Contemporary Business Environment

This report discusses the role of business, natural environment, and culture in shaping the behavior of an organization. It explores the PESTEL & SWOT analysis of Jaguar Land Rover Limited, a British automotive company, and analyzes the impact of economic and non-economic factors on its functioning. The report also highlights the importance of understanding the changing factors in the contemporary business environment for long-term sustainability.

CONTEMPORARY
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
Role of business, natural environment, culture in shaping behaviour of organisation....................4
PESTEL & SWOT Analysis............................................................................................................7
PESTLE Analysis:..................................................................................................................7
SWOT Analysis:.....................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENECES............................................................................................................................12

INTRODUCTION
Business culture is changing very fast and is affected by behaviour of a organization.
There are two type of business in every economic environment that is economic environment &
non economic environment ( Amankwah-Amoah and Wang, 2019). It consists of factors such as
natural, technological etc. that are impacting overall functioning of a business. Natural
environment consist of various factors such as ecological and geographical factors that are
affecting overall organisational behaviour.
The present report is based on Jaguar Land rover limited that is a British automotive
company. It is a organisation that is having its headquarters present in Whitley, Coventry, UK.
The present report discusses about how overall cultural factors are influencing functions in a
better way. In a business environment there are different elements such as internal and external
that posses influence on its overall functioning. Internal factors consist of weaknesses, strength
and competencies of a organisation that are operated inside a company and posses influence on
its operations, external factors consist of political, economical, social, environmental and
technological factors that are influencing a business organisation all such factors posses a impact
that is very crucial for every organisation to understand their overall influence on organisation
and its functioning. There are many approaches that have been developed that can help in
leverage of such internal competencies and maximization of sustainability of a organisation in
the macro environment. Contemporary environment of every business consist of these factors
that are related to it and are changing very fast as a result of this it becomes very crucial to gain a
understanding of such changing factors for a particular business organisation.
Present report consists of a brief analysis of the most important aspect of a business
organisation such as economic environment and economic environment. Economic environment
consist of factors such as conditions, policies etc. On other hand, non-economic environment
consist of factors such as natural factors, demographics etc. There is also a detailed analysis that
consists of various factors of internal environment of a company with help of frameworks such

as SWOT analysis and macro environment is analysed based on models such as PESTLE
analysis. These two are the framework that must be analysed in detail to get a understanding of
overall impact of external environment and also internal environment in long term sustainability
of the business. These factors lead to basic information about how business can prepare
strategies for minimization of overall effect on the functioning of business. It is very helpful in
developing an understanding of the external factors posing a effect on business and its
operations.
Role of business, natural environment, culture in shaping behaviour of
organisation
Economic environment of a organisation consist of various factors that are part of a
economy and posses a very crucial impact on their functioning. It consists of different
regulations, conditions of economic environment that are part of the system (Boone and et. al.,
2019). All such factors posses influence on organisation and its functioning so that it can change
according to various changes taking place in the economic environment.
In relation with Jaguar, it is a organisation that is part of automotive industry located in
UK. The economy is facing many transitions and shifts because of political referendum such as
Brexit. This was a referendum that was signed in year 2016 for the purpose of Britain leaving
European Union. As there were 51.9 percent that is in favour of this referendum this lead to this
decision favour of those who were willing to leave this union. There are certain factors of
economic environment that is impacting environment of Jaguar Company as discussed below:
Economic policies: There are some of the economic regulations and policies that are part
of UK and they possess a direct effect on the automotive sector. Jaguar is such a company that is
also influenced by such economic regulations. UK is going through a sudden impact of the EU
referendum related with BREXIT. The overall policies of government consist of a investment of
amount of rupees dollar 20 billion to increase the productivity of business that are part of
automotive industry. Overall governmental policies are made in such a way that they are
supporting manufacturing of vehicles by reduction of acquisition cost of raw materials making
manufacturing of vehicles more cost effective and easy for companies such as Jaguar. There is
also support inform of promotion of innovation in such vehicles as this can help in meeting
increasing demand of target segment of these companies. Such effort has a very positive impact

