The German manufacturer of luxury automobiles, coaches, trucks and buses, Mercedes-Benz is a multinational corporation with several locations worldwide. The Corporation has spread across different nations worldwide, and this paper gives an insight of the Pestle analysis of the corporation in the UK. Mercedes-Benz is a global corporation with a strategic geocentric orientation and perceives the potential market across the globe while striving to formulate a system of integrated global strategies.
Political
The United Kingdom enjoys stable political environment thereby offering a conducive setting for undertaking business development. The country paper on House of Commons (2010, p.26) states that UK government give lots of recognition to the significance of automotive industry, and as long as they support competition and a free market, they still emphasize on the areas in which there should be government intervention. The government presently advocates for the greenest country ever and thus enactment of increased levies on carbon emission.
Economic
The financial crisis across the globe has inflicted all the industry sectors which include the automotive sector in the UK. This resulted in closure of a number of high-profile industries in 2009 and thus hampered the sales of car volume. The UK initiated measures to intervene over the re-building of the economy after the crisis. The UK governments became to realize that some of the problems of the automotive sector were due to not being a member of Euro currency. The cars became more expensive due the country’s exchange rates. Increased fees for carbon emission resulted in an increase in costs of production in the automobiles industry (Dess, Lumpkin, & Taylor, 2012).
Social
Approximately more than 50% of the UK population is urban dwellers, and this proportion is in a high rise. Moreover, digital technologies have changed the working and corporate life. The British customers have proved to be increasingly demanding people who need orientation and convenient mobility solutions which are easy to access and use online every time (Rushton, Oxley & Croucher, 2013). The mobility concepts are aspects that Mercedes Benz Corporation offers in commercial, public and private sectors. For example, the invention of its car sharing initiative Bus Rapid Transit, car2go, and mobility platform “moovel.” Additionally, the British society is highly conscious of becoming environmentally friendly, and the company strives to upkeep the standards of sustainability and responsibility.
Technological
The Corporation has introduced a number of technical inventions in the past, and the constant developments in technology have imposed high pressure on car manufacturers. Moreover, the concept of “Green Technology” is the demand that has dominated the car manufacturing industry. Mercedes-Benz is faced with the demand by Blue Efficiency Technology which aims at the lower emission of combustion gases and a decreased use of petrol. The progress in technology has been rapid, and Mercedes-Benz had to keep pace with the ongoing advancements to heighten its competitive edge in the industry within the UK markets.
References
Dess, G.D., Lumpkin, G.T. & Taylor, M.L. (2012). Strategic Management: Creating Competitive Advantages. McGraw Hill Professional, p. 75.
House of Commons (2010). Trade and Industry Committee. UK Automotive Industry in 2010 Eighth Report of Session 2009-10. 9 September 2010.
Rushton, A., Oxley, J., & Croucher, P. (2013). The handbook of logistics and distribution management. London, K. Page.
