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P E S T L E

PRESENTED BY:NIKITA BHATKAR

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Presentation Agenda

• Introduction• PEST analysis• PESTLE analysis• Aim of analysis• Bajaj Auto ltd-PESTEL Analysis• Conclusion

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Introduction- Bajaj Auto Ltd(BAL)

Bajaj is India’s second largest motorcycle maker, smaller than Honda Motorcycle Scooter India, but larger than TVS Motor Co. Ltd.

Bajaj Auto, is ranked as the world’s fourth largest two-wheeler and three-wheeler manufacturer.

The company is well known for their R&D, product development, process engineering and low-cost manufacturing skills.

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PEST AnalysisIt is a simple and effective tool used in situation analysis to identify the key external (macro environment level) forces that might affect an organization.

.• Economic• Ethical.

• Socio- Cultural

.• Environmental

.• Technological

.• Demographic• Legal

.• Political

MACRO ENVIRONMENT

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PESTLE AnalysisIncorporating the legal and Environmental dimensions in the model makes it more comprehensive and gives better results.

PEST

LE

PESTLE+

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Aim of the analysis

• Find out the current external factors affecting an organization..

• Identify the external factors that may change in the future..

• Exploit the changes(opportunities) or defend against them(threads) better than competitors would do..

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Bajaj Auto Ltd- PESTLE Analysis

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POLITICAL FACTORS

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• It is reported that its total sales of the products distributes equally well within the country and outside the country.

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• Has received assistance for development of vehicles propelled by alternate energy sources from Indian Government.

.• It aimed at gaining integrated, phased and self-sustained

growth of the company to flourish outside India.

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ECONOMIC FACTORS

.• Inflation, recession and currency are three important

economic factors that Bajaj Auto Ltd noticed.

.• The economy of the company fell down tremendously

around 2000 due to ignorance towards customers.

.

• It laid easy installment rules with less interest rate thus makes more segment people to go for its product products.

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SOCIAL FACTORS

.

• As the purchasing power of the common has risen in various markets across the world the purchasing of these transport necessities have gone up.

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• Purchasing these products prove to be beneficial for the common man as their price levels are comparably suitable for the common mans pockets.

.• Possessing these products(two wheelers) are considered

as status symbols in many societies.

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TECHNOLOGICAL FACTORS

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• Bajaj Auto Ltd has invested largely in its product research and development field and thus its products are more consumer friendly.

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• One of the most innovative and technologically advancements could be seen in its two-wheeler section that gives a great experience to the bikers.

.• Aiming at best fuel economy of transport.

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LEGAL FACTORS

.• Bajaj has been in a number of patent cases with players like

Honda, Hero and Yamaha.

.• The regulations in the country like India are governed by the

Ministry of Shipping, Road Transport and Highways.

.

• The Principal instrument governing the automotive sector in India is the MOTOR VEHICLES ACT,1998(MVA) along with the CENTRAL MOTOR VEHICLES RULES 1989 in India. (CMVR). These acts governs the emission norms and safety norms.

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ENVIRONMENTAL FACTORS

.• Physical conditions like environmental situation affect

the use of automobile in an economy.

.• Physical infrastructure such as roads and bridges affect

the use of vehicles.

.• Increasing number of vehicles on the road also

increases the pollution.

.• Best option could be the use of bio-fuel or electric

vehicles.

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CONCLUSION

• PESTLE Analysis is one of the most comprehensive models to study the effect of various forces present in the environment and subsequently prepare oneself to exploit the opportunities and defend against the threats.

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T H A N K

Y O U