Environmental Analysis: Pandemic Impact & Survival in Auto Industry

This report provides an environmental analysis of the automobile industry, focusing on the impact of the COVID-19 pandemic and the key factors for survival and success. It examines the disruption to supply chains, the decline in sales, and the shift towards e-commerce and electric mobility. The analysis includes a case study of Jaguar, highlighting the challenges and strategies adopted by the company. The report further identifies innovation, distribution networks, flexibility, and the use of digital platforms as critical success factors for automotive firms in the face of changing market conditions and environmental concerns. The study concludes that adapting to these factors is essential for maintaining competitiveness and achieving long-term sustainability in the automotive industry. Desklib offers a wealth of similar reports and study resources for students seeking to deepen their understanding of business and environmental analysis.

Environmental analysis
of an industry

Table of Contents
INTRODUCTION ............................................................................................................................3
Impact of pandemic on auto mobile industry...............................................................................3
Survival and success factors of the auto mobiles industry............................................................5
CONCLUSION .................................................................................................................................7
REFERENCES...................................................................................................................................8

INTRODUCTION
Environmental analysis is a strategic tool, this method is used to spot all internal and
external part of the organisation which may have an impact on the business performance. By this
analysis, an organisation assess amount of the threat and chance the elements may gift.
Traditionally, the environmental analysis of an industry is second phase of organisational
strategic analysis. Main purpose of this is to determine level of the competitive pressure business
organisational is likely to exposed to in foreseeable future. The industrial analysis is essential
responsibility of the business analyst (ALBU, 2018).This study is about a specific industry for
understanding its future outlook which is based on the past trends and demand supply mechanics.
The considered company for this report is Jaguar,which is a car manufacturing company in
England. This report will cover the effect of the pandemic situation on auto mobile industry and
also develop survival or success factors of the respective industry.
Impact of pandemic on auto mobile industry
Break down of the COVID 19 pandemic impact the company's progress and action ratio
vastly. It is analysed that several industries were get effected due to the pandemic. All industries
were influenced by this as they faces issues of transportation and lacking of the resources as
government had laid down many regulation and restriction during lock down. Due to this, the
outgoing and incoming of transportation also restricted. There was a reduction in profit,
production in auto mobile industry during pandemic. Jaguar also face loss due to the lock down as
it minimize its sales and revue. This company had recorded the substantial impact of COVID 19
on its business operation(Blažek, Bělohradský and Holická, 2021).
Supply chain- As there was a restriction on the transportation due to which all auto dealers had to
face several difficulties in this time period. Many big companies had invested a large amount in
order to makes their supply chain network more effective, but due to the pandemic all of them
had to face many issues in COVID 19 . Like other automotive manufacturing, Jaguar also
experienced disruption in its supply chain due to the pandemic. Global availability of the
semiconductors impact the respective company's production schedule and ability to meet the
global demand for their vehicle (Tor, 2021).

Sales- COVID 19 impacted the sale's graph of the auto mobile industry very badly. In context of
the Jaguar, its sales were effected across the world wide, including China, UK, North America
and many other during pandemic. There is an unprecedented disruption in the automotive sector in
2019-20. Despite, the impact of Brexit, shifting consumer tastes, regulatory changes and ongoing
trade tensions, Jaguar's sales were viewing improvement until pandemic hit. But after COVID 19,
the respective company has suspended its production temporarily (Flegontova and Ponomareva,
2020).
Technology- in 2019, due to them pandemic, the automotive industry started to shrink globally.
The COVID 19, hit the automotive industry which resulting that the car industry had to face high
overcapacity in some nation. It also impact the technology due to which there is a shift toward
electrical power impacted business performance. In context of Jaguar, it get impacted because of
the latest trend of the autonomous driving and electric mobility. Due to this, trend of the e
commerce was raised as in locks-down, customers start looking online to purchase car.
Liquidity- during COVID 19, the financial firms of auto mobile industry face heavy burden due
to increment in the loan evasion, fallen down in new loan and complexities to decide customer's
credit value. Cash become very critical during this time period. Pandemic had put tension on used
cars, mobility solution and after market supplier. Therefore, several financial challenges effect
company's transformational investment in connected electrical mobility and autonomous.
Strategy- Because of the pandemic, there was a reduction in the customers requirement regarding
vehicles. In context of Jaguar, there was a sharp fall in demand of the customers for its auto
mobile products as there was a change in the customer's attitude in response to being in COVID
19 such as they start to buy online the vehicles due to which there was a less mobility remain after
passing this crisis.
Cyber security- Automotive sector is technologically advanced industry with innovative
ranging from electric, hybrid and the self drivers smart cars. Before pandemic, automatise
industry were facing operational inefficiency and many other security issues or problems which
lead to cyber attacks, incidental losses, unneeded casualties and inflated price for service and
parts. In context to Jaguar, there are two kind of the cyber security's risk which are breached the
software company and an infiltration of the organization network. These cyber security risk are

