LSBM101-Business Environment-Level 4


Business environment refers to as summation of both the internal and external forces which impacts the working of the business. For a company to be successful it is necessary for the company to make sure that it studies all the business environment factors thoroughly and to make the changes in the business according to the changes taking place in the business environment (Saleem, 2015). For carrying on with the report the sector chosen is automobile sector and the company chosen is Jaguar.

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The company is the luxury vehicle brand which is a multinational car manufacturer headquartered in Whitley, Coventry, England. This company fully merged with Land Rover and 1st January 2013, formed Jaguar Land Rover. The present report will start by highlighting two issues faced by the automobile sector. Further with help of PESTLE analysis the two issues will be analysed and evaluated. Next the positive and negative impact if these issues will be identified on the business. At last the challenges faced and the ways of overcoming those challenges will be identified.


1. Two issues affecting the automobile sector

The automotive industry with UK is known for manufacturing of the different variety of cars and premium and sports car for the consumers of the country and other countries all over the globe. There are many different companies dealing in the manufacturing of cars and related vehicles such as Bentley, Jaguar, Land Rover, Rolls Royce and many other different types of companies. But the industry faces many different issues or difficulties in manufacturing of these cars. These issues arise because of the reason that the business exist in the environment which is very dynamic and changing and these changes impact the working of the automobile industry and the related businesses. The major issues faced by the automobile industry are discussed in the adjoining points below-

Changes in technology

This is the major issue faced by the automobile industry. This is because of the reason that technology is the only factor which keeps on changing very frequently. This is an issue for the automobile industry because of the reason that if the industry does not adopt to these technological changes then the existing technology will become obsolete and this will decrease the goodwill and market share of the company (Prajogo, 2016). The adoption to the latest technology will improve the working and the efficiency of the worker as the technology will simplify the work of the employees. This will addon to the overall efficiency of the company as well as the industry. Also, technology is an issue for the industry because now they have to hire for some experts to train the operators of these technology if implemented within the industry (Meoli and Vismara, 2016).


this is another important issue which is faced by the automobile industry. This is because of the reason that the sustainability is gaining much importance in this highly competitive world. This is because of the reason that sustainability refers to as the ability of the person to use the resources in such a way that they are optimally used and also is saved fort he future use. This is done majorly because of the reason that the resources used by the industry is very less and scarce and therefore, they need to be used in such a way that they are optimally used that is they are used effectively and efficiently.

The sustainability is not to be maintained with the resources only, but it is applicable for all the other stakeholders that is their needs must be fulfilled and satisfied by the industry and its working. Also, sustainability is an issue because the automobile industry harms the environment in the form of air pollution, noise pollution and many other related factors. Also, with the smoke passed out by the cars manufactured in the automobile sector reduces the quality of the air. This is because of the reason that the smoke passed out from the vehicles is emitted ion the air and because of this the quality of the air is affected and then this air is inhaled by the people of the area nearby.

2. PESTLE for categorising the two issues

PESTLE analysis is a tool which helps the company in analysing the changes taking place in the external environment and their impact in the working of the company. These impacts can be either positive or negative both that is it can have both the positive impact on the issue or the negative impact in the issue. The PESTLE done on the key issues are as follows-



Political factors

Political factors refer to as the forces within the political sector which impacts the working of the business (Leon and Calvo-Amodio, 2017). The political impact in the issue of technology is that the government of UK may help the automobile industry in adopting to the latest and new technology because of the reason that if the industry adopts to these upgradations then it will increase the profits of the company and this eventually will increase the tax income of the government as the company will pay more taxes (Kozubíková, Homolka and Kristalas, 2017).

Economic factors

The economic factors are the factors relating to the economy of the country which impacts the working of the business and the overall industry. The technological issue and the sustainability issue can be an opportunity for the business as if the company adopts to these things then it will lead to the economic development of the country. This is because of the with use of these two issues the company will earn more of the profits and this will increase the national income of the country.

Social factor

This factor relates with the beliefs, values, attitude of the consumers towards the company or anything. Here if the industry takes the issue of technology and sustainability in a positive way then it will be good for the industry (Hillary, 2017). This is because of the reason that with this it can use different techniques like electric cars, use of rules relating to environment protection. This increases the goodwill of the company as it works in accordance with the beliefs of the consumers.

Technological factor

This factor refers to as the changes in the technological sector. This includes frequent changes taking place in the technological sector. These changes can have both positive and negative impact on the industry. This is because of the reason that if the technology is positively implemented then it will be beneficial and if the employee does not understand the technology in proper way then it can become disaster for the industry (Ferrell and, 2019). Therefore, the issue of technology and sustainability in automotive industry will the companies in implementing the new technologies and different techniques helpful in maintaining the sustainability.

Legal factor

These include different laws and regulations which are applicable on the business. This is because of the reason that if the company or the industry does not follow the rules then the consumer will not like the company and its working because of the reason that if the company will not comply with the rules then the consumers will not like the company.

