PESTLE ANALYSIS OF AUTOMOBILE SECTOR OF INDIA
I would like to confer my heartiest thanks to my coordinator of Business Environment and class teacher Miss Impreet Kaur for giving me the opportunity to expel and work in the field of Environmental Analysis, especially its practical applications. While preparing my project I got to have an in depth knowledge of practical applications of the theoretical concepts and definitely the things which I have learned will undoubtedly help me in future, to analyze many processes going on in our economy. I would also like to thank all those people who directly or indirectly helped us in accomplishing this project.
Competitiveness of manufacturing sector is a very broad multi-dimensional concept that embraces numerous aspects such as price, quality, productivity, efficiency and macro-economic environment. The OECD definition of competitiveness, which is most widely quoted, also considers employment and sustainability, while being exposed to international competition, as features pertaining to competitiveness. There are numerous studies on auto industry in India, published by industry associations, consultancy organizations, research bodies and peer-reviewed journals. In this section, various studies on the Indian auto industry are reviewed, under different heads pertaining to competitiveness, namely, global comparisons, policy environment and evolution of the Indian auto industry, productivity, aspects related to supply-chain and industrial structure and technology and other aspects.
PESTLE Analysis is a simple, useful and widely-used tool that helps you understand the "big picture" of your Political, Economic, Socio-Cultural and Technological, Legal and Environmental aspects. As such, it is used by business leaders worldwide to build their vision of the future. PESTLE analysis is concerned with the environmental influences on a business. Identifying PESTLE influences is a useful way of summarizing the external environment in which a business operates. However, it must be followed up by consideration of how a business should respond to these influences. It is important for these reasons:
* First, by making effective use of PESTLE Analysis, you ensure that what you are doing is aligned positively with the powerful forces of change that are affecting our world. By taking advantage of change, you are much more likely to be successful than if your activities oppose it; * Second, good use of PESTLE Analysis helps you avoid taking action that is doomed to failure from the outset, for reasons beyond your control; and * Third, PESTLE is useful when you start operating in a new country or region. Use of PESTLE helps you break free of unconscious assumptions, and helps you quickly adapt to the realities of the new environment.
The table below lists some possible factors that could indicate important environmental influences for a business under the PESTLE headings: Political / Legal| Economic| Social| Technological|
- Environmental regulation and protection| - Economic growth | - Income distribution | - Government spending on research| - Taxation | - Monetary policy | - Demographics | - Government and industry focus on technological effort| - International trade regulation| - Government spending | - Labor / social mobility| - New discoveries and development| - Consumer protection| - Policy towards unemployment | - Lifestyle changes | - Speed of technology transfer | - Employment law| - Taxation | - Attitudes to work and leisure| - Rates of technological obsolescence | - Government organization / attitude | - Exchange rates | - Education| - Energy use and costs | - Competition regulation| - Inflation | - Fashions and fads| - Changes in material sciences | | - Stage of the business cycle | - Health & welfare | - Impact of changes in...