Industry 4.0 And Engineering Digital Environment Assignment Sample

7123MAA Industry 4.0 And Engineering Digital Environment Assignment Sample



The automobile industry produces motor vehicles as well as their components like bodies and engines. Industry 4.0 is known as the “digital transformation” of production or manufacturing and is referred to as the 4th industrial revolution. Several external factors would affect any “automotive manufacturing company” if it tries to implement “industry 4.0” within the organization.

Industry 4.0 And Engineering Digital Environment Assignment Sample

Figure 1: Implementation of industry 4.0


Here, is the PESTLE analysis of the external factors that would affect the “automotive manufacturing company” while implementing “industry 4.0”. [Referred to Appendix 1]

Industry 4.0 And Engineering Digital Environment Assignment Sample

Figure 2: Implementation of external factors in PESTLE analysis


Political Factors

Regulatory Practices- Regulatory procedures have been streamlined in accordance with global conventions, assisting the government in improving its “efficiency and transparency” ranking.

Terrorist Attacks threats- It has been felt that somewhere in the post-9/11 environment, firms like the automotive industry must operate under the darkness of something like a terrorist assault (Popkova, Ragulina & Bogoviz, 2019). To reduce the damages caused by terrorist occurrences, it is prudent to obtain insurance and many other types of hedges and boosters.

Government Budgets Size- Both Provincial and Federal claim that both national authorities are running deficit expenditures, which boosts future growth but it could lead to widespread hyperinflation in the coming years (Nascimento et al.2019). The national administration’s credit ratings are high-quality products.

Government Regulations and Deregulations- The government follows all World Trade Organization legislations (Chiarello et al.2018). There has been uniformity including both policy formulation and policy execution.

Separation of Political Responsibility Among Government Agencies- Because there are several foreign governments, the chance of being overburdened by one department is reduced. But on the other side, it increases the complexity and expenses of conducting business and acquiring certificates and permits.

Judiciary Independence- In terms of business or commercial choices, this same country’s judiciary is mostly autonomous (Vaidya, Ambad & Bhosle, 2018). Businesses confront challenges when there is a contradiction between the interest of the nation and patented knowledge. In South Africa, for example, the authorities and judiciary allowed generic AIDS medications despite international corporations’ trademarks.

Changes in Policy with the Transition of Government- Economic policies are constant from administration to administration. Second, both parties’ governments honor the accords negotiated by previous administrations.

 Economic Factors

Workforce Productivity- Rising expenditure and stagnant median wage in the United States have resulted in indebtedness and obsessive consumption. Because families will not have adequate preservation, this one has destroyed the security culture (Xu, Xu & Li, 2018). When designing a sales strategy based on “Procurement on Credit” client behavior, the automobile sector must exercise prudence.

Foreign Investment Rate- In recent years, a number of corporations have sustained losses due to cash risk, notably in Argentina, Brazil, and Venezuela. The car sector should consider the backdrop of FX risk while developing this system. As a result of the nation’s military protracted bank run, several US firms have sustained difficulties in Mexico.

Employment Rate- A high workforce membership percentage will also have two consequences on the automaker corporation’s approaches: first, it will provide enough customers for the automaker organization’s product, and subsequently, it will expense the vehicle business more revenue to hire qualified and accomplished individuals.

Monetary and Fiscal Policies- The Conservatives executive branch’s annual attitude has increased the deficits, endangering the nation’s economic-financial sustainability in the next years.

Savings and Household Income Rate- Rising expenditure and stagnant household size in the United States have resulted in indebtedness obsessive consumption. This has destroyed the culture of excellence since people will not be able to save enough. When designing promotional strategies based on “Procurement on Credit” purchasing behaviors, the automobile sector must exercise prudence.

Capital Access at Acceptable Costs and Process of Budgeting Structure- The Governmental Reserve’s money-printing strategy has culminated in a flood of capital into the global share market. Under these circumstances, the car sector may be willing to refinance at a low cost. Nevertheless, if the mortgage rate increases, this strategy will be jeopardized.

Goods Economy and Service Economy (Demand Shifts)- The percentage of the economy devoted to companies is steadily expanding in comparison to the manufacturing, goods, or agriculture sectors.

 Social Factors

Power Structure within Society- Both should be extensively investigated by the automobile industry – So, so what is the strong relationship in societal structure? What influence does it have on economic growth and consumption? For example, the socioeconomic system’s governmental machinery is increasingly shifting towards earlier generations that have more disposable cash than the younger generation.

 Societal Hierarchy and Norms- The varieties and consumption of non-renewable in a society are influenced by the type of bureaucracy and norms that are accepted in society. In strictly centralized societies, judgment call authority is frequently concentrated at the leadership.

Education Level within Society- The degree of knowledge in a civilization determines both morale and work satisfaction, as well as the level of income. A higher level of education typically makes for better jobs, higher earnings, and even more spending on advanced and aspirational items.

Immigration Policies- So what were the country’s foreign policies, but what’s the number of immigrants, or which industries favor immigration? This will allow the automotive industry to decide whether or not it can employ individuals from across the world who are working in that specific market.

Government & Society Social Contract Nature- Before launching the product, the automotive industry must comprehend the meaning of the social relationship between both the government and the community. For example, because the UK medical system is nationalized and everything will be done through contracts at the federal level, it has also been extremely challenging for US corporations to join the UK health sector. [Referred to Appendix 2]

Attitude towards Savings- The saving culture in China and the Usa is vastly different. While the mortgage rate in China exceeds 30%, it is much below 15% in the United States. This consumption and conserving culture and its impact from both the type and quantity of purchases.

