PESTEL ANALYSIS OF THE MASTER PRODUCTS
Established in 1919, the Master Products, headquartered at 6400 PARK AVENUE
CLEVELAND, OHIO 44105-4991, have been supplying washers and stampings to customers with quality, pricing and delivery that meet its customers’ needs. PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. The Master Products PESTEL analysis involves an analysis of potential impact of these factors on the bottom line and long-term growth prospects.
Political and Legal:
Master Products’ primary products include custom stampings and special washers. The hardened F436, USS, and SAE washers constitute a large percentage of the Company’s business. The market for these particular products is highly competitive in its’ nature. Therefore, in order to remain a respected contender, Master Products must adhere to as well as maintain up to date practicing standards and laws. These instances include the Workmanship Acceptance Standards and The Fastener Quality Act of 1990 (P.L. 101-592). A variety of other high-quality products are also manufactured on-site, including narrow and wide-rim machinery bushings, shallow and regular cup expansion plugs, riveting and fending washers, and brass washers.
Being based in Ohio, the company must comply with Ohio Laws in its dealings,
Master Products’ two largest markets are Transportation Equipment Manufacturers (SIC 37) and Wholesale Trade-Durable Goods Distributors (SIC 50). The balance of its sales are spread amongst 177 diverse categories – including, but not limited to the following:
> Industrial & Commercial Machinery mfrs. (SIC 35)
> Fabricated Metal Products mfrs. (SIC 34)
> Furniture & Fixtures mfrs. (SIC 25)
> Electronic & other Electronic Equipment mfrs. (SIC 36)
> Rubber & Miscellaneous Plastics mfrs. (SIC 30)
> Miscellaneous Manufacturing INDS mfrs. (SIC 39)
> Stone Clay Glass & Concrete Products mfrs. (SIC 32)
> Lumber & Wood Products except Funiture mfrs. (SIC 24)
> Chemicals & Allied Products mfrs. (SIC 28)
> Miscellaneous Repair Services (SIC 76)
As the recent economic downturn has plagued the economy, companies had to restructure their sales and marketing campaigns greatly. Also, with diminishing profits they had to undergo downsizing internally and re-think upon how to penetrate the market. Economic conditions have the highest influence on a business, regardless of what trade it is in. Thus, Master Products can follow suit, especially by cutting down its staff size.
To stay ahead of its competitors, the company should focus on realizing its mission statement, “supply a quality product at a competitive price and to deliver as we promise”. This is imperative because the products of the company’s competitors are highly priced. The Company can enhance its price competitiveness by inculcating efficient processes in its system and using more modern processes. Its second and third generation employees should be gradually laid off for young and technologically sound employees who can position the company to utilize a more technology based approach in meeting the needs of consumers and gaining an edge over competitors.
Social factors greatly impact any company, especially one as large and old as Master Products. Thus, the Company needs to remain attune with social evolution and the change in taste of consumers. Also, the Company has to communicate its image to its target market so that it could be seen as reliable partner in the industry. It can do these by using the power of the internet and the social media to stay connected with its huge consumer base.
With the advent of the new age in technology, companies have completely integrated themselves with all the recent changes that have taken place. To mention a recent trend that has greatly picked up and something that almost every business is turning toward – Social Media. The social media explosion has allowed for increasingly interactive engagement with the consumers, with real time results. Therefore, Master Products should strive to stay ahead of all the developments that take place with keeping in view how today’s world utilizes technology for their benefit. Implementing this will assist in reaching in reaching new customers while increasing brand recall and brand engagement. Further, new technology abounds to help the company achieve efficiency in its manufacturing processes. Machines and robots are helping manufacturing companies the world over achieve the best results and Master Products should not be left out.
When doing a Google search on “manufacturing companies that produce f436 washers,” Master Products is nowhere to be seen within the first five pages, if any. Their direct competitor Prestige Stamping, however, is available on the first page of the search results. This is not Ideal for
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