Dacia Auto-Mobile Company Business Environment Analysis Report

This report provides a comprehensive analysis of Dacia, a Romanian car manufacturer, focusing on its business environment in a global context, particularly its expansion into Australia. The report begins with an introduction to business organizations and the business environment, followed by an overview of Dacia's organizational information, including its history, manufacturing capabilities, and sales performance. The core of the report involves a detailed discussion of the business environment, including economic conditions, customer awareness, and the importance of trade in Australia. The analysis then applies two key frameworks: PESTLE analysis, examining political, economic, social, technological, legal, and environmental factors influencing Dacia's operations; and Porter's Five Forces analysis, assessing the competitive landscape. The report concludes with recommendations based on these analyses, offering insights into Dacia's strategic positioning and potential for growth in the Australian market.

Business Organisations and Environments in a
Global context

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body ......................................................................................................................................1
Information of organization....................................................................................................1
Discussion of business environment .....................................................................................3
PESTLE analysis of Dacia auto-mobile company.................................................................4
Porter's Five force analysis of Dacia .....................................................................................7
Recommendations .................................................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Any individual or more person is forming for providing goods and services to customers
is known as business organization. The objective of organization is to making profits. It offers a
legal structure that determine enterprise's structure profits spread and liability risk. Business
environment means a collection of all individual, organisations and other elements which may or
may not under control of company (Dhone and Kamble, 2016).
Assignment is based on Dacia. It is car manufacture in Romanian which is taking name
from historical location. The company is founded in 1966. They are expanding their business in
global area that is Australia.
In this context, study is based on information of organization, discussion of business
environment and application of analytical approaches to promote business in the global context.
Main Body
Information of organization
This company is established in 1996. The important plant of Dacia made up in Pitesti. In
1968. They have obtained instruments and system of Renault 12. They have manufactures
Estafette, accomplished fallen variation of van in small numbers. In 2004 to 2011, Dacia Logan
is most prosperous exemplary since original 1300. In 2015, remains by far best-selling car which
is comprising 43% share of Dacia's total Romanian sales.
It has a manufacture capability of 3, 50,000 transports per year. It is separated in many
division like body work, picture, construction, automatic and figure, factory etc. In the 2006, it
works in concurrence with Renault Technologies Romaine engineering centre placed in
Bucharest. It besides incorporate a different manner office, Renault design Central Europe. In
2012, Dacia has sold out total of 3, 59,822 transport of which about 2, 30,000 were exported to
Western Europe. Sales of company total of 5, 50,920 units in 2015. The Revenue of Dacia 23.14
Billion lei in 2017. Dacia has reached new sales records during March 2017 and in these
statistics, 5773 units sold. This makes 1 % of market share in the UK (Dacia Car sales, 2017).
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Present Challenges and futures opportunities for Dacia:
The company can influence certain elements which is based on knowledge of customer’s
behaviour, an aggregation of buyer demand that leads to market segmentation and substantial
structural changes. Firm has manufactured six models offered to customers both on domestic and
foreign market. Foreign car manufactures also view this market as having possible development
and this result in strong competitions as the sales level. It is useful for Dacia to know about size
of sub markets in developing areas of Romania.
 Dacia's car sales territorial structure
 Distribution of Dacia car sales by models
 Customers perception
International Operation by Dacia
 They have sales reached 6, 55,235 units in 2017, it is 12.2% increase as compared with
2016.
 Company was offensive on international market. Outside Romania 611,973 cars were
sold and 12% more than in 2016.
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Illustration 1: Dacia car sales
(Sources: Dacia car sales in the United Kingdom (UK) from January 2014 to December,
2017)

 They come 5th in the ranking of bestselling automobile brand in France instantly after
Volkswagen.
 This result is mainly generating by success of Duster and Sandero.
 In the UK market, Dacia sold 25,211 units which places on eighth position.
Romanian car manufactures Dacia which controlled by French group Renault, increased
its production at local point in Mioveni by 2.2% in first quarter of this year as compared with
same period of 2017.
Discussion of business environment
Dacia has to expansion their business in the Australia. Therefore, they have to analysis
economy condition, customer’s awareness and other information. These are important for
business future growth and development.
Selected country proved economic repercussion and continuous development gave an
captivating, harmless and down hazard surroundings in which Dacia is expanding their business.
It is a recent, formulated, steady and participatory country, with opened, combative and different
marketplace. It large encouraged abroad finance, commerce importation and exportation.
Therefore, company is expanding business in the global market. It is well located to proceed
benefit of increasing possibilities in area with powerful governmental, mercantilism as well as
economical links. Therefore, it is useful for Dacia for explore their business.
The commerce is reasonably essential to selected nation's economic system. 40% GDP is
combined valuer of export and import. Australia is strong supporter of trade liberalisation. Free
trade agreement is open up of possibilities for exporters and investors to expand their business
into overseas market. Therefore, Dacia has expanded their business in Australia. It is opportunity
for company for their future growth and development.
