The company's decision-making process is affected by many macroeconomic factors of an organization. Likewise, for many automobile manufacturers, many factors can affect their decision-making process: political factors, economic factors, social factors, technological factors, environmental factors, and legal factors. The simultaneous study of this factor is known as PESTEL analysis. Moreover, in this report, we will discuss this factor for Volkswagen. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”?Get the original essayPolitical Factors:For the Volkswagen company, we find that the organization faces many political difficulties because the company does not is not established in four or five places where it is established. is established in 150 countries because it has a vast network for automobile production (manufacturing). The company faces many different political situations in many countries. The political situation in the country is not the same. The company must develop different strategies to achieve this in many different countries. For example, the political situation in Europe is not the same as in Asian countries. The organization has to deal with the policies made by the government of any country. Many sectors such as banking and financial sectors also play an important role, as banking sectors deal with car loans and financial sectors deal with interest rates, which are decided based on government policies. Many countries that are emerging as a good economy welcome many car manufacturers and Volkswagen is taking advantage of this. The biggest challenge for the Volkswagen company is understanding the different policy issues addressed by any government. Political policies in China are different from those in Brazil. Economic Factors: For the development of any country, automobile industries play an important role as they contribute to the national income of the nation. Likewise, Volkswagen helps the countries in which it is present by contributing in the form of GDP. This is the reason why many countries welcome Volkswagen, because the company contributes to the development of the economy of any country and this is the advantage of the Volkswagen company. The company also helps many sectors like steel companies, glass companies, etc. This type of business helps many countries with emerging economies like India and China and Volkswagen benefits greatly from it. Keep in mind: this is just a sample. Get a custom paper now from our expert writers. Get a Custom Essay Apart from this, the unpredictability of the economic situation has some disadvantages. For example, in Europe, many people do not have enough money to buy a car, which is a major problem for manufacturing companies. According to statistics, Volkswagen sales in South America experienced a considerable decline in 2011. To remedy this situation, Volkswagen introduced many car brands belonging to the upper segment as well as the lower segment. The country which is not good economically, Volkswagen company deals with lower segment cars. Another problem with car sales is the increase in gasoline prices which directly affects car sales and this condition is directly related to the economic situation of the country. Therefore, to deal with this kind of situation, Volkswagen is focusing..