Analysis of Volkswagen's Business Environment: SWOT, PESTLE Report

This report provides an analysis of Volkswagen's business environment, focusing on the application of SWOT and PESTLE frameworks. The SWOT analysis examines Volkswagen's internal strengths, such as its wide range of car models, strong brand image, and global presence, and weaknesses, including high competition and controversies related to emissions. Opportunities include forming strong relationships with non-German car manufacturers and continuous innovation, while threats involve increased fuel costs, market share erosion, and government regulations. The PESTLE analysis, though not explicitly detailed in the provided text, is implicitly used to understand the external factors impacting Volkswagen. The report concludes that businesses operate in dynamic environments and should use tools like SWOT and PESTLE to analyze internal and external factors, respectively, to make informed strategic decisions. References to academic research on business environment analysis are also included.

Organisational Types And
Business Environment
Analysis (Task 3&4)

Introduction
Business organizations are operated in dynamic market
in order to achieve their different objectives and goals.
There are several factors arises in business environment
which can affect the business function either in positive
or adverse manner.

Business Environment

Impact of micro-environmental factors
 Political
 Economical
 Social
 Technological
 Legal
 Environmental

Internal analysis of organisation
SWOT Analysis is essential to conduct by Volkswagen to
analyse internal capabilities and weaknesses which gives
an opportunity to them to eliminate their weak areas by
enhancing their strengths.

Continue..
Strengths Weaknesses
It has wide range of cars which
provides enough options to
customers to choose as their own
will and preferences.
It has attained strong brand image
at global market.
It has employed more than
350,000 employees globally.
Operated number of assemble
plants in Germany, Slovakia,
China, India etc. increases their
global presence.
High competitions from number of
manufacturing companies which
limited the market share growth for
Volkswagen.
Engaging in controversies related with
emissions of the cars adversely affect
their brand image at global level.

Continue..
Opportunities Threats
Establish a strong relationship
with non-German care
manufacturers for longer
time period.
Continuous improvement in
cars through implementing
innovations can maximise
their strength among their
numerous rivals.
Increasing buying power of
people.
Innovation implemented by
their rivals restricted them to
capture huge market share.
Rising in fuel cost reduces the
purchase of cars.
Number of government
policies and regulations to
protect interest of local car
manufacturers restrict them
for further expansion in new
market.

Interrelation of macro-environmental
factors
Interrelation between macro-environmental factors and strength
weaknesses assist management of Volkswagen to make
suitable changes in their existing policies and strategies in
order to deal with influencing external factors with the help
of using their strengths and by eliminating weaknesses.

Conclusion
It has been concluded from the above project report that
business organisation is operated in market where the
business environment is dynamic in nature. For this, the
management should conduct PESTLE and SWOT Analysis
to analyse external as well as internal factors respectively.

References
Cai, S. and Yang, Z., 2014. On the relationship between business
environment and competitive priorities: The role of
performance frontiers. International Journal of Production
Economics.151. pp.131-145.
Cuervo‐Cazurra, A., 2011. Global strategy and global business
environment: the direct and indirect influences of the home
country on a firm's global strategy. Global Strategy
Journal.1(3‐4). pp.382-386.
Helms, M.M. and Nixon, J., 2010. Exploring SWOT analysis–
where are we now? A review of academic research from the
last decade. Journal of strategy and management. 3(3). pp.
215-251.

Thank-You