Key Issues in the Auto-mobile Sector

Auto-mobile
Sub-sector

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Key issues of Auto mobile sector............................................................................................1
2. PESTLE Model.......................................................................................................................2
3. Impact of key issues................................................................................................................3
4. Two challenges face by me and overcame while preparing the report...................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
A business environment is a set of element where consist of internal and external factors
like staff members, customer needs, supply and demand etc. These factors influence the function
of the business and impact in direct and indirect manner. It can be split in both a macro and
micro environment depended on the perspective (Hwang, 2016). Sum of these factors affect on
the business organisation environment and companies situation. To understand the concept of the
report selected organisation Roots Motor Limited which is British auto-mobile manufacturer and
major motor distribution and dealers businesses. It was established in 1913 by William and
Reginald Rootes. This report consist of issues of auto mobile sector, using PESTLE model to
explain reason. Along with define the impact of issues on the business and challenges.
MAIN BODY
1. Key issues of Auto mobile sector
The auto mobile sector is broad part of the UK economy where different types
organisations manufacturing of car and employed about 186000 people directly in excess of
856000. There are companies facing different types of issues that impact on the performance and
efficiency. Roots Motor Limited is part of auto mobile industry and manufacture cars and
corporate vehicles. In UK different types of issues faced by the automotive industry such as
innovation, customer preference, delay in payments, engine capacity etc. But the major issues as
well as problems that are faced by the automotive sub sector are continuous innovation and
decrease in number of vehicles purchased by millennials that highly affect on the business of the
industry in positive and negative manner (Gopalakrishnan, 2017). This industry face major
issues that affect in direct manner such as:
 Decrease in number of vehicles purchased by millennials: The major issue face by the
Automotive industry that millennials (aged 18 to 34) are not taking interest to buy
vehicles so demand decrease by 30% and the percentage without cars continuous to grow.
It is increasing because people like to live on their smartphones. They are checking 43
times a day their smart phones that impact on the automotive industry. Due to decrease of
demand that affect to business performance that under cover in the automotive industry.
The manufacturer different market analysis strategy to know the reason of decreasing
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