Importance of Business Environment & Factors Affecting the Entity

This report discusses the importance of business environment and factors affecting the entity. It assesses the impacts of innovation and technology on sales, profits, and growth of a chosen organization. It also explores the importance of CSR and Archie Carroll's CSR model in relation to the chosen company. The chosen company is Aston Martin Lagonda, a British manufacturer car company headquartered in the UK.

Business Environment

EXECUTIVE SUMMARY
Business environment is collection or say sub system of all the factors including external
and internal. It is necessary to be aware about firm work environment so that activities and
objectives are carried out in most effective manner. Employees work for longer period of time if
there is present of positive business environment. The main aim of this report is to the importance
of business environment & factors affecting the entity. Also, how to deal with competitors through
analysing work environment within the work place.

Table of Contents
EXECUTIVE SUMMARY..................................................................................................................2
INTRODUCTION................................................................................................................................4
TASK 1 ................................................................................................................................................4
Assess the impacts of innovation and technology and how it has affected the sales, profits and
growth of one of the chosen organisation........................................................................................4
TASK 2.................................................................................................................................................6
Importance of CSR to respective organisation................................................................................6
Archie Carroll's CSR model in relation to chosen company ..........................................................8
CONCLUSION..................................................................................................................................10
REFERENCES...................................................................................................................................11
Books & Journal:...........................................................................................................................11

INTRODUCTION
In this competitive market, it is important to analyse and examine environment at workplace
and so that strategies and tactics are implemented accordingly. Business environment is defined as
collection of external as well as internal factors which which have impact on enterprise
functions(Cherunilam, 2016). Aston Martin Lagonda, a British manufacturer car company
headquartered in UK. It is leading firm which produces luxurious and sports cars all around the
world. This report comprises of two task in which one includes innovation and impact on technical
innovation, technological change, financial and ICT issues, then in second task it involves CSR,
and Archie Caroll's CSR model. This report gives a brief knowledge about how innovation and
CSR has affected business sector with changing period of time.
TASK 1
Assess the impacts of innovation and technology and how it has affected the sales, profits and
growth of one of the chosen organisation
Innovation and invention has always been and essential part of business which help in
development & overall growth. It is crucial to adopt new ideas or thoughts so that change is done
in effective way. In relevance with Aston Martin they follow new trends when it comes to
innovation.
Knowledge and understanding of technological innovation
The ratio of new businesses is increasing and which is also giving a rise to competition.
Organisations focuses on their development but their growth is slow due to lacks of adopting new
changes or producing something new in market. It is essential for enterprise to be innovate so that
they are able to compete with their rivals. Knowledge is required at at every aspect especially when
comes to innovation and technology.
Impact of technological innovation on growth of nation
 Technological impact has deep affect on growth of nation as because it increases the
productivity and make aware of new & updated technologies. In UK, technology has been
considered as major factor contributing to the growth of economy (Deasy, 2016).
 London is being seen as centre hub for technologies, innovation and development. With

excess of technology, the standard living of citizen is also developing with their status.
 The level of technology possess by nations depicts their intensity to use it within a
environment.
 Moreover, strategies & tactics are used for understanding technological innovation and
how it can be improved at higher aspect.
Understanding of the relationships between innovation and economic development.
Economic development is crucial for every nation so that citizen of country feel safe and
are able to achieve goals. Both are dependent upon each other as they are drivers of nation
development. In relevance with Austin Martin Lagonda, they are always focused towards their
innovative products such as their new cars Aston Martin DBX and DBS Superleggera will be
launched in some of the countries with new updated features (Fabuš, 2017). The economic growth
is the actual result of innovation which help accomplishing of goals during period of time. These
both are crucial for survival of nations economic growth & betterment of future.
Both are key drivers of improvement and growth which shows that it is responsibility of
organisations to provide regular changes so that changes are adopted in most appropriate way. It
depicts that relationship between these two concepts assist business sector in achieving their goals
by contributing major profit ratio to economic growth.
Abilities to appreciate the role of technological change in economic progress
The frequent change of technology leads to higher progress of economies. Research and
development plays vital role in the concept as enterprises invest huge amount of capital. With
advance use, it is possible to use resources and manpower in most effective way. It also depends
upon the level of technology changing interval which is determinant of economic progress.
Whereas if it becomes constant the process of growth slows down or stops.
Role-
 The technology progress is the procedure though which economies keeps moving
and developing. It is also known as primary source for overall economy
development.
 75 % population ratio of UK use technology on daily purpose for their both
professional and personal work (Jones, 2019).
So, role of technological change in economic progress has been developing and improving
at larger level. This depicts that knowledge of people related with technology has increased at
higher level.

