Business Environment Report: Challenges in the Auto Mobile Sector

This report provides an in-depth analysis of the challenges and issues faced by the auto mobile sector, with a specific focus on Land Rover. It begins with an introduction outlining the scope of the report, followed by a discussion of two major issues: globalization and sustainability. The report utilizes a P...Read More

Business Environment

Table of Contents
Introduction......................................................................................................................................4
Two issues affecting auto mobile sector..........................................................................................4
Pestle analysis for issues .................................................................................................................5
Positive impact on organization. .....................................................................................................6
Negative impact on organization.....................................................................................................7
Two challenges faced and overcame...............................................................................................7
Conclusion.......................................................................................................................................8
References .....................................................................................................................................10

Introduction
The report is going to show the issues that effects the overall working of an auto mobile
sector and how they cope up with those issues. The auto mobile sector is developing day by day
and expanding their business at large scale and develop different type of strategies for their
business. Report is going to show the use of pestle analysis to solve their problems. And positive
and negative impacts of those issues on overall working Land rover. Land rover is one of the
leading company in producing the luxury cars. They also faces issues while they are going to
develop their product in different economy. To explore their business at large scale they need to
overcome those issues effectively.
Two issues affecting auto mobile sector.
Auto mobile sector is developing day by day. Sector needs to develop their business at
large scale in different territories but faces problems to market their product in different
economy. Needs to develop effective policies for their business(Prajogo, 2016. ). Analysis of
different issues they are facing in different economies effects them to establish their business.
Globalization
Globalization become a problem for each and every company in the world. Business
needs to analyse each and every sector of economy. Auto mobile company needs to analyse the
political factors of economy. Political factors like laws, rules and regulations of government for
auto mobile sector, tax rates on the business, charges on luxury cars and auto mobiles. Political
factors are analysed to predict the future of the company. Business needs to analyse the stability
of politics in economy, and stability on rules and regulations set by government. Rules for use of
technology and policies of government in favour of pollution in an economy. Political factors are
analysed by auto mobile sector for their smooth working in an economy. Company needs to
analyse economic factors of the territory to know the effectiveness of their product on the public
of that sector. Auto mobile company needs to standard of living of the population, the interest
rates by government on their products, income level of customers are required to analyse to now
their ability to buy companies product. Stability in the economy of the nation helps business to
prepare plans for their product. Political and economic factors become an issue for company to
develop their product in that economy. If government rules and regulations are not in favour of

the company then it becomes a problem for them to develop at large scale. Income level of
customers are low then company faces problems to sale their products in that economy.
Sustainability
For success of a business a company needs to maintain their stability in that economy.
Business needs to analyse the environment of economy for long run of their business like
weather, climate. Company needs to analyse how rapidly the changes in environment occurs in
territory. Helps business to develop effective policies for development of business at large scale.
Auto mobile company needs to know the ability of their product to adapt changes like increase in
competition in that economy effects overall growth of business. For stability of company they
need to analyse culture and values of people of that economy. Because customers prefference is
most important for business and to know their taste company needs to analyse culture prevailing
in the economy. Stability is important for auto mobile sectors to compete with their competitors
for that they need to bring innovation in their product. But environment changes will affect
overall growth of business like product is compatible to work in different environment or some
specifications of product effects the culture of people of those sectors. Company needs to
develop a flexible product that able to work on a changing environment.
Pestle analysis for issues
Pestle helps business to analyse external environment for their business. Analysis helps
business to engage customers with their product. Helps to analyse overall activity of environment
or territory where they are going to operate their business.
Political
Political factors influence overall growth of a business. Company needs to analyse the
government rules and regulations for success of their product. Auto mobile company use
political factors to know the tax rates by government on their product. As they are auto mobile
company and large amount of taxes are incurred on their luxury cars which overall effects the
growth on their product. This analysis helps business for their sustainability in market by
providing information about the territory to develop business.
Economical
Helps business to gather information about the income level of customers of the territory.
Because company provides large number of product that have high prices. Products provide

