[SOLVED] Business Environment and Management Assignments

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BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain different types and purposes of organization; Public private and voluntary sector
and legal structure. (Covered in PPT)....................................................................................1
P2 Explain the size and scope of a large of different types of organizations. (Covered in PPT)
................................................................................................................................................1
TASK 2............................................................................................................................................1
P3 Explain the relationship between different organisational functions and how they link to
organizational objectives and structure..................................................................................1
TASK 3............................................................................................................................................3
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples...........................................................................3
TASK 4............................................................................................................................................6
P5 Conduct internal and external analysis of specific organizations in order to identify
strength and weaknesses.........................................................................................................6
P6 Explain how strength and weakness interrelate with external macro factors...................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Environment of a business is a combination of various internal and external factors which
create a large impact on operational activities of a company. It includes customers and suppliers,
employees, competitors, technological advancement, governmental laws, market trends and more
(Chetwood and et. Al, 2014). This assignment is made on one of a manufacturing company of
UK named by Bentley. It deals in engineering and distribution sector also by selling luxury cars
and SUVs. In this regard, an explanation on different type of organisation with size and scope is
discussed in present report. Moreover, interrelations of all functions of business and their links
with organisational structure is described. In last part, demonstration on positive and negative
impact of macro environment on business activities with internal strengths and weaknesses of
Bentley is given.
TASK 1
P1 Explain different types and purposes of organization; Public private and voluntary sector and
legal structure. (Covered in PPT)
P2 Explain the size and scope of a large of different types of organizations. (Covered in PPT)
TASK 2
P3 Explain the relationship between different organisational functions and how they link to
organizational objectives and structure.
The organisational structure covers entire activities and departments of a company in
hierarchical manner. It determines how roles and responsibilities are assigned, coordinated and
controlled by management of an arrangement. Along with this, it also shows how information is
transferred between various department for conducting business activities (Crane and Matten,
2016). In general, structure of organisation is based on objectives therefore, in context with
Bentley Motors Limited, the main aim of this company is 'to manufacture most luxurious and
powerful cars in the world'. So, it follows centralised structure under which top management has
gained power to make major decisions and control functions of all departments in order to
achieve mentioned objectives.
There are different departments working within firms such as human resource, finance,
sales, research and development, production and many more. All these divisions are interlinked
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with one another in order to accomplish objectives of business (Türetken and et. al., 2011). For
example: manager of marketing conduct research to find out preferences, needs, attitude,
perception, behaviour etc. This would help Bentley in running business with latest trends of
marketplace and gain high advantage by satisfying requirement of customers. In this regard,
interrelationship of different functions of company is explained as beneath:
Finance department and marketing: Functions of both of these departments are
somehow interlinked with each other. As marketing division of Bentley identify sources from
where company can obtain necessary funds used for running business activities in proper
manner. Therefore, by this process, financial department gets sufficient funds and utilise it
appropriately (Gharajedaghi, 2011). This section helps marketing division in conducting its
major operations by providing required funds. Thus, it has evaluated that without marketing
division, finance department cannot arrange funds easily. Along with this, only with the help of
financial support, marketers can conduct research properly.
R&D with manufacturing department: Research department of Bentley carries out
various functions like conduct research for development of its luxury products, manage quality
and regulatory compliance etc. Therefore, this division provide information to manufacturing
department related to new product and provide solutions how to improve quality of existing
ones. Through this process, managers of manufacturing department can determine process of
new product development and take responsibility to turn input into finished outcomes as per
want of customers. Thus, both of these departments transfer information to each other in regular
manner so that innovation in cars can be done.
Human resource department with operational management: The main functions of HR
managers are recruitment and selection, training and development, reward and punishment etc.
In Bentley, it gives employment to high skilled candidates who have possessed technical
knowledge. Therefore, HR department help other divisions in providing best employees through
which major tasks can be done in appropriate manner. In context with operational management,
by getting skilled and capable knowledge, it can integrate their efforts in utilisation of other
resources. Along with this, operational managers help HR divisions in resolving workers related
issues like conflict resolution, employee engagement, decision-making process and more.
Thus, it has analysed that interrelationship of all of the above departments give support to
Bentley in providing powerful and innovative cars to customers (Gilboy, 2016). These divisions
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transfer information with each other in order to accomplish major activities of business in short
period of interval. Therefore, through effort of all departments, this company has acquired a
good position at marketplace and improved its sales performance as well.
