb) 1) Imports include food products, petroleum, equipment and machinery at $ 6.9 billion2) Imports are increasing referable to the growth in population and the demand for products and services.c) 1) Imports are more than exports passing a high balance of payments deficit. About $4.5 billion.2) Imports are more than exports leaving a high balance of payment deficit. Recent pronouncements by the Cuban government suggest a push towards closing this gap by increasing resource utilization.d) Exchange rates1) US dollar used mainly in foreign exchange2) Exchange rate at $ 1 US dollar equivalent to $ 0.9 Cuban convertible Pesos3) Due to the global recession, the countrys exchange rates are fluctuating and dipping with the global trend.12) Trade restrictionsa) Embargoes placed by United Statesb) Free trade only with Venezuelac) Import duties high depending on type of productd) the government is subject to tariffs affecting countries of the South American organization. These tariffs are on sugar and petroleum.e) Licensing of business restrictedf) Customs duties also high13) Extent of the economic activities not included in the cash income activitiesa) Counter trade present in the country1) Medical personnel used as main products of trade2) Barter trade commonb) Very little aid since US withdrawal14) Labor forcea) Available skilled labor force special since majority of the population is elderlyb) Unemployment rates low at 1.7%15) Inflation rates lowC) Developments in science and technology1) Highly developed2) Computers are wide spread. Low investment in research and development4) Labor force technologically skilledD) Channels of distrib ution (macro analysis)1) Trade in Cuba heavily controlled by the governmenta) Retail1) Poorly developed retail sector2) No large shopping centers3) Good stored are of poor quality and pricey4) Most tansations are done using cash.5) Goods sell in dollars in small scale with a small percentage sold on large scale.6) Chain stores, Department stores and speciality shops fill the supply gap the government cannot currently satisfy.b) Wholesale middlemen1) Supply chain of estimated 500,000.2) Mark-up of about 5% on products3) Goods sold on cash basisc) Import/export agent the government is the main exporter/importer.d) Most warehouses are fully owned by the government.e) The government has nearly 100% penetration of the markets through its expansive administrative networks.E) MediaMedia heavily controlled by the government1) Number of Television Stations 582) a) Television Sets per 1,000 236.1b) Number of radio receiver Stations 225c) Number of Radio Receivers 3,900,000d) Radio Receivers per 1,000 348.7.Number of Individuals with Internet Access 60,0003) The main use of media houses is for the spread of national ideas that the Communist party in charge in Cuba believes are ideal for the entire population.4) Any television or radio stations that go against the ideals supported by the party are closed down.5) There are an estimated 26 national newspapers serving the population of Cuba.Cuba Country Note BookIntroductionToshiba Corporation is a group of companies including Fujitsu, Mitsubishi electronic, Hitachi, and NEC Corporation. Toshiba relies more on domestic market constituting 60% of its net sales. The balance is taken care of by exports to North America, 16%, Asia 11%, and Europe, 10%. Since its formation in 1939, Toshiba has played a significant role in putting Japan in its current position in international trade.Business in CubaOfficial business hours range from 830 am to 12 30 pm for morning session and 130 pm to 4 30 pm for evening session. Weekends are how ever optional but those who operate open between 800 am to 500 pm on Saturdays (B8a, B8c).Marketing schema for Toshiba laptops (Notebook computers)TARGET MARKETToshiba Computers mostly manufactures high-end high-performance laptops. The main fag of the products would have to be the government and institutions. This is because of the entanglement of all business in the country with government policy and regulation. If the company can manage to get a foothold in the government by offering technological set pieces that accord due privacy and safety of information, then the company shall have overcome a huge barrier. The low per capita income suggests that the market would have to upper-middle class and this is mostly government officials and politicians (IIB).Teenagers and young below 30 would also be ideal as a segment for the laptops. This is because they are Tech-savvy and want more and better machines for work and play. The fast growth in computer and internet access can be furth er fuelled by Toshiba offering attractive high-performance laptops and computers. Institutions such as primary and secondary schools, as well as administrative institutions would make and ideal market for moving volumes in bulk (D2b). These places require many computers and laptops to fit in the current global trend.The current government led by Raul Castro is attempting to break the trade barriers ignited during Fidel Castros regime. The trade embargos by the United States do not affect Toshiba because it is a Japanese company(12A). This is good news for the company because the possibility of cut-throat competition is eliminated because American technology companies such as Apple cannot do business in Cuba (12A, 12D). politics policy would favor the company because it is inclusive and the business atmosphere does not vary so much from the Japanese model.The governments interests in arts and sports also require technology. In addition, the media is still backward in matters of tech nology (E1, E4). The secondary target markets would include such aspects of society as media and transport as the country moves towards a technological revolution of sorts.Marketing is aimed at awareness creation and forming good relationship with customers to the companys advantage. Marketing strategy is therefore very important as some(prenominal) the strategy used can either be profitable or destructive to the company. A marketing strategy that utilizes 4Ps that is Product, Promotion, Price and place respectively is ideal for products such as computers.Although, no trade partnership currently exists between Japan and Cuba, the country is a potential export destination for notebook computers. Cuba is highly literate thus can easily embrace the use of notebook computers. Students especially those at pre-university, University and other higher education institutions form the best target market for this product. Besides, the working population including teachers and doctors will fin d laptops essential hence another potential target market.ProductProduct refers to either good or service produced or manufactured by accompany especially under large scale with accurate amounts. This involves a description of all the special features of the product in question.Toshiba mini laptop has a full size keyboard and touchpad for easy typing. Its 10.1 diagonal screen is large enough for the eye leave alone its long-wearing textured four color finish. Its battery has a long life of up to eight hours. It also has attractive features handle USB Sleep-and Charge, MP3 player and smart bring forward hence very convenient for youths. It is also video compatible and its CPU ensures more data storage and faster Internet connection (C1).PromotionIn this case Toshiba can place advertisements in Cuban media. This of course will require first good relationship with Cuban government as it controls all media houses. The company can also take advantage of the widespread internet usage a nd advertise its product online. Toshiba can also promote its laptops through public relation measures like sponsoring sports where it is guaranteed to catch the attention of most youths (C3). Alternatively, Toshiba can take advantage of the widespread internet access in Cuba to engage in e-commerce by placing its product in virtual internet stores.PricingConsiderations should be given to prices of similar products in the market. Price administration on the other hand refers to involves all activities used to fit basic prices for every target market depending on sales situations. The exchange rates are also attractive for such a company (11b1, 11d2)PlaceThe company can develop partnership with Cuban government to ensure that its product is placed in Cuban government stores like shopping malls. It is also possible for Toshiba through good relationship with Cuban government to find its own store for its product (D1). Rhiw location demographics will also affect the places where it can be marketed.