Report: Automobile Sector Issues, Challenges, and Solutions

This report examines the challenges facing the automobile sector, focusing on technology changes and sustainability issues. It begins with an introduction to the business environment and the selection of Jaguar as a case study. The report identifies and discusses two key issues: rapid technological advancements and the growing importance of sustainability. A PESTLE analysis is then applied to categorize these issues, considering political, economic, social, technological, legal, and environmental factors. The main body of the report delves into the positive and negative impacts of these issues on businesses, specifically Jaguar. Finally, the report addresses challenges encountered during the analysis and suggests ways to overcome them, offering insights into the dynamic nature of the automotive industry and the importance of adapting to change.

REPORT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
1. Two issues affecting the automobile sector........................................................................2
2. PESTLE for categorising the two issues............................................................................3
3. Discussion on key issues relating to-..................................................................................6
a) Positive impact in business................................................................................................6
b) Negative impact on business..............................................................................................6
4. Two challenges faced and ways to overcome those challenges.........................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment refers to as summation of both the internal and external forces
which impacts the working of the business. For a company to be successful it is necessary for the
company to make sure that it studies all the business environment factors thoroughly and to
make the changes in the business according to the changes taking place in the business
environment (Saleem, 2015). For carrying on with the report the sector chosen is automobile
sector and the company chosen is Jaguar.
The company is the luxury vehicle brand which is a multinational car manufacturer
headquartered in Whitley, Coventry, England. This company fully merged with Land Rover and
1st January 2013, formed Jaguar Land Rover. The present report will start by highlighting two
issues faced by the automobile sector. Further with help of PESTLE analysis the two issues will
be analysed and evaluated. Next the positive and negative impact if these issues will be identified
on the business. At last the challenges faced and the ways of overcoming those challenges will
be identified.
MAIN BODY
1. Two issues affecting the automobile sector
The automotive industry with UK is known for manufacturing of the different variety of cars and
premium and sports car for the consumers of the country and other countries all over the globe.
There are many different companies dealing in the manufacturing of cars and related vehicles
such as Bentley, Jaguar, Land Rover, Rolls Royce and many other different types of companies.
But the industry faces many different issues or difficulties in manufacturing of these cars. These
issues arise because of the reason that the business exist in the environment which is very
dynamic and changing and these changes impact the working of the automobile industry and the
related businesses. The major issues faced by the automobile industry are discussed in the
adjoining points below-
Changes in technology- this is the major issue faced by the automobile industry. This is
because of the reason that technology is the only factor which keeps on changing very
frequently. This is an issue for the automobile industry because of the reason that if the industry
does not adopt to these technological changes then the existing technology will become obsolete
and this will decrease the goodwill and market share of the company (Prajogo, 2016). The
adoption to the latest technology will improve the working and the efficiency of the worker as

the technology will simplify the work of the employees. This will addon to the overall efficiency
of the company as well as the industry. Also, technology is an issue for the industry because now
they have to hire for some experts to train the operators of these technology if implemented
within the industry (Meoli and Vismara, 2016).
Sustainability- this is another important issue which is faced by the automobile industry.
This is because of the reason that the sustainability is gaining much importance in this highly
competitive world. This is because of the reason that sustainability refers to as the ability of the
person to use the resources in such a way that they are optimally used and also is saved fort he
future use. This is done majorly because of the reason that the resources used by the industry is
very less and scarce and therefore, they need to be used in such a way that they are optimally
used that is they are used effectively and efficiently.
The sustainability is not to be maintained with the resources only, but it is applicable for
all the other stakeholders that is their needs must be fulfilled and satisfied by the industry and its
working. Also, sustainability is an issue because the automobile industry harms the environment
in the form of air pollution, noise pollution and many other related factors. Also, with the smoke
passed out by the cars manufactured in the automobile sector reduces the quality of the air. This
is because of the reason that the smoke passed out from the vehicles is emitted ion the air and
because of this the quality of the air is affected and then this air is inhaled by the people of the
area nearby.
2. PESTLE for categorising the two issues
PESTLE analysis is a tool which helps the company in analysing the changes taking place in the
external environment and their impact in the working of the company. These impacts can be
either positive or negative both that is it can have both the positive impact on the issue or the
negative impact in the issue. The PESTLE done on the key issues are as follows-
Elements Description
Political factors Political factors refer to as the forces within the
political sector which impacts the working of
the business (Leon and Calvo-Amodio, 2017).
The political impact in the issue of technology
is that the government of UK may help the
automobile industry in adopting to the latest

and new technology because of the reason that
if the industry adopts to these upgradations
then it will increase the profits of the company
and this eventually will increase the tax income
of the government as the company will pay
more taxes (Kozubíková, Homolka and
Kristalas, 2017).
Economic factors The economic factors are the factors relating to
the economy of the country which impacts the
working of the business and the overall
industry. The technological issue and the
sustainability issue can be an opportunity for
the business as if the company adopts to these
things then it will lead to the economic
development of the country. This is because of
the with use of these two issues the company
will earn more of the profits and this will
increase the national income of the country.
Social factor This factor relates with the beliefs, values,
attitude of the consumers towards the company
or anything. Here if the industry takes the issue
of technology and sustainability in a positive
way then it will be good for the industry
(Hillary, 2017). This is because of the reason
that with this it can use different techniques
like electric cars, use of rules relating to
environment protection. This increases the
goodwill of the company as it works in
accordance with the beliefs of the consumers.
Technological factor This factor refers to as the changes in the
technological sector. This includes frequent

