Module code: MNG3701
TABLE OF CONTENT
* Pestle Analysis
* PORTER’s 5 Forces Model for Industry Analysis
It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.
Technology has become one of the pillar of every economy industry on the world to survive industry competition and gain profitability. Car industry has become a very competitive market which has touched everyone in the field of the business and Maruti Suzuki was not spared. Maruti started out its production in 1982 in Gurgaon Haryana, India with Maruti 800.
It is very ...view middle of the document...
The government ensured a balanced transition to open trade at a minimal risk to the Indian economy and local industry. As the government agreed to maintain foreign exchange neutrality, foreign assemblers were obliged to meet local content requirements.
The main factors which are important to a business productivity are: price inflation, current exchange rate, growth rate of the economy and level of interest rates. There are other factors which need to be considered: unemployment rates, income levels in a country, levels of savings and others.
For Maruti , the main concern and issue the Indian passenger car industry is achieving the break –even volumes. To attain the latter, it depends on the investments made by players in capacity creation and the selling price of the car as the purchase will depend on the customers’ willingness to pay. Will it be a value for money product?
In terms of engine capacity, the Indian passenger car is moving towards cars of higher capacity. Maruti has planned to rap the rural market, 60% of which runs on cash. The company has been proposing credit facilities as well. The company has created jobs by appointing almost 2000 sales executives to target customers in the rural areas.
SOCIAL AND TECHNOLOGY ENVIRONMENT
Since the social values, beliefs, lifestyles, traditions and attitudes are changing with time, this creates the demand of new products and services which create opportunities for organisations. Socially, Maruti has been providing welfare camps, encourages “go green”, adopting energy saving technologies, road safety, education to underprivileged, reduction of water wastage, medical support, greening of supply chain. There are also Maruti Driving School.
Technology is one area where change has been taking place at an alarming pace and virtually on a daily basis. Technological innovation may be described as the process that expands people capacity. It also influences other environmental variables. Economic growth is affected by the number of new inventories and also by social change.
Maruti has not let it lag behind, to remain in the competition, the company has launched CNG kit for Alto, its highest selling car. Maruti is involved with the development of small and fuel efficient car engines. Also as a proactive move is to make its entire fleet cars adhere to ‘end of life vehicles’. The company has also high plans to increase the engine development work in India along with other R&D operations. In the field of alternate fuel technology, the company developed LPG/CNG/HYBRID system for MPI engine. The company also added Virtual Design Review to its R&D activity to enable virtual validation to reduce cycle time and development cost. In the...