Land Rover's Business Environment: PESTLE Analysis and Key Issues

This report provides a comprehensive analysis of Land Rover's business environment using the PESTLE framework, focusing on political, economic, social, technological, legal, and environmental factors. The analysis identifies key issues such as technological advancements and environmental concerns, detailing their positive and negative impacts on the business. Specifically, the report discusses how technology affects remote work, artificial intelligence integration, and data analytics, while environmental issues cover carbon emissions, recycling, and the shift towards sustainable practices. The reflection section highlights the challenges in understanding the automobile industry's external factors and the importance of adopting strategies to address technological and environmental concerns. Ultimately, the report concludes that a thorough understanding of the business environment is crucial for enhancing Land Rover's competitive edge and achieving its long-term objectives. Desklib provides a platform for students to access similar solved assignments and past papers.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
Analysis of PESTLE factors and two key issues.....................................................................................3
Key issues................................................................................................................................................4
Impact on business..................................................................................................................................5
Reflection................................................................................................................................................6
CONCLUSION..........................................................................................................................................6
REFERENCES..........................................................................................................................................8
Books and journals:.................................................................................................................................8

INTRODUCTION
The term business environment denotes an analysis of internal as well as external factors
that has a direct impact upon the performance of the business. Their external environment
includes political, ecological social technological legal and environmental factors that force
businesses to formulate their strategies and perform their actions accordingly (Alshare and
Sewailem, 2018). In order to operate and conduct a successful business in every company, it is
certain key issues that impact the organisation either at a small or large level. The present report
comprises a brief discussion upon the external factors of Land Rover along with its key issues
that has an impact upon the business. Lastly, reflection has been made by focusing upon the
challenges which pertain to the successful completion of the report.
MAIN BODY
Analysis of PESTLE factors and two key issues
 Political: Land Rover is an international automobile form that is required to adopt and
comply with all the political rules of different nations so that can have smooth business
conduct. Frequent changes within the policies of government affect the performance of
Land Rover in a negative way due to which the company is unable to compete at the
global level or sustain its business in the market.
 Economical: Economic factors in concern to Land Rover includes inflation or interest
rates at a foreign level that can affect the long term strategies of the business. The wage
rate for the availability of labour differs from country to country due to which Land
Rover faces destruction in its smooth flow of operations.
 Social: The social factor in respect to Land Rover comprises spending pattern
demographic trends, norms or beliefs of society, etc. The defined behaviour of customer
depends upon their purchasing power which varies from customer to customer or region
to region due to which Land Rover find difficulty in understanding the customers
purchasing pattern so that can satisfy the demand of its buyers (Choi and et.al., 2020).
 Technological: Technology is related to the involvement of updated machinery or
innovation within the manufacturers of Land Rover. The company being in the
international automobile business adopt the latest technology in its cars that attracts a

large customer segment at the international level and functions of this in a positive
manner.
 Legal: This environmental factor is concerned with the different rules and regulations
made by the court law governing body. Governing bodies are different from country to
country and policies vary so Land Rover finds it difficult to comply with all the legal
policies in a single time and conducts its business accordingly (Ersoy-Babula and Babula,
2018).
 Environmental: Land Rover being an automobile firm is required to comply with all the
environmental regulations such as less pollution from less carbon emission coma use of
renewable or sustainable resources, etc. In this respect, the company is now coming up
with new products that generate less carbon emission and has the potential to produce
less air pollution within the economy.
The two key issues that are being identified with respect to Land Rover is technology and an
environmental concern. Being a car manufacturing company the organisation is required to focus
upon the environmental issues and in builds latest technology which can meet customer’s
demand.
Key issues.
Technological issues in Land Rover-
Technological factors can directly or indirectly affect the business of Land Rover.
Generally, these factors are relating to the existence, development and availability of
technologies. This could involve computational power to boost efficiency and productivity of the
business. The automation of several incomplete tasks can allow the organisations to replace
human resources entirely with machine and equipment. This also diminishes the prices for
manufacturers, automobile companies, distributors and many other businesses. Technologies are
the ultimate game changer in the external business environment as they can make new customers
and markets and decimate them. In context of Land Rover, it involves non opioid pain
management, quantum artificial intelligence, net zero buildings, edge computing, 5G
connectivity, longevity boosters and many more. Being an automobile company, technological
factor is one of the major concerns which aims to reduce the requirement of human resources and
look dignified to alter everyday transportation. Technological factor also offers artificial
intelligence such as deep learning, machine learning and computer vision identify applications in
robotic automation within the sector. This offer guidance to manage fleets, self-driving cars help
drivers to improve services and safety such as vehicle insurance or inspection (Kong and et.al.,
2020).
Environmental issues in Land Rover-

