Introduction
This paper is aimed at examining the external environment of the advertising agency Waldron Roux Silberstein Xao or WRSX. It should be mentioned that this company interacts with various manufacturers or service organisations (Learning Dynamics 2011). Therefore, this work of this agency is partly dependent on the performance of these businesses. Additionally, this company can be influenced by legislative, environmental, or technological trends. Overall, these issues can be best analysed with the help of PESTLE analysis which can throw light on the factors that affect the work of this company in the future.
PESTLE Analysis
Political
At first, it is important to consider the impact of political environment on the activities of this organisation. In particular, the company can be indirectly affected by the influenced by the political conflicts between different states because they can sometimes result in economic barriers. The problem is that the clients of WRSX may not be able to operate in certain markets, and they may not use the services of this advertising agency. Therefore, the profitability of WRSX can also be affected in the long term. Additionally, this company can be influenced by the transformation of a political regime in a certain country. These are the main points that should be made.
Economic
At present, developed economies have almost recovered from the effects of global recession. This argument is particularly relevant if one speaks about the United States; many of the clients using the services of WRSX are located in this country. Moreover, Asian markets have also grown significantly (Carnelley n. d., p. 1). Therefore, the company can benefit from these trends. Nevertheless, it is important to be mentioned that at present, many researchers and business administrators question the usefulness of advertisements (Davis, Kay, & Star 2006). Certainly, one cannot assume that the services of advertising agencies will become irrelevant, but these businesses will need to meet higher standards. This is one of the challenges that should not be disregarded by the senior executives of WRSX.
Social
The management of the company should focus on the main social trends. In particular, the population of the most advanced countries is now represented by people who belong to various cultural, ethnic, or religious groups. This is why it is important to design marketing messages that can appeal to diverse clients. This is one of the details that should be taken into account. Moreover, the population of developed and developing countries is likely to increase during the following decades. This trend is important for economic growth. Additionally, in the future, advertising agencies will need to target the so-called Generation Y. These people are more skilled in the use of social media. Moreover, these people have a distinct set of values and attitudes towards businesses and their products (Mitcham 2011). This transformation will have profound implications for the work of companies such as WRSX.
Technological
The management of this company should consider the growing importance of Web 2.0 or information tools that enable Internet users to create and share content (Mitcham 2011). Therefore, advertising agencies should make that their marketing messages that can reach people who use social media (Dutta 2010). Companies representing different sectors of the economy should consider this trend in order to remain competitive (Dutta 2010). Additionally, modern users may not rely on conventional media such as radio or television in order to learn more about different products. For instance, they can rely on their smart phones or laptops. Therefore, advertising agencies like WRSX need to consider the impact of technological changes in order to communicate with consumers effectively; otherwise they may not cope with competition of companies that can better understand new technological trends.
Legal
Commercial speech regulations can have significant implications for advertising companies since these legislative acts result in significant restrictions on the work of businesses that want to market their products. For instance, governmental institutions can set certain standards for the oranisations that try to sell their goods to children or adolescents. In turn, advertising agencies have to comply with these restrictions (Carnelley n. d.). This is one of the risks should not be overlooked by the management of this company; otherwise they may face legal problems. This is one of the pitfalls that should be avoided.
Environmental
Additionally, it is important to mention that businesses want to improve their environmental performance. They want to offer goods that produce fewer impacts on the quality of water or air. Thus, advertising agencies such as WRSX should find ways of incorporating these themes into the marketing messages that they design for their clients. Currently, WRSX works with the representatives of the automotive industry and these companies want to want to highlight their environmental performance (Learning Dynamics 2011). This trend can be partly explained by the growing concern of many clients about the threats to the environment. These issues should be considered by the management of WRSX since this approach is important for attracting a greater number of buyers. Overall, the results of PESTLE analysis can be useful for developing the strategies of the company.
References
Carnelley, A n. d., WRSX External Environment, Web.
Davis, E, Kay, J & Star, J 2006, ‘Is advertising rational?’, Business Strategy Review, vol. 2, no. 3, pp. 1-23.
Dutta, S 2010, ‘Managing Yourself: What’s Your Personal Social Media Strategy?’, Harvard Business Review, vol. 11, no. 3. pp. 23-25.
Learning Dynamics 2011, WRSX: Company Report & Profile, Learning Dynamics, London.
Mitcham, C 2011, Advertising and Marketing Communications Industry Overview, Learning Dynamics, London.