Question

Thule

What are the biggest drivers of change affecting the industry that it competes in? PESTEL

a. Define the core assets and activities in the industry that create value

b. Tell me if either or both are threatened

c. Tell me the type of change the industry is undergoing

Answer 1

Economic change is the biggest driver affecting the industry which shift the economic structure. Economic change having many reasons like market change, culture change and globalization. That affect the everyday life of human being when market force change. It result to change every thing. Every new innovation change in the economy because it result more productivity at lesser price. Economical change happen due to technology, political and environmental change. Government influence plays a important role to change in economy. When any expansion or nationalization occurs so chances for more advancement which result more facility to people. More infrastructure by government can lead better transportation system which reduce transport cost and faster delivery which impact in economy.

a. Assets are property of business which generate the revenue for the organization. It include the organization machinery equipment, infrastructure etc. These are one time investment by the company which create values throughout the life cycle of product, service or business.

Organization activity which provide great value addition to the organization. Some activities like capture new market which result the growth in share of company. Improve the organization culture and create positive work environment inside premises can lead great value addition. On time product or service delivery can lead for great customer satisfaction and value.

b. Core assets are threaten because some of the assets are life cycle and other for some period of time. So it will be waste or scrap after end of life cycle of product or service While activity never waste.

c. Technological change in organization like highly automation in the plant can lead better productivity and efficiency.

Use of data to collect information so that it will help for decision making and strategy building for the organization.

Relationship building with supplier and customer can lead long term relationship.