Team evaluation free essay sample

Demographic Environment The demographic environment includes many factors such as age, gender, family status, race, education and the community in which a person lives. A change in age distribution is a demographic force that will affect the organizations in the automotive industry. Over the years the main target group has shifted from the old generation the â€Å"baby boomers† to the next generation of customers, Generation Young or â€Å"echo boomers†. Generation Y is know as people born between 1977 and 1994, they have grown up with computers so they are technology comfortable. If we take Toyota for an example, when they introduced the Prius, it is a highly technology advanced car that appeals to Generation Y. Toyota was clearly marketing the car to Generation Y, people who where concern with the rising cost of fuel so they are looking for cars with better fuel economies and people who are concern with the environment. Another example with Toyota is when they introduced a new car brand Scion, it was specifically made to market Generation Y. We will write a custom essay sample on Team evaluation or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Their initial market strategy Project Genesis had failed with the production of Toyota Echo. When Project Genesis was off the table they introduced a new car brand Scion, Toyota had learned that if they made their Scion cars customizable it would get the attention of young male buyers who would be interested in the broad variety of modifications available to enhance the cars performance. The world has been experiencing economic downturns since 2008 and that has affected the automotive industry but in the last 2 years sales have been improving. Most people are trying to save money especially when it comes to cars because they are expensive and a bad investment. The consumer is trying to save money but he still wants a good product variety so hen can find a car that will fit his needs. Just because I only took Toyota for an example does not mean that the other car manufacturing companies are not experience these problems or trying to market generation Y them selves with other marketing strategies. Social Environment The social environment has an impact on the consumer’s choices and the kind of car they drive. People will argue that the social environment does not affect the consumer’s decisions when it comes to buy cars. People who drive nice cars are often viewed in society to be wealthy and most people do not want to be seen driving old and bad looking cars. The automotive industry knows this and uses this to target the market, offers people with the newest technology and best looking cars this will make the consumer feel better about them selves because they seem to be in a higher social standard. Social changes creates opportunities and threats for car makers, â€Å"One major social movement of recent decades has been the trend toward health consciousness†. If you where to transform this into the automotive industry than it is the introduction of the hybrid car and the electric car. The rising costs of fuel and more awareness about the environment. Toyota took the first big step when they introduced their first hybrid car Toyota Prius, the first model came out in 1997 and was an instance success. Then in the years to come other automotive manufactures followed Toyota and now almost every manufactures has a hybrid car production. It wasn’t just hybrid cars that changed the industry, new regulations from the governments setting standards for the CO2 output from the cars but pressure on the manufactures to make cars with a higher MPG and a low CO2 output. The American manufacturer Tesla really took the next step for people who are looking for cars with zero emission. In 2008 Tesla released their first cars and now in 2013 they have sold more than 2,300 cars in more than 37 countries. Social forces that affect the automotive manufactures are many and I believe that the manufacturer who is first to recognize that force and act accordingly is likely to gain advantage on the market, just like Toyota did with the Prius and Tesla is doing with their electric cars. Political and Legal Environment The political and legal environment for automotive manufactures is often complicated and different between countries and continents. The governments will put regulations on the manufactures so that the cars will meet certain standards related to safety and environmental matters. Local manufactures will also put pressure on the government to give them e.g. tax discounts and put tariffs on foreign competitors. In 2007 the European Union set new standards regarding the CO2 emissions from new and light duty vehicles. These new laws set a new standards for the cars that will be made and sold in the European Union, so the manufactures will have to adjust their cars to this. The standard is different e.g. Europe and the United States, so a car that it is made for the market in the United States might not suite the markets in Europe, because of these regulations. People in the United States who buy and own a so called plug –in electric car can be qualified for a tax credits due to the American Act of Clean Energy which was set in 2009.