Strategic Planning

Module code: MNG3701

TABLE OF CONTENT

* Introduction

* Pestle Analysis

* PORTER’s 5 Forces Model for Industry Analysis

* Conclusion

* References

*

It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.

Charles Darwin.

Technology has become one of the pillar of every economy industry on the world to survive industry competition and gain profitability. Car industry has become a very competitive market which has touched everyone in the field of the business and Maruti Suzuki was not spared. Maruti started out its production in 1982 in Gurgaon Haryana, India with Maruti 800.

It is very important that management must understand the potential impact of relevant environment factors and forces on the industries and hence in the organisation they are operating. The global environment has shown to have a great importance in the recent years.

The analysis and evaluation of the external business environment focuses on the microenvironment as well as on the industry environment. All business operates in the microenvironment which comprises of the PESTLE. (Political, Economic, Society, Technology, Legal and Environment.)

Political factors refer to the stability of the political environment and attitudes of political parties and movements. The political and legal factors could have a negative or positive influence on the business. The positive stability of a political government leads positive results for a business operating in the country.

The government liberated the Indian automotive industry that began in the early 1990s was directed at breaking down the systems of controls over investment and production rather than at promoting foreign trade. For the first time, multinational companies were allowed to invest in the assembly sector and car production was no longer restrained by licensing system. The government ensured a balanced transition to open trade at a...