Business and Business Environment Report

This report examines the business environment and its impact on organizations, specifically focusing on Bentley Motors. It analyzes different types of organizations, their scope, size, vision, and mission. The report also explores the relationship between various business functions and the influence of macro-environmental factors on organizational operations. It utilizes PESTEL and SWOT analyses to assess Bentley's internal and external strengths, weaknesses, opportunities, and threats.

Business and business-
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain different type of organisations..................................................................................1
P 2 Scope, size, vision and mission of different business...........................................................3
TASK 2............................................................................................................................................6
P3 Relationship between different business function.................................................................6
TASK 3............................................................................................................................................8
P4 Impact of macro environmental factor on organisation operations.......................................8
TASK 4............................................................................................................................................9
P5 Internal and external analysis of Bentley...............................................................................9
P6 Macro environmental factor and its interrelation with strength as well as weaknesses......10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment comprises internal and external factors which directly as well
indirectly affect operations. Government, technological, employees, competitors, public and so
on are various components which management require to consider while designing system and
formulating strategies. Present assignment is based on Bentley which manufacture luxury cars
and SUVs for its subsidiary firm that is Volkswagen. It is British company which has
headquarter in UK and provide services worldwide. This report defines different types and
purpose of organisation which has variance size, scope and objectives. In organisation there are
functions which has relationship with each other and help administration to achieve goals within
defined time (Aterido, Hallward-Driemeier and Pagés, 2011). Along this, macro environment
elements which has positive and negative impact on business are analysed with help of PESTEL
analysis. Thus, internal and external analysis provides supports to executive to take appropriate
decisions and judgements for firm.
TASK 1
P1 Explain different type of organisations
Public, private and voluntary are various sector which exist in marketplace. These are
segments which have different business firms which deliver products and services to generate
adequate profit to conduct operations properly. These are different types of organisation which
are stated beneath:
Private sector: These are organisation which are started and run by entrepreneur or group
of individuals. They share funds and knowledge to execute business activities and utilise their
skills of managing things properly and attain business objectives.
Bentley is subsidiary firm of Volkswagen which conducts engineering and assemble
luxury cars to market globally. This company was founded in 1919 and has headquarter in UK.
High range vehicles are provided to parent organisation to target rich people and give them
branded and quality cars which helps management to enhance sales and profitability (Aula,
2010).
Purpose of Bentley: Prime aim of Bentley is to provide luxury cars which has good
performance and makes continuous improvement in product to increase image and reputation in
market.
1

Legal structure of private organisation: Partnership: This tactic includes firms which are incorporated by two or more people, so
that they have adequate capital and experience people to conduct business effectively.
These are companies for which executive register and sign partnership deed to conduct
operations legally. Thus, each shareholder has specified duties, profit share, role and
liabilities for organisation. Sole proprietorship: This is another popular form of private organisation which has wide
scale of activities such as electrical shop, plumbing, cafe and so on. These are firms
which are started and run by single person to gain sufficient profit from business. This
help entrepreneur to become financially secured and maintain their livelihood properly.
Along this, fast decision making and individual is solely responsible for profit or loss
whichever occurs (Blanchard, Tolbert and Mencken, 2011).
 Limited companies: This tactic comprises organisation in which businessperson is
responsible for debts as they are working for company and have decision making power.
There are two forms of ownership which are limited by share or by guarantee. Thus,
owners which are limited by share has to pay for debt in respect to capital share they hold
in firm. Besides this, people by guarantee require to pay as defined in agreement.
Public company: This is another segment which comprises organisation that are
controlled as well regulated by state or central government. These are firms which are set up by
authorities to develop and enhance state of nation. Hospitality, transportation, education,
infrastructure, etc. are various business conducted to provide appropriate facilities and services to
public. NHS is public company which provides health services in UK at affordable rates to cure
people and take care that community members are fit and healthy (Fernando, 2011).
Purpose of NHS: Main motive of NHS is to use adequate techniques and equipments to
betterment and improve health of members, patients and society.
Legal structure of public sector organisation: Central government: This tactic includes organisation which conduct business for
safeguarding and protect rights of public. Defence, police, social security and many more
are services which are controlled by authorities to regulate functioning of world.
2

