Environment analysis of Germany and Expansion of BYD Co., Ltd 03013 Essay - 1

Environment analysis of Germany and Expansion of BYD Co., Ltd 03013 - Essay Example The Third section is based on the recommendations of market entry strategy, and Section four includes marketing mix. The last section is based on the conclusion. Environmental factors have a huge impact on businesses; therefore, organization before taking start conducts the environmental analysis. Firm that are involved in systematic environmental assessment is more effective than those that do not conduct or analyze the environment. Environmental analysis is the study of factors that make impact on business and helps in identifying the opportunities for the organization and guide organizations to take actions that are appropriate in order to have the full advantage of opportunity (Jain, Trehan and Trehan 2009).Environment analysis can be divided into two segments macro and micro. The best common tool that is used to conduct the macro environmental analysis is PESTLE analysis (Bensoussan and Fleisehr 2012). 1) In Germany political conditions are in favor of the automobile industry, the government has policy to support the car industry through funding. In 2013, according to the estimates, the government made $1303 funding on per vehicle produced (The Conservation 2013). 2) The Country has policy to give a political response to the industry in case of crisis. For example, in response to 2008 crisis, a significant downturn in the European market by 11% was encountered; in response to the downturn, Germany introduced several scraping schemes that helped in increasing the demand of cars (OECD 2009). 3)The Governmenthad significant policies to encourage the electro-mobility initiatives and had introduced a â€Å"national electro-mobility development program† with more than 500 million euro investment (Germany Trade & Invest 2013). 4) The Government has policies to invest in new technologies and committed to spending EUR 70 billion on research and development on annual basis. Germany is the