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PESTLE anaysis Essay

Political, Economic, Social and Technological – plus Ecological or Environmental, Ethical, Demographic and Legal. It’s a matter of personal choice, but for most situations the original PEST analysis model arguably covers all of the ‘additional’ factors within the original four main sections. For example Ecological or Environmental factors can be positioned under any or all of the four main PEST headings, depending on their effect.

Legislative actors would normally be covered under the Political heading since they will generally be politically motivated. Demographics usually are an aspect of the larger Social issue. Industry Analysis is effectively covered under the Economic heading. Ethical considerations would typically be included in the Social and/or Political areas, depending on the perspective and the effect. Thus we can often see these ‘additional’ factors as ‘sub-items’ or perspectives within the four main sections. Keeping to four fundamental perspectives also imposes a discipline of considering tragic context and effect.

Many potential ‘additional’ factors (ethical, legislative, environmental for example) will commonly be contributory causes which act on one or some of the main four headings, rather than be big strategic factors in their own right. By gathering the relevant information on the UK automobile industry external environment, PESTLE analysis provides

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us a dynamic tool to grasp the situation at macro level. Political Low exit barriers government support Economical Strong M activity Increasing acceptance of cars Upward trend for environmental friendly cars

Technological Use of advance materials Advancement in greener alternatives Focus on niche and engine manufacturing Environmental Aggressive industry wide R expenditure in greener alternatives including hybrid technologies Commercialism’s of hydrogen and electric cars Increase in annual greener product launches Legal Carbon Emission Targets: currently set at the European level to 2020 Latest Trade Policy: I-J Trade & Investment Agency (KIT) is encouraging mobile investment to increase local Seems participation in international trade by learning from foreign companies

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