Environmental factors are those conditions or variables that cannot be changed by an
organisation and it does have a fair amount of impact over the business performance, but it can
be controlled by a proper understanding and responding (Zhu and et.al., 2018). The main
products in the automobile industry are automobiles, light vehicles, heavy trucks as well as sport
utility vehicles. These all are produced using stamping, casting, molding, painting welding and
assembly processes. Each operation consists with wide range of environmental challenges.
Automobile products are not recyclables but at the end of the life of vehicles manufacturers
extensively focus on to recycle through shredders or independent dismantlers. Carbon dioxide or
pollution is one of the serious challenges in the automobile industry. In context of Land Rover, it
possesses a big role in the global climate change (Krueger and et.al., 2021). The local
government will influence and force to take bigger action to stop global warming which might
consist a complete ban on the manufacturing or exploitation of motor vehicles, at least adoption
or switch towards vehicles which are electronic. Another challenge with environment is that
when fuel prices are upsurges the desire for fuel inefficient cars also diminishes drastically. It is
found in a research that automobile industry delivers roughly a 15% of carbon emission globally.
In order to fight or face the environmental challenges, many other automobile companies search
fundamentally for the new technologies in automobile products that delivers a hard competition
in the coming decades.
Impact on business
Positive and negative impacts of technological factors-
Implementing advanced technologies significantly affected the business performance
over the past years. Using advanced technologies in the business enable the remote working for
employees so they can work from their convenient places even in the times of Covid-19.
Advancing technologies in the business a company promote a remote work environment to make
sure that their work does not get affected by the situation. Advancing and improving the
technologies in the business, it increases the demand for employee even in tight labour market.
That is why Land Rover always ensures that their employees and team members access to the
right technology and right support of infrastructure to remote work. Advancement in
technologies offers artificial intelligence which reshapes the overall business world as well as
customer markets. It is the mainstream of regular lives. Advanced technologies have changed the
overall game process automobile industry and provide a chance to maintain its competitive edge
in the marketplace. Technologies also enable big data and data analytics for the business which
informs several decisions throughout their life cycle of a product that is “vehicle”. Information
collected from vehicles informs managers about their fleets, predictive maintenance, alert
concerned authorities in circumstance of accidents and so on. For example, many car accidents
have been reduced which caused by the negligence or fatigue of driver. Artificial intelligence is
equipped with latest features of technologies such as computer vision and many more (Rothrock,
Kaplan and Van Der Oord, 2018).
One of the negative impacts of advancing the automobile industry is that it increases the
dependency on the fast and latest technologies. Another negative impact on business is that it
increases competition, there are various sources where customers can gather information related

