Impact Of External Business Environment On Automobile Industry

The political stability is very important for the business to grow and last, according to that if the business has been operated in a politically unstable area, or in a country that is under a threat of wars that will lead to a loss for the business. Politics and governmental interferes is an important issue that is facing businesses and became a barrier in many situations.

Looking at the impact of external environment on select companies, we’ll look at both Ford Motor and General Motor companies. The Ford Motors company approximately had 14 percent market share in the U.S. automobile industry (David, 2011). The company had recovered a lot after the impact of recession in the year 2008. The company has been investing in developing vehicles which use alternate energy sources, and is having global presence and brand reputation for its automobiles. The company has received government support during the recession period, and had to cut down thousands of jobs and adopted latest machinery for enhancing the productivity of the company. The Ford Company has also established financial services to expand and cater to the needs of their customers to purchase a vehicle, providing direct loans from the company. Currently, the external environment is conducive for Ford Motor Company, expecting for a demand for its products in the coming three years. The tax, fiscal, and economy policies in the present automobile market are favorable for the Ford Motor Company at the national and international levels.

Another aspect of Porter’s Five Forces model is the threat of substitution, or how easy it would be for another company to take over the present business by innovating in some way. The threat of substitution is low but still present in the trucking industry. Due to the fact that a large majority of freight moved in the United States is moved by truck, it would be difficult to shift to a different mode of transportation. However, there are still other methods of travel that can be used, for example freight can be moved by airplane or by train within the United States. These alternative modes of transportation tend to be more expensive though, meaning it makes more sense for a company to simply purchase the services of a trucking company. In

Many business corporations were involved with the government. In document 2, the author is political activist and impacted government workforce by illustrating an image that shows big businessmen are controlling the senate. Money equals power so since the  Business companies have, almost full power over them, they can clearly manage anything they desire. The government is

The American automotive industry is famed for the variance in flashy and pioneering cars produced. Also, it is not only known for the powerful engine type cars with shiny chromes but pack some practical vehicles that are part of the lot. The automobile industry proved a competitive one. Although, the first automobile invention and testing happened in Germany and France in the periods around 1800, the American automotive sector rapidly made advances in the production of motor vehicles by completely dominating it during the first half of the twentieth

The United States has one of the largest automotive markets in the world, and is home to many global vehicle and auto parts manufactures. In 2016 year alone, vehicle production reached almost 17.5 million passenger vehicles. Automobile industry involves many industries in it. It includes original equipment, manufacture, and adverting industry as well as oil and natural gases industry. Main players of the Automobile industry are Toyota, General motors, Volkswagen, Honda, Ford and more. The Automobile Industry is very complex and to start a business in automobile industry high level of capital investment is required. Not only huge amount of money but also a labor force will be essential, which are the main barriers to enter into the automobile industry. For Example, the US auto industry was once considered safe until Honda Motors gave a big challenge to these companies by opening a manufacturing plant in Ohio. The Automobile industry includes many other industries as well for example, tires and seat manufacture. These industries are the suppliers of the Automobile industry. The automobile industry is are in a more power position that the suppliers. Many of the suppliers are dependent on the auto makers (Kallstrom 2015).Also, bargaining power of the suppliers depends on the reputation. If the supplier is able to provide high quality products of the auto parts than they can expand their contracts with other Auto companies. For example, Lear Corporation operates from 245

Macro environment is important factor affecting the development of enterprises. A macro environment is the condition that exists in the economy as a whole, rather than in a specific sector or region.(Macro Environment n.d.) Cultures, politics, technology, nature, economy and demographic are the six major forces in the company 's macro-environment.(Kotler & Armstrong 2014, p96）

Macro environmental factors are those irrepressible external factors that affect the company’s decision making process. These factors include demographic, socio-cultural, economic, political-legal and also the natural factors.

Economic factor play an important role in automobile industry. During the financial crises economic condition was not good, the sales of vehicles was down. The demand of luxury cars went down. Exchange rate between different countries differs on their economy.

Political factors can often give a big impact on the business of a company. Often this factor is not in the hand of the organization. Several aspects of government policies can make a huge difference. However, all firls are required to follow the law. It is the responsibility of the organization to find how upcoming legislations can affect their activities.

The UAE is renowned for its rich cultural heritage heavily manipulated by Arab and Islamic traditions. UNESCO has particularly acknowledged the Emirate of Sharjah as a fascinating emirate that has single handedly taken measures in protecting the rich cultural heritage of the Arabs. A classic example is anchoring the Dubai Shopping Festival in cultural values that are local and traditional. It should be noted that the primary aim of the festival is to attract tourists from all over the world. Globalization has since forced all the other Emirates to take initiatives towards protecting all features of the Arabian culture.

In the assignment, it will discuss the sports brand Nike which specifically focuses in Chinese market. There are three main content areas in this assignment. The first part is a macro environmental analysis; the next part is the target customer profile; the last part is the analysis of marketing strategies.

Moving to foreign country weather it’s to study, work or to do business, it’s totally a change of environment and life. Doing business in a foreign country can be a dream of anyone. Moving abroad for doing business is not ones one day thought. It has been plan for years and lot of savings to overcome foreign barriers. Normally even it’s a dream to do business in abroad a person doesn’t move directly without analyzing the country environment situations or what are the pros and cons for doing business in a foreign country. By looking for pros and cons in moving abroad gives a clear idea what it can be or weather company has to proceed with plan or not. Reference

While analysts argue over whether the company will be successful or not and if the prices will be reduced, the reduction of the cost of the battery - is not the only aim of the upcoming Gigafactory, the team is already working on improving of the battery life. It is planned to increase the energy density of the batteries, thereby reducing their weight, and increased cruising range of electric vehicles. The professor at Dalhousie University Jeff Dahn is known for his work innovating lithium-ion batteries like those Tesla uses to power its Model S sedan, will collaborate with Tesla scientists (Owram, Kristine. Tesla Motors Inc Turns to Dalhousie University Professor for Help with Battery Technology).

Marketing environment of a company which consists of macro environment and micro environment will affects the ability of marketing management of the company to build and retain the loyalty and relationships with their target customers. Macro environmental factors will form opportunities and pose threats to the company, as well as affecting the marketing decision of the company. Besides, micro environmental factors consists of actors which close to a company that can affects ability of the company to serve others. A company can do well when they are able to understand and adapt well in the environments.