Honda

pestel analysis

Political

We facing difficulty with the actual production of ours cars e.g. a lot of countries and governments are cutting down the amount to cars on the road that release toxic gasses in the atmosphere. Which means we are affected politically by government legislation as a cut on amount of cars on the road would decrease the amount of demand for ours cars which will affect sales of the company.

1. Economical

2. Downturn in economy would lead to less demand for luxury vehicles.

3. Damage to major markets such as U.S and Britain could lead to decreasing in our annual profit on a yearly basis.

4. Social

5. Trends and fashions and methods of transport may change leading to a diversion from vehicle purchases.

6. Fashions and trends may also bringing change to Honda having to possibly alter things in their production e.g. size and price for theirs cars

People may change their minds from wanting a speedy car to a small and economic one; speed limits may be abolished leading to Honda having to alter their production line again to suit the needs of the social.

7. Technological

8. Technologies are improving and competitors are reacting to it would mean Honda too would need an upgrade in theirs production of this would be production the environmental friendly cars in order to stay in the market

Legal – (How the Trend Helps or Hinders the Business)

Likewise politically they may be a legal legislation preventing Honda from producing maximum output in that economy due to the damage of the environment it could cause.

Trading caps on the imports to companies would also damage Honda sales as it would have a limit on how much it can sell via exporting.

Tariffs would affect the sales of Honda into countries