Environmental Analysis of Automobile Industry for Aston Martin

Environmental
Analysis of Automobile
Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTLE analysis....................................................................................................................1
SWOT analysis.......................................................................................................................1
Porter’s Five Forces................................................................................................................2
Value chain analysis...............................................................................................................3
Porters generic strategies........................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Environmental analysis referred as the strategic tool that undertake several activities like
analysis of both internal and external factors of environment that has power to impact business
functionality and performance. Effective analysis of suitable factors leads to enable business to
take the prominent decisions and formulate strategies which are helpful for business to achieve
suitable goals and objectives in given period of time with proper efficiency. Automobile sector
comprises the several organisations that undertake the proper designing, marketing and
manufacturing and selling motor vehicles (Valentini and Kruckeberg, 2018). For this report,
Aston Martin is considered which is a British automobile company deals in sports car which is
established in 1913 by Lionel Martin and Robert Bamford situated in England, UK. The report
leads to cover suitable challenges which are being faced by company from internal and external
business environment. Moreover, PESTLE analysis, SWOT analysis, Porter’s five forces,
generic model and value chain analysis is being explained in terms of Aston Martin.
MAIN BODY
PESTLE analysis
This framework is useful for business to identify the factors that can put huge impact on
the performance of company and also present outside business. It also undertakes different
factors like interference of government on business, factors regarding culture and society and so
forth. These external factors are discussed as underneath:
 Political: These factors leads to create huge impact on Aston Martin because of Brexit
that bring uncertainty occurs in political environment in UK also made several changes in
their concerning rules and norms. These changes in rules leads to create issues for
company as they need to consider these factors (TRAN, HOANG and NGUYEN, 2020).
Further, because of the inequality in UK, there are several changes that occur in taxation
policy which create huge impact over the profitability of company.
 Economic: These are factors which are related to exchange rate, interest rate, labour rate
and also leads to impact on the cost of company. For this, the skilled labour in UK are
available in high number that can create effective opportunity for Aston Martin to offer
quality products to their respective customers. There is high risk because of change rate
that can put huge impact in terms of creative and overall investment of company.
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