Macro Environment Elements and SWOT Analysis of London EV Ltd.

This report discusses the macro environment elements and their influence on the business operations of London EV Ltd. It also includes a SWOT analysis to identify the internal strengths and weaknesses of the company.

Business
Environment

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.Macro environment elements with their positive as well as negative influence on the
business operations.................................................................................................................3
2. SWOT analysis & its interrelationship with external factors.............................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business organization includes both internal and external environment which influences
the whole performance of the entity. Some of the elements such as customers, current trends,
technology, suppliers, environment condition and so on are the part of organization. In reference
to the present report, the base organization is chosen as London EV Ltd. The head office of the
company is located in UK and is established in 2013. The main aim of the organization is to
improve the business of the manufacturing car among UK. In the present report for examining
the external elements which influences the working of organization. For this PESTLE analysis is
going to be discussed along with SWOT analysis for identifying internal strength and weakness
of the company.
TASK 1
1.Macro environment elements with their positive as well as negative influence on the business
operations.
Micro factors- It refers to the element which influences the whole decisions making process,
strategies and performance of a business organization. It includes some factors which are
competitors, staff members, supporting services and many more. These are the factors which
assist business organization in order to accomplish their goals.
Macro environmental factors- Such factors have negative as well as positive aspects where
companies do not have any kind of control. For examining the influence of such factors it is
essential to know the trends available at the marketplace.
For examining macro environmental factors, management team of the company adopt
PESTLE analysis which are going to be discussed as follows:
Political: It refers to the factor which includes governmental interferences and highly
affect the business operations. In reference to London EV Company, it has been said that they
want to operate its business functions in UK. The political stability is good as well as the
government assist in minimizing the impact of environment on the business organisations.
Positive: It assist business entity in order to form strategies as well as policies and eliminate the
issues which arise due to politics.
Negative: The organization is facing ample number of hurdles when they need to following rules
formulated by UK government.

Economical: In reference to London EV Limited, it has been identified that economic
situation of UK reduces when BREXIT takes place. Therefore, buying power of the customers
get influenced in a negative manner.
Positive: Increase in economic situation of United Kingdom highly influence the overall sales of
the business organisation as the purchasing power of individuals increases.
Negative: If economic situation is not enhanced then the cost and time spent in the production of
cars is waste. Therefore, sales of London EV Limited reduces.
Social: Modifications in the social elements requires to change the strategies so that they
can perform their functions in an effective manner.
Positive: The individual of the society prefer modifications according to the changing
environment which enhance the sales of vehicles of the organization.
Negative: Regular modifications in the market trends as well as social trends might affect the
whole functionality of the company.
Technological: In relation to London EV Limited, individual of UK invest money in new,
unique and innovative things available at the marketplace.
Positive: Up gradation of technology helps in attracting large number of people towards London
EV company.
Negative: It refers to the most expensive manufacturing procedure which raises the overall cost
of London EV company Limited.
Legal: Higher authority of London EV company, follow all the legal policies and
strategies associated with the expansion of business organization. Which helps them in gaining
positive response at the new marketplace.
Positive: it increases the standard as well as good will of the company.
Negative: Modifications in the legal provisions due to BREXIT highly influence the overall
performance of the company.
Environmental: Management team of London EV Company adopt environmental
friendly raw materials while manufacture car in order to enhance the condition of the whole
environment.
Positive: The products of the company consume low fuel which highly attracts large number of
audiences at the marketplace.

Negative: If the organization did not adopt the laws then they need to give high penalties which
influences the overall revenue of company.
2. SWOT analysis & its interrelationship with external factors.
SWOT analysis is a framework that is used by company in order gain an insight about the
weaknesses and strength of company. In addition to this, it also assist in identifying opportunities
as well as Threat that has influence on performance of organisation (Luiz, Ganson and
Wennmann, 2019). The SWOT analysis is given below in relation to the London EV company:
Strength Weaknesses
 The company offer high quality
product in market that assist in
building loyal customer and retain
them for longer time frame.
 The company has high market share as
it involve in distribution and sales of
car parts, taxi designing, automobile
structure designing and many more.
 One of the major weakness is London
EV is still not able to reach globally so
it is required to invest on marketing
activities that occur cost to company
and decline profit margins.
 London EV is not having advanced
technology and due to this their
process is not updated as compare to
its competitors.
Opportunities Threats
 The company have the opportunity to
expand its business activities globally
that leads to increase in profit and
market share as well.
 London EV has the opportunity to
produce innovative car as it is
determine that people of UK is prefer
to buy products which is new and
innovative at market place. This will
help company to increase their sales as
well as profitability.
 One of the major threat is competitors
such as Land Rover, McLaren and
many that impact on their performance
level.
 The management team of company is
not able to develop effective strategies
due to which company is not able to
attain competitive advantage at
marketplace.
Interrelatedness among strength and weaknesses with external factors.

It is important for an organisation to identify internal and external factors along with their
influence on performance of company. This will help company to grab the opportunities and
decline the level of risk that leads to attainment of success and growth. The interrelation between
external factors and strength & weakness is discussed below:
Political impact-
Strength: The UK government is politically stable and support organizations to enhance
their business activities globally (Hamilton and Webster, 2018). It will help London EV to take
advantage of it and enhance their profitability level.
Weakness: Due to Brexit, the political condition of UK slow down and impact highly on
the manufacturing industries. In addition to this, it affect on car manufacturing companies as the
tax charges is increase by the government.
Economical impact-
 Strengths : The income level of people living in UK is high that leads to increase in sales
of London EV. In addition to this, it help company to gain higher profit and increase their
market share.
 Weaknesses : There is a possibility of decline in sales of London EV due to recession
that has negatively influence on productivity of company.
Social impact
 Strengths : There is increase in disposable income of people in UK and they prefer to
buy luxurious goods in order to increase their status in society. This impact positively on
sales and profit of London EV.
Weaknesses : There is changes take place in the taste and preferences of customers and effect on
the selling of organisation (Kozubikova, 2019). It is important for managers of London EV to
analyse customer requirements and market trends in order to maintain its sales and gain success
at marketplace.
Technological impact
 Strengths : The demand of Electric cars is increases as people prefer to use innovative
and new products coming in market. It has positive influence on the market share and
profit of London EV.

 Weaknesses : Technology is changing rapidly and therefore it is important for companies
to use new and advanced technology in order to sustain in market. it occur high cost to
company due to which the profit margin of London EV may declined.
Legal impact-
 Strengths : By adopting all the legal policies it has been identified that company creates
a strong image at the marketplace which increases their sales.
 Weaknesses : The legal provisions of every nation is quite different so companies
requires to modify them according to the changing situations. This requires time, cost as
well as effort.
Environmental impact-
 Strengths : With the help of eco friendly raw materials, management team of the
organization creates positive image which enhance their whole performance.
 Weaknesses: UK government is quite strict and charges penalties when these laws are
not followed by the managers of company.
CONCLUSION
From the above study, it is determined that it is important for an organisation to analyse both
external as well internal factors affect on their performance and productivity level. PESTLE
analysis is used by company in order to gain an insight about the impact of uncontrollable factors
that is macro environmental factors on the performance and activities of company. In addition to
this, SWOT analysis is used by an entity for analysing the weakness and strength along with the
threats and opportunities they have that leads to improvement and development of effective
strategies. It is important for higher authorities to identify both the negative as well as positive
impact of external factors in order to maintain productivity and attain objectives within stipulated
time frame.

REFERENCES
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