BM461: External Environment Analysis of Aston Martin (PESTEL)

This report provides a comprehensive PESTEL analysis of Aston Martin, a UK-based car company. It examines the political, economic, social, technological, legal, and environmental factors influencing the company's operations. The political factors include the impact of government policies and political stability. Economic factors such as exchange rates, inflation, and growth rates are analyzed for their effects on Aston Martin's financial performance. Social factors, including consumer preferences and demographic trends, are discussed in relation to the company's luxury car market. The report also considers the impact of technological advancements, legal regulations, and environmental concerns on the company's strategies. The analysis concludes by identifying key drivers of change that management should consider for the future direction of the firm. The report uses the Harvard referencing style and incorporates secondary research to support its findings.

Pestle Analysis

Contents
INTRODUCTION:..........................................................................................................................1
MAIN BODY:.................................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
PESTEL analysis is described as a framework that is adopted to assess and control macro
environmental element that impose positive influence on performance of company. Therefore, in
this report the Aston Martin car is taken as an organisation. It is determined as an international
car company which is located in UK (Nurmi and Niemelä, 2018).
MAIN BODY
PESTEL analysis of Aston Martin Car
The organisations adopt PESTEL which is going to be mentioned below:
Political factor it is determined as an involvement of government on activity of
organisation that involves tax policy, trade policy and so on. Political stability it has been
analysed that political condition of UK is stable than it provide opportunity for individual person
of society. In addition to this, Aston Martin car follow laws as well as registration that help in
executing different activities in a systematic manner. On the other hand, due to situation of
pandemic, there are different kinds of uncertainty which imposes negative impact on
performance of organisation.
Economic factor it included different factors which impose direct impact on financial
performance of country. This element includes exchange rate, inflation rate as well as growth
rate and many more. The management team of Aston Martin car focuses on increasing their
involvement towards satisfying the demand of customer that imposes positive impact on
organisation. On the other hand, due to decrease disposable income, the business organisation
focuses on advertisement of brand rather than luxurious item and also after Brexit, the rate of
inflation is decline then it decreases purchasing power of its user that results in decreasing sales
of organisation.
Social factor it signifies the factor like demographic, age distribution, cultural norms and
many more. The chosen organisation provides luxurious car to its user as per their choice that
help in influencing positive impact on the organisation. On the other hand, due to frequently
change in needs and wants of customer it is not easy for company to provide them goods
according to their choice that imposes negative impact on the company.
Technological factor it is significant for organisation to adopt innovative technology for
attracting large number of user and retain them for a longer period of time. Therefore, the Aston
1

Martin car uses innovative technology in order to provide branded and luxurious car to its user.
In addition to this, due to implementing advanced technology it increases the cost for a company
that decreases profit in future period of time.
Legal factors include like employment law, Consumer Protection law and many more.
Therefore, the organisation focuses on follow all laws and regulations that help in achieving
competitive advantage over rivalries at marketplace. On the other hand, the organisation pays
minimum salary of wages to its subordinate mentioned by government of UK that affects the
brand image and reputation of company (O'Meara, 2016).
Environmental factor there are various factors such as a climate, weather condition and
many more. The chosen organisation focuses on decline in adopting carbon footprint for save
environment. On other hand, there is uncertainty in relation to climate and weather conditions
that imposes negative impact on the organisation.
CONCLUSION
On given report, it is assess that PESTEL analysis is described as a framework that is
adopted to assess and control macro environmental element that impose positive influence on
performance of company.
2

REFERENCES
Books & Journal
Nurmi, J. and Niemelä, M.S., 2018, November. PESTEL analysis of hacktivism campaign
motivations. In Nordic Conference on Secure IT Systems (pp. 323-335). Springer, Cham.
O'Meara, P., 2016. The Decembrist Pavel Pestel: Russia's First Republican. Springer.
3