It is one of global major doom for international through finance. The nation's strategic
location, strong trade and investment ties, so that company has expanded their business in
selected country. Firm has expanded innovation in their products and services, so Australia is the
best destination in the world. Organization has also foreign direct investment in selected nation.
It is globally competitive location for business backed by political stableness, economic
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performance innovation and multicultural workforce. Therefore, Dacia has increased economic
growth in the country.
Company have to research that consumers are aware or not for their products and
services. Therefore, they will advertise their business in selected country. Firm has also
researched GDP rate, inflation, taxation, trade policies, government and legal rules in the
selected nations.
PESTLE analysis of Dacia auto-mobile company
This study is used to influence weaknesses and gaps that Dacia has to deal with several
challenges in the organisation. The auto-mobile is one of the oldest industry with various
investor's effort to get chance in it every day. Thus, is a leading firm, it can be a high-risk
business as it is very delicate (Gülcan, 2017). To establish auto-mobile sector in Australia,
company need to analysis the following factors.
The following are the PESTLE causes that affects the Dacia company:
 Political factor: Auto-mobile sector in frequently affected by political cause and Dacia,
before entering into new market has to include different tax plan to establish in any
country. Therefore, it influences number of export and import of auto-mobile. When
governments raise taxes of auto-mobiles, lesser customers are able to spend money on
products. Thus, the financial condition created by governments can influence the growth
and fall of the auto-mobile business. Also, central authority set point motivator to support
the development and enlargement of the auto-mobile sector. By this way more finance
will generate in the leading organisation to produce high quality of goods and this will
bring improvement in auto-mobiles industry. This sector is a big source of revenue for
the government. By establishing Dacia companies in Australia will gain political stability
in the country. Also, the organisation has to face challenges in terms of competition and
will get opportunities to access large market. In developing countries, this sector is under
pressure of government and in Australia, Dacia will get good opportunities to expand as
organisation has to face less challenges.
 Economic factors: Dacia will be highly affected by economic condition of the county in
which they are planning to establish industry. Therefore, Australia is one of the
wealthiest country in the world. It will be beneficial for this organisation to establishing
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business over there (Leviäkangas, 2016). But on the other hand, auto-mobile sector in
developed countries has to face economic crises in past few years. Thus, increasing level
of income in developing countries has resulted in the sales of luxurious cars. Over the
past few years, prices of cars and other vehicle have increased due to rise in inflation.
Also, this sector impacts the economics of every counties in great way. The machine
trades always changes the condition and production that effects not just manufacture but
many supplying chains of business. Affects economic system of region where car
manufacture takes place. Due to growth in global market and the currency sequence have
significant impact on competitiveness of many goods and supplies in different countries.
 Social factors: The auto-mobile sector has impacted whole society and this industry
initially considered upper class section of society as target group. But now it has become
need of every individual in the society. Dacia before entering the Australia auto-mobile
industry should analysis country's tradition and culture. Auto-mobile has played a vital
part in progress and growth of economies globally and is now an important part of
society. Due to changes in buying pattern also impact auto-mobile sector. . Therefore,
customers of developed country have full population of upper-class and middle class
citizens tend to provide a set industry for the auto-mobile company. On the other side,
it’s not easy for lower class people to buy those luxury's cars. Thus, it’s important for
company to choose right areas of market for the firm where they can earn huge profit.
This factor helps the organisation to select type of cars which can be sold more in that
area can also be analysis by cultural aspect.
 Technological factor: Dacia auto-mobile company uses the latest technology in
production and manufacturing process (Fitt and et.al, 2018). Therefore, changes within
the firm can identify new technical advancements to be integrated into manufacture of
auto-mobiles. Also, new research centres where latest technologically understanding and
innovations are planned to attractive the customer. Thus, by this way organisation can
introduce new product in the market with the latest technical knowledge and making
customers aware about it. This sector has to follow global trends so that they can be
updated about activities going in marketplace. Dacia will have to face tough competition
in the auto-mobile sector in many host countries. Organisation can enjoy benefit of the
latest technology in Australia as it is the faster technological developing country in
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world. The growth of auto-mobile industry is great in this country and can help Dacia to
grow faster than their competitors. Therefore, this has improved opportunities for
innovation and design new product for the customers.
 Legal factor: There are many global trends of imposing different rules and regulation in
all countries. Dacia companies before establishing business in Australia has to fellow all
the standard of auto-mobile sector. In this sector, safety has been the biggest concern for
law makers in every country. The pollution laws has been introduced strictly in Australia.
Therefore, government has pass strict legal instrument for vehicles being exported
overseas to control emission. Also, there are laws related to goods and service safety that
have an important effect on the sales of the vehicles. There has been many causes in the
past putting traveller safety under question. Due to such accidents, government of
Australia has made laws related to safety of local citizen stricter. Dacia has to fellow
those biological laws, tax laws and several other laws that the manufacturing company
have to trade with while operating in Australian market.
