The American motor vehicle manufacturing business is going through a great business expansion. Most of the companies like General Motors and Tesla are overcoming their economic problems and manufacturing motor vehicles that are going towards changing the market. Therefore, we can connect the PESTLE analysis to be carried out in order to measure the improvements that are going on at the General Motors and Tesla companies according to the article G.M. Takes a Back Seat to Tesla as America’s Most Valued Carmaker written by Bill Vlasic .The purpose of this essay is to find out the influence that the political, economic, social, technological, environmental and legal factors that performs in the success of the motor vehicle …show more content…
Good economy is great for the American motor vehicles so there should be measures that would make sure that the economy is well taken care of in the near future. The PESTEL strategic analysis of the motor vehicle industry indicates an upward direction that is very important for the overall growth in the long run (Vlasic). Mary T. Barra is one of the best managers in the motor vehicle manufacturing because she has managed to make General Motors to be the giant motor vehicle company that it was in the past. The economic concept is very important in this case because it provides an opportunity for a better future so that we can achieve the level of involvement with the stakeholders and the expansion efforts to reach the world market like African countries and the Middle …show more content…
The business environment is also changing so that many of the businesses are becoming innovative with time. The world economy is concerned about the rise in global warming which occurs as a result of the carbon IV oxide emission from the fossil fuel. So, it is right to say that Mary T. Barra’s effort to ensure that General Motors produce or manufacture motor vehicles that are environment friendly and especially the solar vehicles is good for the overall growth of the economy and is in line with the PESTEL strategic concept of a good business environment. The strategic concept of providing a pollution free product is in line with the needs of the modern economies where most of the innovations are going towards clean and renewable energy. There are many reasons why the motor vehicle industry in the United States of America is going to continue growing under the President Trump’s administration. The first reason is that his political statement supports local industries as he states clearly that it is an “America First” where the interests of the United States companies and employees will be given first priority. Accordingly, this would end up in creating a good working business environment that can be relied on in the long run. The political and environmental concerns as raised on the PESTLE analysis are very important as they make
The American automotive industry has been under a lot of pressure over recent years due to increased concern for the environment and increased global competition. An environmental scan on the American automotive industry shows that the global competition is a great cause for concern, new technology is providing an edge, emissions and laws regulating them are as tight as ever, and consumer opinion is reflecting concern for this.
Ever since their invention, cars have been powered by gasoline. Over the years as gas prices fluctuated and supplies continue to dwindle, motorists have started looking for a more reliable and cost effective alternative. As a result car companies have begun producing a new type of car to meet the demands of consumers; the electric car. In recent years the electric car has been a source of great controversy, some seeing it as the future of personal transportation, while others see it as the inefficient and unreliable dream of environmentalists. Currently, the United States has been supporting this growth and development of electric cars. The U.S is showing this support by providing tax benefits to consumers who purchase electric vehicles, along with providing government subsidies to companies such as Tesla who are fueling the growth of these electric cars. The United States should continue to promote the use and development of electric cars because they are beneficial to consumers, the economy, and the environment. The promotion of these electric cars will also lead to the continuing developments of technology. These improvements to technology will only further benefit society in the United States.
All forms of personal transportation account for “30 % of all U.S Global warming.” The oil will soon be “harder to extract”, which will end up creating more and more dirty emissions as well as harm the economy. Creating “Fuel efficient vehicles, Electric cars, and cleaner fuels” will help contribute to a solution for global warming problems but not permanently (UoCS Web). Big business have given an “up close” view of The damage caused through business practice. Because of this, big business have found time to adopt “environmental safeguards” to cover up environmental damage through “national parks." Siding with big business, “Some of the most powerful forces,” is one of the best ways of solving environmental problems (Diamond 16). Big business has large amounts of money that could be invested in new forms of cars that could be completely electric or have clean
Every external factor exhibits an open door or risk that the business must address through vital activity. As one of the main five players in the worldwide car industry, Ford guarantees that it addresses the issues in its PESTLE analysis. These issues are an immediate determinant of the hierarchical advancement direction of Ford.
Since the twentieth century, America has dominated the car industry business. Automobiles have made a major influence in the society and the economy of America ever since. Especially when Henry Ford, founder of Ford Motor Company, developed two of his inventions, Model T and Model A, flourished into a big success around the 1900’s. Nonetheless, the culture we live in today is influenced tremendously by the advanced technology we created, and it grants industries new opportunities that may evolve the automobile business as we know it.