 State government: This is another form of public organisation which formulates laws and
enforces regulations for state. These are authorities which provide directions to firms
which conduct business for providing electricity and may other services to people.
 Local government: This tactic includes firms which provide various services that is
education, park, library, social services and sport facilities to enhance conditions of
community.
Voluntary organisation: This sector comprises firms which are executed by individual or
group of people for developing society and conduct activities for welfare of community
members. Oxfam is example of this segment which is charitable trust that execute operations for
enhancing standards of people and lower down poverty rate of nation (Hamilton and Webster,
2015).
Purpose of Oxfam: Prime aim of Oxfam is to establish appropriate solutions for poverty
injustice and provide appropriate empowerment chances to people and gain adequate money to
sustain their livelihood.
Growth of international business environment: Bentley is subsidiary firm of
Volkswagen which provide quality cars with advanced and latest technologies. This company is
conducting business worldwide which helps businessperson to have large market reach and
customer base. Thus, executive is able to enhance sales volume and profitability.
P 2 Scope, size, vision and mission of different business
Public, private and voluntary are different sector which have variance size, scope and
objectives. These are organisation which varies with each other as they have different amount of
capital, objectives and goals. Businessperson formulate vision, mission, objectives to direct
members and design system accordingly. Along this, they even uses appropriate structure to
utilise funds and manpower efficiently (Harrison, 2011).
Bentley: This is private sector firm which is well-known in auto mobile sector. It assembles and
manufactures cars which have strong brand value, so they have high market rates. Thus, target
people of Bentley are rich people which are ready to invest large money to buy luxury vehicle.
Background: Bentley is parent company is Volkswagen which was founded in 1919 as
Bentley Motors Limited. It has headquarter in UK and provides products worldwide that is
Europe, Asia and many other nations.
3

Products and services supplied: Bentley manufacture car with latest technologies that is
navigation system, personalised facilities embedded in vehicle and various other things for
comfortable experience of person. Along this, they even provide racing cars and keep innovating
products to deliver luxury and quality auto mobile to people.
Size: Company has branches in worldwide, for which there are around 3600 workforce.
They have large market reach which help management to generate approx € 3 million of revenue.
Scope: Bentley has worldwide coverage which helps executive to deliver luxury cars in
market and establish strong brand reputation. As, firm target are rich people which buy branded
vehicle for enhancing their social status (Iskanius, Page and Anbuudayasankar, 2010).
Vision: Bentley vision is to manufacture excellence cars with outstanding performance
and luxury aspect to maintain brand value in market.
Mission: Mission of Bentley is to sustain its image as British company which deliver
luxury car with high-technologies and performance.
Objectives: These are other goals of Bentley which are described below:
 Deliver quality cars in market to sustain its brand image and satisfy people requirements.
 Combine unique aspect with luxury and performance to attract high class people which
purchase standard products to enhance their image in market. Make improvement in technologies and changes in cars to provide new experience and
product to buyers.
Stakeholder: Shareholder, management, employees and suppliers are essential part of
Bentley which help company deliver high performance and luxury cars in marketplace. These are
people which benefit firm to sustain its strong brand value and reputation.
NHS: This is public sector organisation which provide medical facilities that is dental treatment,
optical care and other services to people.
Background: NHS is public health service firm which was established in 1948 after
Second world war. Company provide diverse range of health services to make public free from
diseases at reasonable prices (Klapper, Lewin and Delgado, 2011).
Products and services supplied: NHS provides medical services to public to make them
healthy and fit by providing them appropriate treatment. Modern technologies and equipments
are used by firm to provide adequate facilities to patients.
4

