Impact of Economic and Non-Economic Factors on Bentley Motors

CONTEMPORARY
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................2
Economic Environment Shapes the Behaviour of Bentley Motors........................................2
Non-Economic Environment and Its Impact on Behaviour...................................................4
DISCUSSION AND ANALYSIS...................................................................................................5
SWOT Analysis......................................................................................................................5
Pestle Analysis........................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business Environment of an organisation contains all the internal, as well as external factors of
an organisation that has an impact upon its business functions and operations. Furthermore, it is
highly necessary that all the factors that influence the business are taken into account and be
analysed in order to gain effective sustainability, as well as competitive edge within the market
in which these organisations operate. Another reason as to why this environment is necessary to
be monitored in relation to an organisation is that it helps in determining crucial and effective
strategies which help them overcome the negative implications within the business environment,
along with staying ahead in the corporate world (Nikitina and Lapiņa, 2019).
Within the business environment, there are internal, as well as external elements that
have an influence on the organisation. For example, the internal factors include its strengths,
weaknesses and competencies of the company that are operated from within the company and
influence the operations of the firm from the inside. However, the external factors include a wide
spectrum of the business environment. This includes the political, economical, social,
technological, competitive, environmental, as well as legal factors that influence the business
environment externally. All these factors have their own set of impacts and are crucial to be
analysed and evaluated so that, prominent approaches could be formulated that could help in
leveraging the internal competencies, as well as maximise the competitiveness and sustainability
in the external market.
Hence, in this context, the report below is based on Bentley Motors, which is one of the
most prominent and recognised organisations in the United Kingdom. The firm deals in
manufacturing and distribution of premium luxury cars in all parts of the United Kingdom, as
well as major developed markets of the world. The report undertakes a brief analysis of the
economic and non economic factors of business environment of the organisation and how these
influence its behaviour. While the economic environment of the business includes the economic
policies, conditions, as well as systems; the non-economic factors take into account, the natural
factors, demographics, along with cultural factors (Raziq and Maulabakhsh, 2015). In addition to
this, the report also covers a detailed analysis of the internal environment of the company, using
SWOT analysis and external environment of the organisation which undertakes PESTLE
analysis of the company, which would be helping in determining the external, as well as internal
competencies and influences for the organisation.
1

LITERATURE REVIEW
Economic Environment Shapes the Behaviour of Bentley Motors
Economic Environment of an organisation is inclusive of all the factors within the
economy of the country that have a substantial impact upon operations and functions of an
organisation (De Vita and Case, 2016). It contains of several regulations, economic conditions,
as well as elements that are prevalent within the system. All these influence an organisation to
function in a flexible and apt manner that suits the requirements and changes within the
economy.
In relation to Bentley Motors, it is one of the biggest organisations operating in the United
Kingdom. Lately, the economy of the county has faced several transitions, as well as shifts due
to the likelihood of Brexit. Back in 2016, the referendum was signed for the Britain to leave the
European Union. Due to majority of votes in favour, the economy took a big hit after the
decision and its impact could very well be witnessed upon the organisation. Therefore, there are
several factors in the economic environment that has an impact upon the behaviour of Bentley.
These factors are explored below: Economic Policies:
There are several economic policies and regulations within the UK that have a direct impact
upon the automotive sector of the company, moreover, even Bentley is directly being influenced
by the regulations and policies of the country and the surrounding one within the EU. For
instance, the policies within the country for the automotive sector have set up appropriate and
effective opportunities for sustainability within the nation. For instance, the policies of
government include investment of almost £20 Billion in order to enhance the potential and
productivity of automotive businesses by bringing in innovation within the country. Moreover,
the policies within the UK are also in favour of ensuring a better and more digitalised
infrastructure in order to support the electric vehicles within the nation (HM Government:
Industrial Strategy, 2020). This has a positive and more progressive impact on the behaviour of
Bentley Motors. The reason which support the argument is the firm would be getting an
environment that is in alignment with its plans to build more innovative and digitally advanced
vehicles (Tarabasz, Selaković and Abraham, 2018).
However, the same could not be said about the EU regulations. This is because there are still
ongoing negotiations between the Union and Britain, which is yet speculated to be a No-Deal
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