Environmental Analysis of an Industry: Impact of Pandemic on Automobile Industry and Survival Factors
VerifiedAdded on 2023/06/15
|8
|2419
|196
AI Summary
This report analyzes the impact of the pandemic on the automobile industry and identifies the survival and success factors of the industry. The report focuses on Volkswagen and discusses the impact of COVID-19 on its supply chain, cyber security, sales, strategy, workforce, liquidity, and techn...
Read More
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Environmental
Analysis of an industry
Analysis of an industry
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Table of Contents
INTRODUCTION ............................................................................................................................3
Impact of the pandemic on auto mobile industry..........................................................................3
Survival and success factors of the auto mobiles industry............................................................5
CONCLUSION .................................................................................................................................7
REFERENCES...................................................................................................................................8
INTRODUCTION ............................................................................................................................3
Impact of the pandemic on auto mobile industry..........................................................................3
Survival and success factors of the auto mobiles industry............................................................5
CONCLUSION .................................................................................................................................7
REFERENCES...................................................................................................................................8
INTRODUCTION
The environmental analysis refer to that activity in which the organisation undertake this
method in order to spot all the internal or external parts that may have an impact on the
organisational effectiveness. This method help the organisation to detect threats at an early stage
which assist the business in developing their strategies for their survival. To perform the
environmental analysis, it required a constant stream of the relevant information in order to find
out best action course. It ascertain that whether the objective are defined by the business are
accomplish able or not (Azeem and et. al., 2021). The firm chosen in this report is Volkswagen
that was founded in 1937. It deals in the commercial vehicles, auto mobiles, motorcycles, turbo
machinery and many more. this report will include the impact of pandemic on auto mobile
industry and develop the success or survival factors of that industry.
Impact of the pandemic on auto mobile industry
The pandemic in COVID 19 has had a swift and service impacts on the world wide
integrated automotive industry. This pandemic situation has there was a radically change in
product's demand in every sector. Auto mobiles sector is consider as a hug operational
organisation at global level. It is analysed that this industry get impacted adversely by the
pandemic. The COVID 19 had reduce their production, profit and company's growth. The
pandemic is disrupting worldwide auto mobiles value chain. The Volkswagen face a huge loss
because of the pandemic as it reduce their sales scale revenue. The respective company has
recorded a substantial effect of the pandemic on its business. In first three month of current fiscal
year, it deliveries to the customers were decreased by around 23.0% comparison to the same time
period of previous year to around 2.0% million vehicles. Its operating profitability before the
special items were decline significant by about 81.4% to the EUR 0.9 billion (Bonet‐Morón and
et. al., 2020). In context of the Volkswagen there are major impacts of COVID 19 on the auto
mobile industry which are mentioned below:
Supply chain- The auto dealers had to face many difficulties as they were unable to
transport their vehicle during the COVID 19 time period. The suppliers were facing
challenges of the liquidity that yield to fading current market circumstances as it had
The environmental analysis refer to that activity in which the organisation undertake this
method in order to spot all the internal or external parts that may have an impact on the
organisational effectiveness. This method help the organisation to detect threats at an early stage
which assist the business in developing their strategies for their survival. To perform the
environmental analysis, it required a constant stream of the relevant information in order to find
out best action course. It ascertain that whether the objective are defined by the business are
accomplish able or not (Azeem and et. al., 2021). The firm chosen in this report is Volkswagen
that was founded in 1937. It deals in the commercial vehicles, auto mobiles, motorcycles, turbo
machinery and many more. this report will include the impact of pandemic on auto mobile
industry and develop the success or survival factors of that industry.
Impact of the pandemic on auto mobile industry
The pandemic in COVID 19 has had a swift and service impacts on the world wide
integrated automotive industry. This pandemic situation has there was a radically change in
product's demand in every sector. Auto mobiles sector is consider as a hug operational
organisation at global level. It is analysed that this industry get impacted adversely by the
pandemic. The COVID 19 had reduce their production, profit and company's growth. The
pandemic is disrupting worldwide auto mobiles value chain. The Volkswagen face a huge loss
because of the pandemic as it reduce their sales scale revenue. The respective company has
recorded a substantial effect of the pandemic on its business. In first three month of current fiscal
year, it deliveries to the customers were decreased by around 23.0% comparison to the same time
period of previous year to around 2.0% million vehicles. Its operating profitability before the
special items were decline significant by about 81.4% to the EUR 0.9 billion (Bonet‐Morón and
et. al., 2020). In context of the Volkswagen there are major impacts of COVID 19 on the auto
mobile industry which are mentioned below:
Supply chain- The auto dealers had to face many difficulties as they were unable to
transport their vehicle during the COVID 19 time period. The suppliers were facing
challenges of the liquidity that yield to fading current market circumstances as it had
caused an extensive trouble in whole network of the manufacturing. In context of
Volkswagen, it has invested a lot of money in its supply chain network as it is long process
with many different suppliers. But, the pandemic has had a great impact on the company's
supply chain by close down its certain factories and endangering its entire process.
