Pestle Analysis

1007 WordsSep 12, 20135 Pages
“Internal and External environmental audit” of the automobile industry in the UK using PESTEL and SWOT frameworks. Britain’s automobile industry dates back to the late 19th century, when Daimler began manufacturing cars. Today, the UK is a major automobile and automobile part manufacturing hub and home to seven major car manufacturers. It produces a wide range of standard specification, premium and specialist vehicles, including Formula One cars and sports vehicles. An analysis of the industry using the PESTEL (Political, Economic, Social, Technological, Environmental and Legal) framework is carried out below: Political: The automotive industry has always received political support on account of several factors such as employment…show more content…
The industry has made significant progress in innovations in fuel alternatives, fuel-efficient cars and tyre pressure monitoring in a bid to conserve fuel. Manufacturers also arrange to recycle End of Life vehicles (ELVs) which have been scrapped. Besides recycling of waste, this solves landfill problems. Legislation: The automobile industry is subject to national, international and EU regulations concerning environmental issues discussed earlier, manufacturing and safety standards. From 2014, cars manufactured in the UK must be equipped with Electronic Stability Control (ESC) mechanism in order to control skidding. Another initiative which will also help to increase fuel efficiency and prevent accidents, the Tyre Pressure Monitoring System (TPMS) will serve to alert drivers to sub-optimal tyre pressure. All car brands need to be SENTA approved - a uniform EU standard without which vehicles can neither be sold nor registered. Manufacturers can also avail tax credits for adopting and adhering with emission norms. SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis Strengths: The main strengths of the industry are an extended manufacturing base, availability of skilled workers and membership of the EU. The absence of trade barriers between EU member countries facilitates exports, a significant fact since customs duties account for as much as 20 per cent of the vehicle cost. The country also has the technological expertise and infrastructure to make a wide

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