Impact of Business, Cultural, and Natural Environments on Bentley Motors

This report analyzes the impact of business, cultural, and natural environments on Bentley Motors. It includes a SWOT analysis and PESTLE analysis to understand the internal and external factors affecting the organization.

Contemporary
Business
Environment

Table of Contents
INTRODUCTION..........................................................................................................................3
Effect of Business, Cultural, Natural Environments shape the behaviour of chosen
organization...............................................................................................................................4
PESTLE AND SWOT ANALYSIS:.........................................................................................7
CONCLUSION..............................................................................................................................9
REFRENCES ...........................................................................................................................11
Books and Journals-.....................................................................................................................11

INTRODUCTION
Business environment of an organisation includes all the factors which may be internal
or external to an organisation and have an impact on business operations and functions. It is
necessary for a business to keep in knowledge all factors which may directly or indirectly have
an effect on working of organisation (Bianchi, 2017). Another reason why it is necessary to
environment may be that they help in formulation of strategies and determining how can
negative effects from these factors be converted into positive one or opportunities for firm. This
also let an organisation know about what are its competitors planning. It gives a business an
upper hand over its competitors.
There are some internal as well as some external factors which have an impact over
business. Internal factors usually includes strengths, weaknesses, opportunities and threats from
competitors, due to market situations etc. On the other hand external factors have a very wide
range in business environment. External factors in a business environment consists of
economical, technological, political, environmental, legal and social factors. Everyone of these
factors have a different way in which they impact organisation. All these factors are evaluated
and analysed critically by business. Strategies and approaches are formulated by organisation
keeping in mind these factors in order to leverage most out of internal competencies and helps
in maximising sustainability and competitiveness through external markets.
In context of this report Bentley motors have been taken into consideration. Bentley
Motors is one of the most recognised firms in United Kingdom. Bentley motors deals in
research, development, manufacturing as well as distribution of luxury motors in all of United
Kingdom as well as in some developed area of world. This report analyses economic and non
economic factors in a business environment and how these factors influence the firm. Here
economic environment in business includes economic conditions, systems and policies.
Whereas non-economic factors consists of all the demographic factors, natural factors, cultural,
legal factors etc. in this report a detailed study of internal environment of an organisation is
done through the help of SWOT analysis and in order to analyse external environment PESTLE
analysis is done (Tozan and Ertürk, 2015). These two analysis helps an organisation to easily
formulate their policies and strategies to achieve their organisational goal in dynamically
changing market place.

Effect of Business, Cultural, Natural Environments shape the behaviour of chosen organization
There are a number of factors which effect behaviour and working of an organisation.
There are various factors which are external and not related to working of organisation still have
a huge impact in shaping behaviour of organisation. Below mentioned are these factors and its
effect on Bentley motors-
 Natural-
In natural environment there are a number of factors included. These take in all the
aspects of geographical, climatic, perceptions etc. Global warming have become a major
problem these days in all of world including United Kingdom (Atiku, 2018). The current
lifestyle of people and technological advancement have proved to be worse for this condition of
global warming. Simple examples can be taken as there is a huge downfall in amount of fossil;
fuels available in market. Reason behind this is high usage and production of diesel and petrol
cars. In addition to this government have also set various standards for automotive factories
related pollution they cause to environment. Due to all this changes taking place in nature it is
required by Bentley Motors to use ways of production which are minimally injurious to nature.
They need to use various sustainable practices to ensure safety towards environment. This rules
tend to have a positive effect on organisation as they have various opportunities which company
can cease and work towards its goals. Bentley motors is seeing this factor as an advantage and
using solar panels which is helpful in functioning as well as better for environment. Cultural-
Culture includes religious values, beliefs, social relationships etc. in an organisation.
While taking UK into consideration there are a number of people who belong to different
communities, come from different castes and hail in different cultures. There is a cultural
orientation in organisation with different cultural beliefs and values. This have a positive impact
on working of business as this allows business to abide by all these values and beliefs from
different cultures in an efficient manner (Hans, Fernandes and Crasta , 2019). In today's era
market is marketers focus most on building relationships with their customers. Following
different cultures proves to be a positive practice on part of the firm as it bring customers closer