Identify the financial and ICT issues for key business functions
Market comprises of small , medium and large business sectors which have different
business functions and operations. In relation with chosen entity, they do have various business
functions such as monitoring of production, research and development, human resource
management etc. It duty of manager to make ensure that these functions are carried out in proper
manner. But there are many issues as well as challenges which are faced by firm and are discussed
below-
Financial issues-
Insufficient working capital- Aston Martin have been in debt from past many years and
due to which they have lack of funds and working capital to start new start their production in many
regions. This too lead to shutting down of their manufacturer plants and stores in UK (Cowling,
2016).
ICT ( Information and communication technology) issues
These issues are related with technical problems, network issues, limited resources etc.
Information and communication technological are the base part of any firm as they are responsible
for continuous improvement. Thus, many problems are there which are related with business
functions & are mentioned below-
Lack of efficient manpowers with advanced technical knowledge- In context with chosen
enterprise, they this is main problems that they faced in their HRM function as it they have few
people who know the operations, functions & other application of cars. Due to they they it is
difficult for them to find the skilled employees (Raheem, 2020).
Limited accessibility & network connection- The company is unable to access many of
the regions due to lack of networks or accessibility of correct resources. This makes them to enter
into critical situation which effects their business functions.
Therefore, the above matter shows that issues are part of business functions which are
needed to be carried out with proper considerations. These issues slows down the economic
development. The above stated problems are faced by Aston Martin at wider scale. Both financial
and ICT are essential of business functions without which activities cannot be carried out.
TASK 2
Importance of CSR to respective organisation
Corporate social responsibility is consider as one of the most significant factor that help an

organisation to develop a positive reputation or brand image in market. CSR is basically a
commitment by an entity to contribute for development of economy and improves quality life of
staff members along with their families. The motive of doing corporate social responsibility is not
to earn profit but to benefit company by a greater community. In addition to this, CSR is when an
organisation operates in a sustainable and ethical way to deal with social as well as environmental
impacts. It is incredibly significant that an organisation operates in such a manner which
demonstrates responsibility. The importance of CSR to Aston Martin Lagonda is given below:
Brand value: It is determine that CSR activities improve the brand image of an organisation
and develop a positive mind set of employees towards product and services offered by company.
Improving brand assist an entity to enhance the level of productivity and profitability. In relation to
Aston Martin Lagonda, the company wants to develop a sustainable luxury business by promoting
responsible & sustainable economic growth (Jorgenson, 2016). This will assist company to develop
its market reputation and attain growth in an effective manner.
Increased sales: It is analysed that 60% of population prefer to consume or purchase
products as well as service from a responsible organisation. They support the companies that
support for the welfare of societies (El-Kassar, 2017). With reference to Aston Martin Lagonda, the
company has come up with the new offerings that is electric vehicles in order to attract people and
contributes towards development of society. BY attracting people towards product and service,
there is increase in sales level of company that has a positive impact on profitability and market
share of an organisation.
Employee engagement and retention: Nowadays, the purpose of employees to get a job is
change as they want to work with those organisation which has a good brand image in market. It is
determine that corporate social responsibility activities incorporate programs that impose value such
as loyalty and empathy. In addition to this, it also leads to good team work that has positive impact
on productivity of an organisation. In context to Aston Martin Lagonda, it is a renowned
organisation and its main focus is to make a sustainable luxury business. This attract talent and also
develop positive mind set of staff members due to which they did not think to leave the company
and retain with them for longer time period.
Advantage over competitors: Corporate social responsibility activities plays vital role as it
assist an organisation to remain in competition in the market. By taking initiatives towards
economic and social development help company to attract more number of customers towards
product and increase its customer base level in an effective manner. In case of Aston Martin
Lagonda, it is analysed that by doing such social activities, the company is bale to increase its
customer base level. It help company to gain leading position in auto mobile sector and attain
competitive advantage at marketplace.

So, the explained matter shows that it is difficult for firm to survive for longer period of
time if not paying attention to CSR. Market research is to be conducted so that decisions are done
accordingly. In relevance with selected entity, they do focus on CSR such as by protecting
environment by producing End of life vehicle and implementing of battery recycling polices.
Archie Carroll's CSR model in relation to chosen company
Carroll's corporate social responsibility model is defined as a framework which explains
how and why an entity should take social responsibility (Carroll, 2016). The model was proposed
by Archie Carroll and consist of four most significant types of responsibility of company. All such
components is given below in relation to Aston Martin Lagonda:
Economic responsibilities: It is analysed that economic responsibility of an organisation is
about developing those goods as well as services which society require & to develop profit on them.
The shareholders of an organisation is demand and expect that they get a reasonable return on their
investment. In case of employees, they want job security and talking about customers they require
quality products at an affordable price (Rosado, 2017). The economic responsibility in corporate
social responsibility is to be profitable that is the only way by which an entity sustain in market and
Illustration 1: Carroll's pyramid
(Source: What is Corporate Social Responsibility, 2019)

