Environmental Analysis of an Industry

Environmental
Analysis of a industry
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Contents
INTRODUCTION...........................................................................................................................3
Main body........................................................................................................................................3
Explain the major elements shaping business environment...................................................3
Critical assess organisational as well as other changes which takes place in near future and the
reasons for such changes........................................................................................................5
Organization Changes............................................................................................................7
Reason or purpose for organizational change........................................................................8
Conclusion.......................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Business environment refersto a combination of various elements, individuals, entities &
many morewhich highly influence the overall growth and performance of an organization or
industry. It consist of both internal & external elementswhich consist of social factors,
technology, customers, economy, staff members, suppliers & manymore. It is very essential for
higher authorities of an organization to consider each and every internal as well as external
elementsas they highly affects the growth and success of a business. In the present report, Volvo
cars are chosen as the base organization which is a Swedish luxury businessentity founded in
1927. Headquarters of the company is situated at Gothenburg, Swedenas well as at currentstate
company offer their products in around 12 countries acrossthe world. Volvo mainly
manufactures SUVs (sport utility vehicles) & make sure that the quality & safety arehigh which
satisfy the requirements of customers. On the basis of continuous change in customers
preferences, top management team of the company launch new electric car which is XC 40
Recharge.The current report includesdiscussion about PESTLE analysis asit help in identifying
the influence of external factors on theperformance of Volvo. Alongwith this, Porter’s five
forces arealso going to be discussed which help in examining the level of competition available
at the marketplace.
Main body
Explain the major elements shaping business environment
PESTEL analysis is oneof the most effective tool usedby every business organisation in order to
examine and evaluate the external factors which highly influence the company in different
manner. In reference to the present scenario of an automobile industry, it is said that the sector
face high level of competition whichaffects their overall functionality and performance in an
adverse manner. In relation to an automobile organisation which is Volvo cars atthe marketplace
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