To evaluate all the internal and external factors that directly or indirectly impact the Auto parts industry, the PESTEL model has been used as the analysis for this major industry. PESTEL stands for the five most important forces that comprehensively analyse and monitor the manufacturing: Political forces, Economical forces, Socio-cultural forces, Technological forces, Environmental forces and lastly Legal forces. All of these forces decide how well the industry can perform in not only the current period but also in the near future.
General Motors is faced with a dilemma. In the face of economic depression, competition from foreign players was driving down profits and the market’s preference was changing to efficient cars due to
In many ways, the automotive industry has huge impacts on Canada. The impact it has creates jobs, and services. It also boosts economy and contributes to its success. Over the last two decades, the automotive industry has been a leading contributor to Canada’s economy and is a primary factor as to whether or not the economy will be successful. There are many contributing branches of the sector that allow it to be successful. This is shown through the production and manufacturing of vehicles, as well as the sale of the vehicles. The automotive industry has had a significant impact on Canada’s economy over the last 10 years. If the production and sale of domestic vehicles were to decline, Canada’s economy to be severely crippled and fall
Similarly government regulations in the United States and Europe are tightening up, consequently requiring cars to be cleaner and more fuel efficient. As a result, the collaboration with BMW is paramount to getting the most fuel efficient vehicles to the market in a timely manner so that GM can harvest a substantial profit. (3) In addition General Motors is working on the next generation of fuel efficient and gasoline free vehicles to help reduce the impact of the vehicle on the environment, while preserving personal mobility, which further indicates its commitment to innovation. (6)
The automobile industry has influenced the US society in many aspects. The automotive production on commercial scale started in Europe in 1890’s. At this time, they were only able to produce a few numbers of cars in the market. When the automobile industry started in the US, cars were considered as toys for rich. From 1904 to 1908, about 241 auto-manufacturing firms went into business. One of these firms was Ford Motor Company, led by Henry Ford, which outpaced its competitors in a very short time. After Ford Model N success in the market, Henry Ford was encouraged to introduce his Model T car to the market; after several failed product lines. As a result of its durability and price, Henry Ford innovated one of the most important innovations
The automotive industry designs, develops, manufactures, markets and sells motor vehicles, and is one of the world’s most important economic divisions by profits. This analysis focuses on the industry, specifically, manufacturers of automobiles. There are five competitors in the StratSim environment: Firm A, B, C, D, and E. Industry sales in the most recent year were 4.3 million units, with expected growth in the next year. Within this industry, there are seven-vehicle classes: Economy, Family, Luxury, Sports, Minivan, Truck, and Utility. There are two new classes with potential – if properly marketed.
General Motors is one of the most highly decorated American car manufacturers in the world. Winning top honors from the Global Supply industry (Awards). General Motors earns countless awards throughout the brands of the company year after year. Founded in 1897 by William Durant, General Motors is one of the world’s largest car manufacturers. With Mary Barra’s leadership, General Motors produce cars, trucks, and hybrids. GM owns 18 brands, but their most famous makes are Cadillac, Chevrolet, Buick, and GMC (GM Profile). The purpose of this paper is to pinpoint General Motor’s strengths, weaknesses, opportunities, and threats.
This article explains how the new electric vehicle, Tesla, could bring down the planet’s emission of greenhouse, and saves our planet. There is a huge improvement in order of selling this cars in the world, but the Analysts debate about if Tesla will solve this problem or not. Most of them believe that it will be if Tesla ends up driving the rest of the auto industry to change, help for producing more electrical vehicles, and convince people to switch to it .Others says that reducing emissions is quietly hard to accomplish, because Tesla will not be able to cover the global auto industry by
Tesla must conquer the challenges that are related to the external factors that are shown in the PESTEL analysis. PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal. Since it is a strategic gadget it will have some external factors that are going to affect other elements of the business such as consumers and community-based associations. It is important as it gives critical understanding to Publicizing in an overall setting that chooses those missions results and achievements. For a solid trademark and beneficent profits, Tesla can upgrade its long-term success by including the outcomes of the PESTEL analysis in a critical form. Tesla’s income is rising alongside with developing benefits. This condition demonstrates Tesla’s efficiency in acknowledging the external factors in the macro-environment of the
The characteristics of the global motor vehicle industry are a boom in certain places and a bust in others all due to economic conditions in different nations. Four years after tow of Detroit Michigan’s big three went into bankruptcy American car makers are going “full throttle” with sales in August hitting an annual rate that if substantiated can take them back over 16 million and that is a rate that was last hit before the economic crisis and 80% higher than 2009 when GM and Chrysler went into bankruptcy. The opposite is happening in Europe being in its sixth year slump now and with a weak economy, high petroleum prices and an aging