Size: NHS has approx 1.6 million members which help firm gain around £137 billion
profit from business.
Scope: Prime goal of NHS is to improve health of patients, society members and
subordinates by using adequate instruments of treatment and charge adequate money from
clients.
Vision: Provide health care services to people and make them live fit and happy, thereby
enhance state of nation.
Mission: Provide quality medical facilities to patients and make them live healthier and
independently by giving adequate treatment (Moutinho ed., 2011).
Objectives: These are goals of NHS which are as follows:
 Formulate policies and rules to regulate functioning of hospitals and take care that they
provide quality and adequate services to patients.
 Use innovation and latest technologies to cure clients properly and enhance reputation
and goodwill in market. Make management effective that they provide quality and excellence medical facilities to
customers to overcome their diseases and cure timely.
Stakeholder: NHS gives value to their staff, investors and clients to make them fit and healthy.
Company provides respect to patients and take feedback to acknowledge problems and issues
faced by them.
Oxfam: This is voluntary sector organisation which reduces poverty and provide facilities to
people for development of country and sustainable livelihood of community members.
Background: Oxfam is charitable trust which was founded in 1942. It is a NGO which
has headquarter in England and provide services worldwide (Robbins, Judge and Campbell,
2010).
Products and services supplied: Provide employment opportunities to help people gain
adequate money for maintaining their livelihood.
Size: Oxfam is among 20 independent organisation which have branches in around 100
nations.
Scope: It is charitable trust which gets helps from government to provide adequate
facilities and things for poor people to enhance conditions of country.
5

Vision: Oxfam vision is to make world without poverty and provide appropriate facilities
to people to make them healthy and live happily.
Mission: Reduce poverty by assessing reasons and providing appropriate facilities and
things to people.
Objectives: These are goals of Oxfam which are stated beneath:
 Engage money in developing nation by providing health and education facilities.
 Enhance job opportunities for poor people to earn sufficient funds to maintain their living
standards (Siewiorek and et. al., 2012). Provide equality to women and give them chances to utilise their skills and knowledge.
Stakeholder: Management establish appropriate relations with investors and employees which
plays essential part in Oxfam, so that they have adequate funds and are able to conduct activities
properly.
TASK 2
P3 Relationship between different business function
Each and every organisation require to use resources that is funds, material and
manpower efficiently. For this, administration formulate different department that is human
resource, finance, production, marketing, sales, R&D so that goals and objectives are
accomplished within defined time. Management provide duties and distribute members in
segments so that business operations are conducted effectively. Thus, these are different
department which have interrelation with each other are described below:
Human resources department: This is important segment of organisation, as employer
responsibility is conduct staffing, compensation, training and development practices. This help
management of Bentley to have skilled and competent members which conduct business
activities effectively. Along this, they even provide duties and distribute staff in different
department so that each unit have sufficient manpower which deliver appropriate facilities and
products to people (Welford, 2013).
Finance department: This is another division of organisation which utilises capital and
provide funds to each unit so that business operations are conducted effectively. Bentley is
subsidiary firm of Volkswagen which require to have adequate technologies and equipments
implemented in system, so that luxury and high performance cars are delivered in marketplace.
6

Research and development department: This unit conducts market survey to have
complete information about requirements and demands of people. Along this, competitor's
offering are anticipated by R&D team of Bentley to design cars and provide luxury vehicle to
people. This gives support and guide to production unit to deliver appropriate vehicle to buyers.
They even conduct test to assess quality of cars so that management is able to sustain its brand
value in market.
Production department: This is another essential unit which manufacture products and
converts raw material into finished items which are delivered in market to fulfil demands and
requirements of people. Bentley provides luxury and high performance cars to Volkswagen so
that company is able to maintain position in market. R&D helps production team to deliver
appropriate quality cars and satisfy clients to maintain its brand value in marketplace (Aterido,
Hallward-Driemeier and Pagés, 2011).
Marketing department: This unit helps management to create and communicate message
to public about products and services that are delivered in marketplace to attract large number of
people. For this, employer duty is to have skilled members which uses appropriate marketing
tools and construct quality content to attract large number of people. This helps Bentley to
establish strong market image and reputation in market. Thus, salespeople is able to grab
attention of customers easily and enhance sales volume.
Sales department: Marketing unit of Bentley communicate with people about variety of
cars and changes in vehicle which are made by firm to deliver luxury and high performance car
to people. Salespeople even help production team to manufacture and provide auto mobile in
according to choices and requirements of people.
Organisation structure: These are different structure which are use by management of
Bentley to conduct operations and accomplish objectives timely. Functional organisation structure: This is form of structure which defines that
management construct department that is HR, production, finance, marketing, sales and
R&D. These are different unit in which employer of Bentley divide members so that
business activities are conducted properly and luxury cars are delivered in marketplace
(Aula, 2010 ).
 Divisional organisation structure: This is another kind of structure which large scale
organisation which have operations spread worldwide. Bentley is auto mobile company
7

