MRF PESTLE Analysis
Detailed PESTLE analysis of MRF examining political, economic, social, technological, legal & environmental factors.
Political Factors:
MRF is multinational tyre manufacture company. It mainly exports the tyres globally. It has to maintain stable connections with the host country to do business. It also has its manufacturing plants across the India. To establish the plant and maintain the plant needs lot of political support. The company should maintain cordial relationships with both national and state political parties. The government will change frequently and the industrial policies changes according to the wishes of the political parties. The company should also observe keenly on the trade policies of the India with the nations where the company operates. It also should observe the industrial policies, trade policies of the host country.
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This concludes the political factors in the MRF PESTLE Analysis.
Economic Factors:
Below are the economic factors in the PESTLE Analysis of MRF:
Many financial factors impact the tyre industry. Due to pandemic, there is impact on the exports of the products between the countries.
It also impacts on the cashflows of the company. The income of the people also decreased and the family expenditure on the automobiles has decreased which impacts on the tyre industry. But the later half has seen a increase in economy. The people started to improve their economy and spend the disposable income to buy automobiles. The foreign exchange returns also impact on the profits of the company. Due to pandemic, the fixed costs also increased. Now the company has to implement the policies to reduce costs and boost the production also.
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Social Factors:
Following are the social factors impacting MRF PESTLE Analysis:
From the past few years, the percentage of vehicles on the roads has been increased rigorously. The change in demographics and increase in disposable incomes are the reason for the increase in the purchase of the automobiles which indeed increase the purchase of tyres. The millennials and baby boomers are interested to buy sports vehicles. MRF should manufacture according to the needs of the consumers. The consumers also very keen on the safety factor, the tyres also play a key role in avoiding accidents. The company should more concern on the research and development which improves the efficiency of the tyres and reduces the accidents and improve the automobile speed. The company also focus on the trends of the consumers towards the speed.
Technology Factors:
The technological factors in the PESTLE Analysis of MRF are mentioned below:
MRF is the largest manufacturer in the tyre industry of the India. To maintain this, it adopts various new technologies to reduce cost and to improve the process. It also should keenly observe on the new end technologies like robotics, IOT, ML to produce tyres with efficiently and effectively. The company should also focus on the research and development to design next gen tyres which improves the efficiency and also safe to avoid accidents occurring with poor friction. The company also focusses on the tyre designing process and imply new industrial revolution methods.
The company should also adopt the flexible technologies in the global supply chains and improve its logistics.
Legal Factors:
Following are the legal factors in the MRF PESTLE Analysis:
MRF has its manufacture plants in many states. The laws to establish a plant is different from one state to another state. The company should also ensure to follow the rules and regulations to manufacture the products. The company should follow all the safe measures for the safety of the employees. The company should also follow the environmental laws in using the rubber. The company should also ensure it follow the all the requires laws in trade with other countries. It also should ensure to protect its design process and shouldn’t include in any patent issues with other manufacturers.
Environmental Factors:
In the MRF PESTLE Analysis, the environmental elements affecting its business are as below:
MRF is a manufacturer company which use most of the non-renewable sources. It increases the carbon foot print which impacts on the climate change. The company also have taken some key steps to reduce the carbon foot print.
The company also ensure to the global diversity where it get rubber resources from the plantations. It has to take many permissions and should ensure not to cut the plantations and also should aid for environmental protection. The company should also take risk management steps for the smooth operations and supply chain of the resources.
To conclude, the above MRF PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.
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