Factors Affecting Automobile Sector and PESTLE Analysis of Land Rover

Business environment

INTRODUCTION
Business Environment is sum or collection of all internal and external factors such as
employees, customers needs and expectations, supply and demand, management, clients,
suppliers, owners, activities by government, innovation in technology, social trends,
sustainability, market trends, economic changes, etc. This study which covers question such as
factors affect the automobile sector, PESTLE analysis of land rover, Positive impact on Business
and Negative impact of Business and reflection to understand what I went through for
completing the report.
Task 1
1. Key issues affecting the sub-sector.
United kingdom's automotive industry is a large industry where whole economy is based
on the automobile sector. Over the £82 billion turnover and adding £18.6 billion value to the
economy. There are factors which affects the sub- sector:
 Increasing costs- By increasing cost of the land rover as they manufacture one of the best
SUV's in the world. They also face such problems related to the costs increments. Which
reflects on the sales of there car selling which is getting changed. The whole industry is
suffering from the infarction because of the factors which affects the internal and external
environment of the company. Some companies have no option but to eat the cost and
some increase the prices of their products so that they can pass it to consumers and earn
from them. There are many types of cost which sometimes enables companies
success(UK Automotive International Competitiveness Study 2018, 2018).
 Fluctuating customer demand – customer have different expectations related to cars. The
demand of the customers changes according to the taste and preference. Factors such as
increase in the cost and increase in the parts of land rover which is quite expensive and
these parts have high duty on exporting them. Trends of the market changes and to be in
the market company needs to be more innovative and customer friendly(Hong Kong

Expects First Annual Recession Since Global Financial Crisis, 2019). Land rover have
2.64 percent market share in the market. Land rover have different SUV's in the market
which are available at different prices and according to customer fluctuating preferences.
TASK 2
PESTEL analysis of Land rover
Political factors of Land rover –
 the political stability is an important factor which affects the land rover if they are
planning and forecasting to grow their business, where some countries have issues with
the political views. Political views are different in when a company cross the
geographical boundaries. Government also make the decision making of the company.
Observation tells that because of stability which is maintained by political factors
countries earn the benefit from them. Land rover they don't maintain the stability then it
will disrupt the flow of economy.
 Changing government regulation is another major political issues that affect overall
working of companies.
Economic Factors of land rover
 land rover's methods of payment of production also can changed by the government
spending. The reduction in the investment of the government in the automobile industry.
The development of Land rover can be affected by the less borrowing and lending.
 Rise in the inflation rate of the economy where company has to make increment in the
profits(financial times, 2019). Increasing inflation rate is the issue for business
 Exchange rate fluctuation create problem in this sector because it increases trade cost of
the firm.
Social Factors of Land rover –
 social trends can effect on the business as they are keep changing . Land rover has to
behave and understand the and should be well aware of the religious values and beliefs of
the peoples living in the society. For example – christian workers are not required to
work on the Sunday and where muslin workers are given short period of time for their
prayers.
 Age is the major issues, changes in demographic feature change the perception of
consumers hence it affect the firms to great extent.