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Reflective Accounting Essay Business Managing

   

Added on  2020-06-03

13 Pages3932 Words92 Views
Reflective Accounting EssayBusiness Managing

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1A) Present macro and micro environment on the Auto mobiles sub sector in the UK economy................................................................................................................................................1B) Internal analysis business environment of Auto mobile sub sector company...................4Value chain model...........................................................................................................................4C) Reflection on the usefulness of porter’s five force model.................................................7CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10

INTRODUCTIONIndustry analysis is considered as recognising various factors that affect the businessenvironment of companies in a particular industry that has been taken into consideration in thisassignment. This report will provide a reflection of internal and external environment factors thatprovide major influence on the auto mobile sub sector companies in UK (Valavanis andVachtsevanos, 2014). There are various business models have been taken in to consideration inorder to provide an understanding about various business prospects. It is considered as one of themost commonly used strategic tool which has proved its usefulness in different businesssituations when the organization needs to explore strategic management models.A) Present macro and micro environment on the Auto mobiles sub sector in the UK economyAnalysis of industry is considered as tool that facilitates an understanding to thecompanies about their position relating to other companies that provides similar products andservices. PESTLE has been used to make external industry analysis of auto mobile industry.Political factors: The auto mobile manufacture in developing countries are continuouslyunder pressure by government. Sub sector of Auto mobile industry has been big source ofrevenues for government. In the UK there are large market of auto mobile sector, but forestablishment or expand the business, they have to pay some fund to their politician. It isthe main impact of the political factors on the auto mobile sector (Mandelin and Sidman,2015).Economic factors: These industries are highly affected by economic condition. There aredifferent types of economic crises in the past and each of them adversely affected thesales of auto mobiles sub sector companies especially in UK. Through it, their countryalso get the effective revenues from the auto mobile sector. Their selling number are veryhigh in the UK, because there are large market of auto mobile sector, and it positiveimpact on the companies and country.Social factors: The auto mobile industry attract to the entire society to buy their cars, andanother products. It is become need of everyone in the world, so if anyone doesn't haveany vehicle then their standard cannot be maintained in society. It can be positive ornegative impact on society, because if they are thinking positive, then its need is normal,1

but if they are thinking negative, then its need are very necessary. It is very beneficial forthe entire industry, but people can face some problems (Aithal and Kumar, 2016). Technological factors: Auto mobiles sub sector has gone through stages of innovationsince first produced. It is a sector, where technological factors play the very importantrole. According time and requirement, technology will be change. However, industryneed to know about need of the people, and use the best technology for sub sectorcompanies industry. Some companies experiment with smart, driver less and flying cars ithas become difficult for auto mobile manufacture to keep up with the pace oftechnological advancements. Legal factors: Auto mobile safety has been the biggest concern for law makers globally.Each and every auto mobile company need to follow the rules of regulation of the lawaccording to global trend. The entire companies are regularly under pressure to complytheir rules, regulations and law (Gillam and Siriwardena, 2013). There are different lawsin UK that does not allow them to increase their product's price without governmentapproval.Environmental factors: Auto mobile sector is damaging the entire environment of thecountry. People has lot of knowledge of environmental problems, they are concernedwith effects of auto mobile on environment. Its effect the health of people, and theirliving condition. Other than that, sub sector companies need to manufacture somefriendly cars or without pollutions cars for the people, so it cannot be able to damageenvironment. However, there will be growing demand of environmentally friendly automobiles in future (Baldwin and Van Hekken, 2014).In addition to this, porter's five force model has been analysed in order to gain anunderstanding of influencing factors on the sub sector on auto mobile industry. This model isconsidered as frame work for the analysis of industry and used for the development of businessstrategy. It is considered as one of the most commonly used strategic tool which has proved itsusefulness in different business situations when the organization needs to explore strategicdecision making process (Yunna and Yisheng, 2014). It mainly forces which describe thestrength, weakness and opportunities threats for auto mobile sub sector business units are asfollows:2

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