Electric Vehicles in Europe

Electric vehicles in
Europe

Table of Contents
INTRODUCTION...........................................................................................................................3
PART -1 ..........................................................................................................................................3
A) PESTEL ............................................................................................................................3
B) Porters Five Force .............................................................................................................6
C) Organisational Changes.....................................................................................................8
D) Reasons for organisational Changes ................................................................................8
Conclusion .............................................................................................................................9
PART- 2...........................................................................................................................................9
A) Porters Value Chain and Conclusion ...............................................................................9
B) New business opportunities ............................................................................................11
Conclusion ...........................................................................................................................12
PART -3.........................................................................................................................................12
CONCLUSION ...................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
In this present marketplace, majority of the organisation are familiar with the aspect of
global business environment as it help them to enlarge their market share or size across the
globe without any trade barriers. However, the term global business environment is referred as a
accumulation of multiple sovereign nations outside of the organisation home environment and
directly impact over company's decision making in regard of allocating the resources for
attaining sustainable growth in an trenchant and expeditious manner. Company's operating
situation is depend upon on both factors i.e. internal and external which influence organisation
overall productivity and profitability ratio (Abreu and et.al., 2019). In addition to this, the aspect
of global business environment assist an establishment to place their brand in an aggressive and
competitive position in a stipulated time education without any hindrances. However, in regard
of this project, Toyota company has been chosen which is a multinational and branded
automotive manufacturer in Japan. It is established in the year of 1937 and deals into various
products like auto-mobiles, luxury vehicles, commercial vehicles and engines across the globe
in a innovative style. Hence, this study involves PESTLE analysis to analyse external business
environment, application of Porters model to evaluate competitive position, determine the reason
for organisation change. Furthermore, implication of Porters Value Chain and finally identify
business opportunities for enhancing the firm's profit margin ratio.
PART -1
A) PESTEL
Business environment is a sum total of internal and external factors that impact over
organisational potentiality in implementing best strategic decision making for obtaining profit
maximisation. However, PESTLE analysis are considered as strategic management process as it
enable an establishment to determine external macro factors like customers, competitors,
government, suppliers and etc (Ali and Amin, 2014). in order to gain competitive advantage in
competing marketplace within prescribed time period.
In relation to Toyota, the industry where it operates its business function is highly
competitive and challenging that effect on its profit margin ratio. Company also deals in electric
vehicles and there is no doubt that in last two years this industry achieve an massive growth. Due
to increase sales of electric vehicles market share of electric vehicles moved up above 1%.

Regulations and policy create a scenario that support the manufacturing of electric care and
allowed this market to grow. It is very essential for Toyota to ensure continuous innovation in
technology I order to increase the number of profits. Various elements of environment are there
which affect the functioning of company’s operations. Therefore, Toyota makes an initiative in
imply PESTLE analysis into its functional unit are as follows:
Political: Under this factor, it comprises government policies, regulation, rules, political
stability and so on which effect over organisation productivity ratio. However, in relation to
Electric Vehicle Industry, government are taking initiative to promote the EV across the Europe
in regard of reducing emission of CO2 and Nox for improving the performance of transport .
For this context, government impose various policies, subsidies on enriching both demand and
supply as they are targeting to reduce 95 g CO2/km cap by 2020. Therefore, to manage such
pressure of government in better way, Toyota can make use of mobilising program of
government as they invest impressive portion of amount in enriching EV infrastructure in Europe
i.e. charging stations, special parking spots and etc. With the adoption of such mobility program
of government Toyota can easily address the environmental issues, congestion problems and so
on in an innovative style. Along with this, company can also improve its demand level as
several European government and cities like Norway, Denmark, Netherlands are incentivizing
consumers to choose electric mobility vehicles. However, Toyota can come up with attractive
package of subsidies in EV vehicles that lead them to increase its sales performance among
competitors (Alhassan, Kuwornu and Asare, 2019).
Economical: In this, it involves economic growth, deflation, exchange rates, inflation ,
deflation and etc. that influence company's capacity to attain sustainable growth in a better way.
However, in context of Electric Vehicle Industry, it has been evaluated that without imposing
subsidies or other benefits on EV car, it is difficult for organisation to capture the attention of
consumers towards the brand. For this regard, Toyota can utilise the subsidies which European
government implies over EV vehicles i.e. producing the vehicle in cheaper rate compare to ICE.
Additionally, delivering other benefits like parking permits in dense urban areas and driving
buses or taxi in separate lane that save time during rush hours (driving and usage benefits).
Hence, due to the adoption of such mobility initiatives, Toyota firm can maintain its sales growth
to survive within competing marketplace. Furthermore, establishment can retain its existing
customer and also assist them to attract new consumers towards the brand that enrich its overall