Business Environment Report

This report analyzes the business environment of Bentley Motors Limited, a British luxury car manufacturer. It examines the impact of internal and external factors on the company's operations, including the relationship between organizational functions, the influence of macro-environmental elements, and the company's strengths and weaknesses. The report also includes a PESTLE analysis and SWOT analysis to provide a comprehensive understanding of the company's business environment. This report is available on Desklib, a website that provides past papers and solved assignments for students.

Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 and P2 covered in PPT...........................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between organisational functions.....................................................................1
TASK3.............................................................................................................................................3
P4 Negative and positive impact of macro environmental elements on companies operations
activities......................................................................................................................................3
TASK 4............................................................................................................................................5
P5 Interlinked advantages and disadvantages with external factors...........................................5
P6 Strength and weaknesses of Bentley Motors Limited...........................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
..................................................................................................................................................11

INTRODUCTION
There are two kind of business environment internal as well as external both are effect
organisation performance. So that, management of the company can develop strategies inn order
to reduce environmental factors negative impact on their productivity and market position.
Through this, they are able to achieve goals and objectives in limited period of time in significant
manner. In this report select Bentley Motors Limited to identify impact of environmental
elements on their productivity. It is a British international manufacturing firm as well as
marketer of SUV's and many other luxury cars. It was establish in the year 1919 by H.M.
Bentley and W.O. Bentley. In this assignment covers several different type of business and
purpose of firm. It also includes demonstrate interrelationship of several function with in
enterprise and its link with firm structure. In this report explain strength and weakness of macro
environmental factors as well as its positive, negative influences on enterprise operations.
TASK 1
P1 and P2 covered in PPT
TASK 2
P3 Relationship between organisational functions
With in an organisation several function are done in order to achieve predetermine goals
and objectives in limited period of time effectively. The main function of Bentley Motors
Limited are production, operations, human resource, research and development, finances and
marketing. All these department has work together in order to achieve common aim and
objective in appropriate manner. The main department of Bentley Motors Limited and its
interrelationship are explain as follows:
Human resources department: Human resources management has play vital role like
manage, control, develop HR policies etc. with in an organisation. HR manager of Bentley
Motors Limited is conducting training program accordingly to requirement. For this, they are
identifying employees capabilities, learning style, attitude, motivation factors etc. and find out
gap between actual as well as desire performance (Al-Swidi and Al-Hosam, 2012). In order to
full fill these gap human resources executive make plan to training and they are consider their all
personality traits. Through this activity, enterprise are capable to enhance staff members
1

knowledges, skills, learning and develop innovative product thus help to achieve higher
customer's satisfaction as well as market position in long period of time.
Marketing department: Marketing department is very important as compare to other with
in an organisation because in this selling activity should be done and it is a only work those
generate revenue for the company. Marketing manager has organising market research to
identify consumers needs, wants, trends, behaviour, attitude, perception and many more. They
provide these all information to R & D department and they are develop new ideas to full fill
clients requirement effectively. In order to execute innovative idea human resources assistant has
hire skilled employees those are able to convert idea into reality. So that, all section are
interrelated to each others effectively and work together to achieve common goals and objective
in given time frame (Bryman and Bell, 2015). Some other function of marketing is promotions,
advertisement, identify target clients, segmentation, positioning etc.
Operation department: Operations department of Bentley Motors Limited has work to
produce car for their clients. The main function of operational division is inventory management,
manage inflow and outflow, machinery maintenance and many more. Human resources manager
of Bentley Motors Limited has recruit engineers and technical employees in order to produce car
and its equipments. Marketing management has provide information to operation division what
is the current requirement of market or consumers so that they are manufacturing car accordingly
in order to get higher customer's satisfaction in long period of time. To operate all activities in
this department management needed money so financial manager has provide them budget
accordingly they are work.
Production and Research & development department: Bentley Motors Limited is a
manufacturing organisation thus produce cars for consumers. Management of the company has
used lean production method to optimum utilisation of available resources as well as time. It can
be divided into two kind quality assurance and technical labour (Christopher and Holweg, 2011).
Both are work together to produce higher quality commodities thus help to achieve market
position and customer's satisfaction. Through this, create brand value and competitive benefits as
compare to their competitors in the same industry that provide long run sustainability as well as
profitability.
Finance department: Finance department has also interrelated to other function of firm
like marketing, operations, human resources etc. The main role of finance division is make
2

