Key Issues in the Automobile Sector

This report discusses the key issues faced by the automobile sector, including the impact of Brexit and the challenges of electric vehicles. It also explores the PESTEL model and its application in the industry. The report concludes with a discussion on the challenges faced in preparing the report and how they were overcome.

‘Key Issues in the
Automobile sector'

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Two key issues effecting Footwear sector...............................................................................3
2. PESTEL Model........................................................................................................................4
3. Discussion................................................................................................................................6
a. Positive impacts.......................................................................................................................6
b. Negative impacts......................................................................................................................6
4. Challenges faced and overcome in preparing reports..............................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The term business environment can be defined as combination of vital range of internal &
external factors which can effect companies financial and non financial performance (Capon,
2009). Thus, it is essential for business entities to focus on conduct proper analysis of
environment in which they exists. The aim of project report is to describe about key issues faced
by chosen sector. In the project report a company is chosen that is Lotus Cars headquartered in
Norwich, United Kingdom (Lotus Cars Limited, 2019). The company is involved in
manufacturing and offering a vital range of cars including racing cars, sports cars and many
more.
The project report covers main issues faced by this sector and its impact on chosen
business entity. Along with way to overcome from these issues is also covered under the report.
MAIN BODY
1. Two key issues effecting Footwear sector.
Overview of Auto-mobile sector of United Kingdom:
The Auto-mobile sector consists different kind of business entities that are involved in
manufacturing, distribution of vital range of electronic products to customers. In the aspect of
United Kingdom, most of the companies who have largest market shares are of Auto-mobile
industry (Comes, 2018). As well as this industry is expected to grow higher in upcoming time
period in a significant manner. Herein, below key issues faced by this sector are demonstrated in
such manner:
 Exit of United Kingdom from Brexit- The United Kingdom exited from the European
Unions which is occurring as a big challenge for all types of entities of Auto mobile
sector. This is acting as challenge for industries of Auto-mobile sector because before
existing of United Kingdom from Brixit, about 81% of vehicles imported and exported
in UK and European countries (Brexit affecting automobile sector, 2019). As after this
incident, demand of auto mobile products have been reduced that resulted as decreasing
in production level of business entities. As well as companies of United Kingdom are not
able to make any kind of financial and non financial transactions with business entities
of Europe. Along with another issue that raised because of exit of UK from Brexit is

regards to decreased value of Pound at global level and because of this, it becomes
difficult for Auto-mobile industry to make import raw material from rest of countries. As
a result cost of manufacturing products has been raised that is effecting to customers
purchasing power. So, it is the main issue faced by Auto-mobile industry of United
Kingdom.
 Issue regards electrical vehicles – It is being seen in recent time period that higher
consumption of cars and other vehicles resulting as negative impact on environment.
This is so because due to more emission of harmful gas, people are facing issue of
breathing in environment (Jian, 2012). Thus, this is essential for Auto-mobile industry to
offer electric cars on demand of customers that can prevent pollution. Herein, challenge
is that companies are not able to offer electrical cars because of vital range of obstacles.
Apart from it, in the United Kingdom there is large segment of customers who are not
ready to adopt these electrical cars because of weak body of cars. Another reason for
which, these electrical cars are not liked by customers such as poor battery backup, not
suitable for long distances. As well as it is not suitable for customers to have charging
options at different locations. Like in rural areas, electricity cut is a common issue and
these locations the electrical cars can not be successful. Same as if companies of Auto-
mobile try to export these cars in other countries then their customers will also face
similar issues. So, it is an another issue which is faced by Auto-mobile sector of United
Kingdom.
2. PESTEL Model.
PESTEL model – It can be defined as a kind of model or framework which is being used by
companies in order to analyse different kind of factors of external environment (LIU, 2012).
Hence, this is essential for business entities to sustain in competitive environment. Herein, below
in the aspect of chosen sector, Pestle analysis is done in such manner:
 Political- In this aspect of business environment different kind of rules, regulations,
government policies are included. These policies have significant impact on companies
performance (Sloman and Jones, 2017). Such as the above mentioned issue of “Exit of
United Kingdom from Brexit” is covered under the political factor. This is so because

political parties have decided to take away the role of United Kingdom in European
countries. Due to this the level of profitability has been reduced of auto-mobile sectors.
 Economical- Under this factor, various kind of elements are included such as interest
rate, inflation rate, exchange rate and many more. If these rates are changed then it
becomes difficult for companies. Like if interest rate increases then companies will not be
able to acquire higher amount of financial assistance from financial institutions.
 Social- The primary focus of the variable is to recognise new trends throughout the social
context (Magrogan, 2012). It involves population increase, life behaviours, importance on
safety and cultural traditions. The auto mobile business unit has innovated society by
providing auto-mobiles by recognizing the requirements of targeted clients and their
demands in order to make more and more profit.
 Technological: The pace at which technology innovates and advances also impacts the
automotive industry. It mainly includes developments to computer technology, science,
technical opportunities and automation. The issue of energy is classified within the
technical element as the increasing need for electric cars could only be fulfilled by
introducing technological advances in mobile cars. Experimenting in driverless and
intelligent vehicles is one of the challenges we face that most impacts the total sub-sector
for a certain auto wireless organizations.
 Legal: Knowing the legal implications and enforcing them outside the context of their
practices and services is essential to all business concerns (Ribó, 2016). Variables such as
competition law, discrimination law, labour laws, and trade-restricted actions fall
throughout the legal category.
 Environmental: In contrast to evolutionary elements, the effect of the atmosphere is
connected to environmental factors. This requires techniques for recycling, waste
management, climate, conservation and gas emissions. It becomes more important to
understand the designated sub-sector because it is regarded to be the main culprit in
damaging or destroying environments.

