The PESTEL analysis is the upgraded form of the pest analysis. It stands for political, economic, social, technical, environment and legislative. PESTEL is a strategic planning technique which provides an important framework for the analysis of the environmental pressures on an organization or on a team. In this case we are going to research on the environmental pressures of on the NARO Car Company. The political pressures include regulators and politicians; the social factors include demographics, family change, expectations or cultural change; the economic factors include the world trends, the industry trends or even the UK and US trends; the legislative factors include the UK directives and the European legislations; the environmental factors include the sites and locations, the cost implications and the public opinion; and finally the technological factors are the determinants of the progress of the level of technology used (Havergal & Edmonstone, 1999 p, 28).This type of analysis is important for the organizations that have become too inward-looking. These organizations maybe in danger of not realizing the effect and power of the external pressures for change because they will only be focused on the internal pressures (Rogers, 1999 p, 78).NARO is a car company and its objective and mission is to be the step change in the transport in the city in order to meet the motor demands of this 21st
century. NARO is the brand name for Narrow Car Company. This Narrow Company is set to provide both manufacturing and license opportunities to this vehicle concept. This car concept was started in an attempt to address the rising problems of pollution, congestion and the parking security that are faced especially in our cities. It is a "free leaning" vehicle which advances the mobility of the people commuting and also addresses the main issues of emissions and efficiency. The NARO concept will have double the efficiency of the conventional cars by the virtue of its weight and size. The carbon dioxide emissions of this car are expected to be 25 percent of that the conventional car produces (Bill, 200 P, 19).The system of the NARO car will include the redundancy in the software and hardware in order to provide very safe operations in the case of component malfunctioning. The company aims at using electric wheel motors for propulsion and also the use of fuel cell and battery for storing energy rather than storing the energy in the IC engine as is the case in the conventional cars. The advancement of technology might lead to changes in the profits that are derived from these cars. Other companies may develop this technology to bigger cars which can hold larger numbers of people and also cars that could transport people to all other areas of Europe. International business may also affect this company because they need to introduce these cars to other regions in order to maximize their profits (Justin, 2007 p, 29).
The NARO concept is looking towards conducting basic research phase with the existing support from Swansea Metropolitan University and the University of Glamorgan. This research aims at attracting private equity partners and also trade and it will demonstrate the overall viability of the car as the product. The partners will help in the progress of the NARO project through production launch phases and prototype and also in taking up licenses to this patented steer/roll technology which underpins the vehicle concept. This will help in the technological factors of the analysis.The technological analysis indicates that the NARO car has length of 2.50 meters, a width of 1 meter, a height of 1.70 meters and a dry weight of 350 kilograms which are in accordance to the set limits because it will operate fast and efficiently. This car has a top speed of 85 meters per hour, a fuel consumption of 100 mpg, and carbon dioxide emissions of 60 g/km. the power train has a single cylinder, gasoline and a four-valve; a capacity of 400cc, a max power of 20bhp and an automatic transmission. This NARO car also has a free leaning design which has patented roll and an adaptive steer system, its front is of double wishbone rear and an independent trailing link. This car is safe because it has a high strength steel structure which has tough thermoplastic body-panel systems (Robert & Stephane 2007 p, 35).
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The NARO car is an enclosed vehicle which is a two-seat and a four-wheel vehicle which has the banking action of the motorbike that prevents it from tipping over when cornering. This NARO car has the footprint similar to that of a motorcycle but it is taller than the motorbike providing the driver with clear visibility to see and also plan ahead when moving along and through the traffic. This capability to plan coupled with a significant presence of road helps improve the overall safety of the vehicle. Political factors that may affect this company are the inclusion of legislations, taxes and duty that may be imposed by the government in order to mane the movement of these vehicles. The taxes may include road tax. The changes of the prices of fuel in the world may also affect the NARO Company because these vehicles use fuel (Nick, Charlie & Walter, 2005 p, 71).The NARO car is a third the total weight of a typical saloon car and also the frontal area is half the one of the saloon car and therefore its power demand is one quarter of the expected for the passenger cars of today. This results to ultra high efficiency. This fully enclosed cabin present in this NARO car provides the passenger-car levels of safety comfort and protection such as ABS and airbags. This NARO car has a common platform for the complete range of NARO which includes the NARO Executive Commuter, the NARO Taxi and the NARO Dispatch (Robert & Stephane, 2007 p, 19).The NARO executive commuter is able to provide the crucial door to door transport for the city commuters in the United Kingdom. The commuter is guaranteed of comfort and safety at normal recommended motorway speeds. The NARO car is not affected by the traffic density and the commuter is able to reach his or her destination on time because unlike the conventional cars those have to be stuck in the traffic intensity and reduce their speed, the NARO car progresses at the same constant speed. The parking for these NARO cars is easy because it occupies only a third of the space that is occupied by the conventional passenger car (Justin, 2007 p, 65).On the part of the economic analysis, this car consumes less than half the fuel that is consumed by the conventional cars. This is because it is designed to do so and also because it is not stuck in the traffic intensity where so much fuel is consumed. These cars also ensure that the people get to their work places in time and this leads to the improvement of the economy because they are able to work efficiently during their work hours. The journey times are reduced and the individuals are able to give wholly to the economy. The people who operate under tight schedules around the cities are also taken care of because they are able to work well because it provides the best alternative for these individuals (Justin, 2007 p, 93).The reduction of the traffic intensity in and around the cities is a social factor that affects the NARO Company. People who live around the city might take the introduction of these cars either negatively or positively. The competitors and these are the companies that produce other cars will try to discourage the use of these small efficient cars because they will fear the loss of their customers. The vehicles will not also be able to accommodate many people who reside in the cities and this might make them to lose many customers because they are not able to accommodate many people.