Audit of Automobile industry

The strengths of Auk’s automobile industry: 1 . Largest Revenue generating sector Auk’s auto industry yearly contributes around 12 Billion Pounds to the economy of UK y generating revenue of more than 55 Billion Pounds, annually. . Diversity in products Products manufactured by UK automobile industry range from various premium and sports cars to commercial vehicles and engines. Around 80% of this is exported, yearly. 3. Chief employment generator The automobile industry in UK is a major employment generating sector, offering wide range of employment opportunities in manufacturing and R&D. WEAKNESSES 1 . Disparity between manufacturers Auk’s automobile industry is known for having an austere disparity between its manufacturers, which stands out to be a major weakness of this industry. 2.

Depleted Supply Chain Supply chain of I-J automobile industry is going through an appalling phase. A potent supply chain and its capacity is an important factor in determining market expansion and foreign investment. Extensive improvement, in the supply chain of UK automobile industry, is essential. 3. Dependence on foreign markets As the I-J car industry exports around 80% of its produce to foreign markets, it is under the risk of getting directly dependent on economic crisis of other markets. UK Audit of Automobile industry By penetrated .

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Providing CEO-friendly vehicles Auk’s automotive industry has been constantly active in innovating new products to provide a safe and CEO-friendly environment, hence opening up string of opportunities. 2. Investments by Global Memos In the year 2013 many global equipment manufacturers have announced investments in United Kingdom. Through these strategic alliance UK auto industry is believed to benefit significantly. Soaring cost of Raw Material The cost of raw material has been ever rising; hence, the manufacturers pay more for recurring raw material every year.

This eventually raises the price of automobiles. 2. Increasing competition With new companies coming in UK along with foreign direct investment the competition is bound to soar, ultimately increasing threat for existing companies. Bottom-line is that in spite of challenges faced by automobile industry in last decade, it is resurging from its downfall and looking forward to producing more number of vehicles this year.The automobile industry in I-J has been tactically working towards creating new opportunities and enhancing technology.

It has extensively slogged to make I-J more attractive for foreign investors. Through automotive industry external analysis, we shall study influence of external factors on the industry. The two major models discussed here are PESTLE Analysis and Porter’s Five Forces’ Model. PESTLE ANALYSIS Political To ensure there is no monopoly created in the industry, certain policies restricting the size of automobile companies. Economic With the advent of increasing inflation across the world, it is predicted that the arches of automobiles shall increase in coming years.

Also, globalization has opened doors for foreign investors in I-J. Social Recent researches show that young population in UK is declining and older population is rising. Hence, it is advisable that companies focus on creating more products catering to smaller families and older population. Technology Increased focus on providing CEO-friendly vehicles has encouraged industry to continually invest in research and development. With popularity of new designing software, Global Positioning Systems for navigation, etc, technology has advanced woo folds.