PESTEL analysis of the automotive industry in United Kingdom Essay

PESTEL synopsis of the self-propelled industry in United Kingdom - Essay ExampleIt elaborates the macroeconomic factors that ar apply to scan the environment before taking any strategic decision in an organisation (Mercer, 2008). PESTEL stands for P- policy-making E- Economic S- Social T- Technological E-Environmental L- Legal. The few constituents of PESTEL of the automotive industry are as follows The firms should be conscious(predicate) of the political factors like the trading policies, governmental changes in rules and regulations of the production of cars which includes safety standards and fuel emissions. Economic factors influencing furrow includes taxation policies, economies and trends, trade cycles and exchange rate and interest rate changes (Thompson, 2001). Cars are the polluting agents which pollute the environment to such an extent that it can be dangerous to the society and large emission of harmful gases can stock-still lead to diseases. Cars manufactures a re introducing Alternative Energy Vehicles that use only electricity and has rechargeable battery (Booz, 2008). The ch completelyenges that are faced by the automotive industry are that it is very expensive and this will be the final result for lowering pollutants. Environmental pollutants have been the basic challenge for this industry which is threatening the automotive industry intercontinental and therefrom they should pay attention to the alternative energy vehicle (Ferrel, 2012). The firm should always comply with all rules and regulations that are levied on car manufacturing , such as safety and standard issues, gas emission laws, vehicles regulations, etc (Mercer, 2008). 2. impetus forecast for 2016 Fords Motor Company, an automobile giant has its headquarter in United States. It has expanded its market in many countries like Japan, India etc. Ford has been suffering from many hurdles which are affecting the business. The challenges are coming from the macroeconomic envi ronment and it has threatened their creation. PESTEL analysis has been done to identify the factors that are affecting the existence of the automotive company (Craik, 2013). The following are the challenges that are faced by Ford and their future planning till 2016 so that they can overcome the challenges 1) The rising price of oil has made customers less automotive friendly (Ferrel, 2012). Ford has been doing technological adjustment which is helping them build a modern standard in the present outline. By 2016 it will reach its destination by creating such technologies which can even suffer the solution for using expensive oils. In many countries, the financer of the organisation has been playing a crucial purpose in the development and the progress of the organisation (Ferrel, 2012). 2) Accelerating growth in the developing countries is very difficult and thus attaining customers is near to impossible. But Ford has targeted a potential market to penetrate with its motors and t hus give them a changed phase by the year 2016. 3) The sale of Ford was also affected by the types of motors that are universe used by the people. But when the income of the mass is elevated to that position that they can pay attention to suffer a luxury car the sale of Ford has increased (Burrow, 2011). For the future development Ford abide on developing low priced cars so that it can be afforded by the mass (Sturgeon and Biesebroeck, 2010). 4) Consumer preferences changes from measure to time (Miller, 2012). Their taste and likings are not stagnant for all time. They try to experience new brands and that affects the sales of the