Open Access
Strategic Environmental Analysis in the Automobile Industry: The Role of External Forces in Shaping Operations
Syeda Faiza Sogra
1
,
Syeda Morsheda Sogra
1
,
Kennedy Oberhiri Obohwemu
1
,
Oladipo Vincent Akinmade
1
,
Oluwafemi Emmanuel Ooju
1
,
Festus Ituah
1
,
Jalaleddin Kazemi Fard
1
,
,
Syeda Morsheda Sogra
1
,
Kennedy Oberhiri Obohwemu
1
,
Oladipo Vincent Akinmade
1
,
Oluwafemi Emmanuel Ooju
1
,
Festus Ituah
1
,
Jalaleddin Kazemi Fard
1
,
4
MSc,Department of Business Management, Scholars School System, Leeds Trinity University Partnership, Birmingham Campus, United Kingdom.
4
MSc,Department of Business Management, Scholars School System, Leeds Trinity University Partnership, Birmingham Campus, United Kingdom.
4
MBA,Department of Business Management, Scholars School System, Leeds Trinity University Partnership, Birmingham Campus, United Kingdom
4
PhD,Department of Interdisciplinary Research and Statistics, PENKUP Research Institute, Birmingham, United Kingdom.
4
PhD,Department of Health and Care Management, Arden University, Manchester, United Kingdom; and and Department of Interdisciplinary Studies & Statistics, PENKUP Research Institute, Birmingham, United Kingdom
4
PhD,Faculty of Business Management and Enterprise, Leeds Trinity University, GBS Partnership, Manchester, United Kingdom; and Department of Interdisciplinary Research & Statistics, PENKUP Research Institute, Birmingham, United Kingdom.
4
MPH,Digital Health and Rights Project (Center for Interdisciplinary Methodologies, CIM), University of Warwick, Coventry, United Kingdom; and Department of Interdisciplinary Research & Statistics, PENKUP Research Institute, Birmingham, United Kingdom.
4
MSc,World Health Organization, Abuja, Nigeria; and Department of Interdisciplinary Research & Statistics, PENKUP Research Institute, Birmingham, United Kingdom.
4
PhD,School of Health and Sports Science, Regent College, London, United Kingdom; and Department of Interdisciplinary Research & Statistics, PENKUP Research Institute, Birmingham, United Kingdom.
4
MSc,Department of Business Management, Scholars School System, Leeds Trinity University Partnership, Manchester Campus, United Kingdom.
4
MA,Department of Human Resource Management, Teeside University, Middlesbrough, United Kingdom; and Department of Interdisciplinary Research & Statistics, PENKUP Research Institute, Birmingham, United Kingdom.
4
MBBS,Department of Medicine, St. Francis Medical Center, Abuja, Nigeria; and Department of Interdisciplinary Research & Statistics, PENKUP Research Institute, Birmingham, United Kingdom
Abstract
The rapid global shift towards electric vehicles has altered the competitive and operational landscape of the automobile industry in profound ways. Firms now operate in an environment shaped by regulatory pressure, technological acceleration, geopolitical uncertainty, and shifting consumer expectations. This conceptual paper examines how external environmental forces influence business operations within the electric vehicle segment, with a particular focus on Tesla, Ford, and Volkswagen. Contingency theory provides the foundation for the analysis, supported by the integration of PESTEL analysis, Porter’s Five Forces, and Key Success Factors. These frameworks allow for a detailed exploration of how political, economic, technological, social, environmental, and competitive conditions shape organisational choices.
The discussion highlights how external forces influence manufacturing systems, supply chain structures, human resource practices, financial performance, and technological strategies. Brexit, exchange rate volatility, regulatory changes, and the transition towards zero emission vehicles emerge as especially significant influences on operational decision making. Each firm demonstrates a distinct pattern of response shaped by its legacy systems, strategic priorities, and technological capabilities. Tesla’s vertically integrated model, Ford’s restructuring efforts, and Volkswagen’s large-scale electrification strategy illustrate the varied ways in which organisations align internal capabilities with external demands.
