Business Environment and Entrepreneurship
Added on 2020-09-08
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BUSINESS ENVIRONMENT
Table of ContentsINTRODUCTION...........................................................................................................................1Assessment 2....................................................................................................................................15.1 Task............................................................................................................................................1Impact of macro and micro environmental factor's.....................................................................1Analysis of internal business environment:................................................................................4Reflection of Porter's 5 force model:..........................................................................................6CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................9
INTRODUCTIONThe business environment is very essential for the better growth of the organisation in amarket. The effective business environment helps the company to perform its businessoperations in very significant an effective manner (Armstrong and et.al., 2015). For this report,in the first task the auto mobile industry is been taken with cars as the sub sector. For the secondtask, Toyota is been taken as organisation of context, in the report. In this report, we will conducta PESTLE and Porter 5 force model to identify the influence of the macro and microenvironmental impact on the auto mobile sub sector of the economy of the nation. Besides this,the internal business environment of the cited firm is been taken into consideration using thevalue chain model. Other than this, the usefulness of the 5 force model is been reflected in thereport (Botha, Kourie and Snyman, 2014).Assessment 25.1 TaskImpact of macro and micro environmental factor'sThe business is deeply impacted by the various internal or external i.e. micro and themacro environmental factors that are been present in the Auto mobile sector. Basically the automobile sector consists of the various sub sectors like cars, motorbikes, trucks etc. but the majorpart of the auto mobile industry acts in the manufacturing of the cars. The cars have been themost important part of the auto mobile industry and is the biggest sub sector of this industrialsector (Belás and et.al., 2015). Thus, it is deeply susceptible to the impacts of the changes in themacro and the micro environment of the auto mobile industry. The macro environment of thesector can be identified by the PESTLE model whereas the micro environment can be assessedusing the Porter's Five force model. The assessment of these factors will help the company tomake the suitable changes in the various operations of the company in order to sustain thevarious changes.The PESTLE and the Porter 5 Force model that affects the Auto mobile industrial sector is asfollows:PESTLE Analysis: This will help in the assessment of the macro environmental factors on theAuto mobile industry which consists of the various factors such as:Political: The political factors plays a very deep and significant role in the manufacturingof the cars by the auto mobile industry. The change in the political conditions on the1
national or the international level will lay a very deep impact on the various operations ofthe cars manufacturing by the auto mobile industrial sector (Epifanova and et.al., 2015).The good and supportive political factors will lead to the rise in the better and increasedproduction of the cars by the various organisations in the auto mobile industry. On theother hand, the negative and non supportive government on the local, national orinternational level will lead to the decrease in the production by the auto mobile industry.Besides this, the various governmental policies will lay a very deep impact on the overalloperations of the company.Economic: The economic conditions also has the deep impact on the various sort of theoperations of the car manufacturing by the auto mobile industry. The weaker or thedepressive economy on the national or international level will deeply affect theproduction and sales of the cars and may lead to its reduction (Bah and Fang, 2015).Contrary to this, the good and growing economy will support the production of the carsby the auto mobile sector and will further lead to the better production and selling of cars.Social: The social factors of the location also has a very deep impact on the variousoperations that are been taken into the consideration by the auto mobile industry to carryout the operations in a better way. The auto mobile industry has to take into theconsideration the suitable measures to meet any sort of the challenge that is been causeddue to the social environment of the locality or on a global level. Technological: With the advancement in the latest technologies on the regular basis, theauto mobile industry has to look after the adoption of these technologies to make the carsmore advanced and suitable to meet the changing demands of the customers in a veryinnovative way. Other than this, the auto mobile industry can also adopt the latesttechnologies to improve the manufacturing and production process (Savrul, Incekara andSener, 2014).Legal: The auto mobile industry has to look after the various legal obligation that is beenset by the government or the legislation of the country in regarding to the carmanufacturing. The auto mobile industry should look after that the car must meet thevarious safety standards and measures that are been set by the various agencies or thegovernment. Besides this, the industry should also look after the avoiding of the variouslegal issues to maintain the productivity.2
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