International business in focus Essay Example | Topics and Well Written Essays - 3000 words

International business in focus - Essay ExampleSection B Identification of the Challenges Pestle summary Pestle Analysis will swear out in understanding the macro environmental issues (Lorat, 2009) Political The road appraise has like a shot been linked to the total amount of emission and MOT (Merchant Over Time) has been increased. The Government has held a meeting with the simple machine sector to decide about the rules and regulations related to this industry. Economic Presently the global recession has resulted in the pecuniary crisis and has decreased the consumer purchasing power all over the world. Due to this crisis, Mercedes and various other car manufacturers atomic number 18 finding it difficult in increasing the revenue and profit of the companies. It has even resulted in the closure of plants by many automobile manufacturers. In this global crisis, the exchange rate between Euro and pound has resulted in utmost price of the cars in United Kingdom. This has decre ased the sales of the attach to even more. Social The social environment can mainly be categorized into the fol pitiableing categories a) Age, b) Gender, c) Income. Mercedes products have been mainly targeted for the middle aged customers. The products ar not popular to that extent among the youngsters because of high price of the cars. The overall high expenditure related to the Mercedes products is the cause behind targeting the middle and high income people. As the products do not offer different range of prices starting line from high price to low price for covering all classes of the society, the products do not target low income consumers. In the present situation of economic recession, this strategy is creating various challenges for the company. Technological Mercedes adds advanced technological enlarge like air bags, shatter proof windscreens, crumple zones, collapsible steering columns etc. Use of these technologies has allowed the company in manufacturing safer cars. The plant efficiency is increasing with time. Various new-fangled production methods have been introduced for improving the efficiency. The expertness of e-commerce and Gizmos has helped in upgrading the technology advancement. Environmental The European Union has planned to bring a new statute law which states that the average carbon dioxide emitted from the European cars must not exceed 130 g/km by the year 2015. This world power be a reason of increasing concern for the company. Legal The company has well-kept good relationship with the government by following the legal framework of the country. The imposition of higher tax might increase the threat of the company. Porters Five Forces The industry analysis of Mercedes Benz will help in understand the competitive intensity in the automobile industry (Porter, 1980 1985 Ahlstorm and Bruton, 2009) 1) Rivalry among the existing firms The aspiration among the companies in the market where Mercedes is operating is intense. The big competitors of Mercedes Benz are BMW, AUDI, JAGUAR, ALFA ROMEO, ASTON MARTIN. Thus all big players provide their trump cracks to the customers to seek their attraction. The increased rivalry has resulted in all these firms producing similar types of products, and expanding their operations into other segments like offering financial services, various alcoholic products etc. Thus the rivalry from the existing firms is very high. 2) Threat of new entrants Presently the threat of new entrants is low in the market segment where Mercedes Benz is performing its business operations. This might be because of the