changes taking place in the technological
sector. These changes can have both positive
and negative impact on the industry. This is
because of the reason that if the technology is
positively implemented then it will be
beneficial and if the employee does not
understand the technology in proper way then it
can become disaster for the industry (Ferrell
and et.al., 2019). Therefore, the issue of
technology and sustainability in automotive
industry will the companies in implementing
the new technologies and different techniques
helpful in maintaining the sustainability.
Legal factor These include different laws and regulations
which are applicable on the business. This is
because of the reason that if the company or the
industry does not follow the rules then the
consumer will not like the company and its
working because of the reason that if the
company will not comply with the rules then
the consumers will not like the company.
Environmental factor This is the most important factor to be
considered in this modern era. This is because
of the reason that if company not cares for the
environment then the consumers will not like
the company as it does not protect the
environment and related factors.

3. Discussion on key issues relating to-
a) Positive impact in business
Everything has two sides that is positive and the negative side. Similarly, with the issues
identified as a challenge for automotive industry also has both the positive and the negative
impact on the companies working within the automobile industry. In Jaguar the positive impact
of changes within the technology is that it minimises the chances of the error. This is because of
the reason that the technology reduces the human effort of working and this makes sure that
almost every work is done with the help of the machines and techniques. Therefore, this reduces
the work of humans and they focus more on the things which are not operated with machines
(Erasmus, Strydom and Rudansky-Kloppers, 2016).
The positive impact of maintenance of sustainability within Jaguar is that it helps the
company in full and optimal utilisation of the limited and scarce resources which increases the
efficiency of the business and increases the goodwill of Jaguar. Also, for maintaining the
sustainability, Jaguar focuses on the protection of the environment and also works for the
corporate social responsibility towards the environment and this increases the market share of the
company as more consumers are attracted towards the company as it takes into consideration the
environment and its development.
b) Negative impact on business
With all the above positive impact there are also some of the negative impacts of these
two key issues on the company Jaguar. The negative impact of the technology over the company
Jaguar is that company needs to install the technology within the business and this involves a
huge amount of cost. This is a negative impact because this increases the cost of the company.
Another negative impact of this new technology is that the company needs to provide for the
training of the employees that how they have to use and operate the new installed technology.
For this the company has to arrange for the training programmes for the employees to learn the
new technology.
Also, there is are negative impact on the business because of the maintenance of
sustainability within the business. The major negative impact is that Jaguar needs to follow
different rules and regulations in relation with the maintenance of the environment and society as
well. This has a negative impact on the business because it has to follow different guidance and
rules and regulations (Bloom and et.al., 2018). Also, for maintaining sustainability the company

has to adopt to many new and latest trends such as electric car, emission of less pollution from its
cars and many others. Therefore, for this the company has to adopt top many different
technologies which involves high cost.
4. Two challenges faced and ways to overcome those challenges
The major challenges which I faced while completing this report is as follows-
Lack of proper information- the challenge which I faced was that I was not able to collect the
information relating with the topic. This was because of the reason that the topic was very vast
and was not able to link the information with the topic.
Loss of failure- this was another challenge which I faced was lack of losing the project. This was
an internal challenge for me as I am a little nervous relating to the work I perform,
For overcoming these challenges, I took the following actions-
Help of internet- for gathering the information I took help of the internet. This is because of the
reason that internet is a good source of information and it also has information relating to
connection of the information with the topic.
Guidance of tutor- also for overcoming the problem of loss of failure I took help of my tutor,
and they explained to me the importance of being confident in performing any task and also gave
me some tips of becoming confident.
With this whole report I learnt that there are many issues which the automobile industry
faces. But the most important issues were technology and sustainability. These issues help the
company in both the positive and negative ways.
CONCLUSION
With the help of the study of the report it was concluded that analysing the business
environment is very necessary for the company to have success in the business. The present
study analysed the two different issues impacting the automobile industry which are
technological issue and issue of sustainability. Further the PESTLE analysis was done to ensure
the impact of the external environment on the issues. Next the report highlighted the positive and
negative impact of these issues on the business. The positive issues were like increase in
efficiency of the company, increase in profits and the negative impact were like increase in cost,
arrangement of training program and many other. In the end some challenges faced and the ways
of overcoming them were outlined.

REFERENCES
Books and Journals
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Blind, K., 2016. The impact of standardisation and standards on innovation. In Handbook of
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Bloom, N. and et.al., 2018. Really uncertain business cycles. Econometrica. 86(3). pp.1031-
1065.
Erasmus, B., Strydom, J. W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Ferrell, O. C. and et.al., 2019. Business ethics, corporate social responsibility, and brand
attitudes: An exploratory study. Journal of Business Research. 95. pp.491-501.
Hillary, R., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Kozubíková, L., Homolka, L. and Kristalas, D., 2017. The effect of business environment and
entrepreneurs’ gender on perception of financial risk in the smes sector. Journal of
Competitiveness.
Leon, H. C. M. and Calvo-Amodio, J., 2017. Towards lean for sustainability: Understanding the
interrelationships between lean and sustainability from a systems thinking perspective.
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Meoli, M. and Vismara, S., 2016. University support and the creation of technology and non-
technology academic spin-offs. Small Business Economics. 47(2). pp.345-362.
Prajogo, D. I., 2016. The strategic fit between innovation strategies and business environment in
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pp.241-249.
Saleem, S., 2015. BUSINESS ENVIRONMENT, 3/e. Pearson Education India.