The assignment is to conduct a situation analysis (also called an environmental scan) of the external environments that will affect the automobile manufacturing industry over the next 5-10 years. Review the notes on the 6 external environment that are posted above and the associated articles also posted there. Trends in each environment (demographic, economic, physical/natural, technological, political/legal, socio-cultural) should be noted that will affect the industry.

Trends that are positive for the business create opportunities; negative trends pose threats. Some trends are neutral; others can be viewed as both opportunities and threats, depending on one’s perspective. Clearly identify the external environment being analyzed and the associated opportunities and threats. Each environment should be analyzed; they all will apply. Do NOT attempt to develop the industry’s response to these trends. It’s too early to do that.

Please organize your analysis by each environment with its opportunity and threat. For example,

• Demographic Environment:
  • Opportunity:
  • Threat