The Business Environment - Free Essay Example

Sample details Pages: 10 Words: 2921 Downloads: 4 Date added: 2017/06/26 Category Business Essay Type Analytical essay Did you like this example? Executive Summary The main purpose of this study is to know the business environment and which factors are affect and how to affect the company or business organization and its important for management student for future business perspective. To satisfy the study ,to take the business organization TATA Motors and how to affect various PESTEL factors and what challenges and change to made to achieve the dream project of NANO car the world cheapest car by the TATA Motors. Introduction Business environment refers to a set of political, economic, social, technological, environmental and legal (PESTEL) forces that are largely outside the control and influence of a business and that can potentially have both a positive and negative impact on the business (Varian,2003,p 4). Todays world is a rapidly changing place. Developments across a series of factors will have an impact on a business or industry. The standard PEST structure (political, economic, social, and technological) identifies four key categories of external factors that involve the capability of an organization to stay alive and show a profit. The reason for this framework is that business does not function in a vacuum. It has to act and react to what happens outside the factory and office walls. These factors that happen outside the business are known as external factors or influences and also known as the Macroenvironment. These will affect the main internal factors like Customers, Competitors, Suppli ers and Share holders identified as a Microenvironment of the business and possibly the objectives of the business and its strategies. These will leads to a SWOT analysis and it is a strategic planning method used to evaluate the Strengths and Weaknesses internally to the organization and the Opportunities and Threats presented by the external environment to the organization. It involves specifying the objective the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. To study the Business Environment and its all factor is satisfied by the example of the multinational company TATA Motors. The main purpose of select this company is to understand all significant factor like political, economic, social, technological, environmental and legal of the business environment and facing a lots of challenges in the last 5 years to develop a TATA NANO the world cheapest car by the TATA Motors Indias larg est automobile company. Don’t waste time! Our writers will create an original "The Business Environment" essay for you Create order Organization Description and Background Tata Motors Limited is Indias largest automobile company, with consolidated revenues of Rs. 92,519 crores (USD 20 billion) in 2009-10. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the worlds fourth largest truck manufacturer, and the worlds second largest bus manufacturer. The companys 24000 employees are guided by the vision be Best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics. Established in 1945 by J.R.D.TATA the chairman of the TATA Groups. Tata Motors presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954.Tata Motors, the first company from Indias engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international autom obile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, Spain, Brazil, Kenya, South Africa . Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. In January 2008, Tata Motors unveiled its Peoples Car, the Tata Nano, which India and the world have been looking forward to. The Tata Nano has been subsequently launched, as planned, in India in March 2009. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families. The standard version has been priced at Rs.100,000 ($2,500) (excluding VAT and transportation cost). TATA Motors Business Environment TATA Motors has been faced a many challenges to developed a world cheapest car NANO from established a manufacturing plant to launch a car in market. Also it has been uncovered to PESTEL forces that are most important on the companys performance, strategies, decision and achievement of the goal to develop a world cheapest car NANO. So, the main and significant factors described below. 