Cyber security- The automotive sector is technologically advanced sector with an
innovative ranging from the electric, hybrid and self drivers smart cars. Before the
pandemic, automatise industry were facing the operational inefficiency and other security
issues which lead to a cyber attacks, incidental losses, unnecessary casualties and the
inflated price for service and parts. In relation to Volkswagen ,there are two type of cyber
security's risk that are breached software company and the infiltration of the enterprise
network. These cyber security risk are correlated with COVID 19, these risk divided in two
impacts that are direct and indirect impact of COVID 19 related risk (Chaisse, 2020).
Sales- Pandemic impacted the auto mobile's sales badly. The new sale of China's vehicles
also have fallen by around 92% and the European's vehicle sales dropped by around 7.4%.
many companies had to obstructed their production sale because of the lock down. The
business of Volkswagen was impacted heavily due to COVID 19 in first 9 month of the
2020. it decline in its sales revenue, deliveries and the profit. Its sales revenue was fell
down by around 8.3% from the January to March to around EUR 55.1% (Ezeibe and et.
al., 2020).
Strategy- Due to the COVID 19, the vehicles requirement of customers got reduced for
short term. Volkswagen, due to a sharp fall in the customer's demand . Changes in the
customer attitude in response to being in pandemic situation such as more online shopping
and less mobility might remain after the passes of this crisis. Due to the low demand lack
of orders and problem of unavailability of part due to the delivery difficulties the
production line of German automotive OEMs were its stand and there was a temporary
shut downs.
Workforce- Bureau of the Labour Statistics analysed that the Auto makers and their all
suppliers generally used more than around one million individuals in US. This employee's
welfare is a major concern for the corporate leaders. Due to the pandemic many employees
get sick which resulted in a reduction of manufacturing capabilities. So apparent,
Volkswagen, it has invested a lot of money in its supply chain network as it is long process
with many different suppliers. But, the pandemic has had a great impact on the company's
supply chain by close down its certain factories and endangering its entire process.
Cyber security- The automotive sector is technologically advanced sector with an
innovative ranging from the electric, hybrid and self drivers smart cars. Before the
pandemic, automatise industry were facing the operational inefficiency and other security
issues which lead to a cyber attacks, incidental losses, unnecessary casualties and the
inflated price for service and parts. In relation to Volkswagen ,there are two type of cyber
security's risk that are breached software company and the infiltration of the enterprise
network. These cyber security risk are correlated with COVID 19, these risk divided in two
impacts that are direct and indirect impact of COVID 19 related risk (Chaisse, 2020).
Sales- Pandemic impacted the auto mobile's sales badly. The new sale of China's vehicles
also have fallen by around 92% and the European's vehicle sales dropped by around 7.4%.
many companies had to obstructed their production sale because of the lock down. The
business of Volkswagen was impacted heavily due to COVID 19 in first 9 month of the
2020. it decline in its sales revenue, deliveries and the profit. Its sales revenue was fell
down by around 8.3% from the January to March to around EUR 55.1% (Ezeibe and et.
al., 2020).
Strategy- Due to the COVID 19, the vehicles requirement of customers got reduced for
short term. Volkswagen, due to a sharp fall in the customer's demand . Changes in the
customer attitude in response to being in pandemic situation such as more online shopping
and less mobility might remain after the passes of this crisis. Due to the low demand lack
of orders and problem of unavailability of part due to the delivery difficulties the
production line of German automotive OEMs were its stand and there was a temporary
shut downs.
Workforce- Bureau of the Labour Statistics analysed that the Auto makers and their all
suppliers generally used more than around one million individuals in US. This employee's
welfare is a major concern for the corporate leaders. Due to the pandemic many employees
get sick which resulted in a reduction of manufacturing capabilities. So apparent,
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
appropriate and a clear communication to the employees are important, predominantly
when due to increased access to testing there is spikes in the number of all detailed cases.
Liquidity- In the pandemic situation auto mobile's financial companies face the burden
because of an increment in loan evasions, fallen in new loan, complexities in deciding the
credit value of customers. The cash becomes more critical in the pandemic time period.
