PESTEL Analysis of Cummins ESB Business Essay Example | Topics and Well Written Essays - 750 words

PESTEL Analysis of Cummins ESB Business - Essay Example Notable areas that Cummins ESB is likely to face political and legislative interferences include but not limited to taxation policies, labour laws, trade restrictions, Environmental regulation and investments especially public private partnership ventures. In other words Cummins ESB will have to comply with different legislations relating to taxation, labour, or investment in every country of their operation. Economic Factors Economic factors are inherent concern to Cummins ESB taking into consideration that the factors are likely to influence their profits, investments, costs, prices and demand to greater extent. Notable economic factors that are likely to affect operations Cummins ESB include but not limited to inflation, interest rates, unemployment rates, and or currency exchange rates. The fact that Cummins ESB engage in massive investments across the globe and the same time engage in repatriation of earnings to the parent company (Cummins Inc.), the company’s investments costs as well as revenues are likely to be affected by fluctuating currency rates. The currency rates are also likely to affect the cost of exported as well as imported products and services. Inconsistent interest rates in different countries are also likely to affect the cost of company’s investment abroad. Inflationary trends globally and in specific international market is also detrimental on Cummins ESB earning. Social factors Most markets in the international market are always distinguished from their cultural aspects most of which are inherent while others are acquired. Social trends such as Demographic change; fashion and preference, age distribution, levels of literacy, customs and traditions, attitudes and beliefs are likely to affect the operation of a multinational company to significantly. It is unlikely that Cummins ESB operations will be affected by social trends in the global market considerably. However, demographic change in country or region is likely to in crease demand for energy either for lighting, cooking and or heating. Additionally the population is growing more conscious about the form of energy they use as most environmental conservation agencies continue to drug for green energy. Technological factors It is noteworthy that technology is one of the major external variables that has played significant role in developing competitive products and services by Cummins ESB. The technology has not only benefited the company but also Cummins ESB customers as it enhance to effective and efficient delivery of services (Cummins Power Generation Inc, 2010). For instance, introduction of Electronic Funds Transfer Systems (EFTPoS) and Electronic Point of Sale (EPoS) has highly enhanced delivery of services and products. Through effective technology Cummins ESB has managed to design and build energy efficient diesel, LP gas or natural gas generators, digital controls and transfer switches for standby around the globe. All technologic breakth rough of Cummins ESB is attributable to the high investment in Research and development. Environmental factors It is always in the best interest of the common public that a company operate lean projects that are not harmful to the environment. This means that companies have responsibility to remain environmental savvy when producing or marketing

To what extent is regional integration in North America part of Essay

To what extent is regional integration in North America part of globalisation - Essay Example Occupying such a vast geographical area and sound population in the three countries of NAFTA, the regional integration at this level certainly helped in the globalization. Globalization is defined as a process of complex series of economic, social, technological, cultural and political changes with increasing interdependence, integration and interaction between people and companies in different locations. It involves internationalization, deterritorilization, universalization, westernization and liberalization. The term globalization was used in 1940s but scholars began applying it in early 1980s. It is reported that Theodore Levitt coined the word â€Å"globalization†. Globalization also means the process of moving close to each other by different countires with a sole objective of collective benefit in terms of trade (Colas Alejandro, 2005 and Hulsmeyer, 2003). Globalization can also be described as the the intensification and integration of the consciousness of the world as a whole. It is also used to refer to these collective changes as a process, or else as the cause of turbulent change (James, 2005, Jones,2000 and Randall,2000). Globaliza tion stimulates economic reforms whose economic efficiency and political acceptability are increased through regional cooperation (Schrim,2002). New Regionalism contributes positively for globalization in three aspects: it offers a new theoretical approach to integration theory; it develops a distinct interpretative model for the impact of globalization on states; and it compares systematically the influence of globalization and the preferences for cooperation cross-regionally in Europe and the Americas. Regional integration and globalization coexist with other and they have both positive and negative effects (Perkmann and Ngai-Ling Sum, 2002). Positive effects include higher rate of export growth, faster capital accumulation and improvement in other economic