The Global Business Environment

THE GLOBAL BUSINESS
ENVIRONMENT
Contents

INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
(a) Identification of new and emerging business opportunities in production and marketing of
electric cars..................................................................................................................................1
(b) Identification of the business that linked to global automotive sector and not able to offer
profit in the long run to invest in.................................................................................................3
PART 2............................................................................................................................................5
(a) Explanation of the major forces that shaping the business environment of the car
manufacturing industry................................................................................................................5
(b) Critical assessment of the organisational and other changes that may take place in future...8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The global business environment is categorised in to external and internal environment
which is also known as macro and micro business environment. It can an environment in which a
corporation can operate its business at global level and international market in term of fulfilling
the need of international consumers of the venture by offering products and services as per their
demand and necessities (Hamilton and Webster, 2018). This assignment is based on Volvo cars
which are a Swedish luxury vehicles brand and a subsidiary of the Chinese automotive company
Geely. This venture was incorporated in 1927 and is headquartered in Gothenburg, Sweden. This
written report will explain about major process shaping the business environment and assessment
of organisational and other changes that may take place in the future.
PART 2
(a) Explanation of the major forces that shaping the business environment of the car
manufacturing industry
When an organisation operates its business globally then there are different components
and forces that shaping the business atmosphere of the firm which operate its business in a
particular business environment. Volvo is an international firm that operate globally so there is
number of factors that shaping the business of it. To get information about those forces the
venture can use External and internal analysis framework. The explanation of them is as under:
PESTEL analysis
It is a tool and method through which the venture familiar with the factors that influence
the business of company in global business environment. With the help of this analysis, the
management of Volvo can have a clear image of the changes in macro environment. The brief
explanation of this framework is as below:
Political- This factor consist different elements like political stability or instability, foreign
exchange, trade restrictions, taxation policies, foreign trade policy, labour law and many more. In
context of Volvo, the main forces and components that highly influence the business of this firm
are high regulation on the automotive sector, huge taxation on trade and stringent regulations for
the automotive industry (Hudakova and et. al., 2018). Cause of current situation of pandemic the
business of respective sector also influence as the political changes occurred and the national
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