Professional Documents
Culture Documents
3) Social Environmental Factors: Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. For example, an ageing population may imply a smaller and less-willing workforce (thus increasing the cost of labor). Furthermore, companies may change various management strategies to adapt to these social trends (such as recruiting older workers). The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors include: 1. What is the dominant religion? 2. What are attitudes to foreign products and services? 3. Does language impact upon the diffusion of products onto markets? 4. How much time do consumers have for leisure? 5. What are the roles of men and women within society? 6. How long are the population living? Are the older generations wealthy? 7. Does the population have a strong/weak opinion on green issues? 4) Technological Environment Factors: Technological factors include ecological and environmental aspects, such as R&D activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation. Technology is vital for competitive advantage, and is a major driver of globalization. Consider the following points: 1. Does technology allow for products and services to be made more cheaply and to a better standard of quality? 2. Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc? 3. How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions, etc? 4. Does technology offer companies a new way to communicate with consumers e.g. banners, Customer Relationship Management (CRM), etc?
The model's factors will vary in importance to a given company based on its industry and the goods it produces. For example, consumer and service companies tend to be more affected by the social factors, while a global defense contractor would tend to be more affected by political factors. Additionally, factors that are more likely to change in the future or more relevant to a given company will carry greater importance. For example, a company who has borrowed heavily will need to focus more on the economic factors (especially interest rates). Furthermore, conglomerate companies who produce a wide range of products (such as Sony, Disney, or BP) may find it more useful to analyze one department of its company at a time with the PESTEL model, thus focusing on the specific factors relevant to that one department. A company may also wish to divide factors into geographical relevance, such as local, national, and global (also known as LoNGPESTEL).
TATA Group
The TATA group has always merged commercial orientation with corporate sustainability initiatives, aiming to see that its innovations are applied for the good of the largest number of people. TATA Group is a multi venture multinational company under the chairmanship of Ratan Naval Tata. Its extents can be listed as follows: Companies bearing the TATA label: Tata Group, India's largest business group and multinational company. Tata Capital, a wholly-owned subsidiary of Tata Sons Limited, the apex holding company of the Tata Group. Tata Communications, also known as Tata VSNL, a communication company acquired in 2002.
Tata Elxsi, another Tata IT company. Tata Interactive Systems (TIS) is a provider of performance support systems and e-learning platforms. Tata Motors, world's eighteenth largest automobile company. Tata Power, Indias largest private sector electricity generating company. Tata Steel, World's 5th largest steel company. Tata Tea Limited, World's second largest tea business, owner of Tetley.
Tata DoCoMo, a GSM based mobile company with alliance with NTT DoCoMo Titan Industries, World's sixth largest watch manufacturer. Tata Chemicals
Tata Sky, a Direct to Home service company in alliance with British Sky Broadcasting.
Subsidiaries without the TATA Label: Corus Group, UK steel company. Tetley, UK based International Tea Brand.
Taj Hotels Resorts and Palaces, Owner of 'Taj' hotels Computational Research Laboratories, Tata initiative in high performance computing. VSNL International Canada VSNL in Canada. The Indian Hotels Company, Chain of Hotels. Titan Industries, Clock and watch maker in India. Tanishq, India Jewellery Brand. Infiniti Retail Limited, a 100% subsidiary of Tata Sons[1] Croma, a consumer electronics retail chain.[1] Trent (Westside), Shopping Mall. Brunner Mond, Subsidiary of Tata Chemicals. Educational and Research Institutes: Tata Institute of Fundamental Research Tata Institute of Social Sciences Indian Institute of Science Nettur Technical Training Foundation R D Tata Technical Education Centre Jamshedpur National Centre for Performing Arts Tata Management Training Centre Tata Memorial Hospital
POLITICAL ENVIRONMENT
ECONOMICAL ENVIRONMENT
Current Government Government Policies Current Government Regulations Rules and regulations of other governing Bodies (ILO, WTO, UN, etc.) Internal or International Wars or conflicts if any. Interruption from terrorist organisations or anti-social elements, and Government actions against them. Government bias towards competitors company or political corruption leading to frustrating disturbances.
Current economical status or condition. Current Economic Trends. Current Interest/Exchange Rates General and Specific Taxation Policies (Towards certain products) Overseas change or fluctuation of economies. Any Inflation or Depression or Recession if prevalent in the economy. International trade or monetary issues. Sudden rise or fall in volumes or rates of Export and Import Products.
SOCIAL ENVIRONMENT Lifestyle Trends Demographic consumer attitudes and opinions. Media Trends Change in laws or policies affecting social factors. Certain product or service being collectively acclaimed or frowned upon by the society. Consumer Buying patterns and behaviors. Ethnic/religious sensitivity of the society. Quality and attitudes of working class of the society. People Buying capacity (PPP), Standard of living of the people and willingness to change or switch products or services. Distinct or Change in Fashions, Styles and Trends.
TECHNOLOGICAL ENVIRONMENT Competing Technology development. Research funding. Associated or Dependent technology. Consumer buying mechanisms or technology. Use or adoption of Automation or Robotics for production and functioning processes. Achieving certain Standardizations or Grades on account of Adopting technological developments. General use of technology and development for increase in profitability and competitive edge.
Report by: Vineet. M. Ganvi (JKITM) For: Principles of management PEST Analysis for TATA Dr. Kavita KM