on increasing overall GDP growth (Aksenov, 2017). It also lead to alignment of environment
which is very advanced a competitive enough for automotive industry. Economic policies are
always in concern with the changing economic conditions and are part of the economic
environment of a business. It is as a result of these conditions that business has to make sure that
such activities are not affecting the functioning of their business in any negative manner. Overall
profitability of business gets affected because of these factors and it results into changing
policies of a business.
Economic systems: economic system consists of the system that is related with
allocation of resources and its distribution in consideration with availability with a organisation.
All organisations are operating in a economy that is completely dynamic. All these policies of
changing economic systems are part of a country that is regulating overall behaviour of
companies. There has been increase in focus of government on development of manufacturing
efforts so that they are able to produce more and ease in policies lead to a growth and
development of these industries. Unfavourable economic conditions such as those of brexit
posses a negative impact on the performance level of automotive industries. There is also a
impact on overall availability of labour at low cost that leads to rising manufacturing cost for
companies (Hejduk, 2016). This may possess a increase in final prices of products and
consumers may face hike in prices of vehicles that can lead to decreasing demand in coming
future.
Economic conditions: Jaguar is a automotive brand that is having its headquarters in
UK. This company is impacted by economic conditions of a country which is also affected by
other nations. Brexit is a referendum that is having a negative impact on operational and
functional performance of a company. Overall implication will be in form of organisational
behaviour of jaguar motors as unfavourable economic conditions will lead to decrease in overall
productivity of the companies such as jaguar (Salami and Seamans, 2014). Jaguar is investing its
resources on manufacturing of vehicles and especially on their latest design cars. But apart from
this there is still lot of technology imports that are done by this brand from European Union.
Brexit is a sudden referendum that has impacted such import relations up to a great extent and is
making impost very difficult for this company.
Impact on non economic environment on Business

With various economic factors there are certain economic factors that are also having a
impact on operation of a organisation. These are the factors that consist of a crucial impact on
demand of products in market (Nieri and Giuliani, 2018) . Some of non economic factors that
are affecting organisation is discussed below:
Natural: There are several natural factors that are part of external environment and
consist of climatic conditions and weather conditions. It mainly consist of factors such as
geographical factors, weather conditions etc. The overall lifestyle of people of a country is
impacted because of such geographical factors like issues of global warming, health related
issues, environmental pollution concern etc. Because of depletion of environmental factors there
is availability of natural resources that are also getting affected and this leads to suffering of
manufacturing industries. Jaguar is also a part of manufacturing of automobiles and the amount
of fuels and gases used by this brand has to be taken onto consideration while planning their
manufacturing decisions.
Cultural factors: Cultural factors are those that are also impacting behaviour of a
organisation. It consists of beliefs, norms, values that are related with citizens living in a
particular country. All this have to be managed by managers and leaders of every organisation so
that it is in favour of the organisation and not against it. In UK, people are belonging to various
types of cultures that lead to generation of different behaviours in consumer markets. Each
individual s different from another and the buying behaviour is also changing because of their
changing preferences, tastes and styles. Such as in case of Jaguar, new designs are launched with
every some time when preferences of people are changing and they are developing a preference
for new and latest designs (Pantouvakis and Patsiouras, 2015). All other stakeholders’ part from
customer such as employee behaviour is also impacted by the performance of employees. If there
is positive behaviour of employees than it may lead to increase in productivity of organisation.
Demographics: there are certain demographic factors such as income, age, lifestyle, taste and
preference of people. When there is decreasing unemployment in UK than it may lead to impact
on impact on the living standards of people living in the society. It has a favourable and
unfavourable impact on performance of jaguar (Enikolopov, Petrova, M. and Sonin, 2018).
When there is high rate of unemployment than it can lead to affect on their purchasing power. It
may decline as they may not posses income to spend on luxury items such as cars. Hence, it is’

