Pestel Analysis on the Naro CarIntroductionThe economic development has highly promoted the business development, which lead the current business environment become more and more competitive, in order to get survival in such intensive competitive environment, a proper evaluation on the macro-environment become urgent important for modern business. In this essay, it will apply the PESTEL analysis framework, to determine the macro-environment for the development of the Naro Car Company, and give the proper recommendations basing on the determination for their further development.
General information about the Naro CarThe Naro car is a new concept which developed from the year of 2003 with the aim to reduce the space and energy consuming and enhance the speed as well as reduce on the environment impacts. The Naro Car has four wheels and two seaters, with the narrow concept and has earned many considerations on it. The company is still focus on the development of the Naro car and aims to provide the licenses and production opportunities thus to introduce it to the real market (NARO Company, 2010).
PESTEL Analysis on the Naro CarPESTEL analysis refers to the analysis method which includes the impact of political policies of the government on the economy, short for political factors; economic growth, changes in interest rates, exchanges rates and inflation rate, short for economical factors; trends on culture, population, age distribution and people’s attitudes, short for social factors; technology innovations, new products and process, short for technological factors; changes in weather, climate and pollutions, short for environment factors and various laws that have impacts on the production, purchase, sales, human resource management and other aspects, short for legal factors (Waldersee and Tywoniak, 2007). The PESTEL analysis has been considered as the most proper framework for the determination of macro-environment for modern business and contributes to the strategic management of the organization (Williamson, Cooke and Jenkins, 2004).
Political factorsIn the political aspects, the most significant factors which impact on the development of the Naro car should be the government policy which encourages the purchase of the low energy and space consume cars with tax reduction and other promotions in the UK and the free trade policy in European Union countries. Which in details, the encouragement on the purchase of low energy and space consume cars ensures the policies protection for the introduction of the Naro car, which offers the Naro car more development opportunities in the market by the people’s consideration on the attractiveness of the Naro car with low tax cost and more promotions (Hine, and Preston, 2003). And the free trade policy in the European Union which enables the Naro car to expand
The Government of the Netherlands and the Dutch state that: • “The Naro car is based on sustainable development by consumers, but is also a major source of transport for the Dutch people, which makes this car a vital part of their life in many parts of the country” (Malmberg, 2012). The fact that the Naro car is so popular in the Dutch political context has created a strong incentive which makes it difficult to do any kind of social reform (Zoansma and van Auerbach, 2006b). The free trade policy of the Netherlands also provides incentives to encourage the creation of businesses and a new state of work and commerce which will help to boost the competitiveness of Naro car industry (Rijanovic and van Auerbach, 2014).
The Netherlands
The Dutch are not the largest car producers in the world, but, by more than 400 million people, almost every country has a N-G car (Jägersmann, 1990; van Auerbach et al, 2011). The Netherlands government is trying to make the Naro car as competitive as possible with free trade. The price should be on track (Koepp, and van Auerbach, 2014). The country should promote the idea of the Naro automobile through development of businesses and in development of businesses, like manufacturing, tourism and transport.
The development policy of a new state of work and commerce which will promote the use of the Naro car has opened up a lot opportunities for Dutch people, and given their interest in the cars they use (Risk, Hine, and Preston, 2005), and their demand for the Naro car in the Dutch markets, they must choose to use the Naro car at a price higher than it is today (Hine, van Auerbach et al, 2014).
The economic policy which led to this decision is one which is highly competitive for the Dutch economy and of the Naro automobile industry. The decision is one which can help reduce the cost, because the Naro car has been a powerful economic tool for the Dutch economy. So by making free trade policy based on competitive competitiveness, the government can help improve the environment of the Naro car which is a mainstay of their life (Ribbes, Koepp, Leis, and van Auerbach, 2013).
The government has succeeded in making these decisions by providing free trade policies by the following means:
• providing incentives to the country, i.e. increasing the total numbers of companies, based on national demand, based on the latest data from the companies where a new market is established, via the use of the latest development figures and other national data collected by the company (Koepp et al, 2009; Rijanovic and van Auerbach, 2006).
• providing incentives to the government, i.e. increasing the total numbers of companies, based on national demand, based on the latest data from the companies where a new market is established, via the use of the latest development figures and other national data collected by