Environmental Analysis of Automobile Industry - Challenges, SWOT, PESTLE, Porter's Five Forces, Value Chain, Competitive Advantages

This report discusses challenges faced by the automobile industry in global trading, SWOT, PESTLE, Porter's Five Forces, Value Chain, Competitive Advantages. It focuses on Aston Martin's management and their strategies to overcome external factors.

Environmental Analysis
of Auto mobile Industry

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Challenges they encounter in trading across the globe...............................................................3
SWOT.........................................................................................................................................4
PESTLE.......................................................................................................................................4
Porter’s Five Forces....................................................................................................................6
Value Chain.................................................................................................................................7
Competitive advantages concerning their core values on sustainability.....................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Global business environment is termed as the environment of several nations with having diverse
factors of the business that will get effects on decision making procedure of the business and
their resources and skills. The business environment involves several sections that engage
performance of workers in terms of external and internal factors. The organisation consider in
this report is Aston Martin. It is a British autonomous organisation of luxury sport cars and grand
tourers (Freiberg, and et.al., 2021). It was established in the year of 1913 by Lionel Martin and
Robert Bamford. The following report covers the discussion of challenges they encounter in
trading across the globe, SWOT, PESTLE, porter's five forces, value chain, competitive
advantages concerning their core values on sustainability.
TASK
Challenges they encounter in trading across the globe
International business is the manner of producing of sales of products and facilities
among varied term of the nation. As there are several sort of the challenges that the Aston Martin
management are facing in trading across the globe that are as follows - Language Barriers – At the time of involving in international business, it is an essential
term to evaluate the languages spoken in the nations that might look to be extend. As
there are some of the common examples of language barriers that involves individuals
from diverse nations who are communicating with one other, individuals in some nation
who have diverse manner of interact with other and individuals have same language
speaking in diverse manners. Cultural Differences - Cultural differences are termed to be beliefs, behaviours, language,
activities and expressions that relates to certain quality, race or political unit. As there are
various sections in relation to cultural differences that involves the diverse global culture
management in which workers are facing cultural differences (Garel, and Petit-Romec,
2021). They analyse that the workers often have more common aspect in terms of the
quality, but those differences might sometime exceed the similarities. As these
differences are enough to create issues and problems and it will resulted to culture clash.


Managing Global Teams – As it is not easy for both of the management to maintain their
dealing on regular terms. The managements has set up various policies and approaches
that help them in managing global teams in an effective and efficient manner.
SWOT Strength – The management have high heavy duty in terms of production and designing
groups. They hold up high term of goodwill in the global field of the auto-mobile
industry that is immense (Li, and et.al., 2021). Aston Martin have strong and effective
loyal consumer base. The management apply their tactics and plan of actions for
understanding the standards and values of their customers and by which they capture
them for longer period of time. The management has extended over 50 nations as across
to the world. Weakness - In comparison same management Aston Martin have the lesser field of
market. It is due to the focuses on their luxury marketplace and by which they never tried
to invest into other division market. They might require to do it effectively if the
management have high set of competitors in the field of market. On the other hand, they
have limited set of the products and services for their customers in terms to deal as per to
their customer's preferences. Opportunities - The management have high base of followers but the general public also
want some high techniques and technology. It is the possible manner that will relates to
the middle range of the goods that individuals can afford (Liu, Jiang, and Yuan, 2021).
Aston Martin can utilise their technical skills into developing goods that will supports
individuals in maintaining their cars with branded section.

Threats – The cost of petrol products are arising on regular basis. The management of
Aston Martin should look into cars that might be powered by electrically. The
management is facing high section of competition in the field of market from various
companies such as Bentley, Porsche, Jaguar.
PESTLE
Pestle analysis involves several term of the factors that will get effects on managerial
performance and operations in an effective manner. Any variations in the macro environment
factors will directly have an impact on the Aston Martin management. In terms to the respected

management, such factors are considered in terms of the suitable tactics and plan of actions in
respect to overcome its effects of external environment. Such external factors are as follows - Political factor - Political factors plays an essential role in measuring the factors that will
have an impact for longer period of time. Due to decrease the wages it will directly have
an impact on the maximisation of labour cost (Majchrzak, and et.al., 2021). As the EU
regulation will get maintains by managing or increasing the export cost. Economic factor – As there are several sort of the economic factors in teerms of the
consumer saving, inflation rate, economic cycle, interest and foreign exchange rate that
will have an impact on the management of Aston Martin business management. Social factor – As per the marketplace, auto-mobile products should develop as per to the
requirements and desires of their loyal base customer at the time of production of new
products. On the other side, it might go out of fashion and might not get an effective sale.
The management of Aston Martin follows all suitable social norms, values and trends that
will have an impact on the managerial cultral and performance in an effective and
efficient manner. Technological factors - In the present era of market place, competitive business
competitive business environment are dynamically termed to be technological. It will
diffuse to take place various manner as across to the globe that increase the significant
terms in technical fields in the procedure of decision making in the management of Aston
Martin. Environmental factors – As there are several sort of the environmental components that
will have an impact on the managerial performance and profitability. The research unit of
the auto mobile business require to be strict with the testing (Martin, 2021). Before
launching any company in the field of market it will be pass when the vehicle only pass
strict pollution test in an effective and efficient manner.

Legal factors – Aston Martin consider all legal situation and as well as regulatory form of
framework before entering in the field of new marketplace. As there are various nations
that have strict laws to decline the amount of vechicles on the street tht might support
them to lesser the air pollution level in an effective and suitable way.