very important for companies such as Jaguar that there is rise in living standards of people so
that they can have a positive impact on their sales.
PESTEL & SWOT Analysis
PESTLE Analysis:
This is a analytical framework that is helping in understanding of impact of various
external factors on a organisation. PESTLE analysis of jaguar is mentioned below:
Political factors: these are the factors that consist of implications that are posed by
government of a economy (Rathee, R. and Sharma, 2016). Jaguar is a organisation that is making
timely plans in order to deal with various political changes. Such as Brexit is leading too increase
in manufacturing cost of Jaguar. That has to be managed by company to dealing with the long
term impact that can be adverse for organisations.
Economic factors: There are many factors such as inflation rates, interest rates etc. That
are also getting affected by Brexit that is impacting jaguar there has been increase in export rates.
Overall supply chain and distribution networks also become costly and can be a future threat for
jaguar.
Social factors: There are various social factors that are impacting organisations such as it
includes demographic factors, preferences of customers that are very dynamic and cam never be’
constant (McCann, 2016). There has been rising shift of customers towards high value cars that
are helping jaguar in increasing their overall revenue.
Technological factors: There are many factors that are impacting overall competitive
advantage of a organisation. Jaguar is a organisation that is planning to update their technology
with their competitors. It is very helpful in keeping a pace with the automation technology that is
helping them in providing their vehicles updated with latest technology.
Legal factors: There are certain legal regulations that have to compulsorily adopt by
organisations especially in case of automotive industry such as for Jaguar. There are many legal
acts such as related to limit emission of harmful gases that can pollute the environment etc. All
these have to be very carefully taken care by company while they are planning a new launch and
in case of existing range also (Valverde, and Latorre, 2019). It helps them in enhancement of

their brand image for their customers.
Environmental factors: these are the factors that are helping in managing overall impact
of environment of business by following all the legal implications that are related to external
environment. Jaguar is a organisation is making sure that there is proper availability of their
products for their prospective as well as present customers. Also, efforts are made by this brand
that they are properly implementing all the policies in concern with protecting environment so
that positive contribution can be made in saving environment as a part of their corporate social
responsibility.
SWOT Analysis:
Strength: One of strengths of Jaguar is that is dealing in products that are of very high
quality and different designs that are offered by any of their customers (Gallent, Mace and
Tewdwr-Jones, 2017). Jaguar has been acquired by Tata motors and its association with this
brand is helping them in performing in a excellent manner. There have been able to create a very
good image in external markets as they have been away from any controversies.
Weakness: the overall product range that is offered by Jaguar is limited as compared to
their other competitors. They have not been able to gather popularity in markets of Japan and
German. This brand has been facing many problems in relation with their manufacturers as there
wee lot of problems related to seat belts that lead to corrosion protection for their customers.
Opportunity: There is a very attractive opportunity for jaguar in terms of targeting
markets such as of China, India. Use of hybrid technology is a future of this brand. They can also
invest in adoption of environment technology in coming future period of time. They can also
focus on acquisition of new base of customers also with the increasing disposal income there is
increase in spending of target customers for this brand.
Threat: There is a rising threat for this brand in terms of facing very high completion from
brands such as Bentley, Aston martin etc. Apart from these there has been lot of changes that are
taking place in the environmental and governmental policies (Bosco and McDonnell, 2015).
Further there is a threat for financial instability in the external market that is being faced by
jaguar. There is also a hype i n overall cost of raw materials that is leading to increase in prices
of their products.

