Business Environment Report: Key Issues for Fontain Motors (LSBM103)

This report provides a comprehensive analysis of the business environment of Fontain Motors, an independent Audi dealer. It begins with an introduction to the business environment and identifies key issues affecting the automobile industry, specifically focusing on Fontain Motors. The report delves into the PESTEL analysis, examining the political, economic, social, technological, environmental, and legal factors impacting the company. It classifies these issues within the PESTEL framework, highlighting both positive and negative implications. The analysis covers the challenges of increasing costs and fluctuating customer demand, and how these issues are addressed. A reflection section offers insights into the learning process and challenges faced during the report's creation. The report concludes with a summary of findings and a list of references.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................4
Key Issues affecting Automobiles industry(Fontain motors).....................................................4
PESTEL Analysis........................................................................................................................5
Classification of issues in context with PESTEL analysis..........................................................6
Positive Impinging of Issues.......................................................................................................7
Negative impinging of Issues......................................................................................................7
REFLECTION ................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment refers the collection of various internal or external factors which
includes customers' needs, innovative technologies, suppliers, owners, clients, supply ad
demand, activities by government, social trends, economic changes and so on. These sorts of
factors influence the overall functions of an organisation like how they works and how they
achieved their predetermined goals in a proper way. For this report Fontain motors has been
selected which was founded in the year of 1990 and one of the best first independent dealer
within the country deals with Audi. Moreover, discussion will be based on PESTLE analysis and
various key issues. At last, negative and positive impact of various key issues will get covered
appropriately (Werhane, 2019).
Key Issues affecting Automobiles industry(Fontain motors)
In order to run business n a smooth manner, there are different types of issues which is
faced by an organisation. Therefore, business is required to have various strategies in order to
reduce overall scenario from such issues so that they can face challenges accordingly and able to
run its business in a proper way. On the other side some type of issues which is faced by
Automobiles organisations like price fluctuations, customers needs and demand, competitive
environment scenario as well as negative impact of cost of product towards the firm. Therefore,
is much essential for an organisation to make good technologies in order to bring huge
improvements within the operation and production systems to achieve better organisational goals
in a perfect manner. There are 2 main key issues which is faced by Fontain motors as per the
current scenario, those are going explained below:
Increasing costs: It is considered as one of the major issue within the Automobiles
industry, so its face lots of issues in relation with high cost and price into the organisation as well
as outside the organisation (Silva, 2019). During the time of maximising entire cost from
respective industry then it takes huge space and gives results in a down rate of market among the
customers. Therefore, cost maximisation is only the main reason that can give results in order to
bring few improvements within the labour laws. Apart from this there are so many variances by
firms are able to increased its overall wages in 2018. on the other side employees are more invest

due to the labour shortage that means organisation really needed to provide huge wages to attract
large number of employees within the firm.
Fluctuations in Customer's demand: It can be considered as the normal issue within
firm which can bring few changes within the customers preference and choice as well.
Automobiles firms are really on high demand at marketplace which makes effective demand of
cars towards customers in an appropriate manner. On the basis of this there are different type of
fluctuations as they faced so many issues like increasing demand of goods, limited availability of
resources and so on (Myers, 2019). All these sorts of problems affects the entire business and
firm is not able to achieved their predetermined goals. But after improvements in this situations
respective firm is able to increase their market share due to increasing demand of goods and able
to provide various cars models of Audi in order to satisfy consumers needs at one time. So
overall fluctuating within consumers demand heavily impact on business but after making so
many strategies and techniques they sell its luxurious cars to customers in a perfect way.
Therefore, investment is always high on demand and increase large number of cars with
heavy amount at marketplace. At the same time buyers who always look luxurious cars they also
have looked affordable amount in order to gain better goods and services in a proper way. So the
affordable price can make huge potential customers of Fontain motors and make them attractive
in an effective manner.
PESTEL Analysis
This analysis is one of the best framework which is generally used described different
types of key factors such as political, social, economical, environmental, legal and technological
that influence organisations inside as well as outside. This is very flexible analysis in nature that
can be used by firms in so many ways (Jaimovich, Rebelo and Wong, 2019). With the help of
this HR manager of firm is bale to make good decision effectively. The impact of this factors in
context with Fontain motors described below:
Political factor: It refers to the overall political condition within the UK, it is very stable
and being a strength it is very fine for Automobiles sectors. In relation with respective firm if
they follow entire government rules then they can achieve their goals without any issues.