which uses divisional organisation structure to organise and utilise resources efficiently.
Executive have headquarter in UK and deliver cars in different countries. Thus, this
structure helps firm to have large market reach and customer base to enhance sales and
profitability.
TASK 3
P4 Impact of macro environmental factor on organisation operations
Macro environment factors indirectly influence on business organisation. Management of
Bentley uses PESTEL analysis to acknowledge market conditions to frame strategies and
implement appropriate tools and technologies in system. It is essential that administration have
complete and information about external factors to assess its positive and negative impacts on
operations is stated beneath (Blanchard, Tolbert and Mencken, 2011):
Political: This factor determine that government formulate legislations and laws to make
system function legally. Taxation, tariff, employment and many registration is provided by
authorities to firms to make them conduct operations properly. Thus, these tactic have positive
and negative impacts on Bentley which are as follows: Positive: Auto-mobile industry is mature sector, so there is very less regulations which
are formulated by government on car manufacturers. Thus, this benefits Bentley to
conducts business freely and make system function properly. Negative: Bentley produce luxury cars and with changes in fiscal policies affect on sales
and profitability of firm.
Economical: This is another factor which plays essential role in organisation as
conditions of country depend upon it conditions. Interest rate, GDP, inflation, exchange rate are
various components which impact on sales volume of Bentley. Hence, these are positive and
negative impacts of economical factor: Positive: Bentley sells luxury brands which define that there are less people which are
ready to invest large amount of money to purchase branded cars. Along this, high GDP
rate impacts on sales and revenue of firm (Fernando, 2011). Negative: Bentley manufacture luxury products which state that management conduct
huge cost on technologies and system.
8

Social: This factor define that Bentley provide luxury cars with high performance, so
manager target is rich people which are invest large amount of money to purchase branded
vehicle to enhance their status. Positive: Bentley has strong brand value which helps management to generate adequate
profit from business. Negative: Sales volume of Bentley is affected as there are limited number of customers
for firm.
Technology: This factor define that organisation require to use appropriate tools and
techniques so that management is able to utilise resources efficiently (Hamilton and Webster,
2015). Positive: Bentley uses advances technologies and equipments to manufacture luxury and
high performance cars to enhance market image and reputation in market. Negative: Bentley require to have skilled members which are able to work with latest
technologies. Thus, if staff are not competent than quality of cars will be affected.
Environmental: This factor define that management require to take care of natural
resources use so that appropriate things are delivered in market. Positive: Bentley provide high performance cars which don't emit pollution and harmful
gases. Thus, company has good market value and brand image. Negative: If firm delivers car which is not eco-friendly, than this impacts on sales and
market image of Bentley.
Legal: This factor specifies that government formulate laws that is equality, discrimination and
many other to safeguard rights of people ( Harrison, 2011). Positive: In Bentley, employer provide appropriate working conditions, duties and
compensation to members to have skilled staff.
 Negative: If management don't follows laws, than this decline reputation of firm in
marketplace.
TASK 4
P5 Internal and external analysis of Bentley
Macro and micro environment factors, both are acknowledged by management of Bentley
to assess impacts of internal and external components on business organisation and its
9