Porter’s Five Forces
Porter's five competitive forces model was created by Michael E Porter and offers
perspective in the opportunities and threats that corporate strategies deals with. As there are five
competitive forces that are supplier bargaining power, bargaining power of customers, threats of
new entrants, threats of substitutes and competitive rivalry that are as follows - Supplier bargaining power – The UK auto mobile sector are managing their sources in
terms of components and production divisions. They contribute over £4.5 billion added
value and provide opportunities as around 120000 individuals. By the high and effective
competitive factors in the supplier market the supplier bargaining power is not very
strong (Singh, and Sarkar, 2021). Hence, the existence of Astron Martin will based on the
suppliers and the divisions of the authorities. Another factors will get maximise the
supplies in terms of the bargaining power that involves high key terms of the
differentiations that are provided by the suppliers, Aston Martin that are creating high key
proportion of suppliers in the global sales an unavailability of the substitute goods. Competition – As with high term of new sports cars the management of Aston Martin,
may bound out for customers. All such ultra high end vehicles that are might created by
car manufacturer because there is high key terms of the competition as per to their
profitability and productivity edges. As there are various terms of the brands, that are
dominant in nature this market and Aston Martin is in the top ten brands of luxury cars. Bargaining Power of Customers – The consumers are the king in the field of marketplace.
It is the high and indulgence division of market where consumers have a broad variety of
alternatives to select orientated terms in the business (Trivana, and Alexander, 2021).
The power lies in the hand of the consumers, so the management should make their
products and services as per to the choices and taste of customers. Threat of Substitutes - The luxury car section is termed to be luxurious not necessity. The
fundamental requirement for the consumers is being satisfied by the management of
model. The differentiating factor will lies in the hand of consumers with proper credit of
the luxurious brand such as Lamborghini Gallardo that suitable satisfy the same
requirements.


Threat of New Entrants - The investment funds are needed is so high, by which there is
low level of threat from new entrants for the Aston Martin in the field of the market
place.
Value Chain
Value chain analysis is termed as measuring of all the actions in the business's value chain to
know where are the chances for enhancement of the management. By presenting value chain
analysis prompts to measure that how all the steps value from the final products and facilities
(Xiao, and Zan, 2021). It supports in realising some form of competitive benefits in terms of the
following section.
 Cost reduction – It will relates to making each actions in the value chain in an effective
and less expensive.
 Product differentiation – By financing high time and resources into varied time and
resources into actions like research and growth, design and marketing that will supports
in production stand out.
Primary Activities
 Inbound Logistics - It is an action that engages with suppliers that require to manage as
efficiently. Aston Martin is an organisation that are maintaining an efficient relationship
with suppliers in order to get efficient term of products.
 Outbound Logistics - It include various activities that are essential for the purpose of
collection of stock and services (Yuan, and Cai, 2021).
Secondary Activities
 Human Resource Management – Human resource organisation of Aston Martin is
recruiting, selecting individuals.
 Procurement - Procurement is relates to the process of getting inputs and resources.
Competitive advantages concerning their core values on sustainability.
Low Cost Provider/ Low pricing
The manner of economies of scale and effective functions will support the business to manage
the competition by managing the low value providers. As it will relates to the low cost providers
that might be effective obstacle to entry. In respect to the, low pricing that can be presented in
constant manner will develop brand loyalty that have high competitive benefits in an effective
and efficient manner.

Market or Pricing Power
The management has the capabilities to maximise the cost without losing the market share that
might be termed to be costing power. The business have pricing power that are basically relates
to the benefits of high restrictions to entrance or have earned the high positioning in their field of
market.
Powerful Brands
It takes an effective and large financing in terms of time and cost to create the brand. As
an effective and efficient brand is valuable due to its loyal consumer base who prefer
management over other contenders (Zhang, 2021). Being the market individual and having an
effective corporate goodwill might be the division of a potential brand and a competitive
benefits.
CONCLUSION
From the above mentioned report it has been concluded that, global business environment plays
an essential terms of the roles in extending and growth of the business of management. As there
are several sort of the internal and as well as external factors that involves the divisional field of
business situations. The management offers several goods and facilities to consumers as across to
the border and make sure high market share and consumer base in an effective and efficient
manner.

REFERENCES
Books and Journals
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information. Harvard Business School Accounting & Management Unit Working Paper,
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from the COVID-19 crisis. Journal of Corporate Finance, 68, p.101948.
Li, J., and et.al., 2021. Impact of the latent topics of policy documents on the promotion of new
energy vehicles: empirical evidence from Chinese cities. Sustainable Production and
Consumption, 28, pp.637-647.
Liu, Z., Jiang, H. and Yuan, M., 2021. Study on Application of TiO2 Photocatalytic Materials in
Purification of Highway Tunnel Tail Gas. In E3S Web of Conferences (Vol. 233, p.
01073). EDP Sciences.
Majchrzak, K., and et.al., 2021. Economic and environmental assessment of the use of electric
cars in Poland. Polityka Energetyczna-Energy Policy Journal, pp.153-168.
Martin, R.J., 2021. Reconceptualising Space in Sustainability Transitions: Sociotechnical-spatial
Landscapes and Three Cities Pursuing ‘Car-free’. Journal of Transport Geography.
Singh, P.K. and Sarkar, P., 2021. A Multi-Criteria Decision Approach to Select Contract
Manufacturer for Sustainable Development of Automotive Products: an Integrated
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Trivana, V. and Alexander, G.G., 2021 Novel Research Pertaining to the Forming Defect
Properties of High-Strength Steel Plate during Hot Stamping Procedures.
Xiao, G. and Zan, Z., 2021, March. Determination of Interfacial Heat Transfer Coefficient of
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Publishing.
Yuan, X. and Cai, Y., 2021. Forecasting the development trend of low emission vehicle
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Zhang, L., 2021. Dynamic Property Simulation Research of Hybrid Electric Vehicle based on
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