PESTLE Analysis of Bentley: Impact of Macro Environmental Factors

This report explains the PESTLE analysis of Bentley, highlighting the positive and negative impact of various macro environmental factors. It also discusses the SWOT analysis and suggests smart objectives for the company.

Business and the Business
Environment

INTRODUCTION
 This report explains PESTLE analysis with various macro
environmental factors affecting Bentley- car manufacturer company
highlighting the positive and negative impact of factors.
 It also explains the SWOT analysis of company identifying the key
strengths and weaknesses and their interrelationships with each other.
 This report explains the smart objectives company should take for
increasing the production levels based on the analysis of various
factors.

PESTLE ANALYSIS
Political factors
 The political factors that may impact profitability or chances of survival of
Bentley are quite diverse. The political risks vary from sudden changes in
existing political regimes to civil unrest.
 Trade barriers that host country has would protect Bentley capital limited;
however, trade barriers that countries with potential trade partners would harm
companies by preventing potential experts.
 Political instability due to Brexit in UK can affect the investment and
purchasing decisions. Trade policy are known as regulations which controls
import and export to foreign regions. Due to political changes trade policies of
are also changing and thus taxation and profit margins of Bentley can get
affected in UK.

Economic Factors
 Economic factors are all those that pertain to the economy of the country such as changes in the
inflation rate, foreign exchange rates and the GDP of country.
 GDP is defined as the total market or monetary value of all services and finished goods
produced in country. Strong GDP growth leads to increased investments and easy loans as with
higher GDP rate economy grows stronger.

Social factors
 The demographics of the population, meaning their respective ages and
genders vastly impact the business of automotive industry
 Social class distribution is defined as the categorization of social
groups on the basis of socioeconomic status. Such distribution helps
organisation to analyse the purchasing capabilities of specific social
class and to make decisions regarding marketing and services.
 The class distribution among the population is of highly importance as
Bentley would be unable to promote a premium product to the public if
the majority of the population was a lower class.

Technological Factors
 Technological factor can rapidly dismantle the price
structure and competitive landscape of an automotive
industry in a very short amount of time.
 The impact of technology on the costs that most
companies in the industry are subject to have the
potential to increase or reduce the profit margins

Legal Factors:
 Intellectual property laws and other data protection
laws in order to protect the ideas and patents of
company which are the assets for Bentley to gain a
competitive edge are highly important for the
company and can affect negatively if not followed.

SWOT ANALYSIS
Strengths
 Bentley's models have sportiness and luxury together which is not seen in any other brands
products. Being expensive and limited availability it adds to the brand uniqueness and it has
developed Strong brand equity and market position of Bentley globally.
Weaknesses
 The interrelationship with the external factors can be understood as due to limited reach in
expansion of market and competition in advancement of technological use in cars engines,
Bentley needs to gear up with this weakness.
 The interrelationship of strength with the external factors affecting the company can be
understood as the high brand position and large customer loyalty gives an edge of
competitive advantage to Bentley in comparison to other emerging companies. Bentley has
limited reach in growing economies. Limited production misses out many potential
customers.

Cont..
Opportunities:
 Bentley may look forward to carrying the design and heritage to more environmental
friendly cars with hybrid or electric transmission. It focuses on the strategy to target the
affluent class from emerging economies.
Threats:
 Increasing fuel prices and strict government regulations along penetration of competing
premium brands in automotive industry has increased the threat of new entrants.

SMART OBJECTIVES
The smart objectives based on the analysis of various external and internal
factors influencing Bentley can be understood as
 As more companies are emerging in the competitive market of automotive
industry, Bentley should work for introducing new styles and cater to increasing
segments of people on the basis of technological improvements and social class
distribution of UK.
 Bentley should use more environmental friendly engines in the cars keeping the
carbon emission levels in minds.
 To maintain the high profitability in political unstable environment of UK amidst
Brexit.

CONCLUSION
This report can be concluded with the external and internal factors
affecting Bentley, its production levels and the quality of services brand
offers to customers.
It concludes how the factors are interrelated with each other, their
impact on company marketing levels.
This report also concludes the smart objectives country can work on
to increase the technological levels and improve its working.

REFERENCES
 Hoda, N and et.al., 2018. Exploring the factors affecting entrepreneurial intention
among business students in Saudi Arabia. Available at SSRN 3276889.
 Fan, Q., 2016. Factors affecting adoption of digital business: Evidence from
Australia. Global Journal of Business Research. 10(3). pp.79-84.
 Zeng, F and et.al., 2018. FACTORS AFFECTING THE ADOPTION OF
INFORMATION TECHNOLOGY IN SUPPLY CHAIN IN THE DYNAMIC
ECONOMY: A REVIEW OF 2000 TO 2017. on Logistics (ISL 2018) Big Data Enabled
Supply Chain Innovations.
 Mannan, M. A., Hussain, A. and Hussain, A., 2018. Factors Affecting the Delivery of
Quality Software and their relationship in the Software Development Process.