Comprehensive Business Environment Analysis Report: London EV Ltd

This report provides a detailed analysis of the business environment of London EV Ltd, a UK-based electric vehicle manufacturer established in 2013. The report begins with an introduction to the business environment, emphasizing the influence of both internal and external factors on the company's performance. The core of the report focuses on macro-environmental factors, analyzed using the PESTLE framework (Political, Economic, Social, Technological, Legal, and Environmental), evaluating both positive and negative impacts on London EV Ltd. A SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) is then presented to assess the company's internal capabilities and external challenges. Furthermore, the report explores the interrelationship between the company's strengths and weaknesses and the external environmental factors, highlighting how these factors influence the company's success and growth. The report concludes with a summary of the key findings and implications for London EV Ltd, supported by relevant references.

Business Environment

Cover Content
• Introduction
• Macro environment factors along with their positive and negative impact
• SWOT Analysis
• Interrelationship between strength and weaknesses along with external factors
• Conclusion
• References

Introduction
Business organization includes both internal and external environment which
influences the whole performance of the entity. Some of the elements such as
customers, current trends, technology, suppliers, environment condition and so on
are the part of organization. In reference to the present report, the base organization
is chosen as London EV Ltd. The head office of the company is located in UK and
is established in 2013. The main aim of the organization is to improve the business
of the manufacturing car among UK.

Macro environment Factors with their positive & negative
aspects
Micro factors- It refers to the element which influences the whole decisions
making process, strategies and performance of a business organization. It
includes some factors which are competitors, staff members, supporting
services and many more. These are the factors which assist business
organization in order to accomplish their goals.
Macro environmental factors- Such factors have negative as well as positive
aspects where companies do not have any kind of control. For examining the
influence of such factors it is essential to know the trends available at the
marketplace.

Cont.…
For examining macro environmental factors, management team of the company adopt
PESTLE analysis which are going to be discussed as follows:
Political: It refers to the factor which includes governmental interferences and highly affect
the business operations. In reference to London EV Company, it has been said that they
want to operate its business functions in UK. The political stability is good as well as the
government assist in minimizing the impact of environment on the business organisations.
Positive: It assist business entity in order to form strategies as well as policies and eliminate
the issues which arise due to politics.
Negative: The organization is facing ample number of hurdles when they need to following
rules formulated by UK government.

Cont.…
Economical: In reference to London EV Limited, it has been identified that
economic situation of UK reduces when BREXIT takes place. Therefore,
buying power of the customers get influenced in a negative manner.

Cont.…
Social: Modifications in the social elements requires to change the
strategies so that they can perform their functions in an effective manner.
Positive: The individual of the society prefer modifications according to
the changing environment which enhance the sales of vehicles of the
organization.
Negative: Regular modifications in the market trends as well as social
trends might affect the whole functionality of the company.

Cont.…
Technological: In relation to London EV Limited, individual of UK invest
money in new, unique and innovative things available at the marketplace.
Positive: Up gradation of technology helps in attracting large number of people
towards London EV company.
Negative: It refers to the most expensive manufacturing procedure which raises
the overall cost of London EV company Limited.

Cont.…
Legal: Higher authority of London EV company, follow all the legal
policies and strategies associated with the expansion of business organization.
Which helps them in gaining positive response at the new marketplace.
Positive: it increases the standard as well as good will of the company.
Negative: Modifications in the legal provisions due to BREXIT highly
influence the overall performance of the company.

Cont.…
Environmental: Management team of London EV Company adopt
environmental friendly raw materials while manufacture car in order to
enhance the condition of the whole environment.
Positive: The products of the company consume low fuel which highly
attracts large number of audiences at the marketplace.
Negative: If the organization did not adopt the laws then they need to give
high penalties which influences the overall revenue of company.

SWOT Analysis
SWOT analysis is a framework that is used by company in order gain an insight
about the weaknesses and strength of company. In addition to this, it also
assist in identifying opportunities as well as Threat that has influence on
performance of organisation (Luiz, Ganson and Wennmann, 2019). The
SWOT analysis is given below in relation to the London EV company:

Cont..
Strength Weaknesses
 The company offer high quality product in
market that assist in building loyal
customer and retain them for longer time
frame.
 The company has high market share as it
involve in distribution and sales of car
parts, taxi designing, automobile structure
designing and many more.
 One of the major weakness is London EV is
still not able to reach globally so it is required
to invest on marketing activities that occur
cost to company and decline profit margins.
 London EV is not having advanced
technology and due to this their process is not
updated as compare to its competitors.