Analysis of Bentley Motors' Business Environment

This report provides a PESTEL analysis of Bentley Motors' business environment, including the impact of government and changes on the organization. It examines political, economic, social, technological, environmental, and legal factors.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTEL Analysis........................................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Business Environment refers to all the internal and external factors that influence the
strategies and business processes of a company in an appropriate manner (Saleem, 2015). Hence,
the report below is based on Bentley Motors and undertakes effective analysis of its business
environment, along with impact of government on its structure and operation of the firm, along
with impact of change on the organisation,
MAIN BODY
PESTEL Analysis
Bentley is one of the most crucial companies in the UK automotive sector and for the
same, PESTEL analysis is applied for the organisation that is a framework for appropriate
evaluation of firm's external environment and the same is applied below:
 Political Factors:
As per these factors, the political environment of the UK is currently uncertain, due to the
events of Brexit and is currently under the transition period till 2021. This negatively influences
the company as it's supply chain within the EU nations have been impacted in a harmful manner
(Belás and et. al., 2015). Hence this also represents the role of government towards the structure
and operations of the firm as it would be required to remain flexible to deal with these political
changes effectively.
 Economical Factors:
The economic performance of UK is sliding down drastically, following the reduction of
Pound, along with enhanced inflation. This change has a negative impact within the firm to offer
its products at premium pricing. Moreover, inflation has also added up to the cost of its supply
chain management, which is yet another negative factor.
 Social Factors:
Currently, individuals within the United Kingdom are preferring vehicles that provide
them with speed, comfort and are affordable. This change could impact the firm in a positive
manner to develop a new range of vehicles to satisfy this market demand (Bah and Fang, 2015).
 Technological Factors:
Within the automotive sector, there are several technologies, such as Artificial
Intelligence and Automation, that are being accessed and used within the overall sector. Hence,
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the changes related to technology has a positive impact on the company to develop
technologically advanced products that support these elements in an appropriate manner (Deasy
and et. al., 2016).
 Environmental Factors:
Currently, the UK government is being very concerned in relation to environmental
protection and bringing out new initiatives to satisfy the same. The change presents an
opportunity for Bentley to ensure sustainable manufacturing and distribution which has an
appropriate impact on the environment.
 Legal Factors:
In the current scenario, the UK automotive sector is applying the EU laws due to the
transition period. However, the uncertainty of future laws is quite inappropriate for the firm to
formulate long term plans. Hence, the shifts in the market in relation to changes in legislation has
a positive impact on the company (Prajogo, 2016).
CONCLUSION
Thus, it is concluded from the report above, that PESTLE analysis is an appropriate
framework that allows an organisation to evaluate its external environment effectively.
Moreover, the role of government within an organisation is necessary to be evaluated to
determine the influence which the political forces is exerting on the company. Lastly, the impact
of changes within the business environment influences the organisation in a variety of manners
that are necessary to be tapped in order to enhance the organisational adaptability.
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REFERENCES
Books and Journals
Bah, E.H. and Fang, L., 2015. Impact of the business environment on output and productivity in
Africa. Journal of Development Economics. 114. pp.159-171.
Belás, J., and et. al., 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. Economics and Management.
Deasy, S., and et. al., 2016. Controlling use of a business environment on a mobile device. U.S.
Patent 9,247,042.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International journal of production Economics. 171.
pp.241-249.
Saleem, S., 2015. BUSINESS ENVIRONMENT, 3/e. Pearson Education India.
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