Economical: United Kingdom is one of the largest economy at 5th level globally. So the
present inflation rate of this economy is 1.7% therefore, it has positive impact on the
Automobiles industries in an effective manner.
Social: It is based on overall culture of customers which they really needed at
marketplace. As per the UK economy it influence overall culture socially and have different
types of people. Due to this, respective firm is able to provide products accordingly to increase
its sales and revenue (Harmon, 2019).
Technological: It is much essential factor which directly affects overall UK firm in a
large level. By having huge increment in various technologies respective firm can make their
operative functions better and gives effective products to customers. By applying innovative
tools on their products they can reduce negative impact from the firm and achieve goals directly.
Environmental: This is totally based on climate change, weather conditions and so on.
In regards with Fontain motors they always used protective tools for their efficient goods so that
they can reduce overall chances of damage and provide better services in a perfect way.
Legal: It consist so many different laws and legislations within the Automobiles sectors
like employment act 1996 in order to protect employees, minimum wags, paternity leave and so
on. All these type of laws reduce the chance of negative impact.
Classification of issues in context with PESTEL analysis
There are two types of issues which is mainly faced by Automobiles sector in the firm of
Fontain motors such as increasing cost and fluctuations in customers demand in context with
PESTLE analysis, given below:
Economical and legal factors: On the basis of this factor there is another issue names as
increase pricing, this is because as respective firm has large extent so the raw material cost is
high. Furthermore, there are certain laws and legislations as per the workers shortage as well as
company have to give more salary (Dupraz, Nakamura and Steinsson, 2019).
Social Factors: Under this factor comes fluctuations in customer's demand, according to
this there are so many changes in demand within the respective firm. So herein, firm is required
to have unique strategical ideas in order to give huge satisfaction to people and make them
effective in front of marketplace. Along with this they can conduit marketing research as well as
designs huge opportunities for people in a perfect manner.

Positive Impinging of Issues
Fontain Motors was formed in the year of 1990 who was the first independent dealer
which known as for their Audi car models effectively. They always have experienced workforce
so that they have educated engineers as well so that they can easily grow within the UK market
in a well manner. By having two types of issues in the firm they always make unique strategies
and goals in order to give better services and products to its employees in a proper way. With the
help of this they can develop strategical ideas which helps them to reduce those issues which
negatively influence overall business activities. Along with they also apply low production cost
on their car material it can help them to make better quality to satisfied consumers needs and
wants. Furthermore, recently they launched innovative cars models who satisfy overall demand
of consumers in a proper way (Clinton and Whisnant, 2019). By capturing overall marketing
situation they can easily analyse consumers taste and preferences in a perfect way. Apart from
this they can have better scope in order to fulfil task and goals in an appropriate manner. By
producing low cost of production they are able to make innovative techniques to achieve desired
goals.
Negative impinging of Issues
Due to those issues as been specified above this can be said that respective firm faced so
many challenges while providing different types of products and services to its customers. For
instance regularly changes in the customers demand preference company can get loss and able to
satisfy people demand in a proper way. By facing huge difficulties they can develop so many
rules in order to overcome impact of these factors. As per the current scenario, respective firm
produce their goods and affordable price. Furthermore, customers are focusing on purchase of
luxurious cars with appropriate cost (Dwyer, and Hopwood, 2019). Therefore, now firms are
making different types of strategical innovative thoughts in order to give huge satisfaction to
customers. By doing this analysis they can give better sales and revenue at marketplace in order
to achieve targeted goals effectively.
REFLECTION
By making this report, I have got a chance to formulates my knowledge and skills on
several topics. So that this representative report helped me a lot to know about different tools and

