The Global Business Environment: Impact of Pandemic on Automobile Industry and Survival Factors for Automotive Industry

The Global Business
Environment
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Table of Contents
Introduction.....................................................................................................................................3
Main Body.......................................................................................................................................3
Impact of pandemic on automobile industry .............................................................................3
Survival factors for the automotive industry .............................................................................5
Conclusion.......................................................................................................................................7
References.......................................................................................................................................7
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Introduction
A global business environment is stated as the environment, which provides a better
technology, create more job opportunities, enables the infrastructure development with the help
of another country resources. The four main components of a business environment are
economic conditions, political as well as legal factors, cultural as well as social factors and
geographic conditions. It is basically considered as a amalgamation of both the external and
internal factors on the functioning of the firms. The chosen company for conducting the
environmental analysis is Rolls Royce. This company makes only premium cars and its
headquarter is situated in West Sussex, UK. This brand has been in the marketplace from 1906
but it was created as a subsidiary of BMW in 1998. This company price range starts from the
around more than 300 thousand dollar and their cars cannot be purchased by anyone. The person
needs to have a big reputation in the society as well as lot of money in order to purchase these
cars. In this report, it will majorly discuss about the environmental analysis of Rolls Royce and
the impact of the pandemic on this industry. This report will also cover the success as well as the
survival factors of the Rolls Royce in the pandemic(Belyaeva. and Lopatkova., 2020).
Main Body
Impact of pandemic on automobile industry
The COVID 19 pandemic has a severe impact on the sales of automotive industry in the
global level. This disaster pandemic has put an intense pressure on the employees as well as
senior mangers regarding the sales and revenues of the company. The main reason behind the
decrease in the sales number of the cars or other auto-mobiles is the risk of getting infected from
this virus. Due to having a lot of risk in the life, various countries government have imposed the
lockdown which states that the operations done by the companies or performing the various
activities by the firms will be stop(Bharathi. and Dinesh., 2021). The showrooms or the stores
are closed down that has a major impact on the revenues of the company. Various major impact
on the automobile industry are discussed below:-
 Various countries are facing the situation of lockdown scenarios that can have a major
impact on the global sales which moreover leads to the impact of global economy. This
pandemic also arises the risk of losing the confidence of customers in their products that
has direct in the profitability of the company.
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