TASK 3
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
In today's business environment, there are many factors present which create a large
impact on performance of company in both positive and negative manner. So, it is main
responsibility of management of an organisation to identify effects of factors present in external
environment on business (Vaiman, Sigurjonsson and Davidsson, 2011). It includes political laws,
economical fluctuations, demand of socio-ethical culture, technological advancement and more.
In context with Bentley, which is a British car manufacturing company and offer luxurious and
powerful car at marketplace, these factors of external environment also impact its operations and
business activities. Therefore, in order to reduce negative impact of such factors, managers of
this company are required to develop effective strategies and policies. It will help in turning
negative impact into positive one which lead to enhance sales performance as well. In this
regard, some external factors are given below which affect operations and decision-making
procedures of Bentley: -
Political Factors: It play an important role in identifying factors which impact on long-
term profitability of an organisation in a particular country. With respect to Bentley Motors
Limited, this firm serves its products worldwide. So, it shows that this company exposes itself to
various types of political environment and risks (Kian Chong, Shafaghi and Leing Tan, 2011).
Therefore, in operating its business in UK and other countries, managers of this enterprise are
required to concern on many factors like- Political stability of country in which it conducts
business, trade regulations and tariffs for import-export, taxation rates, intellectual property
rights and more. All these aspects put impact on profitability and performance of Bentley Motors
in both negative and positive manner. Positive: Globalisation, policies of international trade and many others help Bentley to
operate business activities effectively and gain long-term sustainability appropriately.
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 Negative: Risk of military invasion, level of corruption, government uncertainty and bad
relationship with nearby nation effect operational activities in negative manner.
Economic Factors: This factor includes interest rate, inflation, deflation, foreign
exchange rate and economic cycle which identify demand and investment in economy. So, all
these factors influence business activities and performance in direct manner (Kaufmann, Kraay
and Mastruzzi, 2011). Thus, in context with Bentley Motors Limited, this firm is required to
develop its strategies on regular basis as per economic situation of country. Before exporting
products or operating business in other countries, it is necessary for managers to evaluate
stability of financial condition first. After this process, they should determine government
interventions, exchange rate of currency, economic growth rate and more. It helps Bentley in
obtaining advantage by operating business in those countries which have good financial
condition. Positive: As economical condition of UK is good and stable so, it is beneficial for
Bentley to run business in profitable manner. Along with this, economic growth rate of
other countries in which it operates business, also good. Therefore, all these aspects aid
Bentley in expanding its business market in other locations. Negative: High interest and taxation rate, low level of income, high exchange rates,
recession period and more, creates negative impact on sales performance of Bentley.
Social and cultural Factors: Several social elements like lifestyle, living standard, belief,
ethics and many more, effect business operation activities (Li and et. al., 2011). Bentley conduct
its business at global level so, there are many factors like demographics, culture, leisure interests
and perception of customers towards products that need to be considered for conducting
operations.
 Positive: Higher brand appeal of Bentley among clients has create high demand at market
place. In present market luxury car has a symbol of rich lifestyle. Negative: From the perspectives of automotive industry, it has analysed that product life
cycle of motor cars are getting shorter. So, it puts a negative impact on production and
sales performance of Bentley.
Technological: In current trends, technology changes at fast speed therefore, it is
essential for business organisations to implement latest techniques at work place. In automotive
industry like Bentley, many incremental changes in technology are found (López-Gamero,
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Molina-Azorín and Claver-Cortés, 2011). These innovations help in designing hybrid cars which
are used for petrol saving purpose. Positively: Changes in technologies create a large impact on mind of customers, they are
desired more to get high innovative products. They demand high powerful and fuel-
efficiency cars. Therefore, it gives advantage to Bentley to enhance sales performance by
providing best quality of luxury cars to customers. Negative: But implementation of new technology in business consumes much time and
cost which directly impact on budget of company in negative manner.
Legal: Government of UK has established various law like taxation, international trade,
foreign policies, employment law and many other (Yu and Ramanathan, 2013). These laws effect
operational and decision-making activities of company but also give advantage to run business
for long-term profitability. In context with Bentley, managers of this company concern more on
such laws while developing any policy.
 Positive: Stability of type of economy of the nation effect operation work positively.
Government of United Kingdom gives support to manufacturing unit by protect their
intellectual property rights. Therefore, through these rights like copyright, trademark,
patents and more, Bentley can protect its ideas and innovations in cars in safe manner. Negative: Various global trading laws has created negative impact on organisation
performance in long run.