and helps organisation to gain more loyal customers. Bentley motors also comes up with many
new changes and innovations in order to suit cultural needs of its customers. It have got French
race team to join it, it also tied up to provide extraordinary bomber ski experience, it also took
major steps to bring together successful female entrepreneurs. Demographic environment-
Demographic factor has its major focus on lifestyle, age, income group, social factors
and so on. When discussing about UK and Bentley Motors standard of living which people are
adopting seem to have a negative effect on company (Amankwah-Amoah, Osabutey and
Egbetokun, 2018) There is a rise in unemployment due to many multi national companies
moving out of country. Rise in inflation is seen recently due to which customer are changing
preferences towards cheaper and quality product rather than going for luxuries provided by
Bentley. Another trend which is hitting Bentley hard is that in order to stay ion budget
millennials are moving towards public transports which are way cheaper as well as time saving
rather than owning a car. There are also some positive effects of demographic factors on
Bentley. Company can grab a new market segment of younger generations. Along with luxury
if they provide sporty cars too, they can easily enter into this new market segment. However,
while comparing it can be seen that there are more negative impacts of demographic factors on
Bentley Motors rather than the positive ones. Business environment-
Business environment consists of economic environment which have an effect on
operations and functions of an organisation (Kabalina, Zelenova and Reshetnikova, 2019). It
consists of a number of economic conditions, various regulations and all other elements which
are prevailing in business environment. These factors when influencing an organisation helps it
to function in a flexible manner while adjusting with all required changes.
In context of Bentley motors, it is one of the largest automotive business operating in
United Kingdom. The economy of country is seen to have faced a number of shifts and changes
in functioning after introduction of BREXIT. In 2016 a referendum was signed by Britain which
said that it would leave European Union. There was majority in favour of this decision and
nothing could be done to stop this . This decision led to hit economy which had a huge impact
on all organisations including Bentley motors. Below mentioned are these factors which
negatively hit Bentley motors-

1. Economic Policies- A number of policies are there in UK which directly effect
automotive sector of country. This effect can be directly seen on Bentley which have to
suffer effects on its working within the country as well as in European Union. There
have been effective and appropriate opportunities in order to attain sustainability .
(Rajabi and Bolhari, 2015). An example can be taken where in a policy government
includes 20 billion euros in order to enhance productivity and potential of automotive
business and bring innovation. These policies however guarantee better working and
ensuring a way better digitalised infrastructure so that development of electric vehicles
could be brought in. Its impact on Bentley Motors is positive and way more progressive.
It will provide firm with an environment which is aligned towards its objective which is
technological advancement. The scenario differs for EU regulations. The reason behind
this is that there are still some terms of negotiation left pending in between EU and
Britain, there is still speculation in BREXIT. This can have major impacts on Bentley
Motors as company deals in both Britain and EU. Company will be negatively
affected as Bentley will have to negotiate with suppliers and policies could prove to be
challenging for its sector of business.
2. Economic systems- System here refers to taxes, inflation, automotive market etc. this
also includes foreign currency when analysing Bentley Motors. Taking all market into
consideration, there are a number of trends which are evident in relation with
automotive industry. An example can be taken from a new trend which have taken into
consideration electric cars. Such change in market perception have had a positive
impact on organisation as it provides an environment which supports innovative
development. Bentley is already working in this sector and it have developed a number
of prototypes of this electric vehicles (Kamoche and et. al. 2015). Company is also
being provided with a number of opportunities which majorly focuses on overall
automotive market. Talking about other factors such as inflation, taxes have not been
favourable for Bentley. Value of pound have reduced which is contributing to rise in
inflation in UK. This leaves Bentley with costlier supply chains, ineffective human
resources, uncertain trade ties and policies which have a negative effect on behaviour of
company.

3. Economic Conditions- Bentley Motors controls its business from United Kingdom.
Due to this economic as well as political relation of country with all other nations have a
direct impact on company as well. Example can be taken where BREXIT will have a
negative impact on country in relation with its tie to other members in EU. This will led
to removal of tariff free trade which were enjoyed by company earlier. Its implication on
Bentley Motors will be that it will result in exports being costlier and company will then
have to deal with more challenges outside United Kingdom. Apart from this Bentley is
known to manufacture major innovation it uses in its car (Fenwick and Wrbka, 2016).
Still there are a number of parts which are imported from EU countries. BREXIT will
make those imports difficult for Bentley leading to another negative impact.
There is one more major aspect that have an effect upon Jobs in Bentley motors. BREXIT had
an impact on labours of the country as well. This is because all workers who belonged to EU
have left their jobs and are moving back to their origins. They are taking this step so that they
don't fall victim to unjust faith provided by government to them. This explains how Bentley
Motors have a negative impact from economic conditions in a business environment. BREXIT
have already brought in a lot of changes in Bentley, future speculations are made on what all
changes might be brought in future for this company (Liu and Stening, 2016). There is still not
any fair deal of negotiation between EU and Britain. This uncertainties have left Bentley Motors
and many other companies along with it on a middle way with no clear pathway forward.
PESTLE AND SWOT ANALYSIS:
SWOT Analysis-
A SWOT analysis is a framework which is used in determining internal factors affecting
organisation which includes strengths, weaknesses, opportunities and threats. In context of
Bentley Motors SWOT analysis is as follows: Strengths- When discussing about Bentley, its major strength is that company believe in
differentiation of its products (Lee, 2015). Major attention is provided on quality of
products. Another strength for company can be that each product or car produced by
Bentley is superior with advanced technology which supports its speed and durability. Weaknesses- Taking Bentley into consideration its major weakness is that it has a very
limited market to target for its product. It deals exclusively with high income group of
customers. Another backdrop for company is the pollution its products release in