to automobiles product, they can easily compare prices, features and models of cars or any other
automobile product.
Positive and negative impacts of environmental factors-
It is one of the major concerns in all societies and media as a whole. Particularly for the
automobile industry, sustainability becomes more significant due to the scandals of business in
the past such as electric motors, carbon emissions, lightweight construction and many more. The
costs of petrol are rising day by day, so automobile producers focus on to design a lighter and
more energy efficient vehicles. These engines are more efficient than before and electric cars are
taking this concept further. Using advanced technological vehicles improves driving habits such
as results in more efficiency, keeping moderate speeds and many more (Subramanian, 2018). In
context of Land Rover, they are highly focused on to recycle their products and metal is one of
the precious commodities that can be recycled, collection of spare part and resale is also thriving
an organisation very well. Using each and every spare part in the production are much
economical than ever.
The negative impact on the business is that due to heavy automotive vehicles, companies
have to use non-renewable fuels which decreases the local economy, disconnection of local
community, increasing rate of accidental death, rise in obesity and other diseases or immensely
increases the noise pollution and many more.
Reflection
From the above sections I came to know various aspects of the automobile industry. This
industry is very wide in terms as it deals with the manufacturing, design, development,
advertising and selling of automobile products such as vehicles. Land Rover is one of the leading
company in automobile industry (Zhu and Chen, 2018). I understood various aspects of the
external analysis of the chosen company. There are several challenges that I found in this report
such as political, economic, technological or environmental which affects the business and its
profitability in the market. The major challenges I have found are technological and
environmental concerns. Technological factors are associated with the involvement of latest and
advanced technology which is used in machinery and equipment. Due to the increasing number
of competition in the automobile industry, it is essential for the respective business to adopt
various strategies to get into modern technologies in their products to attract a large client base
even at global level. I realise that advancing technologies in the business is not so easy as it
requires a huge investment but for the chosen company it is not as that difficult to opt for modern
technologies in their business. I also realized that technological concerns such as artificial
intelligence where I can search for products that I want to explore, I can also compare many
products by using technologies. While on the other side, environmental factors deal with the
environment and in automobile industry pollution is one of the biggest challenge that affects the
greens and the environment (Upadhyay and et.al., 2019). If I talk about the chosen company,
they are required to adopt various strategies in their business with a motive to reduce carbon
emissions and undesired energy consumption that affects the air. One of the challenges I found
for myself is the use of modern vehicles that affects my regular life as well as health. I get
addicted to upgraded technologies as it helps to smoothen out work and I easily look for things

on websites while comparing one from another. But on the other side, if affects my health as I
get used to modern vehicles.
CONCLUSION
It is concluded from the above discussion is that business environment is consisted with
both internal and external factors that has a direct influence on the business performance and its
long-term objectives. The report is considered with external environment factors which includes
political, social, economic, technological, environmental and legal factors that forces a business
to develop its strategies and actions to enhance its competitive edge in the automobile industry.
While analysing external factors of the business, issues and challenges are also found in
technological and environmental factors. Technological factors are concerned with upgraded
technologies in the business such as artificial intelligence, 5G connectivity and many more,
environmental factors are concerned with pollution, health, carbon emissions and many more.

REFERENCES
Books and journals:
Alshare, K. and Sewailem, M. F., 2018. A GAP ANALYSIS OF BUSINESS
STUDENTS'SKILLS IN THE 21st CENTURY: A CASE STUDY OF
QATAR. Academy of Educational Leadership Journal, 22(1), pp.1-22.
Choi, J. and et.al., 2020. Social media analytics and business intelligence research: A systematic
review. Information Processing & Management, 57(6), p.102279.
Ersoy-Babula, A. I. and Babula, M., 2018. Learning on the move business students’ adaptation
of virtual learning environment and mobile device technology. The International
Journal of Management Education, 16(2), pp.321-326.
Kong, D. and et.al., 2020. Business strategy and firm efforts on environmental protection:
Evidence from China. Business Strategy and the Environment, 29(2), pp.445-464.
Krueger, N. and et.al., 2021. Advancing family business science through context theorizing: The
case of the Arab world. Journal of Family Business Strategy, 12(1), p.100377.
Rothrock, R. A., Kaplan, J. and Van Der Oord, F., 2018. The board's role in managing
cybersecurity risks. MIT Sloan Management Review, 59(2), pp.12-15.
Subramanian, S., 2018. Stewardship theory of corporate governance and value system: The case
of a family-owned business group in India. Indian Journal of Corporate
Governance, 11(1), pp.88-102.
Upadhyay, A. and et.al., 2019. Investigating “circular business models” in the manufacturing and
service sectors. Journal of Manufacturing Technology Management.
Zhu, C. and Chen, L., 2018. An Analysis of the Development of China's Commercial Banks
under the Structural Reform of the Supply Side. Journal of Accounting, Business and
Finance Research, 4(1), pp.1-8.
Zhu, S. and et.al., 2018. How supply chain analytics enables operational supply chain
transparency: An organizational information processing theory
perspective. International Journal of Physical Distribution & Logistics Management.