Attitude towards Health Protection- Attitudes toward safety and health are useful in different situations in products productivity and economic structures of industrial processes (Raj et al.2020). The automobile sector has strict health and safety regulations, therefore it would have to compete with enterprises in emerging regions that do not have the same high-cost frameworks as the automotive industry.

Technological Factors

Cost of Trends and Production-The advanced manufacturing enterprise should assess the quantity of automating as well as the level of manufacturing processes in the firm. As per EMBA Pro, the economy most influenced by technological changes in the coming days will be assembly and manufacturers.

E-Commerce- Therefore E-Commerce is critical to the financial strategy of the care sector. Before entering the international market, it should evaluate the e-commerce strategy, infrastructures and technology, and so on.

Internet and Mobile Phone Penetration- the automotive industry should examine the government’s internet and telecommunications penetration in order to establish the necessary business architecture depending on specific demands and realities.

Safety of Technology Oriented Assets and Property Rights- the automotive industry should examine the legal information about various land ownership and intellectual property safeguards that are widespread in the United States.

Integration of Technology in Business Processes and Society- Umber struggled in China because that attempted to enter prior to smartphones being widely available in the country (Kerin & Pham, 2019). the automotive industry should develop a plan that integrates social ideals, infrastructural, and the commercial model of the automotive industry.

 Legal Factors

Consumer Protection Laws- The car sector must determine whether or not consumer regulations exist, how frequently they have been enforced, how governments see legal standards, and what responsibility leftist groups have in explaining the detailed privacy rules.

Intellectual Property Rights Safety- The automobile sector should investigate the measure of assurance afforded to patent rights underneath the country’s legislative structure.

Data Protection Laws- the automotive industry must determine the nation’s economic data protection act and what it must do to comply with regulations (Machado et al.2019). The majority of EU states, in particular, now want European citizen data to be stored primarily in Countries in Europe.

Employment Laws- But what were the country’s economic legal provisions, and do they appear to be consistent with the corporate model of the car industry? Furthermore, Uber’s operating system doesn’t somehow conform with French legislation, and as a result, the company is facing legal issues facing the country.

 Environmental Factors

National Carbon and Per Capita Emission- So what was the nation’s military per inhabitant greenhouse emissions, but what is the general amount of carbon greenhouse gases? This will aid in better forecasting the nation’s economic environmental policy.

Effectiveness and Influence of Environmental Agencies- Environmental regulations compliance groups play a critical role in enforcing norms (Hofmann et al.2019). In underdeveloped countries, nevertheless, these authorities routinely extend the proceedings in order to extract payment. The automobile sector should be aware that such actions operate in a country.

Spending and Focus on Renewable Technologies- Just how much resources are devoted to renewable resources, and how would the automotive industry make that happen as the condition is also a known strategy.

Regulations and Environmental Standards both at Local Levels and National- Environmental policies at the regional and community levels are frequently at odds. This may assist the automotive industry in a variety of choices, including facility site, project management, and pricing structure.


Thus, after going through the above-discussed PESTLE analysis, it can be concluded that there are a lot of external factors that would affect “automotive manufacturing company” while implementing “industry 4.0”.

Reference List


Bibby, L., & Dehe, B. (2018). Defining and assessing industry 4.0 maturity levels–case of the defence sector. Retrieved from: [Retrieved on: 5.11.2021]

Chiarello, F., Trivelli, L., Bonaccorsi, A., & Fantoni, G. (2018). Extracting and mapping industry 4.0 technologies using wikipedia. Retrieved from: [Retrieved on: 5.11.2021]

Hofmann, E., Sternberg, H., Chen, H., Pflaum, A., & Prockl, G. (2019). Supply chain management and Industry 4.0: conducting research in the digital age. Retrieved from: [Retrieved on: 5.11.2021]

Kerin, M., & Pham, D. T. (2019). A review of emerging industry 4.0 technologies in remanufacturing. Retrieved from: [Retrieved on: 5.11.2021]

Machado, C. G., Winroth, M., Carlsson, D., Almström, P., Centerholt, V., & Hallin, M. (2019). Industry 4.0 readiness in manufacturing companies: challenges and enablers towards increased digitalization. Retrieved from: [Retrieved on: 5.11.2021]

Nascimento, D. L. M., Alencastro, V., Quelhas, O. L. G., Caiado, R. G. G., Garza-Reyes, J. A., Rocha-Lona, L., & Tortorella, G. (2019). Exploring Industry 4.0 technologies to enable circular economy practices in a manufacturing context: A business model proposal. Retrieved from: [Retrieved on: 5.11.2021]

Popkova, E. G., Ragulina, Y. V., & Bogoviz, A. V. (Eds.). (2019). Industry 4.0: Industrial revolution of the 21st century Retrieved from: [Retrieved on: 5.11.2021]

Raj, A., Dwivedi, G., Sharma, A., de Sousa Jabbour, A. B. L., & Rajak, S. (2020). Barriers to the Adoption of Industry 4.0 Technologies in the Manufacturing Sector: An Inter-Country Comparative Perspective Retrieved from: [Retrieved on: 5.11.2021]

Sony, M., & Naik, S. (2019). Key ingredients for evaluating Industry 4.0 readiness for organizations: a literature review. Retrieved from: [Retrieved on: 5.11.2021]

Stentoft, J., Jensen, K. W., Philipsen, K., & Haug, A. (2019, January). Drivers and barriers for Industry 4.0 readiness and practice: a SME perspective with empirical evidence. Retrieved from: [Retrieved on: 5.11.2021]

Vaidya, S., Ambad, P., & Bhosle, S. (2018). Industry 4.0–a glimpse. Retrieved from: [Retrieved on: 5.11.2021]

Xu, L. D., Xu, E. L., & Li, L. (2018). Industry 4.0: state of the art and future trends. Retrieved from: [Retrieved on: 5.11.2021]


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