Impact of Cultural and Natural Environment on Rolls-Royce Motor Car

Contemporary Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
Impact of cultural environment and natural environment...........................................................4
ECONOMIC ENVIRONMENT..................................................................................................4
NON-ECONOMIC ENVIRONMENT........................................................................................6
NATURAL ENVIRONMENT....................................................................................................7
PESTEL ANALYSIS..................................................................................................................8
SWOT ANALYSIS.....................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Contemporary business environment encompasses of that environment which has
comprehensive competitive market which fluctuate and keep changes according passage of time.
It is essential for business owner to understand needs as well as development of such
environment in order to grab new opportunities and examine threats (Contemporary Business
Environment, 2020). In other words, it means certain circumstances, ideas, conditions that
prevails in same period or present time within business environment. While, Business
environment comprises of various factors or components which influence working and
operations of an enterprise. These forces has a capacity to affect ability of an organisation and
preserve strong customer relationships. It is a sum or collection of physical as well as social
factors that are required to be consider by company in order to make decisions and strategies
regarding business expansion or investment. Business environment is classified into three
different levels such as internal factors, external micro factors and external macro factors.
Intrinsic environmental factors refers to those surroundings which are exists within organisation
and also these internal components are generally utilise for purpose of manufacturing and
delivering variety of services to target market (Barr and et. al., 2018). Normally, these elements
are monitored and controlled by management of organisation. It includes organisational
structure, values, corporate culture, financial, human resource, physical resources, mission and
objectives, trade unions etc. External environment encompasses of all those elements which
prevails or exists outside of organisation. Although, company has no control on such factors as
these are dynamic in nature. These are categorised in two Micro environment and Macro
environment. Micro environment comprises of forces such as customers, competitors, suppliers,
marketing intermediaries, trade unions, workers, partners and so on. This environment is closely
associated with customer market. Macro environment contains various societal forces which
includes demographic, political, cultural, natural, technological and economic factors.
Rolls Royce Motor car is one of popular and well known British multinational
automobile manufacturer. Company is subsidiary of BMW German Group. Company is leading
marketer and distributor of lavish and super deluxe luxury cars as well as serves it worldwide. It
has it headquarters in Goodwood, London. Firm produce exclusive range of vehicles under
various brand names such as Ghost, Wraith, Dawn, Phantom, four-door sedan etc. Moreover, this

report contains brief information regarding how cultural as well as natural environment affects
and shapes entire behaviour of organisation.
This report exhibits information regarding economic policies, systems and conditions.
Further non-economic environment which include demographic, legal, political, social factors. It
provides close analysis of given organisation capabilities through Pestle and Swot.
MAIN BODY
Impact of cultural environment and natural environment.
Business enterprises are surrounded by different cultural and natural factors which
influence its behaviour, functions, working operations, policies, strategies, decisions etc. This
business environment is classified in two major sub environment: economic and non-economic.
All these factors required to be examine and study by business analyst so that it can operate its
functions according to external requirements. These cultural and natural factors plays vital role in
order to shape behaviour of an organisation (Blahová, Haghirianand Pálka, 2015).
ECONOMIC ENVIRONMENT
Economic environment comprises of those factors which are associated with country’s economy.
These factors has an ability to affect purchasing power of consumers, business operations which
influence productivity and profitability of an organisation. These particular factors are mainly
uncontrollable as these are beyond an organisation control. Economic environment include
employment or unemployment rates, income of consumers, inflation and deflation rates,
exchange rates, tax rates, recessions, size of market, demand and supply of product, suppliers,
distribution chain so on. UK is one of sixth largest economy in world as it has effective
economic system, conditions as well as policies (Hamilton and Webster, 2018). Current scenario
of UK is not much favourable for automotive industry that automatically impact internal
business structure of Rolls-Royce. Growth of British economy is somehow hampering as it
slowed due to referendum (Brexit). Brexit is an agreement in which European Union leaving
UK. UK automotive industry has great contribution as it adding approx £18.6 billion value to
UK economy and also employed more than 160000+ people directly in manufacturing and
excess of around 800000+ employees in wider automotive industry. Rolls-Royce Motor is one of
largest and wholly governed subsidiary of BMW. Company produce wide range of luxury
automobile vehicles and serves them worldwide. Organisation management required to