 Environmental factors: The company should pay attention to environmental condition
of Australia before entering in the market. The organisation has to develop many new
ways of reducing carbon dioxide and structure to reduce speed of accumulation failure in
the auto-mobile themself. Therefore, now a day’s car manufacturing firms has different
rules and regulation that they follow their organisation (Memari, 2016). One of the main
aspects of this is considered pollution free auto-mobile industry in Australia. Nowadays,
most leading vehicle developers are creating transportation facility that work on different
fuel system. The country believe in doing less pollution and using more environmentally
friendly product and services. By this way, Dacia can attract more customer.
Porter's five force analysis of Dacia
The great financial condition had hurt automobile industry seriously where any of most
known brands were on limit of inaction. Government interaction is rather difficult for brands to
survive. There are various elements that affects automobile industry globally.
Threats of new entrants [Low]: Highly funding needed is challenging of automative
sector for coming up new products. It is threat of Dacia by enter in new products in the Australia.
It is another obstruction is level of rivalry from existing brands in the selected country (García-
Madariaga and Rodríguez-Rivera, 2017). New brands takes advanced and differentiated goods to
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market which gains chances to low market share. Dacia affects competitive advantages for
existing brands in market.
Bargaining power of suppliers [low]: The power of supplier is low of automobile
industry in global context. Dacia is also affected bargaining power of supplier in Australia. These
providers have to set concepts by labels which effects on company. Raw substantial is ever
acquirable in copiousness and shifting from one provider to other, it is challenging for Dacia. In
that manner, supplier power is down.
Bargaining power of buyers [strong]: The power of purchasers is strong of automotive
industry. The alternative way of transportation and switching to another brand which offers
lower prices. Mostly buyers are price sensitive (Ha and Janda, 2014).
Threats of substitute [low]: There are different deputies and secondary way of system
of transportation which include taxis, auto bus, public transport and aeroplanes. The customers'
loyalty effects on Dacia, because they are not switching to another brand.
Competitive rivalry [high]: Dacia is competed various brand on basis of cost, creation
attribute, engineering and customers guard. General, the contest in automative business is high.
High level of customer’s loyalty and industry is very large, so that it increases competitions or
market share (Junquera, Brío and Ángel, 2016).
Recommendations
Dacia has expanded their business in Australia. Therefore, they should research economic
conditions of selected country, inflation, foreign direct investment, exchanges rates and other
information’s. The company have followed PESTLE analysis and Porter's five force model for
taking all information like political and legal environment in choice nation, technological and
economic changes, threats of new entry, substitute, power of buyers and suppliers, competitive
rivalry in the overall automobile industry.
Therefore, they should develop their design of products, quality and use recent
technology in goods as compared to another brand. Australia is the best country for foreign direct
investment, so that they should expand their business.
CONCLUSION
From this report, it has been concluded that Business organization is formed by any
individual's two or more people who are caring on commercial firm to give goods, services or
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both in changing for payment from consumers. Dacia is a Romanian car manufactures that takes
it names from important location. This report is about business environment and application of
analytical approaches to promote business in the worldwide. Therefore, discussion about present
challenges and future opportunities for these organizations are studied.
Selected nation's proved economical repercussion and continuous development give an
captivating, harmless and low hazard surround in which Dacia is expanding their business. This
report has shown porter's five force analysis of Dacia automotive company. Also, this report
contain PESTLE analysis which shows external factors that can affect the organizations. The
information regarding establishing new business in Australia for Dacia are discussed.
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REFERENCES
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satisfaction, corporate reputation, and firms’ market value: Evidence from the automobile
industry. Spanish Journal of Marketing-ESIC. 21. pp.39-53.
Gülcan, E., 2017. An Analysis of the Partnership Between Jaguar Land Rover and Chery
Automobile Company Ltd.
Ha, H.Y. and Janda, S., 2014. Brand personality and its outcomes in the Chinese automobile
industry. Asia Pacific business review. 20(2). pp.216-230.
Junquera, B., Brío, D. and Ángel, J., 2016. Preventive command and control regulation: A case
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Leviäkangas, P., 2016. Digitalisation of Finland's transport sector. Technology in Society, 47,
pp.1-15.
Mani, S., 2016. One size does not fit all: An analysis of the importance of industry-specific
vertical policies for growing high technology industries in India (No. 16-08). National
Graduate Institute for Policy Studies.
Memari, M., 2016. Risk management in developing countries.
Mojtahedi, S.M.H. and Oo, B.L., 2016. Coastal buildings and infrastructure flood risk analysis
using multi‐attribute decision‐making. Journal of Flood Risk Management. 9(1). pp.87-
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Srinivasan, P. and Marques, A.C., 2017. Narrative Analysis of Annual Reports: A Study of
Communication Efficiency.
Tai, W.P., 2016. The Political Economy of the Automobile Industry in ASEAN: A Cross-
Country Comparison. Journal of ASEAN Studies. 4(1). pp.34-60.
Weisbrod, G., Mulley, C. and Hensher, D., 2016. Recognising the complementary contributions
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Online
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Dacia Car sales, 2017. [Online]. Available through. :
<https://www.statista.com/statistics/385353/dacia-car-sales-in-the-united-kingdom/>.
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