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The Global Business Environment Assignment Solved

   

Added on  2020-10-05

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Business DevelopmentLeadership ManagementPolitical Science
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THE GLOBAL BUSINESSENVIRONMENT-1
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Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................11) Environment of the Global Auto mobile industry using PESTLE analysis...........................12) Global Auto-mobile industry using Porter’s Five Forces analysis.........................................4CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
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INTRODUCTIONThe Global Business environment refers to the environment in different sovereigncountries. The environment includes the factors that effects the business at global level both ininternal and external terms. The Global environment influence the decision making of anindustry. Global business environment also includes market analysis. The project report is basedon Global Auto-mobile industry. As the Auto-mobile industry is growing rapidly after the carproduction surges in Eastern Europe. The Global Auto-mobile industry is a multi billion industryincludes large competitive brands. The global auto-mobile industry has become important partfor global economy in order to generate revenue and provide employment. The purpose of thisproject report is to find the factors and dimensions that effect global business environment ofAuto mobile industries. The project report will outline the Environment of the global Automobile industry using Pestle analysis. The Project report will further explain the global auto-mobile industry using Porter's five forces analysis. Lastly the report will provide a conclusion.MAIN BODY1) Environment of the Global Auto mobile industry using PESTLE analysis.Pestle Analysis – The Pestle Analysis is a tool and framework that analysis the macroenvironment factors that have impact on an Industry. The Harvard professor Francis Aguilar isthought to be created a Pestle analysis in 1976 book. This tool is helpful in starting a newbusiness in foreign market. Pestle analysis consist of Political, Legal, Economic, Social,Technological and Environmental factors. Pestle Analysis of global Auto-mobile industryPolitical Factor – The Political factor includes government intervention around theworld which favours low emission vehicles. This directly impact the profitability ofAuto-mobile industry. The government taxes on luxurious vehicles are generally high.There is government intervention on fuel prices which impacts the auto-mobile industry.The government is supporting vehicles which are environment friendly. The taxes andimport rules are differentiated from country to country (Wach, 2015). The vehicles whichare low emissions receives tax subsides from the government. Political instability andcorruption is a barrier for auto-mobile industry at global level. There is barrier for newentrants in automotive industries like government regulations and polices. 1
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Economical Factor – Initially the auto-mobile industry is facing great recession but afterSlovakia has inaugurated an $890 million auto-mobile factory things have changed. Thesales of auto-mobile industries have generally higher in developing counties. Czechrepublic has nearly double the Car production in 2010. This economic factor drives theAuto-mobile industry. The developed markets has higher purchasing power of customers.They spend more on luxurious vehicles. This leads to increase the sales of luxuriousvehicles in Auto-mobile industry. This lead to boost the sales of Auto-mobile industry.Brands like Jaguar and land-rover has driving the auto-mobile industry. The demand ofluxurious vehicles of auto mobile industry have affected during poor economicconditions and economic crisis (Davies, 2017). The most influence economic factor forauto-mobile industry is purchasing power of the customers. It falls down duringeconomic downturns. The reputed and well- known auto-motive brands have loweringthe cost of cars and have tended to launch the low cost cars. The auto mobile industry isplaying vital role in growth of the economy. As the case study also evaluated that automobile industry has provided Employment to the people. Slovakia event has provided theemployment up-to 3,500 people after opening the $890 million auto mobile factory.Social Factor – The market of auto-mobile industry is influence highly by socio culturefactors. The socio – culture is the basis of auto-mobile industry in order to define thecustomer choice and preferences. The auto mobile industry manufactures the models ofvehicles in accordance with customer choice of design in their car model. The auto-mobile designed their vehicles also by considering factor like age of the customers. If theage group is young than the bikes and car will be designed considering the currentdemand of youngsters. The style and preferences also differ country by country so theauto-mobile industry need to do research on it (Subramanian, 2017). The auto-mobileindustry need to updated with the current market trends and customers outlook. The auto-mobile industry used to manufacture the prestige and luxurious cars for upper classpeople but now it becomes everyone's needs. As people are more tend to maintainstandards they afford luxurious Cars. This lead to increase the sale of luxurious Car inauto-mobile industry at global level. People are becoming more health conscious inUnited state and Europe so some people are using cycles for the way of transportation.2
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