The global business environment consists of internal as well as external factors that impact the business operations of an organization operating at the global level. The global automobile industry is one of the largest industries that contribution maximum towards the growth of GDP. The unit aims learner to understand the complexities exist in the business environment for a business organization operating at the global level.
- Identify the factors that drive the global business environment and understand the changes in a global business environment.
- Application of business models in the context of global environmental analysis.
- Examine the rationale why organizations involved in global trade.
INTRODUCTION
European auto mobile industry is one of the largest industries in the world. The turnover generated by this automotive sector represents 6.8% of EU GDP. The present report is giving brief discussion about Auto mobile industry of eastern Europe. It is clearly depicting the auto mobile industry which has ripple effects throughout the economy, supporting a vast supply chain and generating an array of business services. In the same series it is depicting environment of global Auto mobile industry.
The European auto industry is a global player which is delivering quality service and products around the world. Present report will focus on “Car Production Surges in Eastern Europe” and its impact on the auto mobile industry. It will discuss about external factors, which affects them by studying PESTLE analysis and also evaluates competitive analysis by implementing Porter’s Five Forces model.
TASK
a) Assessing environment of the Global Auto mobile industry using PESTEL analysis
PESTLE analysis is a process, which is used to analyse the external environmental factors, which can affect the entire organization to a large extent. Factors that are included in this analysis include political, economic, social culture, technological, environmental and legal factors respectively (PESTEL Analysis for Automobile Industry in Europe, 2018).
Political Factors |
This includes the political factors related to governmental policies for auto mobile industry. Some political factors, which can affect the Eastern European auto mobile industry are as follows:
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Economic Factors |
There are various factors, which are included in this economic factor that can affect this industry such as,
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Social Culture Factors |
These factors include customers taste and preferences in selecting vehicles for them such as,
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Technological Factors |
These are those factors which have a huge impact on the auto mobile industry as it is very important for them to update their system with the latest tools and technologies, which can help them to increase their business. To deal with these situations, they have implemented different strategies in their industry such as,
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Environmental Factors |
These factors are those which are related to safety of the environment. For this they have applied various steps, for example,
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Legal Factors |
One of the most important legal factors which is affecting the auto mobile industry is the restrictions and laws that are aimed at curbing pollution. This has also affected the overall performance of |