"Analysis of the General Environment"
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Explain how each of these factors affects the Automobile industry and support your claims with data and anecdotes, when necessary. Please list the items that you discuss under their corresponding segment (see below for a template). Please note that you need to do some research online in order to find information about your industry. Below is the outline you should follow. The number of items in each section may vary. The following is only a sample and you should not constrain yourself to the exact number of items shown below.
Introduction
Demographic Segment
[Item 1]
[Item 2]
[Item 3]
Economic Segment
[Item 1]
[Item 2]
[Item 3]
[Item 4]
Political/Legal Segment
[Item 1]
[Item 2]
Sociocultural Segment
[Item 1]
[Item 2]
[Item 3]
Technological Segment
[Item 1]
[Item 2]
[Item 3]
[Item 4]
Physical Segment
[Item 1]
[Item 2]
Conclusion
You also need to elaborate on how each factor affects the industry. Please provide some explanation for each factor, and don't just name it. For each factor, explain how it is changing over time, how it affects the industry, and the implications of its effect for the industry's companies.
IMPORTANT NOTES:
- Any citation format is accepted, as long as it is consistent throughout the submission.
- Please listen to the narrated slides (the powerpoint file) before starting the assignment.
- The report should be typed using a 12-pt font, double-spaced, 1-inch margin all around, and should be no longer than 4 pages.
- Try not to miscategorize the factors. For example, tax laws should be discussed under the "Political/Legal Segment" and not the "Economic Segment".
- All "six" segments should be included in your answer.
- The purpose of the general environmental analysis is to study the effects of the macro-level environment (a.k.a. the general environment) on the industry; not the other way around. Please do not make statements such as "Coke and Pepsi have created many job opportunities in the Middle East countries". While this might be a true statement, it is not what we look for in this analysis. We look for the effect of the environment on the industry.
- You should also avoid giving the history of actions and events in the industry. For example, do not state how "PepsiCo sold $15 Billion worth of soda in Asia." Such statements do not contribute to the purpose of this analysis.
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Solution Summary
This posting gives you a step-by-step explanation of analyzing the general economic environment of the automobile industry. The response also contains the sources used.
Solution Preview
In accordance with BrainMass standards this is not a hand in ready report but is only background help.
Step 1
Demographic Segment:
Below the age of 35, consumers buy cars that are relatively lower priced. The average consumers below 35 years take out loans that are lower than those of above 35. The cars bought by this segment include Nissan Altima, Dodge Charger, Honda Accord, Chevrolet Impala, Chevrolet Tahoe, and Honda Civic.
Those above the age of 35 have higher loans on average. The cars bought by this segment include Porsche's Panamera, Cadillac CTS Wagon, Cadillac DTS, Buick Lucerne, and Lincoln Town Car
Women prefer a different set of automobiles. These include Volvo S40, Nissan Rogue, Volkswagen Eos, and Hyundai Tucson.
Step 2
Economic Segment
The first economic issue is overcapacity. This results in heavy discounts and price cutting. Revenues increased but the profits declined. The demand was less than the supply.
The second economic issue is the foreign exchange rate. The high exchange rate of dollar enables foreign car makers to sell cars at very low prices driving out the local car makers (a).
The third economic issue is the effect of the recession. Even though the economy has started recovering, the process is slow. This means there is higher demand for low priced cars. Further, because of fuel efficiency lower oil prices do not drive up the demand for automobiles. There is demand for fuel efficient cars.
Step 3
Political/Legal Segment
Environmental factors: The government gives more support to hybrid vehicles and vehicles that are entirely powered by electricity.
EU Vehicle ...
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