The company's decision making process is influenced by many macroeconomic factors of an organization. Similarly, for many automotive companies, there are many factors that can influence their decision making and these factors are political factors, economic factors, social factors, technological factors, environmental factors and legal factors. The simultaneous study of this factor is known as PESTEL analysis. Also in this report we will talk about this factor for Volkswagen. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay Political Factors: For Volkswagen company we believe that the organization is facing a lot of political difficulties as the company is not located in four or five places where it is located it is present in 150 countries as it has a huge network for automotive 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 adopt different strategies to achieve success in many different countries. For example, the political situation in Europe is not the same as in Asian countries. The organization must deal with the policies adopted by the government of any country. Many industries, such as banking and finance, also play an important role, as banking sectors deal with vehicle loans and financial sectors deal with interest rate and these are decided according to government policies. Many countries that are emerging as a good economy are welcoming many automotive companies and Volkswagen is taking advantage of this. The biggest challenge for the Volkswagen company is to understand the different policy issues faced 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 as the company contributes to the development of the economy of any country and this is the positive point for Volkswagen company. The company also helps many industries like steel industry, glass company, etc. This type of company helps many emerging economy countries such as India and China and Volkswagen benefits greatly from it. Please note: this is just an example. Get a custom paper now from our expert writers. Get a Custom Essay Apart from this, there are some disadvantages related to the unpredictability of the economic condition. In Europe, for example, many people don't have enough money to buy a car and this is a big problem for manufacturing companies. According to statistics, in 2011 there was a huge drop in Volkswagen sales in South America. So, to overcome this situation, Volkswagen has introduced many car brands from both upper and lower segments. In a country where the economy is not good, Volkswagen company deals with cars of lower segments. Another problem with the car sales is the increase in the price of gasoline which directly affects the car sales and this condition is directly linked to the economic situation of the country. So, to deal with this kind of situation, Volkswagen is now focusing on diesel and petrol alternatives.