market. Bentley cars usually omits more pollution then others which results decrease in
its demand (Mcdonnell and Sikander, 2017) . Threats- Company is facing threat from BREXIT in today's scenario. There have been
no fixed rules and laws after this have been brought in for proposal. Companies supply
chain have already been affected by BREXIT , these areas of impact can increase based
on speculation made for this movement. Another threat to firm is competition from
companies like Tesla. Tesla is challenging Bentley on basis of Environment protection.
 Opportunities- Major opportunity for Bentley which is clearly witnessed from its
external environment is company trying to enter into a new segment which
manufactures electric cars. This will have a dual effect, along with increasing reach to
new markets it would also lead to company being environment friendly (Geppert and
Pastuh, 2017). There are also various other opportunities such as company can use better
marketing and promotional tools which would increase awareness about product and
company in all the new markets it is venturing into.
PESTLE Analysis-
Pestle Analysis is a method in which all external factors such as political, economic,
social, technological, legal and environmental are evaluated which have an effect on working of
an organisation. Pestle analysis of Bentley Motors is as followed- Political Factors: There are a number of factors that are affecting Bentley Motors. It
includes the events followed by BREXIT. After this there have been a lot of changes in
trade with European Union. These changes have emerged to be threats for Bentley
Motors. Economic Factors:Company also faces a number of challenges which are followed by
changes in economic condition of market (Fascia, 2018). One of the major effect is due
to rise in inflation in country. Another effect is caused due to rise in supply chain prices
because of custom duties now imposed. These two economic conditions have majorly
affected Bentley Motors. Social Factors: A new trend of electric cars have emerged in market these days. This
trend have proved to be very beneficial for country. Bentley Motors have developed a
number of prototypes of electric cars from which they plan on attaining major market
shares.

 Technological Factors: Firm is looking into various ways of automation and
technological advancements. Company is planning to develop a vehicle with auto pilot
feature, in which your cars will drive automatically(Du Plessis , Hargovan and Harris,
2018). Automation in processes is also a feature which company is investing in. These
will result in replacement of human resources and reduction in pollution caused by
company and its products. Legal Factors:Legal factor is another important factor which effects Bentley motors. It
have been analysed that laws in UK are not inclined towards automotive sector. An
example can be taken from supply regulations in European Union and the uncertain
policies in UK relating to BREXIT. These two factors are major threats to Bentley
Motors.
 Environmental Factors: Company have great opportunity to excel in field of
environmental factors. In order to stop global warming and reduce emission of
pollutants in environment company can focus on production of electric cars (Child,
2015). These cars will not release much CO2 in environment as compared to others.
It has been analysed that there are a number of opportunities as well as threats present in
internal as well as external environment of a business. A business requires study of both factors
in order to formulate its strategies. From SWOT and PESTLE of Bentley Motors various
opportunities for companies in coming future along with drawbacks that it may have to face.
CONCLUSION
From above report it can be concluded how business environment is necessary to study
so that business can be carried out smoothly. It helps a firm to learn about its competitors and
assists in making strategies to obtain sustainable market growth. It is important while doing
analysis that all of industry is taken into consideration. Both external as well as internal factors
are to be analysed carefully in order to attain advantages.
Natural environment have a major impact on business. This involves environmental
factors as well. It has been analysed from this report that it is very important for businesses to
take care of nature and environment they are surviving into. In case of Bentley company
requires to check its pollution emission through processes as well as through cars. Demographic
environment is seen to have major effects on working of an organisation. Bentley have been
negatively affected due to millennials choosing to travel in public transports. This decision of

theirs have led to a downfall in demand of Bentley. Also company is now planning on making
some cars which are luxury as well as sporty so as to attract young customers. Cultural
environment also affected Bentley motors. It is necessary for Bentley Motors to be sure of the
fact that no culture is affected due to it.
Business environment of company includes its economic environment. This economic
environment consists of economic policies, systems and cultures. It is very crucial to evaluate
all economic factors which may directly or indirectly have an effect on behaviour of a firm.
Economic factors also warn companies about the factors which may in future prove to be threats
for firm. Economic conditions also help in determining demand and insight of market position
of company. On the other hand non-economic environment includes social, cultural, natural etc.
which are important in order to survive in market. Various impact of these factors have also
been studied which clarifies that what can be benefits as well as challenges which can be faced
by company in coming future. They also let a company know about various possibilities for
development in coming future. For Bentley it is improvement in its process to omit less
pollution, development of electric cars, better use of promotional tools etc.
Swot analysis have also been carried out on Bentley in order to determine core
competencies and strengths of it along with weaknesses and major threats which might hamper
working in an organisation. It also analyses opportunities in external environment present with
company. For external analysis of company pestle have been carried out. Pestle tells a firm
about how effectively it is dealing with external factors on which company does not have any
control over. It can be concluded that all these external and internal factors which have an
impact on business are interrelated. An approach must be used so that strengths and
opportunities can be used to optimum limit and internal threats and weaknesses can be
decreased taking hep of competitive advantage. In this way firm can operate in market
generating profits for its stakeholders.
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