1 . Political Factor Political factors are how and to what degree a government intervenes in the business. Specifically, political factors include areas such as tax policy, political stability, legal framework for contract enforcement, trade regulation and tariffs, industrial safety regulation etc. Its also included goods and services which the government wants to provide or be provided and those that the government does not ant to be provided. TATA Motors faced a political issued between local state government and local farmers. The main scenario was the West Bangal state government (India) had allocated to 997 acres of fertile land to TATA Motors for establishing a manufacturing pant of TATA NANO car. But the main problem was faced after the starting of the construction of the manufacturing plant of NANO car and that time the local farmers and the local political leaders were demanded to return their land. Also the local public were tried to stop to construction of manufacturing pant of NANO car f or the direction of the local political leaders. Finally, September 2, 2008 -Mr. Ratan Tata the chairman of the TATA Motors was take a decision to stopped the construction of manufacturing plant of NANO car at Singur, West Bangal (India) and announced that to shifted a new placed . At that time the state governmement of Gujarat (India) to spread a carpet for established a manufacturing plant for manufactured NANO Car. Also provides a cheap land, all fundamental facility and safety for establishment of plant. Finally, October 7,2008 TATA Motors starts a construction of manufacturing plant for the world cheapest car TATA NANO at Singur, Gujarat (India). 2. Economic Factor Economic factors refer to the character and direction of the economic system within which the firm operates. Economic factors depend on an economic growth, interest and exchange rate, inflation rate, the state of the business cycle, the distribution of income within the population, and governmental monetary and fiscal policies. The impact of economic factors may also differ between industries. For example, Purchases of many durable goods (appliances, furniture, and automobiles) can be postponed during periods of recession and depression, as can purchases of new equipment and plant expansions. TATA Motors has been seen a two main factors to impacted companys economical environment. The first challenge was continuously fall down the stock prise during the political issue of established a NANO manufacturing plant as mentioned above in political factor. During this period, the issue between the company and government has been affected directly on companys stock prise and it was drop ped by more than 50 percentages as shown in graph. Source: https://www.tatamotors.com/investor Global recession has shocked the global auto industry with pinching effects on the Indian auto industry. India is a strong and growing economy but the hit of recession has put red marks on the entire balance sheet of the Indian economy. So, the second challenge was the world has been facing a recession that started in 2008-09 when the TATA Motors has been started to develop a TATA NANO the dream project of the RatanTata to make a world cheapest car. The effect of the recession was directly affected the future of the project and how to deal the cost of nano to decreased at Rs.100,000 ($25000). Tata Motors functions with a global economic perspective while focusing on each individual market. Because Tata is in a rapid growth period, expanding or forming a joint venture in over five continents world-wide since 19994, a global approach enables Tata Motors to adapt and learn from the m any different regions within the whole automotive industry. For example, if the price of aluminum required to make an engine blocks goes up in Kenya, Tata has the option to get the aluminum from other suppliers in Europe or Asia who they would normally get from for production in Ukraine or Russia. 3. Social Factor The social dimensions of the environment consist of customs, lifestyles, and values that characterize the society in which the firm operates and its influences the buying behavior of consumers are inclusive of culture, social class, reference group, family, education, demographics and geography. Social factors include anything within the context of society that has the potential to affect an organization. Population demographics, rising educational levels, norms and values, and attitudes toward social responsibility are examples of social variables. Undoubtedly, the beliefs, opinions, and general attitude of all the stakeholders in a company will affect how well a company performs. This includes every stakeholder from the CEO and President, down to the line workers who screw the door panel into place, from the investor to the customer, the culture and attitude of all these people will ultimately determine the future of a company and whether they will be profitable or not. For th is reason, Tata Motors tends to use an integration and rarely separation technique with foreign companies they acquire. On the other hand, some social issues that Tata Motors faced must also be looked at from a more localized perspective. For instance, the market in India for cars is much different than the market for cars in Italy. For one, India has over one billion more people than Italy does,thus the market is much larger or not as limited. Second, you must also take into affect the demographics and the average income of each market. Italians have a higher average income per capita than Indians and Italian citizens tend to drive larger and fancier cars. For this reason, the Tata Nano might not do so well in the Italian market. According to the founder of the TATA Motors J.R.D TATA says In a free enterprise the community or society is not just another stakeholders in business but the purpose of its very existence. Therefore, TATA Groups established a TATA charity trust i n 1972 for fulfilled Corporate Social responsibility that works in health, education, employment, rural development and many social and community activity. In November-2008 itself, simultaneously with the construction of the NANO car plant, TATA Motors also began its community development activities in this area. These initiatives, encompassing 20 villages in a 20-mile radius, are on health, education, employability and environment enhancement for its social responsibility. 