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Issues Impacting the Automotive Sector Assignment

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Added on  2021-02-19

Issues Impacting the Automotive Sector Assignment

   Added on 2021-02-19

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KEY ISSUES IN THEHOUSEHOLDFURNISHINGS/AUTOMOBILES/FOOTWEAR SUBSECTORIN THE UK
Issues Impacting the Automotive Sector Assignment_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK...............................................................................................................................................1Two issues impacting the automotive sector...............................................................................1PESTEL of the two issues............................................................................................................2Positive influence of issues on organization................................................................................3Negative influence of issues on organization..............................................................................4Personal reflection.......................................................................................................................5CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7
Issues Impacting the Automotive Sector Assignment_2
INTRODUCTIONAutomotive sector generally comprises of all the organizations and enterprises which areengages in the production and marketing of the motor vehicles. Rolls-Royce Motor Cars Limitedis predominately a luxury auto-mobile Company being established by Torsten Muller-Otvos in1998 and placed in England, UK. It manufactures all types of cars ranging from Ghost toPhantom. This report addresses the two issues impacting the automotive sector, PESTEL of thetwo issues, Positive influence of issues on organization, Negative influence of issues onorganization and personal reflection. TASKTwo issues impacting the automotive sectorAuto-mobile sector basically constitute all the companies as well as the organizationwhich are highly involved in the design, manufacturing and marketing of the motor vehicles.Auto-mobile sector has always been an integral part of entire economy and has popularized itselfacross the entire world. With its ever-increasing significance in small as well as the mediumsized organizations, almost every sector in this industry faces the various unique challenges thatcreates a long lasting impact on them (Zanchi and et.al.,2018). The main key issues which hasimpacted this sector areOvercapacityJust like the other industries, this sector has undergone various ups as well as downs thusovercapacity becomes the main problem which generally occurs when the manufacturer orproducer have invested their resources like payroll along with the materials for the constructionof the particular quantity and later on find that there is no need for this production of suchquantity. This results in the over-expenditure which eventually damages the cash flow within thesector. This also increases the break-even points which could pose a serious problem ineconomic downturn along with the increase in wastage (Faisal and et.al.,2018). Besides this, theovercapacity leads to the overproduction of many of the material due to which the inventorylevel increase and at the end of the day, there remains unsold inventory which seem to cause theissue of inventory's lean waste thus producing the material and product in the excessive amount.This issue of overcapacity has always influenced the automotive sector and is estimated toincrease in the near future. 1
Issues Impacting the Automotive Sector Assignment_3

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