operations. SWOT analysis is appropriate technique which is used by administration of Bentley
is as follows:
Strengths Weaknesses
 Bentley has strong brand image and
reputation as it provides luxury and
high performance cars in market.
 Modern technologies and equipments
are used by firm to deliver quality cars
to people.
 Strong R&D team which make
innovation and changes in vehicle
(Iskanius, Page and Anbuudayasankar,
2010).
 Bentley offer branded cars which are
high priced. Thus, firm has very less
number of customer base which
impacts on sales volume and profit of
firm.
 Bentley require skilled members which
are able to work with advanced
technologies. Thus, manager require
conduct training sessions to enhance
abilities of members.
Opportunities Threats
 Bentley has opportunity to increase
market segment and provide different
range of cars to enhance customer base.
 Merger and acquisition with lower
brand firms to increase their clients.
 Government changes legislation with
create problem for Bentley to conduct
business worldwide.
 Competition from other brands that are
BMW.
P6 Macro environmental factor and its interrelation with strength as well as weaknesses
PESTEL analysis is technique used by management of Bentley to acknowledge impact of
macro environment factors and their strengths and weaknesses on firm.
Political: This factor defines government legislation and rules to regulate business firms. Strength: Bentley is able to sell cars globally as UK authorities have not made laws for
auto mobile sector (Klapper, Lewin and Delgado, 2011). Weaknesses: Government of UK want that vehicle don't emit CO2. Thus, Bentley require
to consider this while manufacturing cars.
Economical: This factor includes interest rate, inflation, exchange rate and many other
components which depend upon state of nation.
10

 Strength: Bentley has headquarter in UK which has good number of people which invest
money to buy luxury cars and increase their status. Weaknesses: Bentley is conducting operations worldwide which gets impacts due to
changes in exchange rate of countries.
Social cultural: This factor define that choices and demands of people determine sales
and profitability of Bentley. Strength: Bentley has strong brand value, thus company has good customer base and
sales. Weaknesses: People buy cars in respect to technology and performance. Thus, firm
require to make changes in vehicle timely (Moutinho ed., 2011).
Technology: This factor define that companies require use of advanced techniques. Strength: Bentley uses latest technologies, so luxury and high performance cars are
delivered to people.
 Weaknesses: Rolls- Royce, Land rover, Daimler etc. has used latest technology resulted
negatively affect Bentley performance at market place.
CONCLUSION
From the above report, it is comprehended that business environment has internal and
external factors which directly and indirectly impacts on operations. Private, public and
voluntary are different sector which has variance size, scope, structure and objective.
Management uses appropriate organisation structure and make all department to function
effectively. PESTEL and SWOT analysis are technique used by administration to assess internal
and external conditions of market conditions and system abilities.
11

REFERENCES
Books and Journals
Aterido, R., Hallward-Driemeier, M. and Pagés, C., 2011. Big constraints to small firms’
growth? Business environment and employment growth across firms. Economic
Development and Cultural Change. 59(3). pp.609-647.
Aula, P., 2010. Social media, reputation risk and ambient publicity management. Strategy &
Leadership. 38(6). pp.43-49.
Blanchard, T. C., Tolbert, C. and Mencken, C., 2011. The health and wealth of US counties: how
the small business environment impacts alternative measures of development.
Cambridge Journal of Regions, Economy and Society. 5(1) pp.149-162.
Fernando, A. C., 2011. Business environment. Pearson Education India.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Harrison, R., 2011. Learning and development. Development and Learning in Organizations: An
International Journal. 26(1).
Iskanius, P., Page, T. and Anbuudayasankar, S. P., 2010. The traditional industry sector in the
changing business environment–a case study of the Finnish steel product industry.
International Journal of Electronic Customer Relationship Management. 4(4). pp.395-
414.
Klapper, L., Lewin, A. and Delgado, J. M. Q., 2011. The impact of the business environment on
the business creation process. In Entrepreneurship and Economic Development (pp.
108-123). Palgrave Macmillan UK.
Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Robbins, S. P., Judge, T. and Campbell, T.T., 2010. Organizational behaviour. Financial Times
Prentice Hall.
Siewiorek, A., and et. al., 2012. Learning leadership skills in a simulated business environment.
Computers & Education. 58(1). pp.121-135.
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
12