Environmental Analysis of Automobile Industry during COVID-19: A Case Study of Bentley

This report analyzes the impact of COVID-19 on the automobile industry, with a focus on Bentley. It discusses the survival and success factors of Bentley during the pandemic and provides insights into the industry's future.

Assessment 2
Environmental
Analysis of an industry
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
Impact of the pandemic....................................................................................................................3
Impact of pandemic on Automobile industry..................................................................................4
Impact of covid-19 on Bentley........................................................................................................5
Survival and success factors of Bentley during Pandemic..............................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
The business environment is a combination including all external circumstances that have a
significant impact on how a company operates. The business environment aids in the
understanding of business prospects, the utilisation of precious assets, strategy, and the actual
quality, development, and profit of the organization. Bentley has been taken as a base firm which
is a British manufacturer firm which is founded in 1919 by H. M. Bentley and W.O. Bentley.
Crewe, England, is the company's headquarters. Volkswagen is its corporate entity. Rolls-Royce
purchased Bentley from Vickers in 1931, but eventually sells back to Vickers owing of financial
difficulties. Afterwards, Vickers struck an agreement with Volkswagen. Wolfgang Dürheimer is
the firm's existing Chairman and CEO (Sarkar, Qian and Peau, 2020). This file covers examine
the influence of the epidemic on the business and progress existence and success issues for the
trade with thought to megatrends.
Impact of the pandemic
The COVID-19 pandemic has resulted in a significant amount of death throughout the globe, and
it poses an unparalleled health threat, food security, and the workplace. The epidemic has
wreaked havoc on the economy and society, putting thousands of individuals at danger of sliding
into severe poverty and increasing the number of individuals who are malnourished.
Hundreds of millions of businesses are in danger of going out of business. Approximately half of
the world's billion workers are on the way to losing their jobs (Ray and Miglani, 2018).
Employed in the informal industry are especially susceptible as they lack state pensions and
excellent health care, as well as having lost access to productive assets. Many people are still
unable to maintain themselves and their family throughout shutdowns because they lack the
resources to work for a living. For most people, no money equals no nutrition, or at the very
least, less meals that is less healthy.
The epidemic has had an impact on the whole food chain, exposing its vulnerability. Researchers
and extension labourers have been unable to trade potential, indeed to acquire supplies and
increase their sales, due to boundary barriers, economic sanctions, and confining tactics,
interrupting internal and overseas supply chain operations and limiting access to healthier,
secure, and diversified meals (Shuvalova, Zakharova and Sibatulina, 2017). The epidemic has
wiped out employment and put millions of people's lives in danger.
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The coronavirus has caused immense retail and company closures in the country and throughout
the world. Government mandates, adverse supply movements, medical issues, as well as other
issues have forced shops, industries, and several other companies to shut. Since businesses are
unable to afford continuing bills and sustain the lockdown, many of these shutdowns may be
final. Small enterprises all across the worldwide are expected to be severely impacted.
Impact of pandemic on Automobile industry
Production at manufacturing was halted as a result of the disease outbreak shutdown (OEM). It
also caused a disturbance in the whole supply chain of Today's key industries, affecting the
manufacture of vehicle replacement parts in small, small, and medium enterprises. Furthermore,
lower customer number of passenger automobiles resulted in shortfalls and a serious financial
problem in the industry. The global economy has been thrown into disarray as a result of the
shutdown. With pollution limits to achieve, Brexit looming, and the rush to adopt new
technology such as hybrid cars, the automobile sector was already experiencing serious hurdles.
However, closure has resulted in a drastic shift (Whittington and et. al., 2020). Automobile
manufacturing in the United Kingdom. All vehicle plants were forced to close once the
lockdown was implemented. The effect was as profound at the extreme side of the production
and retail chain. People were unable to leave their homes, vehicle dealerships shuttered, and
confidence in the economy nearly evaporated immediately.