The paper argues that effective organisational responses depend on the fit between environmental conditions and internal structures, reinforcing the relevance of contingency theory for understanding operational effectiveness in the evolving electric vehicle industry. The analysis contributes to ongoing debates on strategic alignment, technological transformation, and the future of mobility, offering insights for scholars and practitioners seeking to understand how firms navigate complex and fast changing environments.
Keywords
Electric vehicles,
contingency theory,
organisational adaptation,
external environment
References
Adamkasi (2023) PESTLE Analysis – The Electric Vehicle (EV) Industry | Free PESTEL Analysis, Pestle. Available at: https://freepestelanalysis.com/pestle-analysis-of-the-electric-vehicle-ev-industry/.
Alves, M. W. F. M., Jabbour, A. B. L. S., Kannan, D., & Chiappetta Jabbour, C. J. (2017). Contingency theory, climate change, and low carbon operations management. Supply Chain Management: An International Journal, 22(3), 223–236. https://doi.org/10.1108/SCM-09-2016-0311
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Burns, T., & Stalker, G. M. (1961). The management of innovation. Tavistock.
CBI Economics & Energy and Climate Intelligence Unit. (2024). Exploring what electrification could mean for the UK’s automotive industry. https://www.cbi.org.uk/media/qoxp3pn4/cbi-economics-eciu-ev-sector-report-2024.pdf
Christopher, M. (2016). Logistics and supply chain management (5th ed.). Pearson.
Desklib. (2023). Electric vehicles: Global business environment report. https://desklib.com/study-documents/electric-vehicles-analysis/
Donaldson, L. (2001). The contingency theory of organizations. SAGE Publications, Inc., https://doi.org/10.4135/9781452229249
Du, J., Liu, X., Shepotylo, O., & Shi, Y. (2024). Unbound: UK trade post Brexit. Aston University. https://www.aston.ac.uk/sites/default/files/2024-09/Full%20Report.pdf
Dyer, J. H., & Singh, H. (1998). The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage. The Academy of Management Review, 23(4), 660–679. https://doi.org/10.2307/259056
Fedotov, P. (2023). Critical analysis of the electric vehicle industry: Five forces and strategic action fields. Exchanges: The Interdisciplinary Research Journal, University of Warwick. https://exchanges.warwick.ac.uk/index.php/exchanges/article/download/362/954/5871
Fine, C. H. (1998). Clockspeed: Winning industry control in the age of temporary advantage. Perseus Books.
Hannan, M.T. and Freeman, J. (1984) Structural Inertia and Organizational Change. American Sociological Review, 49, 149-164. http://dx.doi.org/10.2307/2095567
Henry, I. (2024). Trade policy and the production of electric vehicles (Briefing Paper 82). UK Trade Policy Observatory. https://www.uktpo.org/wp-content/uploads/Publications/Briefing-Papers/UKTPO-2024-BP-82.pdf
International Energy Agency. (2024). Global EV outlook 2024: Trends in electric cars. Available at: https://www.iea.org/reports/global-ev-outlook-2024/trends-in-electric-cars, (Accessed: 10 January 2026)
Jagani, S., Marsillac, E., & Hong, P. (2024). The electric vehicle supply chain ecosystem: Changing roles of automotive suppliers. Sustainability, 16(4), 1570. https://doi.org/10.3390/su16041570
Karthikeyan, V., Kirubakaran, G., & Varun Prakash, R. (2024). The rise of electric vehicles: 2023 status and future directions. In Energy efficient vehicles (pp. 26–48). CRC Press. https://doi.org/10.1201/9781003464556-10
Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Pearson Education.
Lawrence, P.R. and Lorsch, J.W. (1967) Organization and Environment: Managing Differentiation and Integration. Division of Research, Graduate School of Business Administration, Harvard University, Boston.
