Environmental Analysis of Mercedes Benz

Running head: ENVIRONMENTAL ANALYSIS OF MERCEDES BENZ
ENVIRONMENTAL ANALYSIS OF MERCEDES BENZ
Name of the Student
Name of the University
Author Note

1
ENVIRONMENTAL ANALYSIS OF MERCEDES BENZ
Part 1
Macro-environmental analysis – PESTLE analysis
Factors Describe the
forces and the
impact of these
forces
Strength of the
forces
Need of
modification of
the strategies
Actions
recommended
for changes in
strategy
Political The regulations
and the rules of
government are
important
factors that
affect the
automobile
industry.
The government
forces are
strong in case of
the automobile
industry in
markets of
Europe and the
UK.
No The company
needs to
formulate the
strategies
according to the
regulations of
the particular
area.
Economic
conditions
The crisis in the
economic
conditions have
affected
Mercedes Benz
and the industry
as well.
The economic
conditions can
strongly affect
the operations
of the
automobile
industry.
Yes. The
company needs
to modify the
strategies
according to the
needs of the
economic areas.
The major
change needs to
be made in the
ways by which
the company
operates and the
prices charged.
Sociocultural
forces
These forces are
based on the
preferences and
the trends of
people.
The cultural
forces have
strong effect on
the automobile
industry (Bettis
et al., 2016).
Yes. The
product
offerings need
to change with
changes in the
trends.
The changes in
product
offerings are
important to
keep up with
the trends.
Technological
forces
The changes
that take place
in the
technological
environment
can affect the
systems that are
implemented in
the cars.
The
technological
forces can affect
the ways by
which the
investments are
made by the
company in
improved
technologies.
Yes. The
company needs
to change the
processes
within the cars
to keep up with
the
technological
changes.
The
technological
offerings can be
changed to in an
appropriate
manner to keep
up with the
demands of
customers.
Environmental
forces
The
environmental
forces are based
on the carbon
emissions made
by the cars and
the friendliness
with the
environment.
The
environmental
forces have a
strong effect on
the ways by
which the
company affects
the external
environment.
Yes. The
company needs
to update the
products so that
they
environment
friendly.
The
organization
needs to update
the products so
that the harmful
emissions are
reduced.

2
ENVIRONMENTAL ANALYSIS OF MERCEDES BENZ
Legal and
regulatory
forces
The laws and
the regulations
that are made
by the
government
affect the
international
market.
The regulations
and laws in the
external
environment
affect the
operations of
the company.
Yes. The laws
and regulations
affect the ways
by which the
organizations
develop the
operations
(Steinbach et
al., 2017).
The company
needs to modify
the strategies so
that they are
able to comply
with the rules.
Industry analysis – Porter’s five forces analysis
Forces Describe the
forces and the
impact of these
forces
Strength of the
forces
Need of
modification of
the strategies
Actions
recommended
for changes in
strategy
Competitive
rivalry
The premium
and luxury
automotive
industry us
competitive in
nature with
major
organizations
like, BMW,
Lexus and
Audi.
High Yes Strategies need
to be modified
by Mercedes
Benz to keep
with the
competition.
Threats of new
entrants
The barriers to
the entry of new
companies are
high so the
threat of new
entries is low.
Low No The
modification of
strategies is not
required for the
industry as the
low entry of
new
organizations is
constant.
Bargaining
power of the
suppliers
The huge
number of
suppliers of the
automotive
industry is a
major reason
behind the low
power of the
suppliers.
Low No The low
bargaining
power of the
suppliers is
important for
smooth
operations of
the company.
Bargaining
power of the
buyers
The high
bargaining
power of the
High Yes Mercedes needs
to develop the
products in such