technologies by which I can face various situations as per the external analysis. In order to
overcome various issues I have to learn about other different strategical tools so that I can reduce
negative impact from the report. Along with this I have completed this report with so many goals
and objectives but still there are huge challenges which I faced while making this report but I
ensured that I can reduce these sorts of challenges effectively (Runyan and Covin, 2019). Given
below:
Little bit coordination among team members: This is the first challenge faced by me,
in order to complete this project there was lack of coordination between team members and
employees. So many times, we were not able to reach at a one decision as per the changes in
ideas and views. Along with this, there is main reason it was huge communication gap between
us. So that we have not received our goals during so many difficulties. After all this we have
came into the point that is we should conduct team building activities so that we can achieve
their goals in a desirable manner. By having this sort of way we can share our ideas from one to
another person. With the help of this we can work in a team and able to achieve our desired goals
in a perfect manner (Walsh, 2019).
Lack of Time: It was the next challenge which is also faced by me as well as team
members for completing this project. In order to achieve goals and objectives in a proper way I
really need to have so many strategies and ideas in order to reduce all the negative impact from
an organisation. Through ignoring negative impact I can use so many approaches by which I can
save my time and able to gain predetermined goals.
Lessons learned: According to this report I have learned so many lessons in order to
achieve goals towards report. Therefore, it is more essential to increase my overall knowledge
and skills by having good research (The Top 4 Challenges Facing Furniture Manufacturers,
2019). So that I learned various tools and techniques in order to do hard work within the given
period of time. Furthermore, I am able to implements on new tools and strategies that develops
my overall skills in relation with management, analytical skills to complete report in an effective
manner.

CONCLUSION
According to the above mentioned report it has been concluded that, in order to run
business in a smooth way, firm is required to have different types of tools and strategies in order
to understand overall internal and external market factors that directly influence people as well as
firm in both positive and negative manner. There are some issues which is faced by an
organisation to reduce overall negative impact and increase positive impact on the organisation.
It would be change the overall business performance and influence people in a positive way. In
order to maintain this firms should analyse overall demand of their consumers and make goods
accordingly.

REFERENCES
Books and Journals
Clinton, L. and Whisnant, R., 2019. Business Model Innovations for Sustainability.
In Managing Sustainable Business (pp. 463-503). Springer, Dordrecht.
Dupraz, S., Nakamura, E. and Steinsson, J., 2019. A plucking model of business cycles (No.
w26351). National Bureau of Economic Research.
Dwyer, J. and Hopwood, N., 2019. The business communication handbook. Cengage AU.
Harmon, P., 2019. Business process change: a business process management guide for
managers and process professionals. Morgan Kaufmann.
Jaimovich, N., Rebelo, S. and Wong, A., 2019. Trading down and the business cycle. Journal of
Monetary Economics. 102. pp.96-121.
Myers, M. D., 2019. Qualitative research in business and management. Sage Publications
Limited.
Runyan, R. C. and Covin, J. G., 2019. Small Business Orientation: A Construct
Proposal. Entrepreneurship Theory and Practice. 43(3). pp.529-552.
Silva, E. B., 2019. The state and capital in Chile: Business elites, technocrats, and market
economics. Routledge.
Walsh, D., 2019. Heavy business: Commercial burglary and robbery. Routledge.
Werhane, P. H., 2019. The normative/descriptive distinction in methodologies of business ethics.
In Systems Thinking and Moral Imagination (pp. 21-25). Springer, Cham.
Online:
The Top 4 Challenges Facing Furniture Manufacturers. 2019. [Online] Available through
<https://www.ctnd.com/top-4-challenges-facing-furniture-manufacturers/>
How Does The Economy Affect The Furniture Industry? 2019. [Online] Available through
<https://freshome.com/2013/04/19/how-does-the-economy-affect-the-furniture-
industry/>