Macro Environment: Natural Resources and Availability - Assignment Example

Macro Environment Assignment of the of the Natural resources and availability The new technology that is to be developed for prevention of car accidents and prevent death due to car accidents involves the use of sensors that is likely to be attached to the airbags. The purpose of attaching the sensor to the airbag is to ensure that in case of accidents calls may be automatically sent to the 911 without anyone having to dial the 911 no. separately. The aim of the technology is to reduce death rates caused by accidents. The technology basically involves use of different supporting technology. Since the device will be using sensors to detect impact it will basically involve the use of transistors or other semiconductor components that involves the use of Silicon as the basic material for building the device. The technology also involves the use of mobile and other communication technology such as GPS. The mobile technology will be used to automatically dial 911 in case of accidents and GPS would be used to give the location of the accident site to the 911 operator so that help can arrive swiftly. The GPS technology is very much an essential component in this case as no human being might be present or the driver himself might not be in a position to physically communicate the occurrence of the accident or the place to the operator. All of the required resources are easily available in the US and non availability of resources won’t be a problem with regards to the manufacture of the device. Demographic characteristics of potential buyers The US is a country which has been a mixed breed of different cultures races and ethnicity. The country is a hot bed for migration and most of its population is made up of migratory people from different countries across the globe. This has led to a diverse and multifaceted cultural diversity in the country. The country has a population that is comprised of people of different age group but most of its population is of the older generation. The buyer for the new technology has been identified as Ford motor company. However the ultimate buyer of the new technology is likely to belong from every culture or races that are present in the country. Since safety is an issue that is seen as a major area of concern irrespective of the culture or religion or race or creed or sex to which one belongs. However, with aging population the concern for road safety and the likely adoption of this potential life saving technology is likely to increase. Future technological development tends in the field and in related fields The America represents a country which is led by innovations. The American economy has been fuelled by innovations. There are large of new start-ups that are formed in Silicon Valley almost every day. Since America was founded it has been leading the world in terms of developing or adopting of new technology. The characteristics of American population are that they readily accept new technology and development and are forthcoming in accepting new technology. This presents great incentives for new entrepreneurs and this is the reason why America as a nation has been the preferred destination of the entrepreneurs. The particular technological area and the issue is a hot bed for technological advancement. The area presents a major cause of concern for the inhabitants of America and is an area which is likely to be actively pursued by the companies who will be eager to take advantage of the technological gap in the area. If the product launched by this new company faces some success than it is quite obvious that more established companies in the area will come out with technological improvements in the area so that the technological solution that they come out with is better accepted by the customers. To survive in such a scenario the company bringing the new technology should emphasize on continuous improvement of the product to come out with newer versions that would be accepted by the customers. Laws and Regulations Ensuring Road safety has been a major source of concern across people of different countries worldwide. In 2010, 1.24 million people were killed by road accidents (World Health organization, 2013). The WHO has been pursuing and motivating the countries to implement more road safety measures in order to curtain of the accidents deaths due to road accidents. Different countries have different laws in place and view the matter of road safety with different lens. In the Rio+20 summits on sustainable development road safety was considered as an important issue. The UNO recognizes that ensuring road safety does not only help in saving lives but at the same time helps in ensuring and achieving other related factors such as reductions in pollution, emission, traffic congestions etc. The US government has several rules and regulations that are in place with regards to road safety. Part 571 of Federal motor vehicle safety standards describes the minimum requirements that a vehicle manufacturer should provide in order to ensure that the vehicle is crash worthy. Standard no. 203 under this part specifically talks about the cushioning system and the minimum requirements of the same in order to ensure safety of the driver in case of an accident or a collision (US department of transportation, 2015). Given the no. of road accidents happening these days there will be more strictness in rules in the coming years. In the given scenario the new technology is likely to be widely accepted and promoted by the new rules and regulations. In fact new laws might be enacted in future that makes the implementation of these devices in the cars compulsory. Government / Political context The USA is considered as a democratic country. The law of the country is very effective and the people in general are law abiding citizen. There are several parties that are present in the country. Elections in the country are considered to be fair. The country is mostly criticized specially by foreign countries especially for its policies which involves most of the times unnecessary intervention in the internal affairs of other countries. The government is helpful towards new setup and has policies that are friendly for the entrepreneurs and the businessmen. The country is considered as an economic and political superpower in respect of all the countries in the world. However in recent years its power is being challenged by another rising superpower in Asia that is China. The unnecessary intervention in the internal affairs of other countries that it follows has earned USA the wrath of terrorists and has been one of the reasons behind the rise of terrorist activities against the country in recent years. The government in USA supports new startup companies. So it is quite likely that the government will support this new venture. In fact the government is more likely to help as because if the technology is successful it will be able to save many lives and the government’s image will be boosted. Social-culture trends Personal savings rate (Source: Trading Economics, 2015) As seen from the graph the trend of personal savings rate is a fluctuating one in the context of USA. The Personal savings rate reached its highest peak in the month of July in the context of last year at a level of 5.6%. However by the month of October the rate had fallen back to 4.4% that was similar to that rate that existed in the month of January. Consumer spending (Source: Trading Economics, 2015) The trend of consumer spending shows that the spending figures has risen step by step over the last year that is 2014. Starting from 10373.1 billion $ in January the figures for July 2014 was at 10999.5 billion $. Personal spending (Source: Trading Economics, 2015) The trend of personal spending shows that the rate for October 2014 is at 0.6%. Personal income tax rate (Source: Trading Economics, 2015) The personal income tax rate has remained flat since 2005 and is at 35%. The personal tax contributes as a major source of income for the US government and is a source of direct tax. GDP of USA (Source: Trading Economics, 2015) The GDP of USA is showing a gradual increasing trend over the past years. The GDP figures rose steadily from 2006 to 2009. In the year 2010 there was a fall in GDP figures due to recession. However starting from 2011 the up trend has continued and as of 2014 the figure is 16800 billion $. The US GDP is on the rise which is a good sign and shows that the US economy is back on growth track. This means that the new venture would be successful and the people will likely accept the new technology. Another thing that is on the rise is the trend on consumer spending is increasing and the consumer savings rate is decreasing. It shows that the consumers are not afraid to spend on new technology. The IT rate has been flat since long so it is not likely to have any effect on the acceptance of new technology. References Trading Economics. (2015). United States economic indicators. Retrieved from: http://www.tradingeconomics.com/united-states/indicators. US Department of Transportation. (2015). Federal motor vehicle safety standards and regulations. Retrieved from: http://www.nhtsa.gov/cars/rules/import/FMVSS/#SN201. World Health Organization. (2013). Global status report on health safety. Retrieved from: http://www.who.int/violence_injury_prevention/road_safety_status/2013/en/. Read More