Environmental factor

This is the most important factor to be considered in this modern era. This is because of the reason that if company not cares for the environment then the consumers will not like the company as it does not protect the environment and related factors.

3. Discussion on key issues relating to

a) Positive impact in business

Everything has two sides that is positive and the negative side. Similarly, with the issues identified as a challenge for automotive industry also has both the positive and the negative impact on the companies working within the automobile industry. In Jaguar the positive impact of changes within the technology is that it minimises the chances of the error. This is because of the reason that the technology reduces the human effort of working and this makes sure that almost every work is done with the help of the machines and techniques. Therefore, this reduces the work of humans and they focus more on the things which are not operated with machines (Erasmus, Strydom and Rudansky-Kloppers, 2016).

The positive impact of maintenance of sustainability within Jaguar is that it helps the company in full and optimal utilisation of the limited and scarce resources which increases the efficiency of the business and increases the goodwill of Jaguar. Also, for maintaining the sustainability, Jaguar focuses on the protection of the environment and also works for the corporate social responsibility towards the environment and this increases the market share of the company as more consumers are attracted towards the company as it takes into consideration the environment and its development.

b) Negative impact on business

With all the above positive impact there are also some of the negative impacts of these two key issues on the company Jaguar. The negative impact of the technology over the company Jaguar is that company needs to install the technology within the business and this involves a huge amount of cost. This is a negative impact because this increases the cost of the company. Another negative impact of this new technology is that the company needs to provide for the training of the employees that how they have to use and operate the new installed technology. For this the company has to arrange for the training programmes for the employees to learn the new technology.

Also, there is are negative impact on the business because of the maintenance of sustainability within the business. The major negative impact is that Jaguar needs to follow different rules and regulations in relation with the maintenance of the environment and society as well. This has a negative impact on the business because it has to follow different guidance and rules and regulations (Bloom and, 2018). Also, for maintaining sustainability the company has to adopt to many new and latest trends such as electric car, emission of less pollution from its cars and many others. Therefore, for this the company has to adopt top many different technologies which involves high cost.

4. Two challenges faced and ways to overcome those challenges

The major challenges which I faced while completing this report is as follows-

Lack of proper information

The challenge which I faced was that I was not able to collect the information relating with the topic. This was because of the reason that the topic was very vast and was not able to link the information with the topic.

Loss of failure

This was another challenge which I faced was lack of losing the project. This was an internal challenge for me as I am a little nervous relating to the work I perform,

For overcoming these challenges, I took the following actions-

Help of internet

For gathering the information I took help of the internet. This is because of the reason that internet is a good source of information and it also has information relating to connection of the information with the topic.

Guidance of tutor

Also for overcoming the problem of loss of failure I took help of my tutor, and they explained to me the importance of being confident in performing any task and also gave me some tips of becoming confident.

With this whole report I learnt that there are many issues which the automobile industry faces. But the most important issues were technology and sustainability. These issues help the company in both the positive and negative ways.


With the help of the study of the report it was concluded that analysing the business environment is very necessary for the company to have success in the business. The present study analysed the two different issues impacting the automobile industry which are technological issue and issue of sustainability. Further the PESTLE analysis was done to ensure the impact of the external environment on the issues. Next the report highlighted the positive and negative impact of these issues on the business. The positive issues were like increase in efficiency of the company, increase in profits and the negative impact were like increase in cost, arrangement of training program and many other. In the end some challenges faced and the ways of overcoming them were outlined.


  • Abdelkafi, N. and Täuscher, K., 2016. Business models for sustainability from a system dynamics perspective. Organization & Environment. 29(1). pp.74-96.
  • Blind, K., 2016. The impact of standardisation and standards on innovation. In Handbook of Innovation Policy Impact. Edward Elgar Publishing.
  • Bloom, N. and, 2018. Really uncertain business cycles. Econometrica. 86(3). pp.1031-1065.
  • Erasmus, B., Strydom, J. W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business management. Oxford University Press Southern Africa.
  • Ferrell, O. C. and, 2019. Business ethics, corporate social responsibility, and brand attitudes: An exploratory study. Journal of Business Research. 95. pp.491-501.
  • Hillary, R., 2017. Small and medium-sized enterprises and the environment: business imperatives. Routledge.
  • Kozubíková, L., Homolka, L. and Kristalas, D., 2017. The effect of business environment and entrepreneurs’ gender on perception of financial risk in the smes sector. Journal of Competitiveness.
  • Leon, H. C. M. and Calvo-Amodio, J., 2017. Towards lean for sustainability: Understanding the interrelationships between lean and sustainability from a systems thinking perspective. Journal of cleaner production. 142. pp.4384-4402.
  • Meoli, M. and Vismara, S., 2016. University support and the creation of technology and non-technology academic spin-offs. Small Business Economics. 47(2). pp.345-362.
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