Micro and Macro Economic Factors in the Automotive Industry

BUSINESS ENVIRONMENT 1

Table of Contents
INTRODUCTION.....................................................................................................................................2
TASK 1.......................................................................................................................................................2
1- Micro economic factors.......................................................................................................................2
TASK-2.......................................................................................................................................................4
MACROECONOMIC FACTORS...........................................................................................................4
SUMMARY................................................................................................................................................6
CONCLUSION..........................................................................................................................................7
REFERENCES..........................................................................................................................................8

INTRODUCTION
Business environment term is defined as set of internal or external factors that directly
impact brands or company’s strategic management activities whether it is small or large. The
current assignment will be based on Autonomous Vehicles, which falls under category of leading
innovative products in the world. The study will explain micro and macro-economic factors in
the context of automotive industry that is capable to produce and design self-driving cars, which
in return increase its profitability. It will define political risk, security, environmental and social
elements.
TASK 1
1- Micro economic factors
In this category of factors varied element included that impact ventures and individuals as
well as sectors.
Competition-
Those factors that may put direct impact on management practices and activities are
several. For instance, competition within market place to produce top quality vehicles and to gain
competitive advantages is high, because each brand may give tough competition to each for
gaining their strategic aims and objectives (Williams, 2020). It factor may put negative impact on
automotive industry and organizations that has operated their ventures under it with key
resource, just to grow even better than other brands. It is one of the most strongest force in the
sector that may drive the attention of management towards conducting more attempts and in term
of rescheduling overall process according to current situation, where each company adopt certain
technologies, method and conduct attempts. It is the most strong force in sector more than other
that may impact business management and plans.
Suppliers –
Just like above, there are more factors accessible in the world of corporate, which may
influence or impact automotive sector and its products like Autonomous Vehicles. For example,
suppliers may put positive impact on industry because they are unable to increase price of each
activity which they conduct like supply and delivery of raw materials in term of vehicles part that