Internal External Environmental Assignment Help

Internal External Environmental Assignment Help of automobile industry in UK © Navashree Ghosh
The market forecast from The Financial Management says that the vehicle production in UK will reach to a historic peak by 2017. (The Society of Motor Manufacturers and Traders , 2014) Their prediction says,
Year
Number of production units
Internal External Environmental Assignment Help2014
1,724,000
2015
1,864,000
2016
1,993,000
2017
2,062,000
External Environmental Legislation
PEST Analysis
PEST analysis is done based on the four groups of influences behind the automobile industry in UK. The groups are Political, Environmental, Socio-culture and Technology science group of influences. Automobile industry includes processes such as manufacturing, supply-chains, retails and sales, servicing etc. The possible factors are decided by considering all these processes.
Political Influences
Political influences includes competition policies, laws and legislation related to environmental issues, policies and legislations related to automobile airline Industry, taxations etc. The competition policies has created sheer competition in the industry and affects the marketing strategies of different automobile companies in UK. One such example is EU completion policy against monopoly in the industry. Environmental issues are handled by laws and regulations from European Environmental Liability Directive. The emissions from gasoline and diesel based vehicles cause severe damages to environment. Euro 4 emission standard controls emission limits set for different vehicles and different areas. Also there are encouragement and support from governments to manufacture eco-friendly cars. In London consumers pay fuel tax to government. It is higher in UK than many other countries.
Internal and External environmental audit of automobile industry in UK © Navashree Ghosh
Economic Influences
Economic influences are related to growth and inflations, trade, labor force, income distribution, wealth etc. Economic growth creates possibility for more sales. Also it rises opportunities in business as well as in related job sectors.
Social-cultural Influences
Socio-cultural influences includes different demographics of population, households, transportation, environmental issues etc. Other than that it also includes social factors such as public health, road safety, car parking etc.
Technological issues
Technological issues are related research, innovations related to automobile industry such as energy saving engines, new fuels, bio fuels etc. Tools supporting CAD for car designing etc.
Internal Analysis
Internal analyses are based on the factors such as
i. Resource Audit
a. Brand
b. Market and products
c. Finance
d. Technology
e. People
ii. Value chain analyses
Resource audit can provide information about strategic capabilities, availability of resources etc. Brand acquisitions helps in promotion of business and acquiring the existing market share of the band. Value chain analyses are worldwide accepted process for analyzing relationships among the available resources and business strategies.
Internal and External environmental audit of automobile industry in UK © Navashree Ghosh
Generic Competitive Strategies
SWOT Analysis
The SWOT analysis is done by considering the associated strengths and weaknesses of the industry. Possible opportunities and threats are also discussed. The SWOT matrix is given below,
Strengths

Internal External Environmental Assignment Help

Weaknesses
? One of the largest industries in the country.
? Diversity in manufactured products. Such as sports cars, public transports, volume car, trucks, taxis etc.
? Supports from governments for various projects,
? Big companies such as Ford etc. supports research and innovations.
? Power suppliers are high bargaining.
? Enough capital investments.
? High cost in transactions.
? Structural inertia of the industry.
Opportunities
Threats
? Demand in global automobile market.
? Scopes in inventing energy saving eco-friendly cars.
? Scope in passenger car manufacturing industry.
? Global recession
? Global overcapacity in the industry.
? Barriers in market entry.
? Sheer competition.
? Fluctuating price of raw materials
? The industry is highly regulated.
? The products are easily imitable.
? Power buyers are low bargaining.
? Strict laws and legislations, emission controls etc.
Porter’s 5 Forces
P5F or Porter’s Five Forces is a tool for analyzing the opportunities in an industry by considering its attractiveness in the global marketplace. The five forces are likely to play significant roles in the automobile industry in UK. The profitability of the industry is likely to be determined by this analysis.
Internal and External environmental audit of automobile industry in UK © Navashree Ghosh
6
For UK automobile industry the forces are,
1. The barriers for new entrants
This is a relatively low threat in the automobile industry in UK.
2. The bargaining power of buyers
Bargaining power of buyers are lower than many other countries for the same industry.
3. The bargaining power of suppliers
The bargaining power of supplies of raw material, auto parts etc. are higher in UK.
4. Availability of substitute products
There are several companies in the market. The products are all similar. Customers have lots of options.
5. Intense competition and rivalry
This industry is highly competitive in nature in UK or possibly in all countries of the world.
Conclusion
This report contains an external and internal audit of automobile Scenarios industry in UK. The analyses has been done using methods such as PEST analysis, SWOT analysis, P5F etc. global recession and status of economy has affected the market however it is still one of the biggest industry in UK.
Internal and External environmental audit of automobile industry in UK © Navashree Ghosh
7
Bibliography
[1] Council, T. A. (2010). The Automotive Council UK. Retrieved from The Automotive Council: freeassignmenthelp.com.automotivecouncil.co.uk/
[2] Office for National Statistics (ONS). (2013). Office for National Statistics (ONS). Retrieved from Office for National Statistics (ONS): freeassignmenthelp.com.ons.gov.uk/ons/index.html
[3] SMMT. (2014). UK automotive sector. Retrieved from SMMT: freeassignmenthelp.com.smmt.co.uk/industry-topics/uk-automotive-sector/
[4] The Society of Motor Manufacturers and Traders . (2014, January 23). UK car manufacturing hits six-year high. Retrieved from The Society of Motor Manufacturers and Traders (SMMT): freeassignmenthelp.com.smmt.co.uk/2014/01/uk-car-manufacturing-hits-six-year-high/