budget, prepare financial report, identify sources of funds, manage all inventory and many
others. With out money no one section can able to run their task effectively so that it is a
financial management responsibilities to analysis needs and wants of each one section
accordingly develop budget so they all are work appropriately in order to gain higher market
position and achieve common gaols effectively. So that, all functional department are related to
finance and work jointly. Bentley Motors Limited has sell their share into market place to public
and receive fund that help them to run entire business activities effectively in long run.
Management of Bentley Motors Limited has develop strategies and plan in order to
established strong communication network into work place. Through this, they are able to
manage all functional department information in appropriate manner thus help them to know
needs, wants and other things in order to complete entire work effectively (Cross, and Miller,
2011). Bentley Motors Limited has top to down organisation structure in which all management
line give direction to lower scale manager and so on. Company has a subsidiary firm of
Volkswagen so that main administration function are done by them and Bentley Motors Limited
is only follow their instruction but can not interferer in their production process only work for
selling and market development.
TASK3
P4 Negative and positive impact of macro environmental elements on companies operations
activities
Business environment consists various factors which creates a large impact on
operational activities of a company. It includes changes in economical condition, fluctuations in
taxation and interest rates, political laws and more. These elements effect business of an
enterprise in both positive and negative manner (Dibrell, Craig and Hansen, 2011). Therefore, it
is necessary for managers of Bentley Motors Limited, to analyse the impact of all which
influence decision-making process of them. They can conduct PESTLE analyse for evaluating
effects of each:-
Political: Government of UK has develop rule and regulation thus effect Bentley
manufacturing process. Some positive and negative effect of political rules can be explained as:-
3

 Positive: Running business with all laws and legislations, help in making good
relationship with government. Therefore, it gives positive impact on business as it helps
in trading in other nations more easy. Negative: Fiscal policy of UK and other countries shows that government of these regions
is spending less on organisation and other parts. It would impact on growth of economy
in a significant manner. As Bentley Company is dealing with luxury cars, so it creates a
negative impact on cost of production.
Economical: Economical elements has effectively Bentley performance positively as
well as negatively. Therefore, it earns high profitability as compared to others:- Positive: Due to working in automotive industry, products of Bentley are sold on high
rates. Along with trading in developing countries, gains opportunities to earn high
profitability (Gharajedaghi, 2011). Negative: High taxation rate, falling exchange rate of currency, poor economic condition,
low purchasing power of people and more impacted negatively on business of all firms.
Social cultural: So, it creates a great impact on Bentley, as this firm has to make modification in
production and offer new products at marketplace. It helps in keeping interest of consumers for
long time. Positive: By modifications in business, a company can offer new and valuable products to
customers. It helps in completing desires of them in a profitable way. Negative: Since trends of marketplace is changing at higher rate, so it impacts on existing
products of a company. It demand to add value in products and manufacture them in more
qualitative way. So, it increases cost of production.
Technological: Bentley Motors Limited has highly technical organisation that produce high
quality product with innovative features resulted able to enhance customer's satisfaction in long
period of time. Positive: Through advance technology firm are able to achieve goals and objectives in an
effective manner.
 Negative: Technology has change very fast in present market environment so that some
time Bentley Motors Limited can not capable to adopt modification very frequently.
4

