The UK Motor Car Market Essay Example | Topics and Well Written Essays - 2250 words

The UK Motor Car Market - Essay Example The UK motor market is controlled by the factors in the macro-environment, which are not in the control of the companies, and also by factors in the microenvironment, which can be usually controlled by the companies. Both these macro and micro factors can be collected and assessed in a detailed manner through certain analytical tools. So, this report will first conduct a STEEPLE analysis of the UK motor car market, evaluating aspects, which are important to car manufacturing organizations. Then the report will focus on the microeconomic environment, discussing UK motor market from the perspective of the product, labor and competition, and finally ending with examples of how HRM is practiced in car manufacturing organizations in line with these macro and micro aspects. When viewed from a socio-cultural perspective, cars and other forms of automobiles in the UK market are maximally seen as status symbols and as products that will boost one's image. Although all cars are for transportation, certain brands will have a high price tag, due to their power, efficiency features, technology and importantly their brand name. However, due to a slowdown in economic growth, many people â€Å"are waking up to the fact that owning† a costly branded car is â€Å"not the status symbol that it was once perceived to be.† (Milmo 2011). So, people are not buying cars particularly high branded cars that frequently, and this socio-cultural aspect could also be one of the reasons, why UK car sales fell for the 13th consecutive month. (Milmo 2011). Technology Updating and incorporating new and efficient technologies is a key aspect of car manufacturing. The consumers all over the world including UK are not only demanding a lot of features and comfortable ride, but importantly fuel efficiency. So, the automobile companies are investing and have to keep on investing heavily in R&D, particularly for the development of fuel efficient options. If this trend continues, it is expected that by 2015, 25% of the vehicles will be high technology cars like Hybrids and cars that run on alternate fuels (Frost and Sullivan 2010). The figure below clearly shows that America and European countries including UK will be the major drivers behind it. Fig 1: (Frost and Sullivan 2010). Ecological Carbon-dioxide emission from automobiles is considered to be the biggest polluter, damaging the natural environment. Thus, the manufacturers in the UK motor market are looking for alternative green technologies. These technologies include hybridization, mor e efficient powertrains and alternative fuels, so that â€Å"tailpipe emissions have zero impact on air quality emissions by 2030-2050.† (â€Å"UK publishes roadmap†, 2011). Another reason for adopting this option is the depleting oil reserves. Political Number of emission norms, are being set by the UK government to address the environmental concerns, thus allowing the political machinery to play a role in the macroeconomic environment. Actually, the European countries on the whole have also been passing emission norms (Euro 5 and 6 being the current standards) which the car manufacturers have to comply with. In addition to emission norms, governments impact companies in UK motor market through laws relating to mileage per gallon and importantly passenger safety laws. Legal As an extension of its political role, UK government has stipulated legal requirements that need to be fulfilled while