Positive and Negative Impact of Macro Environment on Aston Martin

This presentation discusses the positive and negative impact of macro environment on Aston Martin, including political, economic, social, technological, legal, and environmental factors. It also includes an analysis of Aston Martin's strengths, weaknesses, opportunities, and threats, and the interrelation between strengths and weaknesses with external macro factors.

ASSIGNMENT
LO 3

TABLE OF CONTENTS
 INTRODUCTION
 P4 Positive and negative impact of macro environment
 P5 Internal and external Analysis
 P6 Interrelation between strengths and weaknesses with external macro factors
 CONCLUSION

INTRODUCTION
 Business environment is the overall environment of an organisation in which the
business operates. It consists of micro and macro environment which have an impact
on the business. In this report Aston Martin is taken as an organisation, which is a car
manufacturing company of U.K.
 This report discusses about positive and negative impact of macro environment and
strengths and weaknesses of the organisation.

P4 Positive and negative impact of macro environment
In order to identify the positive and negative impact of macro environment on Aston Martin PESTLE
analysis is the best way which includes:
 Political factors: Political factors includes the laws, legislation, competition policies, taxation
etc. UK's government is stable and supportive government but still political factors have both
positive and negative impact on Aston Martin for example
 Positive impact- UK government is helping the companies who are weak players in automotive
industry through a program Automotive Assistance Program (AAP)
 Negative Impact- Brexit will have negative impact on Aston Martin as it will create problems for
Aston Martin in importing the parts form other European Countries due to Brexit.

Cont..
 Economic Factors: It includes the trade, labor force, wealth, trade, inflation and growth
etc. These Economic factors are very important for the organisation and have a strong
impact on Aston Martin for example
 Positive impact- Increasing Liberalisation in the trade policy of UK can be beneficial for
Aston Martin due to liberalisation Aston Martin Lagonda can make investments in those
regions which are off-limits for the company.
 Negative Impact- The exchange rates of UK can have a negative impact on the investments
plans of Aston Martin Lagonda not only for the short term but for the long term too.

Cont..
 Social Factors: Social factors includes the demographics of the population, lifestyle,
backgrounds, age, gender, trends etc which can effect the sale figures of Aston Martin. For
example.
 Positive impact-According to the recent research most of the population in UK are above the
age of 45 and there is an opportunity for Aston Martin to produce the vehicle for small and
nuclear families.
 Negative Impact- With the increase in liberalisation in UK is making the health and safety
policies lax, Aston Martin have to stay for negative attitudes as the cost failures are too high
in Britain.

Cont..
 Technological Factors: UK is the one of the most innovative car producing company
in the world. So this factor have a huge impact on the organisation for example
 Positive impact: Latest technologies based innovations can help Aston Martin to attract
the potential customers as people are switching to those cars which are technically
more innovative.
 Negative Impact- Technological developments has transformed the customers
expectations therefore Aston Martin have to spend more on making innovations in
order to meet and manage customers expectations.

Cont..
 Legal Factors: There are many legal policies in UK which have a strong impact on the
organisation and it is compulsory for the organisation to meet these factors like fitment of
electronic stability control and also the Tyre pressure monitoring system. Its negative and
positive impacts are
 Positive impact: Aston Martin has been successful in protect the copyrights, patents, and
other IRP rights which has made the company more stable as compared to its competitors.
 Negative Impact: Data protection laws of UK as impacted privacy issues and intellectual
property rights, and Aston Martin depends upon the mechanism of UK in order to protect
against the data breaches.

Cont..
 Environmental Factors: These factors includes the petrol and gasoline usage and co2
emissions which have a negative impact on the environment.
 Positive impact: Aston Martin has not only adhering the environmental laws but also
has been able to create awareness among the customers which gas added its brand
image but has also become a responsible stakeholder in community.
 Negative Impact- If co2 emission rate is too high a company will be charged with tax
charges.

P5 Internal and external Analysis
For conducting the internal and external analysis of the Aston Martin SWOT analysis
is the best way it includes Strengths, weaknesses, opportunities and threats of the
organisation. Swot analysis of Aston Martin is conducted as follows:
 Strengths: Aston Martin is considered to have a strong brand image and has high
brand equity. It has got strong engineers team and also a strong car designing team
in UK which are assuring powerful and stylish range of cars for Aston Martin. A
company produces the cars which are luxurious and full innovative technological
features. Strong marketing and branding through advertisements.

Cont..
 Weaknesses: Aston Martin has got limited product portfolio and has comparatively less
market penetration. Aston Martin is paying extra costs for building new supply chain
and logistic network and is bearing a high cost of replacing existing experts.
 Opportunities: Aston Martin have an opportunity to expand its business across various
countries which they have not yet entered. It has also got an opportunity to attract more
customers through competitive pricing policies. Company can also increase its market
penetration through increased promotion and extensive distribution.

Cont..
 Threats: Brexit is a threat for Aston Martin as it will create restrictions for making
trade with other European countries. Increase in the cost of fuel is posing another threat
for the organisation due to which company have to make fuel efficient cars. Strict
government policies and tax rates due to Brexit will lower the sales of Aston Martin. It
is also facing huge competition from strong player of automotive industry.

P6 Interrelation between strengths and weaknesses with external macro
factors
Strengths and weaknesses Interrelationship with external macro factors
Strengths
 High brand equity and strong legacy
 Strong engineering and designing team
 Strong branding and marketing through advertisements
 Luxury and comfort
Due to Aston Martin's strong brand equity and legacy it can easily enter in
different markets across the world. Also with strong engineering and
designing team it would able meet the expectation of the customers easily also
it would be able to make innovations in order to meet the technological
challenges. Due Brexit Aston Martin has the capabilities to penetrate other
countries except European countries due to strong branding and marketing
through advertisements. Due to its strengths it can overcome the challenges of
external macro factors like political, social, technical, economic challenges and
can make it more stable and competitive automotive company of UK.
Weaknesses
 Limited product portfolio
 less market penetration
 Extra costs of replacing existing experts
 Extra costs in building new supply chain and logistic network.
It is important for Aston Martin to overcome its weaknesses in order to
minimise the impact of external macro factors. Due to its limited portfolio and
less market penetration Aston Martin will not be able to enter in different
market and also have to meet the demands and expectations of the customer in
different markets. Aston Martin has to build a strong supply chain network
which has been effected by the alteration in the business model this has
decreased the dealer network. As Aston Martin depends on the UK robust
mechanism of data protection but company has replaced existing experts in the
organisation which has made its security factor more vulnerable to breach. So it
is important for the company to minimise its weaknesses to meet the challenges
of external macro factors.

CONCLUSION
 It can be concluded that with the help of Pestle and swot analysis Aston Martin can
meet the challenges of internal and external factors business environment which can
help the company is gaining the competitive advantage and smooth functioning of
business across UK and rest of the countries.

REFERENCES
 Australia, M.B., 2017. Change Process.
 Avram, V.S., 2017. New Trends and Issues Proceedings on Humanities and Social
Sciences.
 Baker, M.J. and Hart, S. eds., 2016. The marketing book. Routledge.
 Simkin, L., 2016. 11 Segmentation. The Marketing Book, p.271.