3. Technological Factor Technology factors are the scientific advances, which influence the competitive position of the enterprise. Maintaining awareness of new technologies decreases the probability of becoming obsolete and promotes innovation. Advancements in technology can impact the transformation plan in many ways. New technology as cited in Develop Vision and Strategy can change the demand for a product, render current manufacturing processes obsolete, reduce costs to undercut competitors, produce new products and a host of other possibilities (Worthington, 2001,p 437). According to the Pune (India) based R D team of NANO says Drawing entirely upon indigenous talent and skills, the Nano was no small challenge to conceive, design and build, its the journey of turning the Rs 100,000 ($2500) dream car into a reality without compromising on aesthetics, value to the customer, or safty and environments laws. The target price itself became the source of innovation in technology because at that time NANO has been talk of the town around the globe and also the big names in the automobile industry commented that it was a just rubbished and fake claims and it was impossible to make a car at that price. However, this was made possible through series of innovative ideas and developed technologies which led to achievement of 37 patents by Tata Motors. In terms of NANO is define that NANO small size NANO small price NANO small income The Key features to developed the series of innovation in technologies to developed a world cheapest car are Engine was packaged on the rear side. 2 cylinder engine (conventionally there are 3-4 cylinder engines). Identical handles and mechanisms for left and right side doors. Instruments cluster in the middle of the dashboard. Interior space was maximized by pushing wheels to the corners and power train below the rear seat. High fuel efficient. Exceeds the current safety requirements and current emission requiremen ts. To talk about the Research Development, the TATA Motors has a team of1400 Scientist, Design Engineers and Development officers those are a high emphasis on thorough research that provides the much-needed inspiration for the birth of new ideas, which in turn breathes new life into products. Tata Motors has several research and development centers in India. The Research Center at Jamshedpur (India) and the Engineering Research Center in Pune (India) are among the finest in the country . They possess forums to develop and test durability, engine performance, emission, safety, design and style, noise, hydraulics, tracks, and instrumentation. Also the TATA Motors has a R D centre in Spain to satisfied the European car manufacturing, safety and environmental law for international market. Environmental factor Nowadays, Environment is one of the plays an important role in the management strategy, most generally understood to be referring to something outside. But common usage today often interprets the Environment as referring to the planetary ecosystem. On that basis the Environment factors such as global warming, climate change, the state of the ozone layer, deforestation and the means of energy generation. Company or firms need to coexist with their environment, responding to that which they experience from it and being responsible for that which they export into it. This unit will focus upon the interactions between the commercial environment and the green environment. The Issue of 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 c reating business opportunities. As a result, TATA Motors declared in its annual reports-2008, the motto of Restoring, Ecological and Balance Environment, its spend a 20% of its profit for RD of the developing a eco-friendly product and Hybrid Car. TATA Motors has set up effluent treatment facilities in its plants, to avoid release of polluted water into the ecosystem. In Pune (India) based plant, the treated water is conserved in lakes attracting various species of birds from around the world thus turning the space into a green belt. Also, TATA Motors has worked on new Hybrid Car called as OneCAT and its made by fiberglass and virtually powered by air and is emission free. This car an run between 200 to 300 Km on one euro of compressed air. According to the chef Technical officer of TATA Motors says The engine is efficient, cost-effective, scalable, and capable of satisfying to the concept of Hybrid car. This car is truly a representation of the next step in green automobiles. (Aotopartswwwarehouse.blog.com) Conclusion