Business Environment and Key Issues in the Automobile Industry

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Key Issues..............................................................................................................................3
PESTLE and two problems impacts the sub sector...............................................................4
Impact upon business.............................................................................................................6
Challenges..............................................................................................................................7
Reflection...............................................................................................................................8
CONCLUSION...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is considered is incorporated of both external and internal factors
which influences entities operations and practices. It involves several aspects like legislations,
competitors, and many others (Helm and Gritsch, 2014). The undertaken organisation for this
report is Aston Martin which is a British manufacture firm that was established in year 1993. It
deals in producing luxury sports car as well as grand tourer and having headquarters is in
England, London, UK. The main intent of this of report is to examine key problems that effects
automobile industry as well as PESTEL model for finding problems. Moreover, its affects upon
business in positive and negative manner as well as challenges are also described in this report.
MAIN BODY
Key Issues
This is regarded as the high priority trouble which affects entities in pessimistic manner.
Whole sector operating its enterprises at market are going through various problems. In relation
to UK, automobile sector contributes over £20.2 billion that adds value as well as turnover of
approx. £82 billion which play essential role into business development and growth. Thus, these
sector is facing several problems in context of Brexit, electric challenges, Emission Woes and
others. So, the major key issues into automobile industry are described below:
Worldwide rivalry: The globalisation enhancement leads towards improving as well as
developing factors for automobile sector. with raise of economic procedures, there is
maximisation into competition level that is considered as huge issues for automobile industry.
The major rivals are Land Rovers, BMW, Jaguar and many more which operates its entities at
worldwide level as well as forming rivalry among each other. The different brands target specific
marketplace but this overlaps because of rivalry. There is competition within automobile in
respect of cost, quality, technology and so on (Homburg, Stierl and Bornemann, 2013). Thus,
rivalry is considered as main key issues for respective sector. There is innovation into goods like
electric cars etc. This is effecting automobile subsectors due to higher production in context of
passenger vehicles development, SUV’ cars and many more for attracting large marketplace.
Brexit: Within United Kingdom automobile sector, company are going through warning
continuously for no deal Brexit from EU in year 2016. There is minimisation into investors from