Verified Document

Industry Specific Research Paper

Industry Specific My industry of choice is the auto industry, and I will analyze it using the PESTEL framework. The political environment is critical to the auto industry for a couple of reasons. In most countries, the auto industry is significant, and therefore becomes politicized. The bailouts of GM and Chrysler are just two examples -- albeit extreme ones -- of the intense government involvement in the shape and size of the automotive industry. Another good example is NAFTA, which has resulted in production shifts to Canada and Mexico, but also the opening of the Mexican market. The current climate holds that the governments of the U.S. And Canada are divesting some of their control over GM and Chrysler, but will remain heavily involved in the industry, with the objective of supporting the Big Three, as well as major foreign automakers. The political environment also shapes demand conditions. For example, high taxes on gasoline in Europe...

Government support for ethanol vehicles, or emissions restrictions implemented by states, all form part of the political environment. Currently, there is a move among governments for cleaner vehicles, but otherwise the political environment is generally favorable.
The economic environment is generally unfavorable for the automobile industry. Europe faces significant economic struggles, the U.S. is only having a slow recovery, and while Asian markets are driving growth in the industry even their growth is starting to slow. The price of gasoline falls under the macroeconomic variables, and is generally unfavorable with a rising trend lately. Thus, there is little optimism for a large-scale increase in auto sales in the coming years.

The social environment remains favorable, however. This environment measures how people respond to the product, and there are few who have a…

Cite this Document:
Copy Bibliography Citation

Related Documents

Industry-Specific Accounting and Finance
Words: 639 Length: 2 Document Type: Term Paper

nature of a firm's business and its environment are big factors in determining what the firm's financial statements look like." Industries vary wildly in terms of how they account for profits, losses, depreciation of assets, and other critical components that affect the appearance of their financial statements. Some industries are more apt to operate on credit on a regular basis than others; some industries make the bulk of their profits

Industry Strategic Employment and Compensation Analysis
Words: 1497 Length: 5 Document Type: Term Paper

Retail Grocery: Industry Strategic Employment and Compensation Analysis An Analysis of Ukrop's Super Markets Although Piggly Wiggly was the first self-service store opened in 1916, the first supermarket to open was King Kullen Grocery Company in New York in 1930 (Food Marketing Institute 2004). Today, though, there are over 69,461 supermarkets competing nationally for a share of the American consumer food dollar. In Central Virginia, Ukrop's Super Markets have achieved a degree

Industry Pattern Describe the Industry and Explain
Words: 1029 Length: 4 Document Type: Essay

Industry Pattern Describe the industry and explain the general pattern of change of the particular market model. Since the 1990s, the electric utility industry has been going through tremendous amounts of deregulation. This is because the monopolistic model made them ineffective in delivering different services. When this happened, consumers began to experience dramatic increases in the costs for their utility bills. In general, this was considered to be a naturalistic monopoly, as

Industry Analysis: Discount Department Stores
Words: 3515 Length: 10 Document Type: Research Paper

Currently, the economy is not faring very well. With that being the case, there are more people shopping at discount department stores. That would seem like a good thing, but it is not necessarily as good as it would appear at first glance. Instead of being a boon for discount department stores across the country, it is simply another reason for more people to get into the market and try

Industry Analysis Since the Passage
Words: 1117 Length: 3 Document Type: Term Paper

This is significant, because it shows how in the next three years, the airlines are going to face increasing amounts of competition, in a number of different markets. This is because the industry is targeting the same demographics of business and leisure travelers. As a result, the increased amounts of deregulation, will affect the industry in the future, as increased amounts of competition will more than likely mean lower

Industry Analysis of the Computer
Words: 1102 Length: 3 Document Type: Term Paper

This continues the cycle of relying on production efficiencies and build-to-order strategies as an attempt to break the cycle of disruptive innovations (Ervolina, Ettl, Lee, Peters, 2009). All of these factors lead to a task-based analysis of the computer peripherals market that continue to illustrate how fragmented and highly cost-driven it has become. Figure 1 shows the market share of the computer peripherals industry from a product standpoint. Computer monitors

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now