Question

Automobile Manufacturing

Report important trends that impact the industry, addressing each of these areas:

• Economic trends like employment, wages, and job creation

• Regulations, political influences, or legal considerations

• Social and cultural trends such as consumer beliefs, behaviors, living arrangements, gender/ethnicity patterns, etc.

• Technology trends, such as automation, e-commerce, social media, energy sources, etc.

Answer 1

Industry: Automobile manufacturing.

Pestel analysis:

Economic environment: economic condition of the country affect the business operations of an organization. For example, if there is high unemployment rate, this means that people are not employed and does not have a job. This will hamper the sales of automobile manufacturing company and they may produce less.

Political and legal environment: political and legal environment of a country may hamper the growth of the industry. For example, rigis government policies, higher taxes, unsupported legal laws may affect the business operation of automobile manufacturing industry.

Social ans culture environment: culture and social background of the country also affect the operation of the business. Consumer preference is affected by the culture in which they live. In order to produce customer's preferred product, it is very important for automobile manufacturing industry to understand their preference. Other culture factors that a manufacturing industry should address are, gender, ethics, and living arrangements of the people in the society.

Technological environment: technological environment is very important in case of automobile industry. It has to keep it self updated with latest technologies in the market and make the best use out of it. An automobile manufacturing firm should know different energy sources in order to reduce costs of production. Social Media platform may also help in creating customer awareness.

All these factors are part of business environment and an automobile manufacturing industry should address all the factors regularly and continuously.