Environmental Analysis of an Industry

ENVIRONMENTAL
ANALYSIS OF AN
INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Major forces shaping the business environment of car manufacturing industry........................2
Critical assessment of changes taking place and reason behind it..............................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7
1

INTRODUCTION
For the success of the company it is very essential for the company to analyse the
environment in managing the performance of the company (Chen and Jia, 2017). This is because
of the reason that the business exist in the dynamic and frequent changing environment then it is
very essential for the company to analyse the environment and to adapt to the changes for
managing the work in the company. The present report is based over the company Volvo cars
which is a premium carmaker which has announced to make the electric cars in accordance with
the latest changes taking place in the dynamic environment. The present report will outline the
PESTLE analysis of the company and then to identify the changes taking place in the
environment and adapting to these changes in the business.
MAIN BODY
Major forces shaping the business environment of car manufacturing industry
The industry operates in the environment which is very changing and dynamic in the
nature and there are also many frequent changes taking place within the working environment.
But if the company wants to gain success then it is essential for the company to adapt to these
changes taking place in the environment. All these changes taking place in the environment can
be analysed with help of the PESTLE model and this is because this model includes the analysis
of the external environment and then to adapt to these changes. With the analysis of the
environment it was clear that there is need to electrify the model of the cars as the latest trend is
of the electric cars (Tresna, 2017).
Political factors- this is the factor which relates to the changes taking place in the political
or the governmental sector of the country. This is majorly pertaining to the fact that when there
are changes in the government or the political sector then the company is also affected in the
direct or indirect manner. In accordance with the current political state if the company goes for
the electric vehicles in Europe then this will be beneficial for the company. This is because the
tax rates are low for the companies who add in the environment protection and safeguarding of
the nature.
Economic factors- the economic factor relates to the changes taking place within the
economy of the country and it also has a great impact over the company and its profitability
(Yuan, Ren and Chen, 2017). This is majorly because of the reason that when it comes to
company it exists in the economy of the country and any change in the economic factor also
2