The COVID 19 had put a tension upon the used cars, after market suppliers, mobility
solution etc. these financial challenges impact the transformational investment in
connected autonomous and the electrical mobility (Farina and et. al., 2019).
Technology- The global automotive market started to shrink in 2019 due to the pandemic.
When the automotive sector was hit by the COVID 19, the car industry of German was
facing a high overcapacity. There was a technological shift towards the electrical power
train effected the business result. In relation to the Volkswagen, it has faced many
difficulties due tot he new trend of autonomous driving and electric mobility. There was a
rise in the rend of e commerce. Because of the mandatory lock down and stricter measures
many customers went online for looking a new car.
Survival and success factors of the auto mobiles industry.
In rush of the modern, there are some growing tendency toward over complication. The
organsiatuio9n need to focus on key success and survival factors for bus9ienss growth. These are
knows as the critical success factors that are very essential elements which contributes t highest
result in achieving the organisational goals. Real success of the business key success factor to
grow a company is their ability of performance management ( Lichtenstein, 2020).
The COVID 19 pandemic has a great impact on the progress and performance automotive
industry. In relation of the consistency to success and survival in market it is essential for the
business management to take effective and appropriate action in order to outcome and resolve the
pandemic impact. When the COVID 19 led to restriction in lock down that drastically slowed the
business and disrupted supply chain then many organisation came overcome from this situation by
adopting the success factor. In context of Volkswagen, there are some success or survival factor
which help the business to overcome from the impact of pandemic situation.
when due to increased access to testing there is spikes in the number of all detailed cases.
Liquidity- In the pandemic situation auto mobile's financial companies face the burden
because of an increment in loan evasions, fallen in new loan, complexities in deciding the
credit value of customers. The cash becomes more critical in the pandemic time period.
The COVID 19 had put a tension upon the used cars, after market suppliers, mobility
solution etc. these financial challenges impact the transformational investment in
connected autonomous and the electrical mobility (Farina and et. al., 2019).
Technology- The global automotive market started to shrink in 2019 due to the pandemic.
When the automotive sector was hit by the COVID 19, the car industry of German was
facing a high overcapacity. There was a technological shift towards the electrical power
train effected the business result. In relation to the Volkswagen, it has faced many
difficulties due tot he new trend of autonomous driving and electric mobility. There was a
rise in the rend of e commerce. Because of the mandatory lock down and stricter measures
many customers went online for looking a new car.
Survival and success factors of the auto mobiles industry.
In rush of the modern, there are some growing tendency toward over complication. The
organsiatuio9n need to focus on key success and survival factors for bus9ienss growth. These are
knows as the critical success factors that are very essential elements which contributes t highest
result in achieving the organisational goals. Real success of the business key success factor to
grow a company is their ability of performance management ( Lichtenstein, 2020).
The COVID 19 pandemic has a great impact on the progress and performance automotive
industry. In relation of the consistency to success and survival in market it is essential for the
business management to take effective and appropriate action in order to outcome and resolve the
pandemic impact. When the COVID 19 led to restriction in lock down that drastically slowed the
business and disrupted supply chain then many organisation came overcome from this situation by
adopting the success factor. In context of Volkswagen, there are some success or survival factor
which help the business to overcome from the impact of pandemic situation.
Innovation- The artificial intelligence is most success and growing trend of the business
as it allow the commercial organisation to enhance their performance and productivity to
attain an edge over their rivals in marketplace. Artificial intelligence and the utilisation of
robotics technologies are modified in a manner the the organisation carry out their
operational activities effectively. It impact different areas of organisation such as supply
network, manufacturing industry and many more. purpose of the automotive industry is to
become progressive and effective. Increasing in automation trend the new and effective
ability fits for upcoming improvement and effectiveness (Singh and et. al., 2018). In
context of the Volkswagen they involve the artificial intellectual and other robotics
technology make enable them to carry out its function to attract a large customer base. By
utilising the automation they face rivalry challenges in market by developing their
effectiveness. With this development they grow their business during pandemic in the
market. Its latest technological advancement promote greater automation, communication
and analytics. The new vulnerabilities create challenge law enforcement, safety and
defend business organisation in a way line never before.