Environmental: Bentley Motors Limited product can not environmental friendly so that
management of the company may focus on this point in order to run their business activities
effectively in long period of time (Li and et. al., 2011). Positive: Management of Bentley want to develop strategies and plan in order to
implemented lean production action into manufacturing unit so that achieve high brand
value. Negative: It create negative impact on their performance so well as brand image into
market.
Legal: Government of United Kingdom has develop several rule and regulation related to
manufacturing unit. So that, Bentley Motors Limited want to follow all requirement effectively
in order to operate business appropriately. Positive: Thus help to control ethical practices at work place it create positive impact of
nation economy.
 Negative: Bentley Motors Limited can follow all regulation which create problem in
their production work.
TASK 4
P5 Interlinked advantages and disadvantages with external factors
Management of the company has develop action of plan in order to implemented various
policies as well as regulation at work place so that they are run their business activities
effectively in UK. All section are interrelated to each others and with one other division can not
be completed their work significantly. For this, administration has established strong
communication network in whole enterprise manufacturing unit. Through this, information may
travel effectively from one place to another (López-Gamero, Molina-Azorín and Claver-Cortés,
2011). PEST analysis of Bentley Motors Limited are detail as follows:
Political: Currently Bentley has run its business in various countries worldwide,
therefore, political rules of all nations create much impact on its performance. It has
headquartered in England UK in the year 1919. Due to dynamic nature of political factors,
generally it affects mostly business of all companies. But in context with Bentley, it deals in car
manufacturing, so these laws are not much impacted on business.
5

Economical: From statistical point of view, growth rate of UK as compared with other
nations is low. Therefore, it creates a great impact on business of all firms. In car manufacturing
industry, economical factors also affect in a large manner. It includes interest rate, taxation,
inflation, deflation, exchange currency and more. But for Bentley, this company has offered its
high quality of products on high rates.
Social cultural: Due to globalisation, business area of a company is getting much
competitive, therefore, it is necessary for managers to bring changes in working system. In
context with, automotive industry, taste of customers are changing at high rate.
Technological: Marketing manager of the company has analysis market trends
accordingly develop strategies and plan to produce goods and product in order to full fill their
potential customers demand (Meiners, Ringleb and Edwards, 2014).
P6 Strength and weaknesses of Bentley Motors Limited
Both internal as well as external factor may effect Bentley Motors Limited performance
positively or negatively. So that, each one firm has their own strength and weaknesses that is
shows their capabilities to compete with macro environmental elements negatively impact on
organisation performance as well as productivity in long period of time. Volkswagen has a
parent company has Bentley Motors Limited so that they are organising market research to
identify needs, wants of potential consumers accordingly develop commodities to provide
customer's satisfaction in long run. SWOT analysis of Bentley Motors Limited are detail as
follows:
Strengths Weaknesses
 Bentley Motors Limited has most
popular car manufacturer in the word
due to unique mix of luxury and SUVs
nature in their cars.
 They are also take benefits of German
engineering because Volkswagen that
are their parent firm (Onetti,
Zucchella, Jones, and McDougall-
Covin, 2012).
 Bentley Motors Limited has limited
reach so that clients those are related to
small nation can not purchase it.
 They are manufacturing less number of
cars so that waiting list is very big, due
to this, competitors like Jaguar- Land
Rover, Daimler and Rolls- Royce has
gain their market.
 Very small target group has reduce
6

 Brand uniqueness, they have maintain
exclusivity and their every clients has
feel special and unique on possession
of Bentley.
 Technology and R & D has very
advance so that firm are produce
superior car as compare to normal car
into market.
 They have best product portfolio and
Bentley has impressed their customers
by offering modern as well as suave car
designs.
 Bentley Motors Limited has higher
brand value.
 Bentley has famous for their heritage
collection,

opportunities to sell their product to
large number of consumers.
 They can not produce environmental
friendly goods resulted reduce brand
image at market place (Palo and
Tähtinen, 2011).
Opportunities Threat
 Bentley Motors Limited want to
become more environmental friendly
so that they become more economical
and better utilisation of thermal fuel
like electric and hybrid.
 Company want to enter into contract of
merger and acquisition thus help them
to expend their market segment and
position.
 They want to identify market trends
ans its emerging in order to achieve
their target effectively (Pham, Segers
 Change in government lows has create
negative issues for an organisation.
 Continuously increase in fuel price has
threat for Bentley Motors Limited so
they want to switch their energy mode
to others.
 In present market condition,
competition is very high so its create
negative effect on Bentley Motors
Limited performance.
7

and Gijselaers, 2013).
 They not only used advertisement
mode of promotions but also
implemented sponsorship of premium
events so that brand recall should be
high.
CONCLUSION
Form the above report it is concluded that business environment has effective
organisation positively as well as negatively. Bentley Motors Limited has research and develop
department which continuously trying to develop innovating idea to add some features in
existing commodities. Through this activity, Bentley Motors Limited is capable to produce
innovative goods thus make core competences that help to compete with rivalries in an effective
manner. Accordingly to PESTEL analysis company has lot of opportunities at market place to
expending their working area effectively.
8