Nassou, Y., & Bennani, Z. (2024). Contingency theory in management: Conceptual phases and strategic link with performance measurement systems. European Journal of Arts, Humanities and Social Sciences, 1(3), 183–187. https://doi.org/10.59324/ejahss.2024.1(3).16
Porter, M. E. (1980). Competitive strategy: Techniques for analysing industries and competitors. Free Press.
Sharanabasappa, & Soumya, S. (2023). A strategic examination of the electric vehicle industry: Opportunities and challenges for Tesla’s continued dominance. Journal of Scientific Research and Technology, 2(5), 1–15. https://pdfs.semanticscholar.org/31eb/226f8df47e2eb0d2bd59243f6fba93025df6.pdf
Teece, D. J. (1986). Profiting from technological innovation. Research Policy, 15(6), 285–305. https://doi.org/10.1016/0048-7333(86)90027-2
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7), 509–533. http://www.jstor.org/stable/3088148
Ulrich, K. (1995). The role of product architecture in the manufacturing firm. Research Policy, 24(3), 419–440. https://doi.org/10.1016/0048-7333(94)00775-3
van Wieringen, K. (2024). The future of European electric vehicles. European Parliamentary Research Service. Available at: https://www.europarl.europa.eu/RegData/etudes/IDAN/2024/762873/EPRS_IDA(2024)762873_EN.pdf, (Accessed: 10 January 2026)
Williamson, O. E. (1985). The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting (1985). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1496720
Most read articles by the same author(s)
- Karina Assanova, Creating A Culture of Care: Training Student Leaders to Recognize Distress and Respond Effectively , International Journal of Management and Business Development: Vol. 2 No. 12 (2025): Volume 02 Issue 12
- Alona Talykova, The Impact of Project Management Office Maturity and Methodology Standardization on Organizational Key Performance Indicators: A Synthesis of Theoretical Models and Practical Cases , International Journal of Management and Business Development: Vol. 2 No. 11 (2025): Volume 02 Issue 11
- Prof. Eleanor V. Hayes, Dr. Kenji Tanaka, Circular Economy in Aerospace: A Framework for End-of-Life Composite and Rare Metal Reclamation , International Journal of Management and Business Development: Vol. 2 No. 09 (2025): Volume 02 Issue 09
- Dr. Daniel Mwangi Njoroge, Prof. Grace Wanjiku Kamau, Environmentally Responsible Distribution Center Security: Harmonizing Safety Management with Ecological Outcomes in Advanced Logistics Systems , International Journal of Management and Business Development: Vol. 3 No. 04 (2026): Volume 03 Issue 04
- Dunja Ilovača, Institutional Trust and Psychological Risk Management in International Security and Defense-Related Operations , International Journal of Management and Business Development: Vol. 3 No. 3 (2026): Volume 03 Issue 03
- Tomiris Kushkarbayeva, Psychological Determinants of Project Success: A Synthesis of Organizational Theory and Contemporary Management Practice , International Journal of Management and Business Development: Vol. 2 No. 12 (2025): Volume 02 Issue 12
- Suman Thapa, Immediate Applicant Credibility Measurement and Hazard Evaluation Employing Intelligent Algorithms in Financing Systems , International Journal of Management and Business Development: Vol. 3 No. 01 (2026): Volume 03 Issue 01
- Dr. Amir Hosseini, Dr. Sara Mohammadi, Financial Literacy–Driven Decision Model for Understanding Millennial Financial Behavior Toward Investment Fraud Risks and Status-Oriented Consumption Patterns , International Journal of Management and Business Development: Vol. 3 No. 06 (2026): Volume 03 Issue 06
