As we know change is the only constant, the market environment is also on the similar grounds. It is a fact that any organization would get affected by this. That’s the reason why an organization needs to know what external factors like recent trends and developments can impact the internal environment of the organization like changes in structure, processes and behavior. Primarily, with the change in management of Volvo, there were a lot of changes and the main goal was to analyze how Volvo would evolve with the new market trends. The environment can be divided into two parts: Macro and Micro. A brief description of both: Micro environment –would include factors closely related to the industry. In case of Volvo it would be suppliers, consumer
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PESTLE stands for political, economic, socio-cultural, technological, legal and ecological aspects. We would throw light on this analysis as it helps us in scenario planning and also would help the company in analyzing the probable future and take some actions in favor. …show more content…
It includes strict regulations on the CO2 emission standards, increase in taxes of cars, increased insurance prices and new safety regulations
• The changing foreign policies.
• Low emission cars
• The changing economies of the countries
ECONOMIC
• The 2008 economic recession hit the automotive industry. Many of the companies went bankrupt and this led to the disappearing of many brands.
• The rise in fuel prices.
• The rise in commodities
• China is the world’s fastest growing economy and is anticipated to be the largest.
• Now, that the recession has come to an end, we can expect a rise in the world’s economy. But the uncertainty parameter is involved.
SOCIO-CULTURAL
• A decline in birth rate is observed within Europe and USA
• Nuclear families are increasing and also one child or no child policy has been adopted by choice.
• Many cars are single handedly used, even while driving to work, the concept of carpooling is fading away.
• People are more conscious of the effect on the environment and are moving towards eco-friendly options.
TECHNOLOGICAL
• The increase of eco-friendly technologies, but difficult to implement them.
• There is an increased focus in improving energy efficiency and health related
PESTLE stands for political, economic, socio-cultural, technological, legal and ecological aspects. We would throw light on this analysis as it helps us in scenario planning and also would help the company in analyzing the probable future and take some actions in favor. …show more content…
It includes strict regulations on the CO2 emission standards, increase in taxes of cars, increased insurance prices and new safety regulations
• The changing foreign policies.
• Low emission cars
• The changing economies of the countries
ECONOMIC
• The 2008 economic recession hit the automotive industry. Many of the companies went bankrupt and this led to the disappearing of many brands.
• The rise in fuel prices.
• The rise in commodities
• China is the world’s fastest growing economy and is anticipated to be the largest.
• Now, that the recession has come to an end, we can expect a rise in the world’s economy. But the uncertainty parameter is involved.
SOCIO-CULTURAL
• A decline in birth rate is observed within Europe and USA
• Nuclear families are increasing and also one child or no child policy has been adopted by choice.
• Many cars are single handedly used, even while driving to work, the concept of carpooling is fading away.
• People are more conscious of the effect on the environment and are moving towards eco-friendly options.
TECHNOLOGICAL
• The increase of eco-friendly technologies, but difficult to implement them.
• There is an increased focus in improving energy efficiency and health related