Even before the epidemic COVID-19 reaches the world, the car sector is struggling worldwide,
and the significant cause might be a drop in GDP growth rate from the past. Various initiatives
made by the government to enhance pollution levels, as well as protective measures that must be
applied in cars to reduce death rates. The rising cost of liquid fuels, fees paid, taxes, and other
charges are putting a strain on the sector (TANG and ZHAO, 2018). Requirements placed
closure to stop the growth of COVID-19, despite the fact that it slowed the development of
COVID-19. The world's economic situation was influenced by the shutdown throughout each
industry (MacLean, 2018). COVID-19 is projected to cause a sharper downturn than the Global
Depression since it affects all identifier. Depend on the seriousness of COVID-19 and the
Economic Downturn, it is predicted that the economy will rebound by upcoming years.
Major manufacturers in the nation are pushing ever more digitalisation throughout their
operations in terms of selling at even a time when potential clients are less eager to visit
dealerships to buy items. The future lies in technology. Given the unique circumstances, we have
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implemented a strategy for their dealership sales activities. Except for the test drive and delivery,
they have digitised touch points involved in a car buying journey.
Business executives fought to defend their enterprises, safeguard employees, and maintain
distribution networks functioning through the first shock of COVID-19 and worldwide shut
downs. While the globe continues to grapple with the coronavirus's health and financial toll,
scientists are attempting to plan a road to the new baseline, ignoring the several uncertainties that
lie ahead. Never before in recent history have so many businesses been in the same state of flux
(Steinberg, 2021). The effect of Covid-19 on the automobile sector in the United Kingdom has
been swift and severe. Several Manufacturers have shut down manufacturing lines, retailers have
been compelled to lock their doors, and numerous export and logistic companies have been
required to put their activities on hold until the crisis passes. The automobile motor has stopped
in different ways.
Impact of covid-19 on Bentley
Despite the epidemic, Bentley Motors Limited, a British maker and seller of premium
automobiles and SUVs, is rolling in business. As a consequence of the firm's ahead preparation
for all eventualities, Brexit has had a negligible influence on the firm's earnings to yet.
Furthermore, Bentley's precautionary steps to resist the epidemic were highly effective. In
accordance to the study, neither of the Bentley employees acquired Covid while on the job, and
the carmaker was the first in the UK to restart production system (Atrill and McLaney, 2017).
Two reasons, according to Mastercard, are at work. Bentley's current rich customers had plenty
of time to prepare renovations and cashback rewards during the lockdown - the luxury watch
industry, it seems, has also exploded. However, the evident dangers of living in a pandemic
prompted some to push themselves even further. People who were contemplating a Porsche
Cayenne opted to go with the Bentayga instead. Or a Lamborghini Urus, which is reportedly
undergoing a similar mini-boom (Kwak and Yoon, 2020). Hallmark expended much of the
shutdown talking to customers, including the select few who had handled to retain roster spots
for the super duper Bacalar roadster and 'continuation' version of the 1930s Bentley Blower.
Bentley prides itself on its connectedness to its customers, and Hallmark spent much of the
shutdown speaking to them. Both are priced in the seven figures. Hallmark confesses that he
expects some people to drop out after such a difficult time, but no one has done so.
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As a result of the ongoing Covid-19 problem, Bentley Motors has declared that production at its
plant headquarters in Crewe, United Kingdom, would be halted as of today. The company's
personnel and supply chain have been strained by the rising prevalence of infection across the
UK. It is also expected that the pandemic's economic slump would have a significant impact on
the automobile sector. While Bentley Motors acknowledges that market for its luxury vehicles is
expected to fall in the coming weeks, it claims that the decision to shut down the manufacturing
line, originally for four weeks, was made to preserve the wellbeing of workers, their families,
and the community. "The very well of their employees is our number one concern," said Adrian
Hallmark, chairman and CEO of Bentley Motors. "Although this was a tough choice to make,
and does not affect our strategic goal, it was important to safeguard them as best they can during
these unprecedented periods.
This will undoubtedly affect our delivery to consumers, and they regret for the inconveniences;
however, they are working diligently to minimise the impact (Khan, 2018). Throughout this
incredibly horrible and tragic time for several individuals, their minds remain to go out to all
those impacted all through the globe.
While key business functions will remain all across the closure, the corporation has enacted the
now-standard social distancing regulations, and individuals who are able to work from home are
currently doing so. The announcement comes after the UK government issued a direct method to
stay at home and avoiding all but needed contact with people. Although there have been over
thousands of recorded incidents in the UK so far, and the rate of infection continues to rise, no
formal closure actions have been required.
