Political economy can also have an affect

PoliticalSince the last century, Germany is famous for making cars, such as, Mercedes, Audi and BMW; Porsche and Volkswagen. German government also encourages these motor producers showing the Germany made car to the customers from all over the world. Audi set the headquarters in Ingolstadt and have a strong human resource with over 60,000 staff from different nationality. With the Audi’s global strategy implementation, this German auto manufacturer has established several large plants in different countries.

Hungary and China are good examples. Furthermore, ion the uk we are currently going through Brexit. What is this? Well, Brexit is the premovement of the uk from the EU.

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This could affect the Audi in the uk as they may not be able to carry out certain activities which they are usually normal and allowed to do.EconomicAccording to the Audi statistics, sales of new car have increased sharply from 2009 to 2010 in the European and North American markets. What is more, Middle East and China are still the large demand group; For example, Audi has delivered 108,000 cars to China in the first three months, compared with the total sells 705,000 cars at the same period. The economy can also have an affect on interest rates this meaning it will have an effect on Audis business as they also sell shares. Furthermore, in 2008 we went through a recession luckily we are now currently going out of it however, some countries are still in a credit crunch therefore they are less likely to spend money on cars etc.SocialThe social effect that it will have on Audi is pretty self-explanatory, staff.

Audi have over 60,000 staff this meaning that these staff also have families and sop forth. Therefore, they provide for their family, the social effect by this is that if they then lose their job somehow, they are affect their family this could cause a social issue as some may think it could be morally wrong. Audi has been improving the workshop condition to satisfy employees, and Audi also offer successes of creating exceptional cars when employees join the group. Manufacturing perfect cars needs large quantity qualified material, Audi have established several partnerships with suppliers. Due to the economy recession, consumers are willing to choose the fuel efficiency car instead of buying the big engine SUV; Audi remained the price for customer, but added more technology into the car. TechnologicalTechnology development is the key feature of Audi Company; Audi is best known of its permanent four-wheel drive system, called QUATTRO. Today, Quattro is widely used in most Audi model, and offering drivers more safety and pleasure in any situations.

Audi also cooperated with Italian super car Lamborghini to achieve sport value. For example, the S8 and RS model are equipped with Lamborghini’s engine and transmission system. What I mean here is that Audi can now use the technology from other cars and put them into their Audis. This will be good for the business as it shows that all their cars and models relate in one way or another showing innovation.

EnvironmentalAudi paid more attention in corporate social responsibility. It is inevitable for Audi not polluting the environment, because it is a manufacturer. Audi promises to minimize the environmental impacts. In these 20 years, Audi spent billions in researching the efficiency engine; the new generation engine means more horsepower but little emissions. For example, their new engine has already met 5 of the new emission standards which shows that they do care about the environment and are having a good impact. Audi announced car emissions will be cut further 20% by 2012.

That is how this German maker leads the environmental car market.LegalGermany government set a group of legislation in order to protect road user’s safety and environment. Crash standard and European car emission limits are good examples. Legal factors can decide whether or not there is a business behind selling a certain product (perhaps drugs, or sharp objects), and can also affect the mechanisms through which a company stocks their inventory or interacts with the customer.


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