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Pestel

In: Business and Management

Submitted By anuragrawat09
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PROJECT REPORT

ON

BY: TO:
ANURAG RAWAT
13BCM1017
B.COM 6 ‘A’

Acknowledgement

The success and final outcome of this project required a lot of guidance and assistance from many people and I am extremely fortunate to have got this all along the completion of my project work. Whatever I have done is only due to such guidance and assistance and I would not forget to thank them.
I respect and thank MISS., for giving me an opportunity to do the project work of ROYAL ENFIELD and providing us all support and guidance which made me complete the project on time
I owe my profound gratitude to our project guide MISS. PRABHNOOR, who took keen interest on our project work and guided us all along, till the completion of our project work by providing all the necessary information for developing a good system.
I am thankful to and fortunate enough to get constant encouragement, support and guidance from all staffs of ROYAL ENFIELD which helped us in successfully completing our project work.

INTRODUCTION

Royal Enfield was the brand name under which the Enfield Cycle Company (founded 1893) manufactured motorcycles, bicycles, lawnmowers and stationary engines. The first Royal Enfield motorcycle was built in 1901; the original British concern was defunct by 1970. The Enfield Cycle Company is responsible for the design and original production of the Royal Enfield Bullet, the longest-lived motorcycle design in history.
The Enfield Cycle Company began business as a weapons manufacturer, most famous for the Enfield rifle. This legacy is reflected in the company logo, a cannon, and their motto, "Made Like A Gun".
In 1955, Enfield Cycle Company partnered with Madras Motors in India in forming Enfield of India, based in Chennai, and started assembling the 350cc Royal Enfield Bullet motorcycle in Madras. The first machines were assembled from components imported from England. Starting in 1957, Enfield of India acquired the machines necessary to build components in India, and by 1962 all components were made in India.
Royal Enfield produced bicycles at its Redditch factory until it closed in early 1967. The company's last new bicycle was the 'Revelation' small wheeler, which was released in 1965. Production of motorcycles ceased in 1970 and the original Redditch, Worcestershire-based company was dissolved in 1971.[2] Enfield of India continued producing the 'Bullet', and began branding its motorcycles 'Royal Enfield' in 1999. A lawsuit over the use of 'Royal', brought by trademark owner David Holder, was judged in favour of Enfield of India, who now produce motorcycles under the Royal Enfield name.

HISTORY OF ROYAL ENFIELD

First World War (1911–1921)
In 1914 Enfield supplied large numbers of motorcycles to the British War Department and also won a motorcycle contract for the Imperial Russian Government. Enfield used its own 225 cc two-stroke single and 425 cc V-twinengines.[6] They also produced an 8 hp motorcycle sidecar model fitted with a Vickers machine gun.
Inter-war years (1921–1939)

1923 Royal Enfield 225cc
In 1921, Enfield developed a new 976 cc twin, and in 1924 launched the first Enfield four-stroke 350 cc single using a Prestwich Industries engine. In 1928, Royal Enfield began using the bulbous 'saddle' tanks and centre-spring girder front forks, one of the first companies to do so. Even though it was trading at a loss in the depression years of the 1930s, the company was able to rely on reserves to keep going. In 1931, Albert Eddie, one of the founders of the company, died and his partner R.W. Smith died soon afterwards in 1933.

Second World War (1939–1945)

Royal Enfield 250 cc, type 11F
During World War II, The Enfield Cycle Company was called upon by the British authorities to develop and manufacture military motorcycles. The models produced for the military were the WD/C 350 cc sidevalve, WD/CO 350 cc OHV, WD/D 250 cc SV, WD/G 350 cc OHV and WD/L 570 cc SV. One of the most well-known Enfields was the Royal Enfield WD/RE, known as the Flying Flea, a lightweight 125 cc motorcycle designed to be dropped by parachute with airborne troops.
In order to establish a facility not vulnerable to the wartime bombing of the Midlands, an underground factory was set up, starting in 1942, in a disused "Bath Stone" quarry at Westwood, near Bradford-on-Avon, Wiltshire. Many staff were transferred from Redditch and an estate of "prefabs" was built in Westwood to house them.
As well as motorcycle manufacture, it built other equipment for the war effort such as mechanical "predictors" for anti-aircraft gunnery: the manufacture of such high precision equipment was helped by the constant temperature underground. After the war the factory continued, concentrating on engine manufacture and high precision machining. After production of Royal Enfield motorcycles ceased, the precision engineering activities continued until the final demise of the company.

HISTORY OF ROYAL ENFIELD
(INDIA)
The Indian government looked for a suitable motorcycle for its police and army, for patrolling the country's border. The Royal Enfield Bullet was chosen as the most suitable bike for the job. The Indian government ordered 800 350 cc model Bullets. In 1955, the Redditch company partnered with Madras Motors in India to form 'Enfield India' to assemble, under licence, the 350 cc Royal Enfield Bullet motorcycle in Madras (now called Chennai). The tooling was sold to Enfield India so that they could manufacture components. By 1962, all components were made in India. The Indian Enfield uses the 1960 engine (with metric bearing sizes), Royal Enfield still makes an essentially similar bike in 350 cc and 500 cc forms today, along with several different models for different market segments.[9]
Royal Enfield was a brand of the Enfield Cycle Company, a British manufacturing firm. It started in India for the Indian Army 350 cc bikes were imported in kits from the UK and assembled in Chennai. After a few years, the company started producing the 500 cc Bullet.
In 1990, Royal Enfield collaborated with the Eicher Group, an automotive company in India, and merged with it in 1994. Apart from bikes, Eicher Group is involved in the production and sales of tractors, commercial vehicles, and automotive gears. Although Royal Enfield experienced difficulties in the 1990s, and ceased motorcycle production at their Jaipur factory in 2002, by 2013 the company opened a new primary factory in the Chennai suburb of Oragadam on the strength of increased demand for its motorcycles. The original factory at Tiruvottiyur became secondary, and continues to produce engines and some motorcycle models. In 2014 Royal Enfield appointed Pierre Terblanche as the head of new product design.
In January 2015 the company announced the appointment of Rudratej ‘Rudy’ Singh as President of Royal Enfield. Singh was previously a Vice President of Unilever in Singapore. Royal Enfield announced its first takeover of another company in May, 2015 with the purchase of a UK motorcycle design and manufacturing firm, Harris Performance Products, that had previously developed the chassis of the Royal Enfield Continental GT Cafe Racer.

