Uk Automobile Industry Essay

1097 Words 5 Pages
1. Objective
This report summarizes an Internal and External environmental audit of automobile industry in UK using PESTEL, SWOT and Porter’s Five Forces Analysis. 2. Brief Introduction of Automobile Industry in UK
The United Kingdom is a leader in manufacturing of automobiles and automobile spares. Automobile industry plays a major role in UK’s economy as it is home to at least seven major car manufacturers. Automobile industry in UK manufactures a wide range of cars like - standard specification cars, luxury segment cars, sports vehicle, racing cars etc.
Now let us carry out an internal and external environmental audit of UK automobile industry.
3. Internal Environmental Audit
Internal environmental audit analyses a company’s situation in comparison with its
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Opportunities for UK automobile industry
• Government has come up with stringent standards on environment protection such as standardizing level of carbon content in vehicle emissions. Therefore, manufacturing of eco-friendly and fuel efficient cars can be considered as an opportunity in future
• Countries like India and China have a vast market potential due to their large population and continuously developing economy. This can be an opportunity for UK automobile industry
3.4. Threats for UK automobile industry
• Due to continuous hike in cost of raw materials such as aluminium and steel, automobile makers will have to shell out more money on procurement of raw materials. This leads to production of costly cars. Customers may think twice to buy cars by paying more money, which obviously is a threat to the industry.
• Arrival of new automobile firms in UK with FDI (Foreign Direct Investment) results in rise of competition, which can be considered as a major threat to current firms.
4. External Environmental Audit
External environmental audit analyses a company’s situation with an outside organization by reviewing company’s EMS with respect to the standards specified in an external

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