Question

In 5-7 paragraph please do a PEST analysis on Honda Motor Company has within their company?

Answer 1

Political factors: In UK honda moters ,the sale is reduced due to the divergence in regulatory standards as the new tariff is added which amounted to 1500ponds while importing the car and 300 ponds for their components which apparently quite expensive for the dealers and customers .

The custom union of UK are making delay which amounted the huge cost to the Manufacturing Industries.

It also found that the cost of converting an EU car to follow US standards is a cost in increasing the 26% tariff .

The New immigration policy of EU nationals also makes the company to hired 40% of EU staff which already very high in the Company and increasing company'scost.

Economic factors:

Due to the Unstable currency Exchange rate between the japan and UK, which evventually affect the price and selling of the car , asthe high income group consumer would prefered such cars but low income would not. There is a great economy issues in both countries. Considering such issues , Honda introduced new Eco Friendly and Economical petrol consuming cars , in low price but company has to bear hugh cost for it.

Social Issues: there are certain factors which make the company more competitive and meet the needs of the customers and Market demands .

• Uk Technology is cost effective: as it is known the The car products are less expensive in UK than in any other company so normally consumers want to purchase from the market of such Economy.
• Language Barriers: as English is known to everyone, so japan based honda promote its car in English language .
• Cultural differences: As its perception is created that one is belong to a country will purchase the product or Car of that country only. in this case honda is able to create the first choise of the customer.
• Economical: AsHonda understand the need and Market Segment of the many Countries so it launch from high price car to economical and Eco friendly cars for customers of different income group .

Technological Factors:

Honda is known for safety Measures anf Technology advancement from Many years. it has also intoduced Satellite navigatio system in its new Models.

Honda works hard for the reduction in fuel emission and Enhance Ecofriendly hybrid cars which able to increase their sales with innovative technology advancement.