The manufacture of motor vehicles industry analysis in the United Kingdom 第二部分

The manufacture of motor vehicles industry analysis in the United Kingdom 第二部分

 

5.      Micro and macro-factors Changes

In the face of changing micro and macro environment factors, most manufacturers in the industry are likely to be affected in a variety of ways. The macro environment is likely to negatively affect manufacturers in various ways as follows; if the political status of the country would change in terms of new policies and rules influencing how the businesses run, businesses would have to re-align their positions and adjust to the market. The economic status in the UK has significantly grown over the years. In the case that manufacturer costs are high and the cost of living relatively low, manufacturers are likely to make low returns on their products as a result. The UK economy is made up of a large population that aims at acquiring prestigious products for their consumption. The motor industry is a good indicator of this. Consumption is characterised by high-cost goods and products. In addition, there are new motor technologies emerging in the market such as solar and electric cars which require manufacturers to renovate their productions.

 

6.      PESTEL Analysis

6.1.                        Political Factors

The firms must be aware of the rules and regulations of a particular state which regulate fuel efficiency and fuel usage, the cars for the highly emphasised safety,  gases emission and the standard problems must be given priority in order to meet the standards of that particular state.  To support the automotive sector, the UK government set the Regional Growth Fund (RGF) to support vehicle manufacturers. For example, as a car components manufacturer, DRTVMS received £3 million pounds from this fund in order to update their plant facilities (   Gov, 2015). This fund will not only benefit DRT VMS Ltd, but it also benefit  Getrag-ford Transmissions; a systems transmission for public vehicles and BMW. In addition, UK government also placed £400 million pounds in supporting manufacturers to develop ultra-low emission vehicles.

 

6.2.                        Economic Factors

As mentioned earlier in the report, the automobile manufacturer industry has grown consistently in the recent years pushing its economic scale to 12 billion pounds in 2014. This number is being predicted to keep growing in the coming years. Automobile manufacture industry it’s approximated to create around 1.5 million jobs and makeup 8 percent of the total manufacturing output in the year 2014 and still shows a possibility of better days ahead. In the UK it’s predicted to have at least 4000 motorsport companies, this hence reflects the growing rate of the automotive industry (Rhodes & Sear, 2015).

 

6.3.                        Social Factors

Cars are one of the primary agents causing pollution to the environment from the emission of poisonous gases which include carbon monoxide, Hydrocarbons, Sulfur dioxide and noise emitted are among the   factors (Jones, 1983). In the major cities cases of the disease developing from these hazardous gases are common these include, asthma, lung cancer, Chronic Obstructive Pulmonary Disease among others. As a result traffic jams have become too common resulting to a lot of time consumption and an increase in the rate of road accidents. People are increasingly becoming aware of the problems caused by vehicles. As a result, more and more people prefer to use public mode of transport, trains or ride bikes rather than buying a car.

 

6.4.                        Legal Factors

Legal aspects in the UK recommend that organisations should comply with the regulations and the laws put in place. These include safety, standard issues and the laws pertained to the compatibility, spares manufacturers   (Lewchuk et al., 2001). The UK government requires that these manufacturers offer free take-back of end-of-life vehicles and make sure these vehicles are disposed in an environmental-friendly way (Statutory instrument, 2005). The vehicle tax rate is based on the engine size, fuel type and carbon dioxide (CO2) emissions. The more Co2 emissions the car has, the more tax the owner of vehicle needs to pay. So it drives people to tend to choose the car with less emission. As a result, the manufacturers tends to produce cars which are to the required standard of the government and which meets the needs of the buyers ( gov, 2015).

 

6.5.                        Technological Factors

Technological factors are the top elements of modern production firms; the automobile industry is not an exception in this. In the recent days, the automobile industry has developed at a positive rate, through manufacturing of electricity, hydrogen, field cell, hybrid and solar energy fueled cars. Apart from the fact of the fuel cell and the hydrogen, there are also other important issues pertained to the development of the purely developed cars. The hybrid models are not only existing in the nature of the effects, but there are also other advanced technologies and solutions which are pertained to the advanced logistics, among them JIT management, and the web procumbent technologies       (Jones and Womack, 2005). The automobile industries have come up with advanced models and software which have resulted to more computerised vehicles. This hence has led to more efficient and well-developed types and models. Software like Google apps, car tracks systems, automatic gearing systems and automatic windows operating systems. This hence has put manufacturing industries with these developed systems at a better competing angle against its competitors.

