Environmental Analysis of the Auto-Mobile Industry: Impact of COVID-19 on Aston Martin

This report analyzes the impact of COVID-19 on the auto-mobile industry, specifically on Aston Martin. It covers the problems faced by the industry, survival and success factors with consideration to mega trends, and more.

The Global Business
Environment
(Environmental
Analysis of an
industry)

Table of Contents
INTRODUCTION ..........................................................................................................................2
TASK 1............................................................................................................................................3
OVERVIEW OF ASTON MARTIN..........................................................................................3
PROBLEM ANALYSIS ............................................................................................................3
Impact of the pandemic on the industry .....................................................................................3
Assess survival and success factors for the industry with consideration to mega trends...........5
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Environmental analysis is basically a process in which organisation effectively analyse all the
factors which has a huge impact on the performance as well as on the productivity of the
business. The environment analysis is the most important factor which help the organisation in
evaluating all the situations that directly affect the different functions of the business in both
negative and positive way(Bai and et. al., 2020). With the help of effective environment analysis
the productivity as well as profitability of the company has been increases. If all the factor
whether external or internal are in the favour of the organisation then they can stand in the
competitive market for a long period of time. . The following report is going to highlight the
operational working of the Aston Martin after the arisen of COVID 19. This report cover the
problems which are faced by the auto mobile industry and impact if the pandemic on this
industry. After words this report cover the success and survival factor with considerations to the
mega treads.
TASK 1
OVERVIEW OF ASTON MARTIN
Aston Martin is one of the famous international car brand who deals in luxury and sports
cars. The respective company was founded in 1913 and the founder of the company is Lionel
Martin. The headquarters of the Aston Martin company was located in Gaydon, Warwickshire,
England, United Kingdom. Rapide, DB7, DB9, V8 Vantage and many more are some of the
most popular cars of the respective company. Some of the elements which makes the company
more popular in the market is the quality of material which are used by the company in
producing the car and promoting techniques of the company(Biloslavo, Bagnoli and Edgar,
2018). As the cars of the company are used in the in James Bond films. After the arisen of
pandemic, down curve has been seen in the revenues of the chosen company. The higher
authorities of the company constantly focus on making techniques and strategies which increases
the revenues of the company. In addition to this change in the behaviour of the consumer,
dynamic market trends, change in technology and many are also being considered as the most
important factor behind decreasing the revenues of the respective company.

PROBLEM ANALYSIS
In the today's world the auto mobile industry is being considered as one of the largest
growing sector all across the globe. Sales and manufacturing of the cars in this industry has been
slow down because of this pandemic due to which the revenues of the mentioned companies has
been decreases. After the came of COVID 19 the economic conditions of all the countries has
been affected due this the demand of the customers has gone down, fuel prices has been
increases and most importantly the purchasing power of the consumer has been decreases(Chen
and et. al., 2018). The combined impact of these factors not only affect the productivity or
performance of the company but also affect the growth of the company. In addition to this,
because of slow down in the auto mobile industries many other industries like tourism,
agricultural, tyre, transport, hotel and many more has been get negatively affected.
Impact of the pandemic on the industry
A huge impact has been seen not only on the operations of the chosen company but also
on the growth and global presence of the company. From the research in the market it has been
analysed that around 95 % business organisation all across the globe has been affected in a very
negative manner because of the lock down in the year 2020 and till the end of this year 70 %
were disrupted. It also been analyses that around in the year 2021 after the lock down, 40 % of
the business organisation have been remained affected. A huge negative impact has been seen
after the outbreak of COVID 19 not only in the supply chain management of the company but
also on the fluctuation in demand with in the auto-mobile industry. As the auto-mobile industry
is flexible but after the interruption of the Chines auto parts, a huge impact has been seen not
only in the manufacturing sector of the European market but also in the market of US. In United
States various assembly units has bee closed down(Crick and Crick, 2020). A direct impact has
been seen on the operation of the auto mobile industry all across the globe. In addition to this not
only the profitability but also the productivity and performance of the auto mobile industry has
also been affected because of this pandemic. Employees have to lose their jobs due to which
different activities of the company cannot be carry out by the management in a smooth manner.
Survival and success factors has been developed for this industry with consideration to mega
trends. Along with this, employees may have to lose their jobs because of this pandemic so, this
also being considered as one of the major impact. From the market report it has been analysed
that around 190 million people lose their jobs worldwide because of this pandemic. In addition