Environmental: Some environmental factors like weather and climatic conditions, laws
regulating environment pollution, waste management and more, affect business operations and
production activities (Wack, 2017). It is an obligation for each one company to follow
government rule related to saving nature environment. Negative and positive impact of this
element of Bentley has detail as follows: Positive: Management of Bentley use lean production plan for proper utilisation of
resources and manage wastage by recycling process. Therefore, it helps this firm in
creating good image of business at marketplace. Negative: Bentley is not concerned more on developing products as per sustainability of
ecosystem. So, it puts a negative impact on brand image of this company.
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TASK 4
P5 Conduct internal and external analysis of specific organizations in order to identify strength
and weaknesses.
Bentley is a British based auto-mobile manufacturer company which delivers designer
and sporty nature cars in urban rich countries like UK. For designing a marketing strategy for the
company the top management of the Bentley have to conduct an appropriate analysis to analyse
the impact of internal factors on its business operations (Tayur, Ganeshan and Magazine, 2012).
For analysing strength and weakness of the company, managers use SWOT analysis technique. It
is an internal audit tool for the business for identifying opportunity to enhance business activities
(Business environment. 2018). It also helps in analysing number of threats present at marketplace
which put adverse effect on sales performance.
Here there are various aspects of the Bentley recognized by the SWOT analysis: -
Strengths: - Uniqueness: The main strength of Bentley is brand image in luxury car market. Its
reputation in motor cars is main key assets by which this firm gives a tough competition
to other auto-mobile companies. Brand image: The brand value of the Bentley is too high which helps in gaining attention
of loyal customer. Company has concentrated on a niche target market which increased
the barriers for new players in same market. Popularity: Bentley’s car models are very popular among the customers due to their
unique combination of luxury and sporty models. R&D and technology advancement: All Bentley models of cars are designed in unique
manner which is extremely beyond normal car technologies. Speed, stability and
performance of luxury cars are fabulous. Therefore, it is considered as market leader
technological leaders in auto-mobile industry. Distinctiveness: Customers are believed widely that end products of Bentley are designed
with breath-breaking power and performance. By purchasing this type of power cars will
give them exhilarating driving experience.
 Car designs – Bentley makes the world’s most powerful and distinctive cars. They have
offered a good product range which will attract the customers.
Weakness: -
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 Financial performance: Bentley is suffering from financial performance and it hasn't a
good economic of sale (Zeng, Li and Duan, 2012). Therefore, it fails to expand business
in emerging marketplace which give advantage to other companies to gain competition. Long Waiting: In order to maintain its uniqueness and high quality standards, Bentley
manufacture a limited number of cars in a year. Niche target market: They focused a niche target market of the overall population. In this
segment, scope for growth of the company is too little.
 Not Environmental friendly: as the operation of the manufacturing units of the Bentley
are not environment friendly and exposed to high pollution.
Opportunities: - Design Environmental friendly models: Bentley needs to concern on designing
environmentally friendly cars which are less harmful for the environment. It also focusses
on developing better fuel substitutes like hybrid or electricity in cars. Focus on Emerging Markets: Emerging trends of marketplace of various countries gives
opportunity to Bentley to operate its business over there. It helps in overcoming from
financial and other issues.
 Promotions and advertising strategy: Bentley is required to make an investment in
promotional and advertising campaign (Zsambok and Klein, 2014). It will help in
increasing awareness among customers about features of cars and assist them to buy.
Threats: - Changing government rules and norms: Government norms respect to pollution and
environment safeguard are becoming stricter. So, Bentley has to take adequate steps to
cope up from such circumstances. Increasing Fuel Prices: Drastic increase in prices of fuel is a major issue for the auto-
mobile sector which assist Bentley to focus on substitute fuel.
 Competition: In auto-mobile industry, there is a large number of competitors present. So,
it gives threat to Bentley by affecting it sales performance.
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P6 Explain how strength and weakness interrelate with external macro factors.
External factors impact on the internal factors both are interrelated here we explain this as
follows: -
Political Economic
Political factors are becoming more dynamic
which assist organisations to keep changes in
business as per laws and legislations (Meiners,
Ringleb and Edwards, 2014). But any changes
in import-export policies generally puts
negative impact on decision-making activities
of business.
Strength: In context with Bentley, as car
industries are known for its innovation.
Therefore, no new rules and regulations affect
business of such companies.
Weaknesses: But tightening of fiscal policies
shows that governmental bodies spend less as
well as growth of economy also goes down. As
Bentley deals in sector of luxury cars therefore,
it is highly susceptible because of volatile
condition of economy.
Economic factors are the main consideration
for auto-motive industries. Due to cyclic nature
of car where demand of customer’s rise, it
gives advantage to Bentley to enhance sales
performance.
