Pestel Analysis of the Motor Industry
Assessment of the external macro-environment in which the firm operates can be expressed in terms if the following factors
Political
• In Britain political awareness of the importance of the motorsport industry has grown in recent years especially during the Blair tenure. Frank Williams was knighted in 1999.
• Political pressure on Formula One has also strengthened abroad, with other countries gaining the right to host the races.
• The Asian Countries: China, Indonesia, Malaysia and Korea represent important markets for Formula One’s sponsors, the Tobacco firms
• MIA is an Accredited Trade Organisation for motorsport UK Trade & Investment
(UKTI)
• MIA is a member of the Confederation of British Industry (CBI) - provides members access to the “Voice of Industry”.
• Works with the UK/EU Parliaments to support the sectors long-term role in the economy • Close dialogue with UK politicians - MIA is joint secretary of the All Party Motor
Group
• Works with UK Regional Development Authorities - promoting motorsport industry
Other factors of Politics:
• EU enlargement
• The euro
• International trade
• Taxation role
Economic
• Formula One flotation by Private equity firm delayed until 2014 as a result of a market turmoil and a legal battle engulfing its chief executive, Bernie Ecclestone.
• The floatation was expected to reduce the uncertainty about the economic environment felt by constructors, improving the teams revenues from broadcasting.
• Major financial institutions are taking equity stakes in constructors that were traditionally taken by Tobacco sponsorship. In 1998
• CVC had 63% stake in Formula One, but in May 2012 a $1.6 billion deal with
Waddell & Reed, BlackRock, and Norway 's Norges Bank Investment Management, saw the private equity firm 's share reduced to 35%.
• Annual turnover = ₤6 billion ( with £3.6 billion exported)
• Motorsport Valley® - major source of value-added to the UK economy - R&D
Political
• In Britain political awareness of the importance of the motorsport industry has grown in recent years especially during the Blair tenure. Frank Williams was knighted in 1999.
• Political pressure on Formula One has also strengthened abroad, with other countries gaining the right to host the races.
• The Asian Countries: China, Indonesia, Malaysia and Korea represent important markets for Formula One’s sponsors, the Tobacco firms
• MIA is an Accredited Trade Organisation for motorsport UK Trade & Investment
(UKTI)
• MIA is a member of the Confederation of British Industry (CBI) - provides members access to the “Voice of Industry”.
• Works with the UK/EU Parliaments to support the sectors long-term role in the economy • Close dialogue with UK politicians - MIA is joint secretary of the All Party Motor
Group
• Works with UK Regional Development Authorities - promoting motorsport industry
Other factors of Politics:
• EU enlargement
• The euro
• International trade
• Taxation role
Economic
• Formula One flotation by Private equity firm delayed until 2014 as a result of a market turmoil and a legal battle engulfing its chief executive, Bernie Ecclestone.
• The floatation was expected to reduce the uncertainty about the economic environment felt by constructors, improving the teams revenues from broadcasting.
• Major financial institutions are taking equity stakes in constructors that were traditionally taken by Tobacco sponsorship. In 1998
• CVC had 63% stake in Formula One, but in May 2012 a $1.6 billion deal with
Waddell & Reed, BlackRock, and Norway 's Norges Bank Investment Management, saw the private equity firm 's share reduced to 35%.
• Annual turnover = ₤6 billion ( with £3.6 billion exported)
• Motorsport Valley® - major source of value-added to the UK economy - R&D
References: Book Martin Beck-Burridg, Britain 's Winning Formula: Achieving World Leadership in Motorsports, Macmillan business, Web http://www.the-mia.com