Pestel Analysis on the Naro Car

Introduction

The economic development has highly promoted the business development, which lead the current business environment become more and more competitive, in order to get survival in such intensive competitive environment, a proper evaluation on the macro-environment become urgent important for modern business. In this essay, it will apply the PESTEL analysis framework, to determine the macro-environment for the development of the Naro Car Company, and give the proper recommendations basing on the determination for their further development.

General information about the Naro Car

The Naro car is a new concept which developed from the year of 2003 with the aim to reduce the space and energy consuming and enhance the speed as well as reduce on the environment impacts. The Naro Car has four wheels and two seaters, with the narrow concept and has earned many considerations on it. The company is still focus on the development of the Naro car and aims to provide the licenses and production opportunities thus to introduce it to the real market (NARO Company, 2010).

PESTEL Analysis on the Naro Car

PESTEL analysis refers to the analysis method which includes the impact of political policies of the government on the economy, short for political factors; economic growth, changes in interest rates, exchanges rates and inflation rate, short for economical factors; trends on culture, population, age distribution and people’s attitudes, short for social factors; technology innovations, new products and process, short for technological factors; changes in weather, climate and pollutions, short for environment factors and various laws that have impacts on the production, purchase, sales, human resource management and other aspects, short for legal factors (Waldersee and Tywoniak, 2007). The PESTEL analysis has been considered as the most proper framework for the determination of macro-environment for modern business and contributes to the strategic management of the organization (Williamson, Cooke and Jenkins, 2004).

1) Political factors

In the political aspects, the most significant factors which impact on the development of the Naro car should be the government policy which encourages the purchase of the low energy and space consume cars with tax reduction and other promotions in the UK and the free trade policy in European Union countries. Which in details, the encouragement on the purchase of low energy and space consume cars ensures the policies protection for the introduction of the Naro car, which offers the Naro car more development opportunities in the market by the people’s consideration on the attractiveness of the Naro car with low tax cost and more promotions (Hine, and Preston, 2003). And the free trade policy in the European Union which enables the Naro car to expand