support societies to attain growth in long-term. With reference to Aston Martin Lagonda, it is
determine that the company offer quality product to customers at marketplace. In addition to this, it
ensure that its workers are safe in premises and shareholders get easy returns by the company.
Legal responsibilities: The legal duty of an organisation is to comply with al the rules as
well as regulations in an effective manner. In addition to this, it assist company to smoothly carried
out activities without any legal interruptions. Following of all the society's rules assist an entity to
implement various practices in a fair and ethical manner. Th legal responsibilities in Corporate
social responsibility is supplying products & services which meet with legal requirements,
operating in a ethical and fair manner that is according with the government requirements. Meeting
with legal obligations. In context to Aston Martin Lagonda, its higher authorities focuses on
meeting with the criteria of legal obligations and following all social norms that help in implement
all activities in a systematic and proper manner.
Ethical responsibilities: It is determine that society expects company to implement as well
as manage activities in a fair and ethical manner. In addition to this, it is analysed that taking ethical
responsibilities directly mean that a company embrace standards, activities and activities that are
expected. In relation to Aston Martin Lagonda, it is determine that company identifies social needs
and developed electric vehicles that protect environment and meet with the expectation of society
(Wagner-Tsukamoto, 2019). In addition to this, it ensure that ethical behaviour is implement at the
workplace and code of conduct as well as standards is followed by all the members of company.
Philanthropic responsibilities:It consist of discretionary and voluntary activities as well as
practices of an organisation (Cherunilam, 2016).
It sis determine that philanthropy is not a actual responsibility, but in the present business scenario
companies are expected that society will take part in various activities. There are various
organisations that make use of different forms of philanthropy and these are community
development, donations, volunteer work, gifts and so on. With reference to Aston Martin Lagonda,
it is determine that company give donations in societies, provide gifts to stakeholders and do
international charities that help in fulfilling philanthropic responsibilities in an appropriate manner.
Therefore, the given paragraph depicts that corporate social responsibility is needed to be
adopted by enterprise so that it become easier for them to create innovate products or inventions. To
briefly discuss this Carroll's model is being explained in brief which depicts the duty and policies
related with society or environment which are required to fulfilled. By doing this, goodwill of
entity also increases. Manager of corporation need to be aware about such responsibilities so that
problem do not occur during the process. To do this, decision making process is to be carried out
in correct way (Deasy, 2016).

CONCLUSION
After a brief analysis of above report, it has been concluded that business environment has
deep impact on innovation and economic growth. Discussions have been made about innovation,
impact of technological innovation on economic growth, corporate social responsibility. Further
Carroll's model have been used to understand the importance of CSR. To achieve vision and
mission, it is crucial for organisation to fulfil their CSR and develop change in market. It is a time
consuming process but is needed to be carried out is proper manner. Therefore, whenever a
innovation or invention is done by company, it directly affects the nations economy at depth. With
proper considerations, it is easier to make decision making is most efficient manner.

REFERENCES
Books & Journal:
Cherunilam, 2016.Business environment. Himalaya Publishing House.
Deasy, 2016.Controlling use of a business environment on a mobile device. U.S. Patent 9,247,042.
Fabuš, 2017. Current development of business environment in Slovakia and Czech Republic.
Jones, 2019. A resurgence of the regions: rebuilding innovation capacity across the whole UK.
Cowling, 2016. You can lead a firm to R&D but can you make it innovate? UK evidence from
SMEs.Small Business Economics,46(4), pp.565-577.
Raheem, 2020. The role of ICT and financial development in CO 2 emissions and economic
growth.Environmental Science and Pollution Research,27(2), pp.1912-1922.
Jorgenson, 2016. The ICT revolution, world economic growth, and policy
issues.Telecommunications Policy,40(5), pp.383-397.
El-Kassar, 2017. CSR, organizational identification, normative commitment, and the moderating
effect of the importance of CSR.The Journal of Developing Areas,51(3), pp.409-424.
Rosado, 2017. On the relative importance of CSR ecological strategies and integrative traits to
explain species dominance at local scales.Functional Ecology,31(10), pp.1969-1974.
Carroll, 2016. Carroll’s pyraHofman, E.H., 2018. A feasibility study on an electric Aston Martin
DB5 (Bachelor's thesis, University of Twente).mid of CSR: taking another
look.International journal of corporate social responsibility,1(1), pp.1-8.
Wagner-Tsukamoto, 2019. In search of ethics: From Carroll to integrative CSR economics.Social
Responsibility Journal.
Hofman, 2018.A feasibility study on an electric Aston Martin DB5(Bachelor's thesis, University of
Twente).