Environmental Analysis of an Industry

Environmental
Analysis of an
industry

Table of Contents
Table Of Contents............................................................................................................................2
Introduction......................................................................................................................................3
INTRODUCTION...........................................................................................................................3
TASK A...........................................................................................................................................3
TASK 2............................................................................................................................................6
CONCLUSION................................................................................................................................9
Reference.......................................................................................................................................10

Introduction
INTRODUCTION
Nowadays the electric car has become the major source of achieving the sustainable
development in world. There is growing popularity of electric vehicle as the clear and more
efficient vehicle which will control the emission of carbon in environment (Cantrill and Oravec,
2015). This is one of the major technological development of automobile industry in last few
decades.
The automobile industry is the global multimillionaire industry with many brands that are
competing with each other for increasing their current market share in economy. The report is in
context with the development of technology in Volvo company by up gradation of vehicle engine
by electrification. Volvo car company is the premium car make have with an idea of replacement
of internal combustion engine by electrification as of its core of there future business. In this
report there will environment analysis of electric automobile sector and need of there
development for future generation.
TASK A.
In the 21 at century there is huge demand of technological development of automotive
industry with innovation as to achieve the sustainable goals of organization (Xuan and Yue,
2017). Volvo has come up with an idea of replacement of internal combustion engine by
electrification of engine. From the 21st century there is development of electric cars in sector as
to have sustainable development of through technological innovation and image of conventional
vehicle. The company has taken the decision of significant move to accept the concept of
electrification. This turns out to be a new chapter in automotive industry. Volvo has identified
the continuous increase in demand of electric cars by customers respond to their present and
future needs(Wang, Tal and Fang, 2017. Thus, it turned out too obligatory to identify and
address the most important external factors that are effecting business environment.
Political Factor
In the political factor there is identification of government impact on business as they are
main societal force for performance and revenue of company as it can be limit due to change in
trade policies. The following external political factors are important for development of
automotive industry-

Government used to provide incentives in development of electric automobiles.
For the goal of sustainable development of country there are new global trade development.
More of the political stability in United Kingdom turn out to be benefit to automobile sector.
Volvo has opportunities as strengthen there financial position of the company as government is
providing incentive in electrification of automobiles(Wan, Sperling and Wang, 2015). There is
sustainable goal of company to reduce the carbon footprints so there are various new global trade
development are signed which will turn out as correct timer for Volvo to expand the operation
globally. On other hand UK has stable government so company should implement competitive
and intensive growth strategies to attract more and more customers. At the time of EU
referendum there was a great instability in g political environment of country.
Economic Factor
In economic factor there are major focus on condition with inclusion of market size, trade
level, currency value and many more which can have impact on automobile industry. The
economical factor can be decrease in cost of batteries along with decrease in cost of renewable
energy. Deceases in cost of batteries and use of renewable source turned market to be attractive
for Volvo(.Narins, 2017). The country have economic instability which can turned out as threat
to Volvo financial performance expansion of business operation globally.
Socio-Cultural Factor.
The social and cultural factor there will be major impact on employees, customer and
investors in development of automobile sector. The business mainly aligns with trends or
demands of target market or customers. Volvo will try to maximize benefit through the
implementation of different strategies which will help in grabbing the potential customer from
market. Nowadays, the population of country has more acceptance of low carbon lifestyle and
preference to use of renewable source of energy. There is continuous improvement in
distribution of income in developing market so the potential buyers of Volvo can move to more
expensive products.
Technological factor
This part of pestle is use to analysis the availability of technological developed in the
country which can have impact on growth of company. The technological change in Volvo of
electrification in cars from internal combustion engine need automotive solution and
technological advancement. If the country have up gradation in technology, it can be turns out to