Factors Affecting Electric Vehicles in the Automobile Industry

Electric vehicles

Table of Contents
INTRODUCTION...........................................................................................................................1
Explain PESTEL environment factors at work in industry in relevance with case study......1
Discuss knowledge and understanding of theory...................................................................3
Provide knowledge of national & international aspects.........................................................3
Describe understanding of competitive environment and explain Porter five forces framework
................................................................................................................................................4
Discussion of criticism/ limitations of theory........................................................................5
Examine knowledge of national and international aspects.....................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Automobile industry from past many years have been gone through many drastic changes
and bring invention and innovation in their operations to emerge out as a global leading industry
(Montalván, 2019). Electric vehicles are a particular segment in automobile industry which
demand is increasing at constant rate. Present report has been made on Volvo, company offer
their services with having it’s headquarter in Sweden and strong base of distribution channel
network. In this report formative discussion has been made on factors in external environment
that have significant impact on business operations. Along with this Porter five force model is
also included in present report through which entity can evaluate different aspect and gain
significant advancements.
Explain PESTEL environment factors at work in industry in relevance with case study
PESTEL Analysis-
It has been identified that United Kingdom automobile industry is world famous and
recognised as leading sports car manufacturing industrial segment in which companies like
Jaguar, Volvo and other operate their services (Reinhardt, 2017). With having 71.6 million dollar
turnover automotive industry in the year 2015 emerged out as a leading industrial segment.
There are different types of factors that shape business environment of car manufacturing
industry which is being defined below with the assistance of pestle:
Political factors-
In this force like legislations, competition laws, policies related to automobile industry,
taxation policies and more are included. United Kingdom is offering stable and supportive
environment for car manufacturing industry and also provide assistance to weak player in
industry with the assistance of AAP (Automotive Assistance Programme). Due to brexit this
industry gets seriously affected. Along with this with the implementation of, Co2 emission law
by government also impact upon organisational functioning.
Economic factor-
It includes elements like distribution, inflation rate, interest rate, economic policies and
more. Organisations operate their services in car manufacturing industries are get highly affected
due to economic conditions prevailing in nation. This has been identified that United Kingdom
having high disposable income to which entity can maximize their profitability at great extent.
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