 

6.6.                        Environmental Factors

Use of Green Technology is among the approaches used to deal with the environmental factors, which are to be managed in the legal aspects. These approaches pertained to solving technical and Non-Technical aspects must be considered in this regard. The UK is one of the major developed countries who is updating according to the major changes in the systems those must be articulated with the changes in the systems    (Monteverde and Teece, 2002). Most of these approaches are to be included in the aspects and considerations which cannot be managed and summarised in the light of actions. The status of these standards changes as time goes by.

 

7.      Analysis and the Effects

In the automotive industry there arise differences due to changes put in place in the system. Analysing the effects and the changes in the system requires the intervention of any government and the shareholders associated with the particular system. To be more supporting, the UK has measured the changes in the system and how to provide methods with new approaches as to the regard in hand. Carbon Dioxide is one of the major factor that is to be communicated with the people as to this aspect; there are various areas and new approaches like the green technology. Some existing and new approaches will be sufficient aspects to take charge of the systems at hand. UK industry is on Boom Period since the start of time. Therefore, strengths and the weaknesses must be scrutinised so that firms remain active for serious situations to might develop in future.

 

The economic effects, in this case, will be that most GDP and profitability analysis that can’t be arranged in a way that is to be issued. And desirable standard has been updated with the passage of time hence coming to a co-current agreement. Economic factors including unemployment, poverty rate and inflation are to be controlled in the most effective way as the USA, Sweden, Indonesia and the many other countries are looking for new vehicles which got different engine factors      (Friedman, 1977).

Green technology has a significant influence in this regard as many countries are tackling on this environmental issue. There is upcoming need to accumulate factors of communication and other various modern modes of transport. The forms of actions to be taken reflect the forms to be articulated at times hence resulting to issues which need to be changed with the time of the actions.

 

Since technology has been updated according to nature of working and operational management, there will be no need to include further management in these situations. Standards and summarised forms of action are two methods which need to be issued and communicated in the automobile industry. Industries which are in need of reporting should be summarised in the situation which is to be terminated in well laid out and good structured terms and conditions. As a result of combining the entire working, the situation will tend to be different for various aspects.

 

8.      Conclusion

In summary, in the UK they must come up with new interventions, approaches and processes in order to develop the best methods that will help achieve the desired set results. The status of the actions to be taken and proposed values should be added into the system to come up with the best solutions ever. Status of actions and proposed forms of communication are all that has to be summarised in the methods summarised above. All the potential automotive industry participants’ should be ready and willing to put into consideration the factors depicted above in order to compete aggressively in the market and secure a better portion of the market. Putting various Economic, technological, ethical and the political factors into consideration the automobile industries must consider coming up with new methods better approaches which are up to date with the current economic trending issues in the world as this will help them to remain afloat in the market and still at a competitive advantage.

 

9.      Reference:

Office for National Statistics. (2007). Group 29.1: Manufacture of motor vehicles. Available: http://www.neighbourhood.statistics.gov.uk/HTMLDocs/SIC/data/SICmetadata.html?sic=C291xx&from=C29xxx. Last accessed 1st Dec 2015.

Office for National Statistics. (2015). The economic performance of the UK’s motor vehicle manufacturing industry. Available: http://www.ons.gov.uk/ons/rel/abs/annual-business-survey/car-production/sty-car.html. Last accessed 1st Dec 2015.

Statutory Instrument. (2005). THE END-OF-LIFE VEHICLES (PRODUCER RESPONSIBILITY) REGULATIONS 2005. Available: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/415921/ELV_producer_responsibility_regulations_2005_statutory_instrument_2005.pdf. Last accessed 1st Dec 2015.

Gov.uk. (2015). Vehicle tax rate tables. Available: https://www.gov.uk/vehicle-tax-rate-tables. Last accessed 1st Dec 2015.

Friedman AL. (1977) Industry and labour: class struggle at work and monopoly capitalism: Macmillan.

Jones DT. (1983) Technology and the UK automobile industry. Publication of: Lloyds Bank Limited 148.

Jones DT and Womack JP. (2005) Developing countries and the future of the automobile industry. World development 13: 393-407.

Lewchuk W, Stewart P and Yates C. (2001) Quality of working life in the automobile industry: a Canada‐UK comparative study. New Technology, Work and Employment 16: 72-87.

Monteverde K and Teece DJ. (2002) Supplier switching costs and vertical integration in the automobile industry. The Bell Journal of Economics: 206-213.

Rhee M, Kim Y-C and Han J. (2006) Confidence in imitation: Niche-width strategy in the UK automobile industry. Management Science 52: 501-513.

Rhodes, C; Sear, D. (2015). The motor industry: statistics and policy. Available: www.parliament.uk/briefing-papers/SN00611.pdf. Last accessed 1st Dec 2015.

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