Business Environment Analysis: PESTEL, SWOT & Recommendations Report

This report provides a comprehensive analysis of the business environment, utilizing the PESTEL and SWOT frameworks. It begins by defining the business environment and its importance for organizational strategy. The report then delves into the PESTEL model, explaining how political, economic, social, technological, environmental, and legal factors impact businesses. Following this, it applies the SWOT analysis to a case study of Jaguar, examining the company's strengths, weaknesses, opportunities, and threats. The report also provides recommendations and objectives, including cost-cutting measures and sales volume enhancements. The conclusion emphasizes the significance of environmental analysis for achieving business success and strategic decision-making. References to academic sources are also provided.

Business and the business
environment

Introduction
• Business environment is the sum or collection of works and activities related
with the internal and external factors consisted of employees, customers needs
and wants, supply and demand factors and management.
• For an organization it is very essential to access the environment in order to build
objectives and strategies to remain competitive in market.

PESTEL MODEL
• Political factor: This factors will include elements like government policy, tax
policy, political stability, foreign trade policy, labor law and many more.
Economic factor: Respective factors will consider several different economical
factors such as exchange rate, unemployment rate, economic growth, inflation
rate and so on.

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• Social factor: This will include factors like population growth rate, age
distribution, safety emphasis, health conscious, career attitude etc..
• Technological factor: Respective factor will consider several elements
such as technology incentives, level of innovation, R&D activities,
technology awareness, automation and so on.

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 Environmental factor: Respective factor will include consider elements like
weather, climate, pressures from NGO, climate change, environmental tax
policies and so on.
 Legal factor: This factor consider several other elements such as copyright and
patent law, health and safety law. Consumer protection laws, Antitrust law and
many others.

SWOT ANALYSIS
Strengths: Jaguar offers products of high class quality and has a popular image of a
luxury brand. The brand has a good, crisp quality advertising targeting
the premium segment.
Weaknesses The competitors have a wide product range whereas Jaguar offers a
limited range of products.
Opportunities: The significant capital investment of TATA's in JLR's research and
design which enables to generate patents that supports to launch new
products into marketplace.
Threats: They are facing some kind of significant challenges in regards of their
design rights and patents within china and their partnership approach and
litigation to continue.

RECOMMENDATIONS AND OBJECTIVES
• JLR which is the global car production company in the whole world centred in
UK due to the Brexit uncertainty they faces some kind of issues and also they
slumped to a loss in first half of 2018 due to falling sales, high cost and
production freezes.

The major objectives
• To cut cost of existing products by 20% within a year in order to enhance sales
and business growth.
• To enhance sales volume reduce the no. of size of contract staff members by 10%
in six months.

CONCLUSION
• From the above PPT it has been summarized that for an organization it is very
much potential to analyses or evaluate the business and their environment in
order to gain potential outcomes and build strategies accordingly. With help of
PESTEL and SWOT analysis tool organization can evaluate the internal and
external strength and weaknesses of organization.

REFERENCES
• Quinlan and et.al ., 2019. Business research methods. South Western Cengage.
• Ansoff and et.al ., 2019. Societal strategy for the business firm. In Implanting
Strategic Management (pp. 285-310). Palgrave Macmillan, Cham.
• SWOT and PESTEL analysis of auto mobile industry, 2019. [Online]. Available
through.

Thank You