Analyze the business environment of electric vehicles using the case study of Volvo
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The global business environment is a term used to describe the opportunities and challenges faced by businesses that operate in the global marketplace. It mirrors the interconnectedness of all parts of the world, which means that what happens in one country or region has an impact on other regions or countries where a business operates. Whenever a company expands its footprint beyond its home territory, it enters an international business environment which means that it must align with the differing cultures of each external environment while conducting its business operations. It is thus essential for multinational companies to put into consideration the social, political, economic, regulatory, tax, technological, and legal environments to improve performance. This report analyzed the business environment of electric vehicles using the case study of Volvo.
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CHICAGO
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ELECTRIC VEHICLES BUSINESS ENVIRONMENT Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Clearly understand and discuss the concept of the global business environment
- Understand the external environment of an organization and how it affects its performance
- Understand why it is important for an international organization to study its external environment
1.0 INTRODUCTION
The EV industry has experienced steady growth through the years, surpassing one million unit sales in 2017 for the first time and forecast to grow from 2 million units in 2018, to 4 million in 2020, 12 million in 2025 and 21 million in 2030. This growth will be boosted by declining battery costs, government incentives, improving infrastructure as well as growing acceptance due to growing air concern issues among consumers (McKinsey 2014).
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