Pestel Analysis Of The Auto Ancillary Industry Economics Essay

Pestel Analysis Of The Auto Ancillary Industry Economics Essay Auto ancillary industry is an important segment of the economy in any country. The Indian auto industry has the potential to emerge as one of the largest in the world. Presently, India is The largest two wheeler manufacturer in the world. The largest three wheeler market in the world. Second largest two wheeler market in the world. The fourth largest commercial vehicle market in the world. Auto ancillary company comprises of OEM (original equipment manufacturers). Replacement Market. The automotive sector in India contributes to 5% of the nations GDP. This envisages the Auto ancillary sector output reaching a level of $145 billion accounting for more than 10% of the GDP by 2016. PESTEL ANALYSIS There are many factors Consists of internal environment and external environment will affect the decisions of the managers of any organisation. This analysis is essential for all organization before beginning its marketing process. 3 Investments in Industry Foreign Investments: India enjoys a cost advantage with respect to casting and forging as manufacturing costs in India are 25 to 30 per cent lower than their western counterparts. Seeing the growing popularity of India in the automotive component sector, the Investment Commission has set a target of attracting foreign investment worth US$ 5 billion for the next seven years to increase Indias share in the global auto components market from the existing 0.9 per cent to 2.5 per cent by 2015. Â · French tyre major, Michelin, has gained clearance from the Foreign Investment Promotion Board (FIPB) for its US$ 2.26 billion Foreign direct investment (FDI) proposal to set up a manufacturing facility in Tamil Nadu. Â · Ford motor car is investing about 500$ million (Rs. 2,445 cores) to double capacity at its India plant, which will Become a strategic global production hub. Â · Bosch will continue to maintain its focus in India in spite of global recession as it is planning to set up manufacturing units for electronic control units (ECU) by investing US$ 26.76 million. Â · Renault in association with Nissan is to source USD 440 million worth of auto components from India in the coming years. Â · Italian car manufacturer Fiat is planning to increase sourcing to USD 330 million by 2010 and make India its global sourcing centre. Â · Volkswagen has set target to capture 8-10 percent of market share in the passenger car segment in India by 2014 with a series of launches and by doubling the number of dealers. Domestic Investments: The market is so large and diverse that a large number of players can be absorbed to accommodate buyer needs. The Sector not only has global players looking to invest and expand but leading domestic component companies are also pumping in huge sums into expanding operations. Indian tyre makers are rolling out investment plans worth US$ 1.24 billion, due to the rising popularity of radial tyres in the commercial vehicles segment. Some other investments include: Â · Hero Motors will invest US$ 19.84 million in association with Austrian firm BRP Power train for manufacturing Automotive transmissions in India. Â · Indian arm of Swedish automotive component maker SKF is investing US$ 30 million in new ball bearings manufacturing plant at Haridwar. Â · Mahindra Mahindra will invest approx US$ 400 million for setting up an integrated auto facility in Tiruvannamalai(Chennai). Â · an auto park is coming up near Hyderabad with investments worth over US$ 409.30 million from around 34 automotive ancillary units. A lower labour cost gives Indian auto ancillary companies an absolute cost advantage. ACMA numbers suggest that wage cost accounts for 3% to 15% of revenues for Indian manufacturers as compared to 20% to 40% for US players. Historically, Indias strength in exports lies in forgings, castings and plastics. But this is changing with more component manufactures investing in up gradation of technology in recent years. DEMAND SUPPLY SCENARIO Demand supply scenario Demand is generated from two segments namely OEMs and replacement markets. The volume of demand varies by product segments. The replacement market has 45 percent of its sales coming from unorganized players. There are no regulatory standards prevailing in the market. The level of technology is not sophisticated in the replacement market. The replacement market is a safe bet even when the economy faces a slowdown. Hence, it looked as an area of focus by major players of the auto component industry. The margins in the replacement market are generally higher because of low cost operations and counterfeit sales. Success in the organized market depends on the presence of an established brand name and a wide distribution network. Unorganized sector enjoys huge advantages over the organized players in terms of excise duty exemptions and lower overheads. The suppliers to OEMs have to adhere to requirements of high quality, tight delivery schedules and lower margins. Duty structure Regulations Government Policies: Reduction in excise duties in select segment of automobiles. Extension of tax holiday for 100 per cent export oriented units (EOU) until 2010-11 will benefit only players with established EOUs. Scheme to provide enhanced Export Credit and Guarantee Corporation (ECGC) cover at 95 per cent has been extended up to March 2010. This scheme will assist players to mitigate risk of payment defaults in the export market. Automatic approval for foreign equity investment up to 100 per cent of manufacture of automobiles and components is permitted. The automobile industry has been delicensed. There are no restraints on import of components. Free Trade Agreements: The growing number of FTAs (Free Trade Agreements) that are being signed by India with countries like Thailand, Singapore, China etc is likely to hurt the domestic players as they pay a relatively higher duty of around 25% as compared to 1%-10% being paid by its Asian counterparts. P- POLITICAL FACTOR Political factors the most important influence on the regulation of any business. How stable is the political environment Influence the Government Policy / Law on your business Governments position on Marketing Ethics Governments policy on the economy Governments view on culture under religion Political System is responsible for Law Making. Immediate laws which affect any business in general are Central Excise, Sales Tax/ VAT, Corporate Income Tax, Personal Income Tax Service Tax Controls if any on Marketing Strategies Like Marketing / Advertising of Cigarettes, Tobacco, Alcohol etc. Government Policies on the Economy Role of Public Sector Role of Private Sector Role of Joint Sector E- ECONOMIC FACTOR Inflation Employment Disposable income Business cycles Energy availability and cost Government outlook towards Bank Financing Interest Rates Exchange Rate Mechanism Incentives for Exports Restrictions for Imports Inflation Labour Policies Level of Government Spending Avenues for Capital Creation Size of the Capital Market Role of the Regulator Type of the Instruments Nature of the Investors Business Cycles Monsoon Energy Availability Cost of Energy S- SOCIO CULTURAL FACTOR Demographics Distribution of income Social mobility Lifestyle changes Consumerism Levels of education Demographics Distribution of Income Division of population Male / Female Age Group of the Population Disposable Family Income Disposable Income in the hands of the different Age Groups Education Level of the Age Groups Life Style Changes Consumerism Attitude to living Different Age Groups In tune with available disposable income Thrust on taking care of present needs by spending than saving for the future. Joint living and nuclear families Availability of various media tools Reach of the media to the population T- TECHNOLOGICAL FACTOR New discoveries and innovations Speed of technology transfer Rates of obsolescence Internet Advantage of Technology In terms of Economies of Scale E- ENVIRONMENTAL Environmental factors include the weather and climate change. Changes in temperature can impact on many industries including farming, tourism and insurance. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider. The growing desire to protect the environment is having an impact on many industries such as the travel and transportation industries (for example, more taxes being placed on air travel and the success of hybrid cars) and the general move towards more environmentally friendly products and processes is affecting demand patterns and creating business opportunities L- LEGAL Discrimination law Consumer law Antitrust law Employment law Health and safety law CONCLUSION The auto ancillary industry is in the growth phase. As, the auto sector grows, the auto ancillary sector also grows. The industry is graduating towards the world-class technology by implementing TQM, TPM and Six-Sigma. India is becoming the global manufacturing hub for the small cars. European companies are expressing interest in India for sourcing their needs. Many other companies are looking to consolidate their global operations; India is now a supplier of high value and critical automobile components to global auto makers such as General Motors, Toyota, Ford and Volkswagen. India is expected to soon become a destination for sourcing the auto components. The Automotive Mission Plan 2016, states to increase the turnover to $145 billion and increase the export revenue to $35 million by 2016 and also to provide employment to 25 million people. With investments around US$ 15 billion slated for the sector over the next few years, the prospects for Indias auto market are bright. The results for the month of November and December2009 of the auto sector and the improved sentiments have already resulted in the BSE Auto Index outperforming the Sensex over the last one year. Therefore, the auto component industry is expected to grow in the near future. SUBMITTED BY: PANKAJ KUMAR YADAV