Digital platform- it is other success factor of mega trend that can be considered by
organisational structure in a state fro effectively trade by enhancing striking of the COVID
19. some digital platform include the twitter, Facebook, Instagram and many more by
using these platform a business organisation become enable to interact with their
customers in a direct way and also enhance overall performance of a business. These
platform include a large numbers of the customers that make it easy for the organisation to
directly connect with their target audience effectively (Robison, 2018). In relation to
Volkswagen, the company focusing more on the use of different social media platform to
straight act with their tailored. It will help the respective firm to attract most of customers
leading for improving its execution in sales outlet.
With the growing automation a large number of the organization are moving towards the
utilization of various social media trend to directly interact and communicate with their
customers and add the rivalry in market place. Social media is another mega trend that
involve the organisation regarding effectiveness to overcome from the impact of pandemic
situation. Certain social media platforms are Instagram, Facebook twitter and so on. By
utilise these platform an organisation can grow their all operational functions. This mega
as it allow the commercial organisation to enhance their performance and productivity to
attain an edge over their rivals in marketplace. Artificial intelligence and the utilisation of
robotics technologies are modified in a manner the the organisation carry out their
operational activities effectively. It impact different areas of organisation such as supply
network, manufacturing industry and many more. purpose of the automotive industry is to
become progressive and effective. Increasing in automation trend the new and effective
ability fits for upcoming improvement and effectiveness (Singh and et. al., 2018). In
context of the Volkswagen they involve the artificial intellectual and other robotics
technology make enable them to carry out its function to attract a large customer base. By
utilising the automation they face rivalry challenges in market by developing their
effectiveness. With this development they grow their business during pandemic in the
market. Its latest technological advancement promote greater automation, communication
and analytics. The new vulnerabilities create challenge law enforcement, safety and
defend business organisation in a way line never before.
Digital platform- it is other success factor of mega trend that can be considered by
organisational structure in a state fro effectively trade by enhancing striking of the COVID
19. some digital platform include the twitter, Facebook, Instagram and many more by
using these platform a business organisation become enable to interact with their
customers in a direct way and also enhance overall performance of a business. These
platform include a large numbers of the customers that make it easy for the organisation to
directly connect with their target audience effectively (Robison, 2018). In relation to
Volkswagen, the company focusing more on the use of different social media platform to
straight act with their tailored. It will help the respective firm to attract most of customers
leading for improving its execution in sales outlet.
With the growing automation a large number of the organization are moving towards the
utilization of various social media trend to directly interact and communicate with their
customers and add the rivalry in market place. Social media is another mega trend that
involve the organisation regarding effectiveness to overcome from the impact of pandemic
situation. Certain social media platforms are Instagram, Facebook twitter and so on. By
utilise these platform an organisation can grow their all operational functions. This mega
trend's factor help the Volkswagen to attract a more customers and develop company's
efficiency in market area (Loonam and et. al., 2018).
Climate change- The environment mostly get impacts by the automotive industries as
they automotive industry greatly contribute to the global greenhouse gases. Therefore, by
manufacture the environmental friendly vehicles organisational can get success. It make
feel the society that the company care about their health and environment. It is a great
opportunity for the automotive industry as they can get the customer's attention by
providing them a pollution free environment. It will build a reputed brand image of the
company in market. In context of the Volkswagen, it improve the internal combustion
engines and focus on energy from the biofuels, hydrogen and other alternative sources that
offer an opportunity to minimize CO2 emissions. It permit a faster transition to the electric
vehicles (Riggs, 2020).
CONCLUSION
From the above report it is conclude that, the COVID 19 effect every business and all
organisation had to face the challenges during the pandemic. The automation industry get impact
vastly by the pandemic as it effect their profit, sales and supply chain network. Many companies
of this industry dad to shut their business temporary or permanently. Mostly employees of this
industry had lost their job and some got ready to work on lower wages which affect their
economical condition. The liquidity of automation industry also get impacted by the COVID 19 s
it reduce their sale due to which they had to face the financial crisis. Many business overcome
from this situation by adopting success or survival factor of mega trend. These factors help the
business to work with innovation and make enable them to improve their performance efficiently
by using different digital platform and other success factors.
efficiency in market area (Loonam and et. al., 2018).
Climate change- The environment mostly get impacts by the automotive industries as
they automotive industry greatly contribute to the global greenhouse gases. Therefore, by
manufacture the environmental friendly vehicles organisational can get success. It make
feel the society that the company care about their health and environment. It is a great
opportunity for the automotive industry as they can get the customer's attention by
providing them a pollution free environment. It will build a reputed brand image of the
company in market. In context of the Volkswagen, it improve the internal combustion
engines and focus on energy from the biofuels, hydrogen and other alternative sources that
offer an opportunity to minimize CO2 emissions. It permit a faster transition to the electric
vehicles (Riggs, 2020).
