AB 219 Unit 4 Assignment External Environmental Analysis

  U Drive Transport

Name: Catherine Ocasio

Date: March 28, 2017

Unit 4 Assignment: External Environmental Analysis

U Drive Transport External Environmental Analysis

World Region: Country:

Major City Center:

1. Social External Environmental Factors (Hint: Do the threats first.)
Opportunities: There are Social opportunities which Rome offers and one of it is the pop culture which has continuously molded this modern world. The Pop culture has an impact on generations which are young as it affects the way the young people think and therefore they will always try out things which are new and hence live component lifestyles. U drive transportation also obtains market segments which are new from the people who move in Italy hence widening its market base.
Threats: There are social problems which the company will face which include resistance to change by the Italian families as they find it better holding on to transportation ways which are traditional. Families are crucial elements of social structures and therefore have a great influence on the members of the family. In addition to this, majority of the generations in Italy which is young is force. Another issue is many of the younger Italian generation wealthier as they look for greener pastures in terms of good jobs.

Resources: http://www.state.gov/e/eb/eppd/csr/index.htm

2. Demographic External Environmental Factors (Hint: Do the threats first.)
Opportunities: The large population which exists in Rome offers demographic opportunities to the firm. As per World Fact Books, Italy takes 24 in the world population with 61,680,122 people. In this population, people of the age between 25 and 54 take 45% while those above 65 years have 21%. T6he country is also fifth in terms of population in Europe hence a big market. The geographical location of the country is also of great benefit as it links Africa with the European countries which make accessibility easy.
Threats: A big threat here is the old people who may not want to move to the modern ways of electric cars as they want to use transport system which they know, walk, or use public means.

The U.S. Census International Data Base is located at: http://www.census.gov/population/international/data/idb/informationGateway.php

3. Economic External Environmental Factors (Hint: Do the threats first.)
Opportunities: The large workforce in Europe offers economic opportunities as the economy of the country is highly industrialized and therefore many individuals are entrepreneurs ranging from small scale to businesses of middle size. The country also has a lot of tourist attraction sites making it a tourist center. Therefore, when a business is opened here it will be of great benefit to the tourists who come to visit as well as offering jobs to the locals.
Threats: However, the unemployment rate which has continued to rise in Italy is a big threat as its now at 12.6%. Unemployment majorly affects the younger people and this will be a big problem for the firm if will have to rely heavily on older individuals and tourism.
4. Technological External Environmental Factors (Hint: Do the threats first.)
Opportunities: The Technology opportunities which are present are that U Drive Transportations will introduce cars which are electric and this is environment friendly. But being conscious of the environment, the firm is being socially responsible and therefore is more likely to get more positive reactions from the young people.
A threat which will be faced here is resistance to accept the electric cars as the population may prefer sticking to their older ways and also there are very minimal environment concerns in Italy. The country is among the ones that lead in emitting industrial carbon dioxide.
5. Political and Legal External Environmental Factors (Hint: Do the threats first.)
Opportunities: The country has Italy a political situation which is stable although it has had large government turnovers. Regulations have also been put in place by the Prime Minister and this has made the process of starting a business easy and faster.one of the threats which are present is the need to find an Italian accountant who is trustworthy before any transaction is carried out. Most of these accounts act as consultants because are in between a lawyer and an account and therefore will advise on which laws the company has to follow.
Threats: However, due to high levels of corruption as well as political instability, these may take a long duration to be accomplished.

Resources: The World Factbook

6. Competitive External Environmental Factors (Hint: Do the threats first.)
Opportunities: Opportunities: (Do the threats portion first, and then figure out how the threats provide an opportunity for U Drive to better compete with competing companies.)Having very minimal green cars services offers Competitive opportunities. The company will therefore face competition from only one competitor in the area it will be operating.
Threats: Threats (What threats does the competition pose to U Drive Transport? Search for competitors by inserting “car rental companies” in your browser): A big threat here will be Green Mobility Rome which offers electric bikes and cars along with eco-friendly chauffeur services. It can therefore make tourists to prefer renting out an electric bike or even walk so that they can see attractive sites.


Central Intelligence Agencies (2014). The world fact books. Retrieved from https://www.cia.gov/library/publications/the-world-factbook

U.S. Department of States. (2014). Corporate Social Responsibilities. Retrieved from http://www.state.gov/e/eb/eppd/csr

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