Unacceptable Female Roles in Shakespeares Macbeth :: GCSE English Literature Coursework

Macbeth's Unacceptable Female Roles      Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   William Shakespeare's tragic play Macbeth scarcely deals women a fair hand; the drama contains only misfit women in the major roles. In fact, the witches are not fully women, with their beards and supernatural aspect. In this essay we will treat on Lady Macbeth, the greatest misfit of them all, in detail, and on other women only incidentally.    A.C. Bradley in Shakespearean Tragedy demonstrates Lady Macbeth's inflexibility of will which enables her to dominate her husband:    Sharing, as we have seen, certain traits with her husband, she is at once clearly distinguished from him by an inflexibility of will, which appears to hold imagination, feeling, and conscience completely in check. [. . .] On the moment of Macbeth's rejoining her, after braving infinite dangers and winning infinite praise, without a syllable on these subjects or a word of affection, she goes straight to her purpose and permits him to speak of nothing else. She takes the superior position and assumes the direction of affairs - appears to assume it even more than she really can, that she may spur him on. (336-37)    Lily B. Campbell in her volume of criticism, Shakespeare's Tragic Heroes: Slaves of Passion, discusses how strong-willed is Lady Macduff:    Lady Macduff is distinctly of the opinion that her husband fled the land from fear, even without having done anything which should make him fear retribution. To Ross she says:    His flight was madness. When our actions do not, Our fears do make us traitors.    As Ross argues that she cannot know whether it "was his wisdom or his fear", she very pertinently argues against the wisdom that will make a man fly from the place in which he leaves his wife and children, and she instances the courage of the wren that will make it fight the owl to protect its young ones in proof that Macduff's fear has made him unnatural in his actions.(230)    In Fools of Time: Studies in Shakespearean Tragedy, Northrop Frye shows that a lady is the actual driving force in the play:    That Macbeth is being hurried into a premature act by his wife is a point unlikely to escape the most listless member of the audience, but Macbeth comes to regret the instant of fatal delay in murdering Macduff, and draws the moral that

