MGT211 Assignment 1 Solution Spring 2017


The external environment cannot be controlled as compared to the internal environment, however, these factors are responsible for most of the decisions taken by the enterprise and help in understanding the restrictive factors. Without analyzing the external environment (where an organization is interested to expand its operations), it is difficult to draft a victorious strategy. Audi, a German automobile manufacturer that design, produce, market and distribute luxury vehicles has now decided to officially launch three vehicles; Audi Q2, Audi Q5 and Audi A5 Sports back in Pakistan during the year 2017. Pakistani market is already saturated in terms of importing foreign cars and selling them locally. There are a couple of car brands that have already catered large chunk of vehicle consumers in Pakistan, and the loyalty factor among those consumers is also very high. While expanding its operations in Pakistan, Audi needs to be very vigilant in devising its strategies by keeping in mind the environmental factors.

Requirement: Being a marketing manager of Audi in Pakistan, you are required to discuss the key political and economic environmental factors that you must consider before launching above mentioned vehicles in Pakistan. (5+5)

Solution :

Political Environment: 

It Includes law. Govt agencies, pressure groups, that influence or limit various organizations and individuals in given society..1) changes legislation ,2) changing govt agencies enforcement, 3) more emphasis on ethics and socially responsible actions..

Economics Environment:
it effects the consumer purchasing and spending power.

1) In this environment Managers mainly studies;

  •                       Trends of Gross National Product
  •                       Pattern of real growth in income
  •                       variation in geographical income distribution
  •                       Borrowing pattern, trends and govt legal restrictions
  •                       major economics variable(Inflation, GDP etc