comfort to their customers for that company needs to analyse standard of living of their
customers. Information helps them to develop effective plans for their product. Economy needs
to analyse for development of business. Economy helps them to set prices for their product and
establish their business in a long run.
Technology
Nowadays auto mobile sectors are using different types of technologies for development
of their business. For their growth in market and to develop sustainability of their product(Belás
and Sopková, 2016. ). They availability of technology that required for production of product is
analysed to know the effectiveness of territory. Technology helps business for their stability in
market. Availability of proper resources are required for development of product.
Social
When auto mobile company is going to operate in different market they have to analyse
the culture, values, morals of the public and customers. Because sometimes technology effects
the overall culture of the population. If product is not able to cope up with the culture of
customers then they are not able to develop their product at large scale.
Legal
Company needs to know the policies of a territory where they are going operate. The
rules relating to pollution or production of product. Business needs to know the government rules
regarding the working of company those sectors as it is an auto mobile company needs to know
the guidelines about use if engine helps in sustainability of business.
Environment
For smooth working of business company needs to analyse change in weather, climate of
the territory to expand their business at large scale. Analysis helps them make their product
flexible to work in a changing environment.
Positive impact on organization.
Land rover is one of a leading company in auto mobile sector. Produce different type of
luxury cars. Large number of competitors are available in market. Company needs to develop
their business at large scale for that they have to conduct a proper analysis of market where they
are going to develop their product. Globalization and sustainability if analysed effectively then it
puts a positive impact over the success of company. If government rules and policies are able to

cope up with the companies policies then they are able to earn profit over those territories. The
taxes on the products of the company are low then they able to operate effectively over those
territories. The standard of living of people over those economies are good then it helps land
rover for their smooth working. Income level of customers are high then it helps business for
their overall success in a market. If environment of territory suits overall working of the
company then it helps business to earn profit and develop business at large scale. Changes in
climate and weather didn't effect overall working of a company helps them to increase their
sustainability in market. Culture plays an important role in overall development of organization
if people of the territory are able to accept and cope up with company technology and product
then it helps them for their sustainability and smooth working of their business.
Negative impact on organization
Land rover is not able to work in a different environment. Business needs to develop
themselves at large scale. Helps business for overall growth of their product and develop
effective policies for their organization. Political instability in an economy effects overall growth
of a business, rules and regulations are not in favour of company will affect overall sustainability
of business(Sinicakova and Gavurova, 2017.). Taxes and interest rate from government is high on
the products then they are not able to attract customers. Income level of customers is low then it
effects overall sale of products of company. If environment of economy is not able to cope up
with working of organization then it effects overall productivity of business. Weather or climate
is not good and product is not able t meet demand of their customers. If culture of population is
not ready to accept the product then it becomes problem for business to work effectively.
Two challenges faced and overcame
Lack of information
Preparing a report on issues of auto mobile sector becomes very tough. Because no
resources or information are available for issues in auto mobile sectors. Creating issues as well as
showing their positive as well as negative impacts on overall productivity of company becomes
tough. Developing a proper plans and advantage for the product and develop an effective policy
for business becomes tough task. Due to Lack of data proper analysis of report becomes an

unpredictable task. By preparing the political and environmental factors for business it becomes
easy to find out issues for business and their solutions.
Unavailability of proper resources
Without any proper information of issue in business. Creating an issue and finding
resources to solve those issues becomes tough for a business. Pre pairing negative and positive
impact of issues on land rover is tough task because lack of resources.
Prepairing this report faced many problems because organization is working on different
environment and each and every environment has his own impact over the success of their
business. The resources are not available to prepare an effective report on the topic. Lack of
general studies effects overall development of report. Finding issues on globalization for
automobile sector is become a tough task for me to prepare report. Analysing the effects of
political and economic factors like income level of consumers, rules and regulations of
government of different territory become tough. Finding sustainability for an auto mobile
company becomes tough for me to develop. Because analysing an environment factor for an auto
mobile company becomes tough for organization. Business needs to develop an effective policy
as well as develop a plan for overall growth of a business. Knowing the impact of social and
culture effects of auto mobile on the customers as well as people of territory without having a
proper information becomes tough for a business. Effective use of resources and develop an plan
for establishing a growth for a business(Dobrovič, Korauš and Dančišinová, 2016. ). Using a
PESTLE analysis without guidelines over the topic faces large number of problems. And provide
positive and negative impact issues using pestle on a company like land rover is not a easy task
because each and every company has his own working and preparing an issue for a company like
land rover it becomes tough to prepare a report. Sustainability largely depends on working and
profitability of a business and showing it as a issue combining it with environmental as well as
social factors becomes tough for a business. Business needs to develop an effective policy.
Conclusion
Report helps us to know how to manage with the issues like globalization and
sustainability in market. Shows how to manage the political and environmental interferance in
overall working of business. Shows the response of both positive and negative impacts of issues

on overall working of Land rover and how they solve those issues. With help of report we get to
know that the environment may effect overall working of business at large scale and issues
become a reason for loss of business.

References
Books and Journal
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Belás, J. and Sopková, G., 2016. Significant determinants of the competitive environment for SMEs in the
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Belás, J., Dvorský, J., Tyll, L. and Zvaríková, K., 2017. Entrepreneurship of university students: Important
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