CONCLUSION
It can be concluded from above discussed topics that business environment that is present
outside the organisation. It is very important to develop understanding of such factors for
developing sustainable strategies for overall business growth. It is also very necessary to develop
an understanding of internal competencies of a organisation for availing various business
opportunities.
Economic factors are very important to be evaluated in a detail manner so that various
economic factors that posses effect on the overall economy have to be understood in detailed
manner. There is a need for making a analysis of such factors so that it enables the organisation
in making adequate measures to minimize overall risks and threats for a company. There are
further other economic conditions also that are helping in gaining detailed insights for
understanding the market position of a company.
For making a analysis of non economic environment it is important to analyse that these
technological an social trends for understanding of the market. It is by the organisation for
enhancement of their overall competitive option. Impact of such behaviour is very important to
understand such factors to gain a insight of the conditions if external market for functioning of
the organisation.
In case of non economic environment, it can be said that there are various different types of
trends that are prevailing in this macro environment. They are divided in various categories such
as it can be in form of political, environmental, technological, social or sometimes legal. All
these factors posses a very significant impact on internal functioning of a organisation. These
consist of trends that have to implemented seriously by every company otherwise they may
posses control and this can result in difficulty in survival for such organisations. External
environmental conditions are those that have to be adopted on a continuous basis as they are so
dynamic that keep on changing in a very short duration of time and cam never remain constant.
This leads to development of both challenges and opportunities for a particular organisation. For
example of changes are in favour of the organisation then it will lead to emerging of
opportunities and if is against the organisation then there are some of threats and challenges that
have to be deal by a company and mitigation measures have to be formed so that its negative
impact cam be managed and avoided.

Internal analysis of a company is usually done based on a very commonly concept
framework that is SWOT. It is very helpful in developing of a clear understanding of strengths,
weakness, threats and opportunities for a business organisation. It is also useful in gaining
knowledge of external opportunities that are available for a business organisation. Apart from
this there is another very emerging method that can be used for getting knowledge about other
factors affecting overall functioning if the business organisation and it includes PESTLE
framework. In this six major factors are understood in detail and their long terms relation with
objectives of a company are understood. It can be summarised that these elements that are
affecting a organisation both internally and externally have to be understood so that its impact
can help in reduction of threats and animation of opportunity. Environment is very uncertain and
is helping in attainment of a competitive advantage that is very crucial for survival and overall
achievement of objectives. So it ac be said that it is very essential too understand the overall
impact of these factors that it can result into positive and negative impact of every business. All
these factors are part of contemporary business environment and are as a result of changing
circumstances of business.

REFERENECES
Books and Journals
Amankwah-Amoah, J. and Wang, X., 2019. Opening editorial: Contemporary business risks: An
overview and new research agenda.
Boone and et. al., 2019. Contemporary business. John Wiley & Sons.
Aksenov, S. L., 2017. Contemporary Business Environment in Russia. International Journal of
Economic Perspectives, 11(2).
Hejduk, I., 2016. Sustainable Enterprise as a Concept of Contemporary Management. Przeds.
Zarz .10. pp.9-20.
Nieri, F. and Giuliani, E., 2018. International business and corporate wrongdoing: A review and
research agenda. In Contemporary Issues in International Business (pp. 35-53). Palgrave
Macmillan, Cham.
Pantouvakis, A. and Patsiouras, C., 2015. Satisfaction formation and typology of bar
customers. Tourismos, 10(1).
Rathee, R. and Sharma, V., 2016. A study to explore the factors predicting employee
engagement. ZENITH International Journal of Business Economics & Management
Research. 6(10). pp.47-59.
McCann, P., 2016. The UK regional-national economic problem: Geography, globalisation and
governance. Routledge.
Valverde, G. O. and Latorre, M. C., 2019. The economic impact of potential migration policies
in the UK after Brexit. Contemporary Social Science. 14(2). pp.208-225.
Gallent, N., Mace, A. and Tewdwr-Jones, M., 2017. Second homes: European perspectives and
UK policies. Routledge.
Bosco, A. and McDonnell, D., 2015. Italian Politics 2011: From Berlusconi to Monti.
Enikolopov, R., Petrova, M. and Sonin, K., 2018. Social media and corruption. American
Economic Journal: Applied Economics. 10(1). pp.150-74.
Salami, A. and Seamans, R., 2014. The Effect of the Internet on Newspaper
Readability. Available at SSRN 2506422.