Introduction to Business

This presentation provides an overview of management in the context of introducing a business. It discusses the impact of external factors using PESTEL analysis, opportunities and threats using SWOT analysis, and proposed recommendations for the business.

Introduction to Business
Name of the Student:
Name of the University:
Author’s Note :

Executive Summary:
The aim of the report is to provide an overview of management in the
perspective of introducing a business. The business under discussion for
this particular report is an Auto Repair Shop in Canada. The report
commences with impact of external factors that influences the business.
These factors are determined by the PESTEL analysis that primarily
includes political, economic, social, technological, environmental and legal.
The report then discusses about the opportunities and threats of the
business using a SWOT analysis. The report also puts across proposed
recommendation that would not only help the business in taking advantage
of the business opportunities but also helps it in facing the potential threats

Table of Contents
Introduction
Impact of the external Factors i.e. PESTEL
Analyiss
Threats and Opportunities Faced by the
Business
Proposed Recommendations
Conclusion

Introduction
The report aims at providing an introduction to
business in context of an auto repair shop. The
report discusses about the impact of the external
environment through the use of the PESTEL
analysis. The report also puts across discussions
about the potential opportunities and threats faced
by the business in context of SWOT analysis. The
report also contains proposed recommendations
for helping the business take advantage of
opportunities and in helping the business in
facingthe potential threats using results of the
analysis.

Auto Repair Shop
The Auto Repair Shop puts across an
establishment where that repairs automobiles
through technicians and auto mechanics. An auto
repair shop offer both bodywork and mechanical
repair (Salazar et al., 2014). The shop that
specializes in the repair of the bodywork is
known as the body shops. They also put across
paintwork repairs for the scuffs, scratches, dents
and the repair of bodies of the vehicles damaged
by collisions. The auto repair stores are mostly
independently owned and operated business.

Auto Repair Shop

Figures Representing the Jobs Per Week and Mechanical
Repairs of an Auto Repair Shop

PESTEL Analysis

….Continued
The PESTEL analysis puts across a tool or
framework used by the marketers in
analyzing and monitoring factors of the
macro environment that impact the
organization. The result of the analysis have
been used for identification of the weakness
and threats primary used in SWOT analysis

SWOT Analsis

….Continued
SWOT analysis represents a technique of
strategic planning used for helping a
person or organization for identification of
the strengths, weaknesses, opportunities,
and threats in relation to the business
competition or the project planning

Impact of External Environment Influencing the
Business
The external environment represents everything
outside the organization which might have an
impact on the business . The external environment
of an organization comprised of two layers. One is
the general environment that refers to non specific
dimensions while the other represented forces
within the surroundings of an organization that
might have an impact on the activities. The six
segments of the general environment include
political, economic, social, technological,
environmental legal .

Political Factors
The political factors can impact the
business at various levels. Elections and
Regulations will have an impact on the auto
repair business (Churchill, Agbodohu &
Arhenful, 2013). The impact can however be
both negative or positive depending on the
circumstances

….Continued
Elections leads to generation of economic activity during
the process of a campaign and the changes in elected
officials can influence the business conditions (Zaridis &
Mousiolis, 2014).
Regulations might lead to changes in the operation of
auto repair business gets operated (Kvorning, Hasle &
Christensen, 2015). For example, implementation of
regulations like the reporting of serial number of tires and
the consumers to whom they are sold would have an
impact on the auto repair industry

Economic Factors
These factors are vital economic conditions
in the evaluation of the impact of overall
climate of the business. The key to the
evaluation of the economic indicator lies in
the determination of the most pertinent
factor towards the local economy and using
them in evaluating the economic conditions
(Storey, 2017). In the present state of
economy there exist various economic
indicators that might impact the auto repair
business

….Continued
In this context local indicators like the real
estate and the employment rate acts more
meaningful while evaluating the economic
circumstances surrounding the auto repairs
business. When the economy remains stagnant
then the spending of the consumer will either
shrink or remain constant. The object of
recognizing economic status lie in adaption of the
business practices for the purpose of conserving
or expanding based on circumstances.

Social Factors
These factors stresses on the societal
influences that acts vital for operating an
auto repair business (Dubin, 2017).
Populations may grow either quickly or slowly
depending on the geographic location. The
age of the population might have an influence
on the market and how the relationships are
sustained and formed.