to this the growth and development of the company has been directly affected because of
decreasing in sales and demand of the company's product in the market. So it is very important
for the organisation to take the necessary actions so that they effective deal with this pandemic
and survive in the competitive market. In relation to the Aston Martin, company is one of the
most growing company in the auto-mobile industry and also has well known image in the
market. The respective company deals in manufacturing of luxury sports cars and offer quality
services to their customers. But due to this COVID 19 pandemic not only the operations but the
profitability and the performance of the company has been impacted in a very negative manner.
According to the environment analysis of the company it has been analyse that due to the impose
of lock down during this pandemic the sales of the company in most of the Asian countries like
China and many more has been decreases around by 74 %. In addition to this the sales in the
nation like United kingdom and United Stated has been decreases by 3 % and 57 %
respectively all across the city because of these restrictions(Ghobakhloo and Azar, 2018). Along
with this, to overcome from this problem the respective company target to save around 18
million in their manufacturing activities and around 10 million by reducing their capital
expenditure.
The whole market has been affected by this pandemic in a very bad manner. The operational
activities of all the industries has been affected in a very disaster manner due to which losses has
been increases year by year. Along with this death rate as well as unemployment rate has been
increases. Following are the impact of COVID 19 on the performance of the company has been
discussed below :-
 Decreases in sales :- After the arisen of global pandemic the sales of the Aston Martin
has been decreases in a very significant manner(Kaur and Rampersad, 2018). The
production of the respective company has been decreases because of the fluctuation of
the demand of the cares in the market. Losses of the company has been increases due to
which the face value of the firm in the market has been declined and cash flow has also
been affected.
 Cuts in the job :- it has been seen that for reducing the expenditure of the company
Aston Martin terminate around 500 employees from their operational area. Along with
this the production of the luxury cars has been declined due to which company have to
reduce its sports segment production(Manavalan and Jayakrishna, 2019). The living

standard of the workers has also been affected because they have lose their jobs. The
company is not able to bear the expenses of their employees due to which they cut down
around 29 % of the workforce from the business.
 Losses in the company's cash book :- after the arisen and during the pandemic company
face big losses. As the books of the company made on quarterly bases, the quarter profits
of the company has been turned into losses because of this pandemic. Along with this the
efficiency and the performance of the company in the market has been declined.
Assess survival and success factors for the industry with consideration to mega trends
The growth and performance of the company in the competitive marketplace has been
affected in a very negative manner because of this current outbreak. In order to survive in the
market or enjoy the competitive advantage over their rivals it is very important for the company
to make and chose proper strategies and policies to deals with this global pandemic in a very
effective manner. Company have to make changes in their product and services or along with
this company may have to make changes in their different business and strategies. By doing all
these things they can increase their market share, profit, performance, productive and most
importantly deal with this pandemic in a very effective manner(Mohiuddin and et. al., 2018).
Along with this they bare able to enjoy the competitive advantage over their competitor in the
global market. There are various survival and success factor which are present in front of the
organisation in consideration with mega trends which improve the overall performance of the
company in the market. In relation to the Aston Martin company, following are the survival and
the success factor which improves the over all performance of the company has been discussed
below :-
 Artificial Intelligence is being considered as one of the most growing mega trend which
can be used by the company. With the use to this mega trend the performance of the
company has been enhanced and along with this they are able to enjoy the competitive
advantage over their rivals. With the came of AI within the industry the way of carrying
out the task has been changed. The use of AI with robotics has made a huge impact on
the performance. Along with this revolutionise has been seen in the supply chain and
manufacturing activities of the company. In context to the Aston Martin, the management
of the company have to focus on AI and robotics in their functional and operational
activities of the company in a very effective and smooth manner. With the use of this

mega trends with their business they can deal with the impact of COVID 19 effectively
which improves their pandemic.
 Zero waste manufacturing strategies is also being considered as an important mega trends
for the business which can be used by the organisation in order tom enhance their
performance in the market(Sharma, Kumar and Park, 2018). With the help of this mega
trends the organisation is able to minimise their wastage in their different business
activities which ultimately helps the firm to improve their performance in the market.
Different types of organisation face the problem related to minimising their production
cost, so company like Aston Martin, can reduce their manufacturing cost with the use of
self optimising manufacturing.
 The another mega trend which improves the performance of the company is technology
advancement. The immense use of digital technology and social medial platform help the
firm to communicate with their customers in a very effective manner which increases
their customers base(Yun and et. al., 2019). With the use of these platform they can
easily face the COVID 19 situations. In context to the Aston Martin, it is very important
for the company to increase their focus on social media and digital platform like
Facebook, Instagram, Twitter and many more which helps them to improves their
performance in the market. As with the use of these platform the interaction of the
company with their consumer has been increases, they have the chance to grow their
customer base which ultimately improves their performance in the market.
CONCLUSION
From the above report it has been concluded that it is very important for the management
of the company to analyse the environment in a very effective manner. By doing this they are
able to face the challenges and complexities in the global market and make effective strategies
and policies to grow in the market. It also been concluded that Pestle analysis framework has
been used by the organisation in order to analyse the external environment. This report also
concluded the problems which are face by the Aston Martin after the arisen of COVID 19.

Afterwords this report also concluded the various survival and success factor which can be taken
into consideration in respect to mega trends which improve the functions of the company .

REFERENCES
Books and Journals
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Chen, M and et. al., 2018. Cognitive internet of vehicles. Computer Communications, 120,
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marketing strategies in a pandemic crisis. Industrial Marketing Management, 88,
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technology and lean-agile manufacturing. Journal of Manufacturing Technology
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the adoption of driverless cars. Journal of Engineering and Technology
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Sharma, P.K., Kumar, N. and Park, J.H., 2018. Blockchain-based distributed framework for
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Yun, J.J and et. al., 2019. The role of a business model in market growth: The difference
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