Business Environment

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
Key Issues...............................................................................................................................1
PESTEL and the two issues affecting the sub-sector.............................................................2
Impact on businesses..............................................................................................................4
Reflection...............................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

INTRODUCTION
Business environment is defined as the combination of whole internal as well as external
factors which influence a firm's operating situations. It involve factors such as customers,
suppliers, competitors and other (Bocken, Rana and Short, 2015). In this report, the the taken
industry is auto mobile industry. This is a vital part of UK economy having over £ 82 billion
turnover. Currently, there are more than 40 firms which manufacture vehicles into UK, ranging
from international volume car makers, van, truck as well as bus builders to specialist niche
players. in this industry about 168,000 individuals are employed directly into manufacturing as
well as in excess of 823, 000 across the broader automotive sectors, this accounts for 14.4% of
whole uk goods exports, value £ 44 billion and invest £ 3.75 billion each year within automotive
r&d (UK Automotive, 2019). For this report, the chosen company is Aston Martin which is
British independent manufacturer of luxury sports cars as well as grand tourers. Its headquarters
is in Gaydon, Warwickshire, England, UK. This report covers the key issues that impact sub
sectors of auto mobiles, Pestle models for categorising two issues, its positive and negative
impacts upon business. Apart from this, the two challenges that they faced are also discussed in
this report.
Key Issues
Key issues are considered as the highest priority problems which are impacting a
enterprises that develops the largest negative effects (Hair Jr and et. al., 2015). In approx whole
industry there are some issues or problem that they are facing and effects their business. In UK,
the auto mobile industry is the vital part of respective country economy for more than £ 82
billion turnover as well as £ 20.2 billion value added (UK Automotive, 2019). These industry
are facing various key issues such as Emissions woes, electric challenges, Brexit and others.
Some of the key issues are discussed below:
Brexit:
Within United Kingdom, the auto-mobile company has been warning repeatedly of the no
deal Brexit from the EU referendum in year 2016. Also, the investment in UK respective sector
have fallen in previous 2 years, slumping 46.5% in 2017 (Brexit key issues, 2019). The British
car plants rely heavily upon elements imported from EU while various finished cars they
generate are exported to European mainland. In case they are facing uncertainty in context of
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