Significance of elements of General Environment for German Car Industry

Competitive
Strategy

Contents
Significance of elements of General Environment for German Car Industry...........................................3
Building of effective relationships with the customers by David Jones...................................................4
Environmental trends to be considered by Walmart for entering the market of China..........................4
Competitive issues faced by General Electric in management of Cooperative strategies.......................5
Challenges of an acquisition....................................................................................................................6
Responsibilities of the leadership............................................................................................................6
REFERENCES................................................................................................................................................8

Significance of elements of General Environment for German Car Industry
A business is influenced by a number of factors. These can include both external as well
as internal factors. Thus these factors which can affect a business in both positive and negative
way comprise its environment (What Is Business Environment?, 2020).
There are different elements in the general environment which can create an impact on
the German Car Industry. These are explained as follows-
Political elements- These are crucial to be considered by the businesses because they are
required to make sure that they prepare a strategy to deal with the political forces effectively and
efficiently (Agyapong, Ellis and Domeher, 2016). For the German car industry, these elements
are important because political stability in Germany will be quite crucial for this industry to be
able to make higher-level of profits in the future time period.
Economic elements- These are important for being considered by the businesses because
economic conditions are quite dynamic in nature and can change quite quickly. Therefore for
German car industry, it is very crucial that the economic conditions remain favorable for it which
will allow it to earn higher-level of profits in the future time period.
Social elements- They are necessary for being considered by the businesses as there can
be various types of significant changes which keep on happening within a society. For the
German car industry, there is a requirement to ensure that the social elements remain in its favor
so that sustainable level of success can be attained in the future time period.
Technological elements- They are quite important for the businesses as in technology
there are different sort of dynamic changes (Danso and et.al., 2019). Thus it is very important for
German car industry to keep itself up-to-date with them so that it is able to provide satisfaction to
the various customers effectively and efficiently.
Environmental elements- They are crucial to be considered by the businesses because
the customers have become quite conscious towards the environment. They want the companies
to be environment-friendly by making significant changes to their approach. Thus for the
German car industry, it is important to introduce environment-friendly technology in the cars to
remain competitive in the market.
Legal elements- They are important to be considered by the businesses because the firms
are required to consider the laws of the country in which they operate which are framed by the
government (dos Santos and et.al., 2017). Thus, it is important for the German car industry to be
able to comply with the legal requirements which have been set by the government of the
country in which its various companies are operating.