Kia - Pest Etc.
KIA value of Kia’s technology, design and innovative approach to brand management
PEST MODEL Political: * Give incentive to buy American cars in NA and tariffs on imported cars. * Possible regulation on the number of cares exported or allowed to be * Government related contracts. | Economical: * imported cars face tariffs * Gas prices increasing continuously * Recession hit globally affecting the profit margins. * Due to recession people were looking to buy cheaper cars which benefitted Kia sales. | Social: * Global warming and harmful emissions * Fuel efficiency * CSR expense 11,080. (in millions) * Eco-friendly products * Hybrid cars/green cars * Kia Brand name has increased due to more KIA cars on the road. | Technological: * Design awards received * GLOBAL R&D: 796 billion * Electronic vehicle production being currently worked on and planning to be launched in 2011 (more stuff pg 26) * Possible small scale production of “Fuel Cell Electronic cars” in 2012. |
Starting with the PEST model we look at the political, economical, social and technological factors that play a role in the company’s present and future. The biggest political factor that affects the company in the present and the future is the government regulations on the tax and tariffs on the cars that are not American. The company has to negotiate contracts and renew them every so often to set a limit on the number of cars that are being imported and how much tariff that has to be paid. In the past the government has even given subsidies to American cars, which is a disadvantage for KIA. Moving on to the economical factors that affect the company we can see the biggest impact was due to recession. The recession actually benefited KIA as their sales increased. More people in the economy were looking for inexpensive cars as there was inflation and less money supply in the economy. Interest rates also dropped so it became easier for the public to
PEST MODEL Political: * Give incentive to buy American cars in NA and tariffs on imported cars. * Possible regulation on the number of cares exported or allowed to be * Government related contracts. | Economical: * imported cars face tariffs * Gas prices increasing continuously * Recession hit globally affecting the profit margins. * Due to recession people were looking to buy cheaper cars which benefitted Kia sales. | Social: * Global warming and harmful emissions * Fuel efficiency * CSR expense 11,080. (in millions) * Eco-friendly products * Hybrid cars/green cars * Kia Brand name has increased due to more KIA cars on the road. | Technological: * Design awards received * GLOBAL R&D: 796 billion * Electronic vehicle production being currently worked on and planning to be launched in 2011 (more stuff pg 26) * Possible small scale production of “Fuel Cell Electronic cars” in 2012. |
Starting with the PEST model we look at the political, economical, social and technological factors that play a role in the company’s present and future. The biggest political factor that affects the company in the present and the future is the government regulations on the tax and tariffs on the cars that are not American. The company has to negotiate contracts and renew them every so often to set a limit on the number of cars that are being imported and how much tariff that has to be paid. In the past the government has even given subsidies to American cars, which is a disadvantage for KIA. Moving on to the economical factors that affect the company we can see the biggest impact was due to recession. The recession actually benefited KIA as their sales increased. More people in the economy were looking for inexpensive cars as there was inflation and less money supply in the economy. Interest rates also dropped so it became easier for the public to