The Global Business Environment-1

THE GLOBAL BUSINESS
ENVIRONMENT-1

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Forces shaping business environment..........................................................................................3
Opportunities and challenges factors present and competitive advantages.................................5
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is a sum of different internal and external factors influence the
overall operations of company. This report is based on the case study of the Lexus Company.
The organisation was established in the year 1989. Toyota Company is considered as the parent
company for the respective organisation. This report would evaluate the factors of business
environment in respect to the Lexus Company. Henceforth, report will emphasis over different
models such as PESTEL, SWOT,Porter five forces, product life cycle and value chain analysis.
Different aspects related to business operations functioned by company would be addressed in
this report.
MAIN BODY
Forces shaping business environment
PESTLE Analysis-
Political factor- Lexus car has expanded into various countries to increase the sales of vehicles
and begins the production in UK. The political factor affects many areas like labour force, the
quality of technologies and the health of human insurance. While dealing with the concept of
Brexit the Lexus facing uncertainty in their business as being imposed in imports of the
productions sites in England which are not able to control but there is a need to control the
uncertainty. As the UK leaves European Union which acquire political risk that are not expected
for the firm. In present era of plan the government changes its policies to support the companies
so that they can grow in the market. The political factor dealing have a positive effects in Lexus
performances which is happening in japan (Perera, 2017 ). The government who are investing in
the Japanese Hydrogen car Mirai as to complete the target.
Economical factor- Lexus faces economic issues under trump administration protectionist
policies and trade Border-tax. The import supplies will cost highly in Japanese market which will
reduce the profit of the company. Lexus ramp up its export out of japan and it will increase the
economies in US automotive market. The Lexus done most of their business with US and
stronger than Yen (considered to favour Japanese export). The improvement in the business will