Taylor Hobson

Contents

Introduction 1

CAGE Analysis 1

Environmental Analysis 2

Political and Economic Factors 2

Social Factors 2

Technological Factors 3

Legal Factors 3

Implications from CAGE and PESTLE 3

Aggregated Demand and Supply (ADAS) – Focused on Automotive Market 4

Vulnerability 6

Type 1 Vulnerability 6

Type 2 Vulnerability 7

Recommendations 8

Bibliography 10

Appendix 1: Competitor Analysis 12

Appendix 2: OEM Geography 14

Introduction

Taylor Hobson (TH) is a UK based company specialized in high precision metrology instruments. It was founded in 1886 in Leicester UK and initially aimed at manufacturing of lenses for cameras. After being acquired by Ametek with approximately 51 million GBP, the company now looks at further growth by expanding business scope to new developing economies (the BRIC countries). It shows particular interests in Russia due to its great business potential on automotive and aero-space industries and wishes to evaluate the risks and opportunities doing business in Russia. THcurrently serves Russia through a local dealer named ‘VNIIMS’.

The objective of this report was to analyse the economic factors TH would face doing business in Russia and recommend possible expansion strategies, as per the discussion in the client meeting. For an informed recommendation, a CAGE analysis and a PESTLE analysis were performed to understand the current environment and possible exposures the company faces. This led to an analysis of vulnerability and aggregate demand/aggregate supply in their highest earnings market. Based on this recommendations were given.

CAGE Analysis

To explore the potential opportunities and challenges of a UK-based company working in Russia,Ghemawat’s CAGE Distance Framework (Ghemawat, 2014) was used to compare the two countries.The findings showed a significant cultural divide (Figure 1) ranging from the obvious differences in language and writing systems to more ingrained human characteristics such as...