CONCLUSION
From the above report it is conclude that, the COVID 19 effect every business and all
organisation had to face the challenges during the pandemic. The automation industry get impact
vastly by the pandemic as it effect their profit, sales and supply chain network. Many companies
of this industry dad to shut their business temporary or permanently. Mostly employees of this
industry had lost their job and some got ready to work on lower wages which affect their
economical condition. The liquidity of automation industry also get impacted by the COVID 19 s
it reduce their sale due to which they had to face the financial crisis. Many business overcome
from this situation by adopting success or survival factor of mega trend. These factors help the
business to work with innovation and make enable them to improve their performance efficiently
by using different digital platform and other success factors.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
REFERENCES
Books and Journals
Azeem, M. and et. al., 2021. Big data applications to take up major challenges across
manufacturing industries: A brief review. Materials Today: Proceedings.
Bonet‐Morón, J. and et. al., 2020. Regional economic impact of COVID‐19 in Colombia: An
input–output approach. Regional Science Policy & Practice. 12(6). pp.1123-1150.
Chaisse, J., 2020. Both Possible and Improbable-Could COVID-19 Measures Give Rise to
Investor-State Disputes?. Contemp. Asia Arb. J.. 13. p.99.
Ezeibe, C.C. and et. al., 2020. Political distrust and the spread of COVID-19 in Nigeria. Global
Public Health. 15(12). pp.1753-1766.
Farina, M. and et. al., 2019. Cell encapsulation: Overcoming barriers in cell transplantation in
diabetes and beyond. Advanced drug delivery reviews. 139. pp.92-115.
Lichtenstein, N., 2020. 5 From Corporatism to Collective Bargaining: Organized Labor and the
Eclipse of Social Democracy in the Postwar Era. In The Rise and Fall of the New Deal
Order, 1930-1980 (pp. 122-152). Princeton University Press.
Loonam, J. and et. al., 2018. Towards digital transformation: Lessons learned from traditional
organizations. Strategic Change, 27(2), pp.101-109.
Riggs, W., 2020. Telework and sustainable travel during the covid-19 era. Available at SSRN
3638885.
Robison, R., 2018. Industrialization and the economic and political development of capital: the
case of Indonesia. In Southeast Asian Capitalists (pp. 65-88). Cornell University Press.
Singh, S. and et. al., 2018. Monoclonal antibodies: a review. Current clinical pharmacology.
13(2). pp.85-99.
Books and Journals
Azeem, M. and et. al., 2021. Big data applications to take up major challenges across
manufacturing industries: A brief review. Materials Today: Proceedings.
Bonet‐Morón, J. and et. al., 2020. Regional economic impact of COVID‐19 in Colombia: An
input–output approach. Regional Science Policy & Practice. 12(6). pp.1123-1150.
Chaisse, J., 2020. Both Possible and Improbable-Could COVID-19 Measures Give Rise to
Investor-State Disputes?. Contemp. Asia Arb. J.. 13. p.99.
Ezeibe, C.C. and et. al., 2020. Political distrust and the spread of COVID-19 in Nigeria. Global
Public Health. 15(12). pp.1753-1766.
Farina, M. and et. al., 2019. Cell encapsulation: Overcoming barriers in cell transplantation in
diabetes and beyond. Advanced drug delivery reviews. 139. pp.92-115.
Lichtenstein, N., 2020. 5 From Corporatism to Collective Bargaining: Organized Labor and the
Eclipse of Social Democracy in the Postwar Era. In The Rise and Fall of the New Deal
Order, 1930-1980 (pp. 122-152). Princeton University Press.
Loonam, J. and et. al., 2018. Towards digital transformation: Lessons learned from traditional
organizations. Strategic Change, 27(2), pp.101-109.
Riggs, W., 2020. Telework and sustainable travel during the covid-19 era. Available at SSRN
3638885.
Robison, R., 2018. Industrialization and the economic and political development of capital: the
case of Indonesia. In Southeast Asian Capitalists (pp. 65-88). Cornell University Press.
Singh, S. and et. al., 2018. Monoclonal antibodies: a review. Current clinical pharmacology.
13(2). pp.85-99.
1 out of 8
Related Documents
Your All-in-One AI-Powered Toolkit for Academic Success.
+13062052269
info@desklib.com
Available 24*7 on WhatsApp / Email
Unlock your academic potential
© 2024 | Zucol Services PVT LTD | All rights reserved.