Paper on The Global Business Environment Assignment
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Added on 2021-02-20
Paper on The Global Business Environment Assignment
Added on 2021-02-20
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THE GLOBAL BUSINESSENVIRONMENT
Table of ContentINTRODUCTION...........................................................................................................................1TASK ..............................................................................................................................................1a) Major forces shaping business environment and gaining the competitive advantages ..........1b) New and emerging business opportunities and critically assess other business currentlylinked to global automotive industry...........................................................................................5CONCLUSION................................................................................................................................7REFERENCES ...............................................................................................................................8
INTRODUCTIONGlobal business environment can be determined as the environment in different independentnations with elements to the home environment of the company which effecting decision-makingrelating to utilize resources and capabilities. Firms operating globally can understand the socialenvironment of the host nation to function effectively and efficiently (Hamilton andWebster,2018). This report is based on case study which is related to “Electric vehicles inEurope: gearing up for new phase”. This essay will explain major forces shaping the businessenvironment of car manufacturing industry. Also, explain ways of gain competitive advantagesby company in the industry. Furthermore, report will identify new and emerging businessopportunities for production and marketing of electric cars. It will assess other business currentlylinked top global automotive industry. TASK a) Major forces shaping business environment and gaining the competitive advantages Business environment is the total of all outside and inside elements which effect on business likeworkers, wants and expectations of consumers, supply and demand, clients etc. Also, it includesactivities through government, invention in technology, social and culture trends, economicchanges and so on (Lewis and et.al., 2017). These elements influence the activities and operationof firm. Also, these factors influenced on company when they operate in global environment.Through this, company identify the opportunities of business for future as well as imp[rove theperformance, growth and profits of business. In this context, various factors influence on operations on company which are operated in carmanufacturing industry like Volvo. Because, company want to electric motors or vehicles inEurope. Therefore, company needs to identify the major forces or factors by utilizing thePESTLE analysis which can influence on operation within the global environment. Thesefactors are involved such as follows:PESTLE Analysis: Political Factor: This factor consists of outside elements like political stability, government regulations andframework of political party in the nation. Thus, political environment is easily the most essentialconcept of the business environment (Cumming and Zahra, 2016). It also involves tax policy,foreign trade policy, trade restrictions which are influenced on company when they operate in the1
global environment. In this context, Volvo introduces the electric motor or vehicles in Europe, sothat different government regulations can be influenced on business in positive and negativemanner. For example: governments are promoted electric vehicles across Europe through givingdifferent subsidies and other benefits in both side on demand and supply. Many of governmentsare created investments in infrastructure and mobility programs in electric vehicle in terms ofpromoting the supply of vehicles (Rastogi and Trivedi, 2016). This can help to car maker likeVolvo in terms introduce the electric motors or vehicles in Europe. These kinds of factorshighly influenced on production and marketing of new product within global marketplace. Economic Factors: These factors are crucial of certain performance of economy. It involves economic growth, rateof inflation, interest rate, demand and supply, economic policies and so on. These factors canhave long termed impact on firm in directly and indirectly ways. These kinds of factors influenceon the operations and overall company at the global business environment (PESTEL Analysis,2016). In this context, car makers like Volvo want to introduce electric motors or vehicles, sothat they need to determine all economic factors within the selected country. For example:Creating demand volatility through electric vehicles which will be happening alongside the shiftsin supply which come from renewable energies and distributed generations. This can be raisingchallenges in relation balance electricity grids with more fluctuations in demand and supply. It isexpected that demand side result systems can gain in importance. Flexible demand can showeconomic value which also beneficial for company who introduce the electric vehicles or motors.These kinds of factors highly influenced on production and marketing of new product withinglobal marketplace. Social Factors:These factors show the demographic features, standards, value, trends of the population withinthat company operates. This involves income distribution, lifestyle behaviour, cultural barriersand so on. These factors can have impact on company in directly and indirectly manners. In thiscontext, car makers like Volvo need to launch internal combustion engine that is part of electricand vehicles, so that they need to identify some social factors of the Europe. For instance:company is focused of leading higher income consumer with different set of attitudes andbehaviours (Takata, 2016). Selectors are mainly high-income, well-educated customers who arelooking to save money and also concerned about the environment. Also, company should focus2
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