Global Environment Assignment

Added on - 04 Oct 2020

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Global Environment
Table of ContentsINTRODUCTION...........................................................................................................................1PESTLE analysis of Global auto-mobile industry.................................................................1Porter's five force model for Global auto-mobile industry.....................................................4CONCLUSION...............................................................................................................................7REFERENCES................................................................................................................................1
INTRODUCTIONGlobal Environment is defined as the overarching surroundings in which firm operates. Itinvolves various factors that can impact a business. This includes politics, geographic location,economic status, culture and technology of global environment. It is also defined as thesurrounding in distinct sovereign countries, with variables exogenous to local environment of anorganisation that influence decision making of firm on utilization of resources and capabilities.The present assignment is based on global auto mobile industry which is one of the rapidlygrowing sector and is consider as world's most important economic sector in term of revenue(Attfield, 2015). Automotive industry highly contributes in growth and development of Europeaneconomy as it contribute 4% in country's GDP and provide around 12 million jobs. In this report,environment of global automotive industry is assessed by using PESTLE Analysis as well asPorter's Five Force Analysis. By the application of these tools, factors of macro environment areevaluated and effective strategies can be formulated that assists company in gaining highcompetitive advantage in market.PESTLE analysis of Global auto-mobile industryGlobal auto-mobile industry is consider as a multi billion industry where large number ofbrand compete for market share. All the major players tries to bring vehicles which providesmore fuel efficiency with low carbon emission in order to capture large share of market.The European car industry has been evolving continuously due to recent inauguration of $890million auto-mobile factories which was a major event and hence contribute toward theeconomical development of Europe and is considered as a world's largest car manufacturingregion and largest market. For maintaining the economical growth and to avoid the events thatmay affect the functioning of auto-mobile industry it is very essential to conduct environmentanalysis. This analysis can be performed using an analytical tool known as PESTLE, stands forPolitical, Economical, Social, Technological, Legal and Environmental. It help in analysingvarious factors that are present iFirm requires ton external environment and can affect eitherpositive or negative impact over the functions and operations of auto-mobile industry (Axelrodand VanDeveer, 2014). Following are the factors includes in PESTLE analysis.Political:-It includes element which are related to government regulations and politicalstability which a country have, these factors have an huge impact over the operations of industry.1
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