After the demonstration of the case study of TATA Motors through the using of the various Business Environment factors, The TATA Motors has faced a many challenges to developed the TATA NANO the world cheapest car and the challenges are: Firstly, The challenged was during the establishment of manufacturing plant of NANO to generated a political situation regards to the local farmers agriculture land was allocated by government to TATA Motors. In that issue to stop the construction of plant and in that critical condition, TATA Motors to take the decision to pulled out or shifted the plant on another place and reestablished the plant of NANO. Secondly, The TATA Motors was started to worked on its dream project and that time the economic crises or recession was came and that situation companys stock prices was fall down more than 50 %.But the companies strong fundamental power and experience to deal the various economic problem, TATA Motors was passed to the recession. Also, Its m ade a new marketing strategy to take the advantage of the NANO of the of the prices of Rs. 100,000 ($2500) and to provide a world cheapest car to customer in recession period. Thirdly, How to reduce the cost of NANO at $2500? This was the big challenged for company to make the world cheapest car. And the TATA Motors has developed or changed through the series of innovation in Technology and to reduce the cost in all area without the compromised to the customer satisfaction, safety, and environment law. Recommendation Nowadays, In Globalization Business Environment, any business or organization has become a fundamental strong in its managements and its planning, strategies, scope and objectives and also the awareness of the future challenges and how to faced them to achieving a goals of the organization. Also, To change or innovate in companies policies in terms of the customer, product, competitor, stake holders regards to the surrounding business environment . The organization has to reach its goals and to establishing a brand name or expand a business, It must to innovate a technologies, to identify customer needs, to develop a standard product and quality life and knowledge of the business environments s to take a advantages of a future opportunities. For the manager role is to identify the various business environmental factors are affecting the organization and how to deal them for success or achieve the goal of business.

Corporations and their Environmental Impact Essay

Corporations and their Environmental Impact About fifteen thousand airplanes service almost ten thousand airports and function over routes more or less fifteen million kilometer in the entire length. Greater than two billion travelers flew on the worlds aircrafts for business travel and vacation, and well in surplus of a second of the value of the earth man-made exports were conveyed by air. Additional, aircraft companies generate thirty two million jobs all over the world and contribute almost eight percent to global gross domestic manufactured goods. It goes exclusive of adage that air carrying has a huge economic or financial footprint. 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Can Dickens be Considered a Marxist Writer Free Essays

Abstract: This paper considers Dicken’s as a Marxist writer by examining his interest in the stories that lie behind mass-produced objects; in particular it closely considers Dicken’s article entitled ‘Early Workers at Sorting’. Paper: On July 14th, 1877, Dickens published in All the Year Round an article entitled â€Å"Early Workers: At Sorting†. Under this somewhat uninspiring title, Dickens proceeds to describe what can only be identified as a nineteenth-century paper recycling plant, where: ‘(crumpled up, and otherwise deteriorated from prime value) bits of white paper, brown paper, blue paper, other coloured paper; bits of all these papers with the further subdivision of being soft, hard, ruled, written on; bits of that fine foreign â€Å"tissue,† that is mere phantom, yet tough enough, seemingly, to be bishop’s lawn etherealised†¦ bits of cardboard, straw-board, grayish pulpy oatmeal-like board, and the thin woodboard that, when whole, is curved round into band boxes†¦ tufts of wadding; clips of straw-plait; ends of window-rubbers; emptied cotton reels; lengths of tape, binding, gimp, ribbon’[1] and so forth are ‘gathered and re-gathered†¦ used and reuse d’[2] by a collection of ragged but cheerful sorters. We will write a custom essay sample on Can Dickens be Considered a Marxist Writer? or any similar topic only for you Order Now It is not often that we associate the idea of ecological sustainability with the Victorian period – and with good reason, as this era is more frequently remembered for the massive increases in consumption, carbon emissions, and urban development which marked the heyday of the industrial revolution; for its factories, railways, mines, and quaint Dickensian shops stuffed with the excesses of a global imperial economy. A. G. Hill condemns Dickens as the downfall of the novel from social responsibility to sensationalist entertainment (Hill, 1963 : 155); nevertheless, as this little article by Dickens demonstrates, both recycling, and the accompanying awareness of ecological loss, were recognised in the Victorian era and had a part to play in the literary works produced therein. What is perhaps the most important aspect of â€Å"Early Workers at Sorting† is that, as well as being concerned with the re-use and appropriation of waste materials, it is also concerned with the recycling of human experience that accompanies these materials; a process which ensures that: ‘†¦the word â€Å"rubbish† does not exist, since every item under hand is absolutely wanted, and since there are merchants waiting to buy up all, and to pay for all, at proper market price.’