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Global Business Environment INTRODUCTION

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Added on  2021-01-03

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1 b) assessment of the environment of global auto mobile industry using the porter's five forces model analysis, 5 CONCLUSION 7 REFERENCES 8 INTRODUCTION Global business environment including different countries with factors exogenous to hom environment of the organisation which influence the decision making on use of resources and the capabilities. Some factors which affect the complete industry of auto mobile are: Political factors- The political factors play a crucial role in and have a direct impact on the business and industry as government made policies

Global Business Environment INTRODUCTION

   Added on 2021-01-03

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Global Business Environment
Global Business Environment INTRODUCTION_1
Table of ContentsINTRODUCTION...........................................................................................................................1a) Assessment of the environment of global Auto mobile industry using PESTLE analysis.....1b) assessment of the environment of global auto mobile industry using the porter's five forcesmodel analysis,............................................................................................................................5CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
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INTRODUCTIONGlobal business environment including different countries with factors exogenous to homenvironment of the organisation which influence the decision making on use of resources and thecapabilities.The report is about the East European companies which have the capability of surging thecar production by using and adapting the different strategies and business models. The global environment in which companies exist is affected by the different factors which willbe explained in the report. PESTLE analysis the model which is used to analyse the differentfactors present in the environment which directly affects the business organization. Political,social, legal, technological and environmental factors are some factors which have direct impacton the business. Furthermore, the report will also include the porters 5 forces model which willexplain the impact of supplier, buyers and competitors in the organisation.a) Assessment of the environment of global Auto mobile industry using PESTLE analysis.Global automotive industry is comprises many factors which exists in the environment.All the factors are need to be understand and evaluate effectively so that their impact on theindustry, market, companies, and customers can be judged and decision regarding thesustainability and future development can be taken. The car production suddenly surges in theeastern Europe. some factors which affect the complete industry of auto mobile are:Political factors-The political factors play a crucial role in and have a direct impact on the business andindustry as government made policies and changes are compulsory to follow by the companies asthe authorities hold a great position. Government are favouring low missions vehicles, charginghigher taxes on luxurious vehicles(Adekola and Sergi, 2016). some markets including Europeand UK are providing government subsidy for low emission vehicles. Government rules arepassed on the technologies which are fuel efficient and low emissions. Positive impactAs eastern Europe also using the technologies which are highly fuel efficient which arepassed by the government rules resulting I low disruptions and smooth flow of operations of thecars which also contribution towards the surge of car production in that particular area.Government regulations, taxes, import and export rules, changing government regimes all thesefactors can cause favourable or unfavourable fluctuation in the complete market of the auto1
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mobiles. Companies are required to maintain their costs and political factors as they have thesignificant role in the area(Eskandari and et.al., 2015). The laws related to imports and exportsalso affect the auto makers to be productive in their operations. Increasing gas prices in the westhave encouraged the customers to start shifting from the big cars to the kind of the compact carsand are the speciality of the Eastern Europe.. Which also contributed in surging the carproduction in eastern Europe and helps companies to capture larger customer segment andmarket share and have opportunity to create a strong brand value.Negative impactPolitical factors have e negative impact too. The government highly strict and stiffpolicies, regulations, higher taxes. High duty, rule etc. creates the most and bigger disruptions inthe production and operational function of the organisation due to which the companies and theirproducts and service equality suffers which leads to reduction in capturing the good marketsshare and decreasing sales will lead to non achievement of their organisation goal.Economic factorsIn the automotive industry economic factors also plays important role as the directlyaffect the operation s of the organisation and on revenue earnings of the organisation as in thetime of good economic condition sales of the company leads to increases and in bad economictime the sales tends to decrease. Even in bad economic condition or even the demand of higherand luxurious vehicle also get heavily affected(Gary and Heiko, 2015). In good economicconditions sale of the vehicles remain high in the developed countries as the purchasing power ofthe customers are high. Whereas low in underdeveloped and developing countries. Thus, theeconomic size and economic conditions directly affects the profitability of the automotiveindustry and its companies as industry is completely depended on the purchasing power of thecustomers. The growth rate, inflation rate, foreign exchange rate and many other factors areconsidered to e part of the economic factors.Positive factorsGovernment has been granting the concessions like reduced interest rates for exportfinancing which helps the companies to arrange finance at low rates for continuing theiroperations..the high growth rates for developing market also leads to development of thecountry's economic conditions their sales increase which leads to higher profit margin of theorganisation as well as contribution towards the gross domestic product of the country also2
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