Scholarly vs Popular Writing

Scholarly versus popular writing among accounting articles through various different resources. Researching the popular Wikipedia. com, an internet website and the Walden library to do a comparison of articles for credibility. Wikipedia. com is not a scholarly resource, on the basis that â€Å"Scholarly writing is usually confined to journals or textbooks, which are more difficult to find in the market place and are usually read by academics. † In an article by ProQuest (2001): â€Å"a publication is considered scholarly if it is authored by academics for a target audience that is mainly academic†, which would then seem to exclude Wikipedia.com from being a scholarly resource. In conclusion, I think it is safe to conclude that with the above mentioned points Wikipedia. com is not a scholarly resource. Wikipedis. com is also not a credible resource for the following reasons. One being that the site can be changed by anyone and that persons credentials can be unknown, irr elevant or nonexistent. The sources or references listed for which the information is based on can be invalid, lack relevance or reliability. A second reason would be what was written may not necessarily had been for academic or professional audiences.Because it is unclear how many other theories were exhausted from consideration, and ideas expressed could be based entirely on biased or opinion. Lastly I would say uncertainty of the accuracy of information provided. In example, dates can be out dated, erroneous, or not based on the facts. All the before mentioned are contributing factors to why I believe Wikipedia. com is not a credible resource. It is permissible to use a non-scholarly resources depending on the quality of the resource used and topic you’re researching.Should I ever be presented with the inability to find a peer reviewed article, I would retreat to the next best thing a highly respected trade publication. Like if I was writing about insurance I would use and accepted trade publication in the insurance industry. Although it might not be scholarly, or as quality as a scholarly article may be, they can sometimes be credible. A credible resource through the internet for the use in the field of management: http://mdpi. com/journal/jrfm. On this site you will find this journal on risk and financial management, which are both under the general umbrella of management.The site not only includes varying topics in management with peer reviewed articles based on in depth research but it also is based on theoretical concepts for academics with practical applications in mind. When determining if the resource I am using biased in its information or viewpoints I would have to ask the following questions. Can the writer benefit from expressing a particular viewpoint? Can the writer benefit by suppressing specific information? Is the information supported by other credible resources? Does the resource support a prejudice or a particular stereo type? Any of these could suggest a resource is biased.

Stereotyping A Phenomenon That Is Instigated Or...

Imagine an AP Mathematics class going on in which all the students are sitting in pairs. In the front middle row, a girl and a boy are sitting together. The boy is wearing a huge pair of black study glasses, an un-ironed dress shirt with khakis and has frizzy hair quite obviously because he has not brushed it. On the other hand, the girl is gorgeous looking with curly strawberry blonde hair, big blue eyes and clearly into fashion which is portrayed by her sensational dressing sense. Now what is the first thing that comes to one’s mind regarding this scenario? One would automatically think that the boy is presumably smart but the girl probably belongs on the front cover of the VOGUE magazine and not in an AP Math class almost as if it were†¦show more content†¦Therein, this shows that this stereotype is merely a misleading notion and to a great degree an illegitimate claim. However, the fact that it continues to exist is because it has been exploited tremendously by the media by its constant re-occurrence in the entertainment industry in the form of films, videos, series, magazines etc. People consider stereotypes as being time saving devices that allow the human race to classify and generalize people and things into categories in order to make it easier for them to understand. Otherwise, the alternative would be to actually get to know each and every individual which is not only time consuming rather impractical. Just because people make sweeping generalizations about specific groups in which most of the members seem to share common traits or characteristics does not mean that they have any truth to them. Likewise, it is essential to remember the fact that the influential media consisting of mediums such as the entertainment industry, the news industry etc has also played a vital role in indoctrinating the minds of people with views that are considered to be socially acceptable. It is these ideas that form the basis of all stereotypes. Stereotypes do not define a group of people rather it is propaganda and eventually, the human race that are somewhat responsible for causing that certain group of people to define the stereotype