Survival and success factors of Bentley during Pandemic
Bentley predicted a record-breaking sales year in 2020, expecting that the popularity of the
Bentayga and new Flying Spur will lead the company to its largest sales volume in its 101-year
existence. However, COVID hit, forcing the company's Crewe production to close for several
weeks and causing worldwide demand for some of the world's costliest car gadgets to plummet.
But only for a short time. When Bentley returned to work, the six-foot width of a Bentayga or
Continental aided in social distance, the business quickly recognised demand wasn't only
returning, but expanding (Zhang, 2019). Defining feature expended most of the shutdown
speaking to clients, such as the then choose few who had handled to retain spaces for the super
duper Bacalar roadster and Bentley Blower. Bentley places a high value itself on its
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connectedness to its clients, and Key feature ended up spending much of the shutdown talking to
them. Both are priced in the seven figures. Hallmark confesses that he expected some people to
drop out during such a difficult time, but no one has done so. While much of the worldwide car
sector is suffering from the pandemic's impacts, it's booming market at the summit for the
moment being.
In addition, Bentley's own digital team has released a new site risk assessment app for all
employees, which was conceived, built, and delivered by Bentley's own digital team. This urges
additional awareness, especially in light of new COVID variations, outlines the comprehensive
safety procedures, including home self-assessment before the workday begins, and serves as a
two-way discussion between co-workers and health and safety officials to improve site welfare
(Johnson, 2017).
Bentley is also working to ease - to the extent feasible - the childcare and home-schooling issues
that have arisen as a result of the UK's recent university closures and the larger effect of closure
on human welfare (Kriegsmann, 2021). For parents, this means more flexibility with work
schedules and the availability of additional computers and Wi-Fi hotspots to help with home
schooling. A significant focus on employee very well caring for all affected co-workers remains.
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CONCLUSION
It is concluded from the above report is that the business environment is critical to an
organization's ability to discover possibilities and gain a competitive edge. It may also help a
company enhance its efficiency. Companies that regularly analyse their surroundings and
implement appropriate corporate practices not only increase their recent strength but also
continue to flourish in the market for extended periods of time. Environmental awareness aids in
the improvement of a group's reputation by demonstrating sensitivity to the environment in
which it operates. It is critical to be informed of their rivals' activities and plans. Firms can study
their competitors' tactics and behaviours in a commercial setting. Customers' shifting wants and
emerging market breakthroughs are all part of the corporate world.
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REFERENCES
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Khan, M.I., 2018. Evaluating the strategies of compressed natural gas industry using an
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Kriegsmann, E., 2021. Implications of the Green Transition for the German Automobile
Industry (Doctoral dissertation, Hochschulbibliothek HWR Berlin).
Kwak, K. and Yoon, H.D., 2020. Unpacking transnational industry legitimacy dynamics,
windows of opportunity, and latecomers’ catch-up in complex product
systems. Research Policy, 49(4), p.103954.
MacLean, J., 2018. Industry-Indigenous IBAs, confidentiality, and sustainability. Forthcoming in
Dwight Newman & Ibironke Odumosu-Ayanu, eds, Law and Politics of Indigenous-
Industry Agreements (Routledge, 2019).
Ray, S. and Miglani, S., 2018. Upgrading in the Indian automobile sector: The role of lead
firms. Available at SSRN 3204258.
Sarkar, A., Qian, L. and Peau, A.K., 2020. Structural equation modeling for three aspects of
green business practices: a case study of Bangladeshi RMG’s industry. Environmental
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Shuvalova, E., Zakharova, J. and Sibatulina, N., 2017. Economic and environmental
development goals for the oil and gas industry. International Multidisciplinary
Scientific GeoConference: SGEM, 17, pp.275-282.
Steinberg, M., 2021. From automobile capitalism to platform capitalism: Toyotism as a
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TANG, X.M. and ZHAO, Y.L., 2018. A Study on the Construction of RMB Exchange Rate
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Zhang, M., 2019, December. Strategic research on the development of China’s new energy
automobile industry. In IOP Conference Series: Materials Science and
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