Strength: Rising demand of customers in car
sector, arise profitability for Bentley. As it
offers top and high of cars therefore, it
increases profitability.
Weaknesses: Stability of Euro currency is
main critical issue for profitability of Bentley.
Social Technological
Socio-cultural factors are game changer factor
which assist Bentley to offer its products as per
demand of customers.
Strength: Since product life cycle of products
has become shorter so, it aids Bentley to offer
innovative and new products.
Weakness: As people are now becoming more
smart and sensitive towards quality of
In UK auto-mobile industry is the most
innovative manufacturer for car and related
accessories (Sekaran and Bougie 2016).
Manufactures has to adopt the technology
which reduce the level of CO2 and work on the
environment friendly hybrid and electric cars
Strength: Fuel-efficiency technology helps
auto-mobile industries to add more features in
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products. So, it assists Bentley to concern on
quality of cars by adding more features which
put negative impact on finance of this firm.
cars.
Weakness: Since major weakness of Bentley
is lack of finance. Therefore, implementation
of new technology is not an easy process for
this firm.
Legal Environmental
Statutory factors are needed to be concerned by
Bentley in order to run business activities in
UK and other countries in specific manner.
Strength: These laws help Bentley in giving
proper working environment to employees by
which it can gain their high commitment in
achievement of business objectives (Saleem,
2017).
Weakness: Due to legal factors, Bentley is
bound to expand its business market in other
countries easily.
Environmental laws assist business
organisation to concern more on process of
production and reduce wastage to protect
ecosystem from harmful effects.
Strength: Due to such laws, Bentley gains
success in developing Hybrid cars and
technological embedded vehicles.
Weakness: Desire for protecting ecosystem
impact negatively on business of transport
companies.
CONCLUSION
As per above report, it has been concluded that there are various factors present in business
environment which affect productivity and performance of a company for a span of time. So, it is
necessary for management to analyse impact of such factors on business operations. They have
to use proper measures by which negative impact of external and internal factors can be turned
into positive. In addition to this, organisations are required to conduct SWOT analysis on timely
basis. It will help in determining weak point of business where modification is necessary to
enhance sales performance.
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REFERENCES
Books and Journals
Chetwood, M. K., and et. Al, 2014. Transforming a legacy IT infrastructure into an on-demand
operating environment. U.S. Patent 8,775,232.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Gharajedaghi, J., 2011. Systems thinking: Managing chaos and complexity: A platform for
designing business architecture. Elsevier.
Gilboy, G. J., 2016. The myth behind China's miracle. In SEEKING CHANGES: The Economic
Development in Contemporary China (pp. 1-16).
Kian Chong, W., Shafaghi, M. and Leing Tan, B., 2011. Development of a business-to-business
critical success factors (B2B CSFs) framework for Chinese SMEs. Marketing
Intelligence & Planning. 29(5). pp.517-533.
Kaufmann, D., Kraay, A. and Mastruzzi, M., 2011. The worldwide governance indicators:
methodology and analytical issues. Hague Journal on the Rule of Law. 3(2). pp.220-
246.
Li, Q., 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.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Saleem, M. A., 2017. The impact of socio-economic factors on small business success.
Geografia-Malaysian Journal of Society and Space. 8(1).
Tayur, S., Ganeshan, R. and Magazine, M. eds., 2012. Quantitative models for supply chain
management (Vol. 17). Springer Science & Business Media.
Türetken, O., and et. al., 2011, June. Enforcing compliance on business processes through the use
of patterns. In ECIS (p. 5).
Vaiman, V., Sigurjonsson, T. O. and Davidsson, P. A., 2011. Weak business culture as an
antecedent of economic crisis: The case of Iceland. Journal of Business Ethics. 98(2).
pp.259-272.
Wack, P., 2017. Shooting the rapids. Historical Evolution of Strategic Management, Volumes I
and II, 1, p.121.
Yu, W. and Ramanathan, R., 2013. Business environment, employee competencies and
operations strategy: anempirical study of retail firms in China. IMA Journal of
Management Mathematics. 24(2). pp.231-252.
Zeng, L., Li, L. and Duan, L., 2012. Business intelligence in enterprise computing environment.
Information Technology and Management. 13(4). pp.297-310.
Zsambok, C.E. and Klein, G. eds., 2014. Naturalistic decision making. Psychology Press.
Online
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Business environment. 2018. [Online]. Available through:
<http://www.investorwords.com/19252/business_environment.html>.
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