Impact of Macro Environmental Factors on Volvo Cars

Eclectic Vehicles
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Contents
1. INTRODUCTION.......................................................................................................................3
2.PESTEL ANALYSIS..........................................................................................................3
2.2 Porter’s five forces...........................................................................................................6
3.Organization Changes.........................................................................................................9
4. Reason for organizational change......................................................................................9
5. Conclusion...................................................................................................................................9
REFERENCES..............................................................................................................................10
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1. INTRODUCTION
Business environment is a set of individuals, elements, entities and many other factor that
impact on the growth as well as performance of an entity. It includes both internal and external
factors that is technology, economy, social factor, customer, employees, suppliers and so on. In
order to analyse the impact of all this factors on business performance, the managers uses
different frameworks as well as strategies. It is important for higher authorities to consider all the
internal and external factors and their impact on growth and development. For the present report,
Volvo cars is taken into consideration. It is a Swedish luxury brand that was established in the
year 1927. The company head office is located at Gothenburg, Sweden and at present it offer
product in more than 12 countries worldwide. the company mainly manufactures SUVs (sport
utility vehicles) and ensure that quality and safety is given to the customers. With the change in
customer demand of electrified vehicles, the company will planning to launch electric vehicle
that is XC 40 Recharge by the end of year 2020. The report covers PESTLE analysis which assist
managers to know about the impact of macro environmental factors on performance of Volvo. In
addition to this, there is discussion about Porter’s five forces, which identify the competition
level prevailing at the marketplace.
2.PESTEL ANALYSIS
The PESTEL analysis is a successful marketing tool which is used to analyze and scrutinize the
external environment which is affect the company in various ways. External environment affect
the business organization and it is uncontrollable but PESTEL analysis is helpful in order to
identify factors which affect the business. This is very effective tool which is really helpful in
recognizing the threat and weaknesses by examine the Political, Economic, Social,
Technological, Environmental, Legal factors in the market. External environment is also
affecting the automobile sector because there is high level of competition faced by this sector.
Impact of external factors on Volvo cars in Europe is analyze below –
Political Factors - There are many political factors which affect the company like
government rules and regulations, control on trade, various allegations on import duties, tax
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