related to with the COVID 19, all these risk separated in two main impacts that are the direct and
indirect impact of the COVID 19 related risk
Workforce- It is analysed by the Bureau OF Labour Statistics, That auto maker and all the
supplier used employees which are more than approximate one million in United State. Labour's
welfare is major concern for corporate leaders. But, due to the COVID 19, many workers get sick
that resulted a reduction in the manufacturing capabilities (Łąckaand Suproń, 2021).
Survival and success factors of the auto mobiles industry.
In the changing business environment, some growing tendency are taking place toward
over the complications. Therefore, it is essential for all the organisation that they focus on main
survival and success factors for their business growth. The critical success and survival factors are
very important components for the organisation as they contribute highly in attaining their
business goals. Due to the CPVID 19, there is a great impact on performance and progress of
automotive industry. Regarding the consistency to survival and success in market place, it become
significant for the organisational management that they should take some appropriate and
effective step to resolve and outcome the impact of pandemic (Lawrie and Tsetsekos, 2021).
During the restriction in COIVD 19, there is drastically slow does on business and their supply
chain. To overcome by all these challenges the origination had to adopt survival and success
factors. In context of the Jaguar, it had also adopt some survival and success factor which are
discuss below:
 Innovation- Artificial intelligence is consider as a most growing and successful trend of
any business organisation as it make enable the commercial organisation to increase their
work productivity and performance in order to accomplish edge over their other
competitors s within market. Utilisation of the robotics technologies and artificial
intelligence are modified effectively so that the companies can carry out their all
operational activity efficiently. Innovation impact all areas of an organisation including
manufacturing industry, supply networkings and other department too. Main purpose of
innovation automotive industry is to become very effective and progressive in their files.
In relation to the Jaguar, by using their robotic technology and artificial intelligence they
attract a large number of the customers (Singh and et. al., 2021).

 Distribution network- More critical success factor of the automotive firm is their strong
distribution network. Because truck and cars are not sold to customer in a direct manner,
auto manufacturers rely on the franchised dealership in order to provide the local
showrooms. It is essential the all these dealer must be reputable and knowledgeable to sell
cars, that is important for auto makers.
 Flexibility- Elusive critical factor of the success fro automotive industry us ability of
flexibility. In context of Jaguar, its car buyers may changes their purchasing habits rapidly
in response to elements like economy's state, fuel's price and other new automotive
technologies. Therefore, it is very significant for the automotive that they remain attentive
to all these trends and also keep in place any system which can adapt rapidly for creating
new products to meet current and future need of the customers .(Marques, . and et. al.,
2019).
 Use of digital platforms is the another important factor which facilitates high rate of
success for the Jaguar in COVID pandemic. Because in COVID due lock down
organization face lot of problems for maintaining connectivity with new and existing
customers. Due to various barriers company are not able to open their showrooms for long
time. This create negative impact in the minds of the consumers towards the organization
and also enhanced the chance for decreasing sale and revenue of the organization. Due to
this management initiated some strategies in digital way for reducing this problems and
also for enhancing the profit of organization in long run. It includes use of official
websites, displaying their vehicle accessories through online mode and also facilitating
luxurious and automated features in their product. Due to these features consumers easily
attracted to buy their product. Their product description are popularised in various social
media which includes Facebook, Instagram, twitter and so on. The other important fact is
that this company focused on the middle and upper class customer segment due their price
(Shen and et. al., 2019)
 Secondly due to heavy investment in the research and development department and
advertisement for increasing their organizational profit and product popularity. It means
that when organization maintained their popularity of product in market then only
consumers avail their services in difficult situations easily. As I mentioned above Jaguar is
only target upper and middle class customers. Due to the heavy investment company

developed the unique product which is totally different from other competitors. For
launching this type of product organization used the advertising activity in high quantity
with the help of famous actors. This type of strategy effects the youth generation in large
number because only these generations have craze for driving the vehicles .
 Thirdly change in climate refers to impact given by the auto mobile industry on the earth
atmosphere. In this stage environment are highly polluted by the dangerous chemical gases
which was polluted by vehicle of jaguar. Therefore it is necessary for management that
they must develop fuel efficient engine or use new technology in their vehicle for reducing
the pollution rate in atmosphere. With help of this strategy the heath of the living
organisms are also get increased easily. Because due to use of updated engine pure oxygen
are received by employees in workplace area. It leads to increase the work efficiency and
productivity of employees for long time (Xie and et. al., 2021).
CONCLUSION
After the evaluation of above information it concluded that COVID pandemic create major
threat in all activities of organization. Due to this company faced various types of challenges for
enhancing their sales and profit with help of their product. In covid pandemic due to well
established infrastructure communication are effectively maintained with customers.

REFERENCES
Books and Journals
ALBU, M., 2018. Considerations regarding environmental aspects of risk management in the oil
and gas industry. In Advanced Engineering Forum (Vol. 27, pp. 213-218). Trans Tech
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Blažek, J., Bělohradský, A. and Holická, Z., 2021. The role of tier, ownership and size of
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Flegontova, T. and Ponomareva, O., 2020. Transforming Global Value Chains In the Context of
the COVID-19 Pandemic. Monitoring of Russia's Economic Outlook: trends and
challenges of socio-economic development. Moscow. IEP, (7), pp.20-26.
Łącka, I. and Suproń, B., 2021. The impact of COVID-19 on road freight transport evidence from
Poland. European Research Studies, 24, pp.319-333.
Lawrie, M. and Tsetsekos, G., 2021. Business Leadership in Turbulent Times: Decision-Making
for Value Creation. Archway Publishing.
Marques, C.S. and et. al., 2019. Innovation as a booster of rural artisan entrepreneurship: A case
study of black pottery. International Journal of Entrepreneurial Behavior & Research.
Shen, N. and et. al., 2019. Different types of environmental regulations and the heterogeneous
influence on the environmental total factor productivity: Empirical analysis of China's
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Singh, S. and et. al., 2021. Impact of COVID-19 on logistics systems and disruptions in food
supply chain. International Journal of Production Research, 59(7), pp.1993-2008.
Tor, N., 2021. Corona and Art in Mersin. In A New Social Street Economy: An Effect of The
COVID-19 Pandemic. Emerald Publishing Limited.
Xie, L. and et. al., 2021. Environmental regulation and energy investment structure: Empirical
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