Royal Enfield currently sells motorcycles in more than 50 countries. Royal Enfield surpassed Harley-Davidson in global sales in 2015, and received an informal stamp of approval from US President Barack Obama as the guest of honor at the 2015 Delhi Republic Day parade. "I saw the Republic Day daredevils on Royal Enfield motorcycles," Obama said, adding that "the secret service doesn't let me ride motorcycles, especially not on my head." He again acknowledged the Border Security Force riders later in the day, saying "I would, by the way, not drive a motorcycle after watching those incredible acrobats."
In August 2015, Royal Enfield Motors announced it is establishing its North American headquarters and a dealership in Milwaukee, Wisconsin, with the intention to offer three bikes, the Bullet 500, Classic 500 and Continental GT 535 Cafe Racer as they feel this engine size represents an underserved market. The dealership will be Royal Enfield's first company-owned store in the U.S., according to Rod Copes, president of Royal Enfield North America.[1][24] The company wants to establish about 100 dealerships in American cities starting with Milwaukee.
"I live here, so I am biased. But in my mind, Milwaukee is kind of the center of motorcycling in the United States," said Copes, a former Harley-Davidson executive. "We view this as kind of our first flagship dealership," he added.
Later in August 2015, parent-business Eicher announced its entry in Indonesia as a part of its global strategy in the mid-sized (250-750cc) motorcycle segment, initially starting retail operations from a dealership in Jakarta.[3][27] From April to September, 2015, Royal Enfield's domestic sales were up 50 per cent over the previous year, despite a declining motorcycle market in India.

PRODUCTS

THUNDERBIRD 500

THUNDERBIRD 350

CLASSIC 350

ELECTRA DELUXE

ELECTRA TWINSPARK

DESERT STORM

CLASSIC 500 SWOT ANALYSIS
SWOT analysis often talks of the basics of business. People see it as so important because the method evaluates a project or business venture’s strengths, weaknesses, opportunities, and threats. The initials of these factors make up the acronym SWOT.
Business owners or project managers apply this structured planning method to know where their venture stands. The analysis’ benefit is not limited to companies or industries only. You can carry out SWOT for products, places, and even people too. Both new and existing businesses can use it.
The process involves stating the business goal. The aim of SWOT is to identify the favorable and unfavorable internal and external factors to reach the goal. You can call the degree to which a firm’s internal environment matches with its external environment as strategic fit.
Strengths:
Assess the characteristics of your business that give it an advantage over the others in this step. Questions like the following are often asked when considering Strengths: * What advantages does it have? * What does the market think your strengths are? * What factors help you sell products? * What is your Unique Selling Proposition?
Weaknesses:
These are characteristics that place the business at a disadvantage when compared to others. Answer the following questions: * What could your business improve? * What should the firm avoid? * What does the market think your weaknesses are? * What factors could lose you sales?
Opportunities:
In this part, consider elements that the project could profit from. The 2 most important questions to ask in this section are: * What good opportunities can you think of? * What are some interesting trends in the market?
Threats:
Find out what elements in the environment could cause trouble for your business or project. Some of the questions you can ask here are: * What are the obstacles? * What are the competitors doing? * Is technological advancement threatening firm’s position? * Do you have cash-flow problems or bad debt? SWOT ANALYSIS of Royal Enfield:

SWOT Analysis | Strength | 1. Size and scale of parent company2. Effective Advertising Capability3. High emphasis on R and D4. Established brand name in the cruiser market5. Established market distribution channel
6. Exports motorcycles to 31 countries like the USA, Japan, UAE, Korea, Bahrain, UK, France, Germany, Argentina and many other countries | Weakness | 1. Weight of the motor cycle can be an issue for few customers.
2. Mileage of high cc bikes is an issue | Opportunity | 1.Two-wheeler segment is one of the most growing industries
2.Export of bikes is limited i.e. untapped international markets | Threats | 1. Strong competition from Indian as well as international brands
2. Dependence on government policies and rising fuel prices
3. Better public transport will affect two-wheeler sales |

PEST ANALYSIS
PEST analysis studies 4 dimensions, like SWOT. The factors considered in PEST are Political, Economical, Social, and Technological. It is a precise analysis that helps to understand how each of the factors impacts business. It studies the opportunities and threats section of SWOT, but in more detail.

Political Factors
The Political factors include government regulations and legal issues. It defines both formal and informal rules that a firm must abide by. Below are some factors you should consider: * tax policy * employment laws * environmental regulations * trade restrictions and tariffs * political stability

Economic Factors
The economic factors affect the potential customers’ purchasing power and company’s cost of capital. These are some related factors: * economic growth * exchange rates * inflation rate

Social Factors
Social factors involve the cultural and demographic aspects of the external macro-environment. The following factors impact customer needs and size of markets: * health consciousness * population growth rate * career attitudes * emphasis on safety

Technological Factors
These factors can remove or lower barriers to entry. They can also reduce minimum efficient production levels and sway outsourcing decisions. Some of the technological factors are: * R&D activity * technology incentives * rate of technological change…...

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