- Nguyen Van An, Tran Thi Mai, An Empirical Framework for Assessing the Relationship Between Capital Adequacy Ratios and Profit-Sharing Practices in Nigerian Islamic Banking Institutions: Evidence from Jaiz Bank and TAJ Bank (2023–2025) , International Journal of Management and Business Development: Vol. 3 No. 08 (2026): Volume 03 Issue 08
- Olamide Ayodele, Temiloluwa Ajibade, Maimoona Khalid Aziz, Hajirah Farooq, Syeda Morsheda Sogra, Syeda Faiza Sogra, Tina Puri, Madiha Hassan, Kennedy Oberhiri Obohwemu, Fidelis Evwiekpamare Olori, Kingsley Chimaobi Akabuokwu, Rabeea Rizwan, Samrina Afzal, Sayma Akter Jannat, Dividend Policy and Corporate Performance in Nigerian Banks: An Empirical Analysis , International Journal of Management and Business Development: Vol. 2 No. 12 (2025): Volume 02 Issue 12
Similar Articles
- Daniel Obande Haruna, Kennedy Oberhiri Obohwemu, Jennifer Adaeze Chukwu, Ibiangake Friday Ndioho, Charles Leyman Kachitsa, Oladipo Vincent Akinmade, Eddy Eidenehi Esezobor, Festus Ituah, Jalaleddin Kazemi Fard, Jerry Soni, Okuma Oke Deborah, Obioma Chidumaga Aririsukwu, Employee-Perceived Organisational Flexibility and Its Influence on Job Satisfaction in Hybrid Work Settings , International Journal of Management and Business Development: Vol. 3 No. 02 (2026): Volume 03 Issue 02
- Quentin Rosario, Investigating How Continuous Data Dashboards Shape Strategic Effectiveness and Firm Responsiveness , International Journal of Management and Business Development: Vol. 3 No. 3 (2026): Volume 03 Issue 03
- Dr. Linda Morales, Dr. Bayu Prasetyo, Resourcefulness and Business Model Agility: Navigating Adaptation During the COVID-19 Pandemic , International Journal of Management and Business Development: Vol. 2 No. 07 (2025): Volume 02 Issue 07
- Haruto Sato, Yui Nakamura, A Multivariate Analytical Model of Firm-Specific Determinants Influencing Aggressive Tax Avoidance Behaviour among Listed Commercial Banks in Nigeria , International Journal of Management and Business Development: Vol. 3 No. 08 (2026): Volume 03 Issue 08
- Chinedu Okorie, TAX REVENUE TRANSFORMATION AND ECONOMIC GROWTH DYNAMICS IN NIGERIA: A COMPREHENSIVE THEORETICAL AND EMPIRICAL SYNTHESIS , International Journal of Management and Business Development: Vol. 3 No. 02 (2026): Volume 03 Issue 02
- Omar Al-Nuaimi, Research-Based Evaluation of Barriers and Potential for Industry Analysts in Progressive Economies Under AI-Driven Technologies and Automation Processes for Continuous Capability Enhancement , International Journal of Management and Business Development: Vol. 3 No. 3 (2026): Volume 03 Issue 03
- Dr. Erik Johansen, Augmenting Economic Stability via Deployment of Intelligent Data Models for Detecting Malicious Patterns in Online Payment Architectures , International Journal of Management and Business Development: Vol. 2 No. 12 (2025): Volume 02 Issue 12
- Liubov Krasnoslobodtseva , Integration of Corporate PR Strategies into the Promotion of Social and Charitable Projects: Models, Risks, and Impact Assessment , International Journal of Management and Business Development: Vol. 3 No. 09 (2026): Volume 03 Issue 09
- Dr. Michael Andrew Thompson, Dr. Emily Claire Richardson, Mr. Daniel Joseph Patel, Role of External Commerce Integration in Driving Macroeconomic Progress in East African Economies , International Journal of Management and Business Development: Vol. 3 No. 04 (2026): Volume 03 Issue 04
- Dr. Alejandro Martínez, Integrating Data Quality Governance and Advanced Anomaly Detection for AI-Driven Financial and Enterprise Information Systems , International Journal of Management and Business Development: Vol. 2 No. 08 (2025): Volume 02 Issue 08
1-10 of 29
Next
You may also start an advanced similarity search for this article.