Diagrammatic Representation of the Social
Factors

…..Continued
Some of the other social factors that might
influence the auto repair business are as
follows:
Growth of the Population
Change in the demographic shifts
Opening of new business and new homes

Technological Factors
These factors includes improvement in the
technology that results in the positive impact
towards the auto repair business as
competition necessitate the improvement in
various areas. The auto repair shop seem to
adjust and advance with advancements in
the technology (Anderson et al., 2014).

…..Continued
Some of the technological factors known for
impacting the business includes:
Advances of the auto components
Implementation of Diagnostics
Computerization

Environmental Factors
These factors includes the following:
Environmental Policies: This act as an
external factor influencing the auto repair
business(Gelbmann & Hammerl, 2015). The
reason lay in the fact that environmental
policy referred to the commitment of business
towards the regulations, laws, and policy
mechanisms that remains concerned with
environmental issue.

Enterprise Environmental Factors
Environmental policies implemented by
keeping in mind the following:

…..Continued
Green Agenda: This
refers to the plan when
the Auto Repair Shop is
able to manage operations
in the manner for
ensuring minimum
negative influence on local
or global environment
(Pretty, 2013).

Legal Factors
When proposed legislation becomes the law it
have a direct impact on the business that can
either have a positive or negative impact. This
can be explained with the help of the recent
legislation where the absence of the pipeline
allowed raw materials in getting transported
via the trucks to the refineries (Storey, 2016).
This has acted beneficial for the various
automotive repair shops that are located along
the route.

What Kind of Barriers Does a Business Face?
The threats of a business includes:
The impact of the shrinking markets
Altered taste of the consumer
Tendency of purchase of the consumers
Shortages of raw materials
Impact of economic downturn
Implementation of newer regulations
Changes affecting the access to the business
 Competitive threats including newer competing
business and the competitive mergers and the alliances .

Diagrammatic Representation of the Barriers

What are the Opportunities Available to
a Business?
The opportunities of a business includes:
Investment in the multiple business
Crowd funding
Power of the Internet
Foreign Markets

Sources of the New Opportunities

Opportunities Facing the Auto Repair
Shop Business
The opportunities facing the auto repair shop
include(Clements, & Kockelman, 2017):
Aging population of Cars
Increase of the store expansion on a global
scale
Auto part market puts across growth

Opportunities of Optimizing Business Across
Customer Requirements

Threats Facing the Auto Repair Shop
Business
The threats facing the auto repair business includes (Kennedy,
2016):
Impact on sales due to increase in the potential competition
Recalls from the suppliers leads to the decline in the revenue
Imitation of the service provided

Why Recommendations are Needed for a
Business ?
 Recommendations helps the business to succeed
through consideration of the aspect that might have
been overlooked.
It does not allow an entrepreneur in settling for doing
things that leads to continuous effectiveness and
impact.
It helps in continuously checking for verifying that the
business in the appropriate direction.

Proposed Recommendation for Taking Advantage
of Business Opportunities
 Business can take advantage of the business
opportunities of aging population of the
cars through the game of balance
 Enhancement of store expansion on the
global scale can prove to be advantageous
for a business in terms of :
I. Enhanced revenue
II. Foreign Investment
III. Diversification of the market

….Continued
Business can take advantage of an increase
in store expansion on global scale through
attracting newer customers especially when
business involves the introducing of newer
products and the services. It will also enable
economies of scale.

Proposed Recommendations in Helping the
Business Face Potential Threats
Monitoring of the competitor s as poor
performance on part of the competitors can
result in the creation of the opportunity for
product and service.
Enables exploring the newer markets and
looking beyond the established market or the
sector that contributes in undertaking newer
opportunities of business.

….Continued
Enables the business in exploring newer
markets and thereby work in collaboration or
partnership. This will help in the extension of
market reach thereby allow pooling of
resources and undertaking the negotiations
for the better deals with suppliers.

Conclusion:
On a concluding note, it can stated that the
report puts across how the six external factors
including the political, economic, social,
technological, environmental and legal influences
the business in some way or other. The report
mentions about threats and opportunities faced
by Auto Repair Shop. The report also helps in
over viewing proposed recommendations that
help the concerned business in undertaking
advantage of business opportunities and also deal
with the potential threats.

References
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Thank You