Volkswagen Car Manufacturer: PESTLE, SWOT, and Objectives

This report provides a comprehensive analysis of Volkswagen, a car manufacturer, focusing on the UK market. It begins by defining the business environment and applying the PESTLE model to identify and discuss the political (Brexit, Asian market stability), economic (impact of economic decline), social (changing trends), technological (R&D investment), legal (compliance risks), and environmental (emission standards) factors affecting the company. A SWOT analysis is then conducted, highlighting Volkswagen's strengths (global presence, strong R&D) and weaknesses (non-environmentally friendly cars), along with opportunities (changing technology, decreasing fuel prices) and threats (intense competition). The interrelationships between these internal and external factors are explained. Finally, the report suggests a recommended course of action by creating SMART objectives, focusing on technological advancement, market share, and profitability, along with hiring skilled labor and improving product quality to enhance competitiveness and brand image. The report concludes with a list of references.

CAR MANUFACTURER

INTRODUCTION
 Business environment defined as collection of individuals, factors and entities that may or
may not be under the control of organization. However, this can hugely impact
performance, growth, profitability and survival. It is defined as set of elements that is
closely linked with business activities.

PESTLE to identify and discuss macro-
environmental factors
 Political
 Brexit can also create situation of uncertainty and this can give rise to complexities for
large and global business brands. In addition to this, the political environment of Asian
market remained stable during recent years and that led to faster the growth of automotive
brand that includes Volkswagen.
 Economic
 Volkswagen primary target market is social upper that prefers drive luxury and semi luxury
vehicles. During the period of declined economic activities the demand of the vehicle
highly affected and this also has huge impact on revenue and profitability of the enterprise.

CONT..
 Social
 With help of changing in social trends can change preferences of people. These are the
components that can affect the both things such as sales and marketing.
 Technological
 From AI to automated driving, the automotive brands tends to remain ahead of others and
due to this entity needs to make huge investment in R&D. Among all the brand, the chosen
entity has brought more eco-friendly and safer cars to the market.

CONT..
 Legal
 legal and regulatory has enhanced tighter and brands faces huge compliances risk within
all areas from labor to environment and to drive safely. Thus, chosen entity needs to step
out this negative light with help of being more thoughtful towards environmental factors
 Environmental
 VW has forced to recall billions of cars due to inability to meet the emission standard. It
resulted into loss of billions. This is mandatory for the chosen entity to put the major
consideration on entity as Volkswagen as this are more environment friendly.

SWOT analysis of Volkswagen are as-
 Strength-
 Presence all over the world- This operates its operational activities in more than 153
countries. This has largest factory in German and second largest in the china and third
largest factory within Brazil.
 Strong R&D- This is entity that has made huge investment in research and development
section on new public demand, demands and technical invention cars. In addition to this,
Research and Development activities will stronger day by day
 Weaknesses-
 Most of cars are not environmental friendly- This has been found out that carbon
dioxide harms the ecosystem. In addition to this, the some active brands names Porsche,
Bugatti and Lamborghini emits the excessive carbon-dioxide.

CONT..
 Opportunities-:
 Changing technology- The working of the chosen enterprise widely get affected by diesel
scandals. Hence, the entity needs to take initiatives to recover the company's image. This
enterprise can change its technology to more environment friendly cares that can offer
opportunities to build strong image by avoiding uncertainties.
 Decreasing fuel prices- If the firm is producing the car that is more carbon dioxide then
they can change their technical advancement for betterment of environment and also helps
to full-fill social responsibility.
 Threats-:
 Intense competition- The automobile industry has seen growth in demand over the years.
It led to higher the sales but competition can be intense now. Therefore, the many of the
rivalries of Volkswagen group in the international automobile industry. There are several of
the majors are international players.

SMART objectives
 S- Smart-: In this, VW needs to take the initiatives with help of making huge investment
within technological advancement so that innovative commodities can be produced. It can
assist to earn long term profitability and productivity to have better advancement in future.
 M- Measurable-: By making investment in their existing vehicle and to producing the
more electrical vehicle the entity can able to earn long term profitability within the market.
This approach can be helpful to earn 30% market share within three months. By investing
in electrical vehicles the entity can be earn 20% profitability within 3 months.

CONT..
 A- action-: It can be done if the enterprise take initiatives to hire the skilled labour workforce.
By hiring qualified employees the entity can able to put more focus on innovative approaches.
This will aids to earn more amount of profitability within the enterprise.
 R-Reliable-: The entity needs to put more focus on to producing the commodities that are of
effective quality. It aids to streamlined the working of enterprise in huge aspect. With help of
consistent focus on good and quality scenario, the chosen firm can able to enhanced the
productivity and profitability.
 T- Tactics-: In order to be highly competitive within the market and to enhance brand image.

REFERENCES
 Books and journals
 Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis
based SWOT analysis. International Journal of Information Management. 44. pp.194-203.
 Büyüközkan, G. and Ilıcak, Ö., 2019. Integrated SWOT analysis with multiple preference
relations. Kybernetes.
 Bellver, J., Bosch, E. and Checa, M.A., 2019. Second-generation preimplantation genetic
testing for aneuploidy in assisted reproduction: a SWOT analysis. Reproductive
biomedicine online, 39(6), pp.905-915.

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