Analysis of Macro-Environmental Factors Affecting Volkswagen

CAR MANUFACTURER
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Application of PESTLE model to identify and discuss macro-environmental factors that
affects selected business..............................................................................................................3
Application of SWOT analysis to identify key strength and weaknesses..................................5
Recommend course of action for chosen organization by creating SMART objectives.............7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9
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INTRODUCTION
Business environment defined as collection of individuals, factors and entities that may
or may not be under the control of organization. However, this can hugely impact performance,
growth, profitability and survival (Phadermrod, Crowder and Wills, 2019). It is defined as set of
elements that is closely linked with business activities.
The present report is based on business activities of Volkswagen that established in 1937
by the German labour front. It is industry that deals in automotive industry. This is leading brand
that is world largest automobile manufacturer.
Furthermore, current environmental factors will be analysed with use of tools such as
PESTLE and SWOT. Lastly, recommendation will be given for chosen enterprise by creating
SMART objectives.
MAIN BODY
Application of PESTLE model to identify and discuss macro-environmental factors that affects
selected business.
This is defined as framework that analyses the components such as political, social,
technological, legal and environmental. Therefore, these are outlined in following context as
are-:
Political- The significance of political components in relation of business has grown heavily
within 21st century. In the current era, the political forces are continually increasing and this also
plays crucial role within area of international business (Büyüközkan and Ilıcak 2019). It is the
company that have strong supply and distribution network around the globe. Therefore, the one
of the negative impact is that political oversight has increased and automotive brands are under-
pressure as compare to decade or two ago. In addition to this, Brexit can also create situation of
uncertainty and this can give rise to complexities for large and global business brands. In
addition to this, the political environment of Asian market remained stable during recent years
and that led to faster the growth of automotive brand that includes Volkswagen.
Economic- The components can have direct effect on the business and its highly affects the
demand of the enterprise. Fluctuation within economic environment results into decline
economic activity that leads to decreased in demand and losses. In addition to this, Volkswagen
primary target market is social upper that prefers drive luxury and semi luxury vehicles. During
the period of declined economic activities the demand of the vehicle highly affected and this also
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