[3] It is in this sense that Dickens can be described as a Marxist writer, in the sense suggested by Terry Eagleton in Marxism and Literature (Eagleton, 2006); concerned as he was with the human experience of production, he criticises waste of both material and human resources: It is the science of adjustment, grown to a good height; rising far superior to that lavish waste that fancies itself so wealthy and so generous, and that is always so full of scorn for what it delights to call the meanness of taking care†¦ this – being impossible without combination, without cheap transit and exact knowledge – is one of the results rendered possible by civilisation, is one of the results that renders rich reward to civilisation in return, since, by means of it, material is gathered and re-gathered, is used and re-used, requiring therefore much less real replenishment, and leaving no chance either for that prohibiting price that would follow upon scarcity, or for that famine otherwise inevitable.[4] In addition to demonstrating a clear awareness of the potential for non-sustainability in the (then) newly burgeoning consumerist culture which has become such a cliche of the Victorian era, this passage raises a number of interesting points. In the first place, the reuse of cast-off materials has a clear moral purpose here, which is at odds with consumerist ideals of consumption; Dickens is echoing the fundamentally Marxist view that that the ‘wealthy and generous’ are in fact guilty of ‘lavish waste’, of which the inevitable result will be scarcity and famine, and the alienation of skilled workers. The focus of the article on the ‘little girl[s] of twelve or thirteen years of age’, ‘stained and ragged and utterly unpolished and raw’[5] who are the ‘Early Workers’ of the title, links this piece to the numerous other writings, such as those found in Sketches by Boz, which question the exploitation and miserable living conditions of the poor who occupy the lowest tiers of the consumerist society. Recycling, then, offers support and sustenance to the poor, as well as a chance to sample the pickings of what they could otherwise never afford; materials filter down through the social system and have their particular value for all ranks of society. However, this chance to recycle is also a result of, as well as a benefit to, human civilisation, and one which ‘renders rich reward’ to those who practice it. As the rest of the article makes clear, this reward is bound up with memory, and with the train of associations which each object carries with it, building up a repository of experiences with each new appropriation which binds the object firmly into human tradition. It is this human connection to the processes of production that was so highly valued by Marx, and which both he and Dickens championed in their separate ways. Scraps of wood, for example, are not just scraps of wood, but rather: ‘smashed wooden boxes that have contained toys, scent, chignons, Paris bonnets, and the like; cotton-reels; useless part of broken wooden toys’, all of which bring echoes with them of their previous human owners. Whether in his novels, such as The Old Curiosity Shop, in his journalistic Sketches by Boz, or in h is ghost stories (such as The Queer Chair), Dickens combines an overarching interest in consumerist objects with a fascination for the humans whose stories are concentrated in and told by those objects, be they items of furniture, books, clothes, or buildings. By cataloguing and bringing to life the human histories of mass-produced objects, Dickens seeks – like all good Marxist writers – to fight against the anonymity and disempowerment that consumerism imposes upon workers, returning to them a sense of identity and connection, and illustrating their irreplaceability in society. Word Count: 1,002 Bibliography: Dickens, C. (1877), â€Å"Early Workers: At Sorting†, All the Year Round, July 14th. Eagleton, T. (2006), Marxism and Literaure, London: Taylor and Francis. Hill, A. G. (1963), â€Å"Marxist Aesthetics†, Critical Survey, Vol. 1, No. 3 (AUTUMN), pp. 153-157. [1] Dickens, Charles. â€Å"Early Workers: At Sorting†. All the Year Round, July 14th, 1877. pp. 463-64. [2] Ibid. p. 464. [3] Ibid. p. 464. [4] Ibid. p. 464. [5] Ibid. p. 462. How to cite Can Dickens be Considered a Marxist Writer?, Essay examples