LoNGPestel Analysis of the US automobile industry ( only passanger Essay

LoNGPestel Analysis of the US automobile pains ( only passanger cars ) - Essay ExampleIts very imperative to constantly asses the business surround so as to keep up with competition, be updated on current developments in the industriousness as well as understanding the external and internal factors that affect the business (Greacen & Chou 2005). Business environment is identified as the external factors influencing the purposes made by a business and they way the business will operate at that place after. These factors are very critical to development of an industry and any business analyses set to investigated them should be through with(p) so in a systematic way so as to ensure the whole operate in cost effective and that relevant information is obtained (Leumar 2008). One is able to concentrate on the industrys environmental factors like the customers, competitors, the government, and suppliers. In general, its pertinent to note that the profit that a star sign gets comes fr om the ways in which a market is made to be perfect. The prices that clients are willing to pay for the goods should not actually surpass the cost of producing the goods (Leumar 2008). PESTEL analysis is one of such means by which companies use to appraise their performance in relation to the business environment so that changes can be made whenever attainable to increase profitability (Capon 2006).The PESTEL analysis is sometimes extended to include local national and global aspects and consequently denoted as LoNGPESTEL analysis. These are some of the factors that are analysed in assessing the business environment particularly the macro environment factors that are likely to affect managements decisions about the organisation. PESTEL is an acronym of Political, Economic, Social, Technological, Environmental and Legal factors that influence organizations decision process (Greacen & Chou 2005). The changes in taxation policy, introduction of trade barriers, establishment