Kia Business Strategy

KIA-The Auto Industry

Tara McKnight

BUS 620

Dr. Marcus Crayton

March 16, 2014

Introduction

This paper will be talking about what is PESTEL analysis and what factors such as political, economic, social, technology, environmental, and legal factors that marketing managers consider of the company. One of the cases that is mentioned in this paper is about KIA Motors, what the outcome was of using the PESTEL or SWOT analysis to show the strengths, the weakness, the opportunities and where the company sees itself in 5-10 years from now. It will briefly talk about what KIA Motors is expecting or even hoping to do with production of the vehicles in different areas of the world.

PESTEL Analysis

There are a number of ways to scan the external environment; among those models with the most comprehensive set of external factors is the PESTEL analysis, plus marketing managers use the PESTEL framework to facilitate a comprehensive scan of the external environment confronting the organization (Finch, 2012). PESTEL analysis is a framework or a tool used by marketers to analyze and monitor the macro-environmental (external marketing environment) factors that have an impact of an organization. PESTEL analysis has two basic functions for a company. The first function it allows identification of the environment within which the company operates, and the second function is to provide data and information that will enable the company to predict situations and circumstances that it might encounter in future (Yuksel, 2012). What does PESTEL mean and represent? PESTEL stands for:

P- Political –These are all about how and to what degree a government intervenes in the economy. It can include government policy, political stability, foreign trade policy, tax policy, labor law, and so on.

E- Economic- This has a significant impact on how a organization does business and how profitable they are. Factors include the economic growth, interest rates, exchange rates, and inflation....