3. Discussion
a. Positive impacts
The main issues which are demonstrated above, have positive impact too on the chosen
Lotus Cars. This is so because the first issue of Exit of United Kingdom from Brexit can be
beneficial for above company. Due to this, companies will be able to research and make new
business relationship with other business entities of different nations (Nguyen, 2019). As a result
the above chosen business entity can become able to have more number of customers in different
nations. They have opportunity to access the market of Switzerland, China and many more
developed countries. Along with the demand of their products may increase due to more number
of transactions with companies various nations.
As well as the another issue regards electrical vehicles can also useful for above selected
business entity Lotus Cars. This is so because in current time period, their produced cars are not
liked by customers due to some minor error. If Lotus Cars will try to produce their cars by
making some useful modifications, then it will be beneficial for them to attract more number of
customers. For this the above company is needed to make solution of issues in electrical cars. As
after updating their electrical cars, this may become easier for them to attract higher number of
customers.
b. Negative impacts.
Apart from the above mentioned positive aspects of key issues, there are some negative
impact too on above chosen business entity. Such as because of Exit of United Kingdom from
Brexit, this may create difficulties for them to shut down their entities that are located in Europe.
As well cost which is involved in different operations in European countries can lead to loss. The
company will needed to open new branches in new locations that can cause for higher cost. So
these are some key negative impacts of above mentioned issues.
Along with the another issue of regards to electrical vehicles can also create more
pressure on their performance (Pulcini, 2017). This is so because if they will invest funds in
order to make advancement in their techniques of electrical cars then they will need higher
amount of cost. As well as this is not guaranteed that after making modification in cars their sales
will increase. It is so because this can be difficult for companies to satisfy their customers about
newly launched electrical cars. In addition, to make modification in electrical cars the above

company will be needed highly skilled employees who can bring new changes in cars. These
overall may lead to higher cost to company.
4. Challenges faced and overcome in preparing reports.
This is common to occur different kind of issues during preparation of reports. It is so
because preparation of reports consists detailed research and analysis of data that leads to various
issues. Herein below some issues that are faced by me are demonstrated in such manner :
 Data collection – This was difficult for me to gather key data about topics of the project
report ( Rahmawati and Budiwati, 2018). The main issues during process of data
collection were selection of appropriate time period, lack of basic facilities, poor quality
control and many more.
 Searching authenticity of information – During preparation of reports which was faced by
me regards to find authenticity of information. This was very difficult for me to find
authentic source of information that have some evidence.
The above challenges were overcome through various ways:
 Scheduling activities : Scheduling balances the burden of the program and guarantees
fair distribution of resources in order to optimize according to the rules set. I scheduled
work during the collection of information and prioritized the required activities in order
to gather information within the specified period. I first set out a detailed plan involving
allocated time for specific activities, ranges of activities to be carried out, approximate
resources required for each operation and implemented the series of instructions that
enabled myself overcome challenges when gathering information.
 Taking support from others : I approached my supervisors and colleagues to seek
credible information sources, who supported me look for reliable sources.
From the obstacles that I face in the preparation of the study. I've learned how to manage my
time and knowledge properly.

CONCLUSION
In the end of this report, it has been founded that business and environment make a
intense impact on the overall business of any sector thus manager are required to make proper
analyse of different element of environment. Electric concerns and no Brexit settlement were the
crucial issues impacting the auto-mobile industry. The PESTLE framework is used to categorize
concerns and control developments in the macro climate that may have an influence on the job
sectors. The positive effects of these difficulties on the company are excess supply and
establishing stores in new areas although that make to increase cost and stresses on the sector
were exacerbated by negative effects of the same problems. When manager prepare reports, an
individual is faced with the problem of gathering information and finding the right source for the
information available.

REFERENCES
Books and Journals:
Capon, C., 2009. Understanding the Business Environment. 3rd Edition. Harlow: Pearson
Education limited.
Comes, E. N., 2018. Machine Learning Methods for Predicting Global and Local Crime in an
Urban Area (Doctoral dissertation, Illinois Institute of Technology).
Jian, L. and Yi, K., 2012. Fuzzy Matter-Element Proximity Evaluation Study of Regional
Industrial Ecosystem Health: A Case Study of Tianjin Binhai New Area [J]. Areal
Research and Development. 3.
LIU, J. and Et. Al., 2012. Concentration of caprolactam wastewater by using membrane [J].
Membrane Science and Technology. 2.
Magrogan, D., 2012. Life Cycle Assessment of Hemodialysis Treatments (Doctoral dissertation,
Tufts University).
Nguyen, A. T. and Et. Al., 2019. Factors affecting entrepreneurial intentions among youths in
Vietnam. Children and Youth Services Review. 99. pp.186-193.
Pulcini, C., 2017. Agent-based simulation of macroeconomic systems (Doctoral dissertation,
Universitat Jaume I).
Rahmawati, S. and Budiwati, C., 2018. Karakteristik Perusahaan, ISO 14001, dan Pengungkapan
Lingkungan: Studi Komparatif di Indonesia dan Thailand. Jurnal Akuntansi dan Bisnis.
18(1). pp.74-87.
Ribó, A., 2016. Essays in Economic Theory.
Sloman, J. and Jones, E., 2017. Essential Economics for Business. 5th Edition. Harlow: Pearson
Education limited.
Online:
Lotus Cars Limited. 2019. [Online]. Available through: <https://www.lotuscars.com/>
All about subsector. 2019. [Online]. Available through:
<https://www.ftserussell.com/data/industry-classification-benchmark-icb>
Brexit affecting automobile sector. 2019. [Online]. Available through:
<https://knowledge.wharton.upenn.edu/article/brexit-auto-industry/>