REFERENCES
Books and Journals
Al-Swidi, A. K. and Al-Hosam, A., 2012. The effect of entrepreneurial orientation on the
organizational performance: A study on the Islamic banks in Yemen using the partial
least squares approach. Arabian Journal of Business and Management Review (Oman
Chapter). 2(1). p.73.
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Christopher, M. and Holweg, M., 2011. “Supply Chain 2.0”: managing supply chains in the era
of turbulence. International Journal of Physical Distribution & Logistics Management.
41(1). pp.63-82.
Cross, F. B. and Miller, R. L., 2011. The Legal Environment of Business: Text and Cases:
Ethical, Regulatory, Global, and Corporate Issues. Cengage Learning.
Dibrell, C., Craig, J. and Hansen, E., 2011. Natural environment, market orientation, and firm
innovativeness: An organizational life cycle perspective. Journal of Small Business
Management. 49(3). pp.467-489.
Gharajedaghi, J., 2011. Systems thinking: Managing chaos and complexity: A platform for
designing business architecture. Elsevier.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Li and et. al., 2011. Towards the business–information technology alignment in cloud computing
environment: anapproach based on collaboration points and agents. International
Journal of Computer Integrated Manufacturing. 24(11). pp.1038-1057.
López-Gamero, M. D., Molina-Azorín, J. F. and Claver-Cortés, E., 2011. Environmental
uncertainty and environmental management perception: A multiple case study. Journal
of Business Research. 64(4). pp.427-435.
Meiners, R. E., Ringleb, A. H. and Edwards, F. L., 2014. The legal environment of business.
Cengage Learning.
Nishitani, K., Kaneko, S., Fujii, H. and Komatsu, S., 2012. Are firms' voluntary environmental
management activities beneficial for the environment and business? An empirical study
9

focusing on Japanese manufacturing firms. Journal of environmental management, 105,
pp.121-130.
Onetti, A., Zucchella, A., Jones, M.V. and McDougall-Covin, P.P., 2012. Internationalization,
innovation and entrepreneurship: business models for new technology-based firms.
Journal of Management & Governance. 16(3). pp.337-368.
Palo, T. and Tähtinen, J., 2011. A network perspective on business models for emerging
technology-based services. Journal of Business & Industrial Marketing. 26(5). pp.377-
388.
Pham, N. T., Segers, M. S. and Gijselaers, W. H., 2013. Effects of work environment on transfer
of training: empirical evidence from Master of Business Administration programs in
Vietnam. International Journal of Training and Development. 17(1). pp.1-19.
Pikka, V., Iskanius, P. and Page, T., 2011. The business enabling network–a tool for regional
development. International Journal of Innovation and Regional Development. 3(3-4).
pp.324-344.
Scheer, A. W., 2012. Business process engineering: reference models for industrial enterprises.
Springer Science & Business Media.
Teece, D. J., 2012. Dynamic capabilities: Routines versus entrepreneurial action. Journal of
management studies. 49(8). pp.1395-1401.
Welter, F. and Smallbone, D., 2011. Institutional perspectives on entrepreneurial behavior in
challenging environments. Journal of Small Business Management. 49(1). pp.107-125.
Wheelen, T. L. and Hunger, J. D., 2011. Concepts in strategic management and business policy.
Pearson Education India.
Zsambok, C. E. and Klein, G. eds., 2014. Naturalistic decision making. Psychology Press.
Online
business environment. 2018. [Online]. Available through:
<http://www.yourdictionary.com/business-environment>.
10

11