Question

Considering India’s current position across various political, economic, social, and technological (PEST) domain, develop a strategic outline, highlighting a critical steps that should be taken to achieve a global competitive position in the manufacturing area.

Answer 1

Today's dynamic and global competitive forces require new thinking about the implications of manufacturing for achieving superiority in the marketplace.The benefits of competition are also enjoyed by the society and the markets in whichorganisations operate. The customers are able to get products at lower costs and better quality. They get better value of their money because of competition.The nature and extent of competition that a business is facing in the market is one of the
major factors affecting the rate of growth, income distribution and consumer welfare. Businesses have to consider competitors’ strategies, profits levels, costs, products and services when preparing and implementing their business plans.The companies should cut off their costs to a lower level then only they can stay in the highly competitive market. This can done in the place of manufacturing.

PEST Includes,  

Political factors are how and to what extent a government intervenes in the economy and the activities of corporate. Political factors may also include goods and services which the government wants to provide or be provided and those that the government does not want to be provided. Furthermore, governments have great influence on the health, education and infrastructure of a nation.
   Economic factors have major impacts on how businesses operate and take decisions. For example, interest rates affect a firm's cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy. The money supply, inflation, credit flow, per capita income, growth rates have a bearing on the business decisions.

Social factors affect the demand for a company's products and how that company operates.

Technological factors can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation.