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Environmental Analysis of an Industry

Added on - 08 Jan 2021

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EnvironmentalAnalysis of anindustry
Table of ContentsINTRODUCTION...........................................................................................................................1a) Assess the environment of the Global Auto mobile industry using PESTEL analysis...........1b) Assess the environment of the Global Auto mobile industry using Porters Five forcesModel.........................................................................................................................................3CONCLUSION................................................................................................................................6.........................................................................................................................................................6REFERENCES...............................................................................................................................7
INTRODUCTIONAuto mobile industry started in the year 1890's and is a multi billion industry consistingof several brands in order to capture the largest market share. This industry play a important rolein enhancing the growth of the economy. This project is based on the case study of CarProduction Surges in Eastern Europe (De Marchi, 2012). The report will throw highlights ondetermining the impact of the political, social legal, technological and economic factors onglobal auto mobile industry as well as provides an understanding of the respective industry usingPorters Five forces analysis. This will provide an understanding of the various externalenvironment factors which affects the functioning of the global auto mobile industry.a) Assess the environment of the Global Auto mobile industry using PESTEL analysis.Since the foundation of auto mobile industry it has become the integral part of thenations economy in terms of enhancing the revenue. Due to the large brand, growth of thecompany is impacted by several factors. Apart from this frequent changes in the European automobile industry has noted various factors which affect the auto mobile industry are as follows-Political Factors-It is concerned with the rules and regulations of the government whichaffects the performance of the European auto mobile industry includes the following such asGovernmental foreign policies and taxes in Eastern Europe are stable as government offersincentives from financing some of its investments to a very simple and flat tax rate at a 19percent. This will allow the production to uplift in that regions as the manufactures can easilyget the finance. It has a advantage of stable economy and determines the success of therespective industry in the global market. The main concern of the government is to manufacturecares while reducing the environmental issues, but the manufacturers are receiving highergovernmental support from the government. Because of the stable economy it assist the automobile company regarding effective performance and enhances interrupted work (Grant, 2016).Economic Factors-This factors is concerned with with the exchange rate, inflation rateand the economic growth of the particular nation. In context to the case study with the increase inthe production of cares in the eastern and western Europe is because of the stable economy.Within the three years company is going to expand its dealer network in the region by 80 toabout 480. This expansion had reduced the unemployment rate to 5% from 13% and providesstandard of living to the individuals. Even though workforce of Slovakia around 2.3 million are1
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