(Doc) Assignment on Business Environment
Added on 2020-09-17
16 Pages4675 Words38 Views
Business DevelopmentFinanceProfessional DevelopmentEnvironmental SciencePolitical Science
|
|
|
Business Environment
TABLE OF CONTENTSINTRODUCTION:.........................................................................................................................1TASK 1............................................................................................................................................1PESTEL analysis of Volkswagen...............................................................................................1TASK 2............................................................................................................................................4Market forces affecting demand and supply...............................................................................4TASK 3............................................................................................................................................9Role of stack holders in Volkswagen..........................................................................................9TASK 4..........................................................................................................................................11A) Pros and cons of UK leaving EU.........................................................................................11B) Business response to local and global environmentalchallenges and the impact it will have on future businessdevelopment....................................................................................................................................................12CONCLUSION:.............................................................................................................................13REFERENCES:.............................................................................................................................14
INTRODUCTION:Business environment is the key to success for any organisation. By understanding thesurrounding environment the business can survive for long run. It is important for every businessto have a deep knowledge of the environment as it helps in development of business. The variousfactors are persons, place, things and natural resources. All these factors and forces are combinedtogether called business environment. It consists of micro and macro forces in which businessfunctions are performed. Macro forces are external environment which can not be controlled andaffects the performance of business. In this assignment the external factors which affects thebusiness are elaborated. How the price changes due to change in product demand and supplyand the law has been shown. Further how business contributes towards the society and what roledoes stack-holder plays in the organisation for decision making has been shown. At last the prosand cons of UK leaving EU and what impact will this have on business in long run in UK hasbeen described.For undertaking this present organisation selected is Volkswagen. The cited firm belongsto auto-mobile sector and operates globally. The existence of the company on such a great levelrequires understanding business environment. Thus, this report will help in developing a relevantone for the cited establishmentTASK 1PESTEL analysis of VolkswagenEvery business is affected by the external business environment in which they operate. It is dueto the various factors which influence the business decisions that are to be taken. It is a conceptwhich defines the marketing principles. PESTEL is a mnemonic which denotes P for political, Efor economical, S for social, T for technological, E for environmental and L for legal. Thebusiness like Volkswagen will analyse these factors while taking decisions. The explanation ofthese factors are given below:Political factors- It means the political framework within which the business is affected bygovernment decisions. The government may take various decisions like a new tax law by whichthe entire organisational operations will affect. These factors influence the business to a great
extent. The various political factors include fiscal policy, import export tariffs, etc. theVolkswagen operates globally so it has to depend on the government for making their strategies.The different political pressure of different countries affects the strategies of Volkswagen. Automobile sector is closely related to government as it contributes in GDP of the country. TheAsian and European market are very different in many ways. The financial sector is also relatedto the auto mobile sector as it provides loans to people (Prajogo, , 2016)Economical factors- national income of the nation determines the economic factors. It includeselements like GDP, inflation rate, etc. it also involves in defining the economic growth andforeign exchange rates of the country. These actors directly affects the long term strategies thathas been made in regards for doing business. The auto mobile industry helps in development ofother industries like steel, glass, etc. which contributes in GDP as well as providing employmentto the people. The advantage can be taken by grabbing the opportunities in developingeconomies On other side of this factor is uncertainty in economic conditions which arises dueto fall in currency rates or increase in the price of fuel. Volkswagen usually focuses on lowersegment cars in developing nations so that they can establish a market position in the country.Social factors- These factors include the elements of society in which business operates. Theelements are needs and culture of the people. It also defines the lifestyle and standards which arebeen maintained in the society. The social environment plays a big role in development of everyindustry. Through employment in these industries the needs and wants are fulfilled whichenhances in level of society and changes the living standards of people.Technological factors- It refers to the innovation in the technology. These innovations helps increating the demands of the new product and allows in less accidental hazards. awareness of newtechnology in the market helps business to adopt it in their industry for their growth anddevelopment. With the help of new technology changes in market arises which leads toreduction in costs and increasing the profits. The Volkswagen invest a huge in development ofthe cars as they have to maintain their standards (Welford, , 2013) The cars are the most complexproduct to produce because it consists a lot of components and parts. So a minute defect in anypart or component can lead to loss of life of customer. The variety in cars that they producediffers according to the segments. Due to this the use of advanced technology is more in luxury
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Assignment on Macro and Micro Environmental Influence on Automobile Sector in UKlg...
|12
|3686
|517
Macro Environmental Factors Influencing Auto Mobile Industrylg...
|15
|5001
|434
The Global Business Environment (DOC)lg...
|12
|3283
|439
(solved) Contemporary Developments in Business & Managementlg...
|14
|4415
|271
Pros and Cons of Macro Environment: NatWestlg...
|16
|809
|55
Project Report Assignment - Business Strategylg...
|15
|4713
|122