Contemporary Business Environment

Contemporary Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
How do the business, cultural and natural environment that are shaping the behaviour of Aston
Martin organisation......................................................................................................................4
Natural environment shapes the behaviour of business organisation..........................................6
PESTLE and SWOT analysis with examples .............................................................................8
Conclusion.....................................................................................................................................10
Recommendation...........................................................................................................................11
REFERENCE.................................................................................................................................12

INTRODUCTION
Contemporary business environment is considered as increased competitive and dynamic
environment where organisation provide different types of products and services in order to take
competitive advantages. The needs and wants of people are changing day by day where
innovation and new technology has taken the places which help companies to increase the
organisational productivity and market image. Therefore, different types of logical and reliable
business strategies are developed by corporations that support planning, control and decision
making effectively (Boone and et. al., 2019). To understand the about contemporary business
environment and competition Aston Martin has been selected that is British car manufacturer
company was founded in 1913, London, United Kingdom. The head quarter of such organisation
are in Gaydon and UK where it manufacture luxury sports cars and grand tourers. The needs and
wants of people are identified by management the produce products accordingly that help to take
the competitive advantages. Different types of challenges are faced by organisation while
running its business and strategic decisions are taken by management which helps to improve the
business productivity by accepting challenges. If company is not able to accept the changes and
challenges then it become difficult for organisation to sustain in competitive environment.
The environment of business is mainly considered economic and non-economic
environment which has impacted on business organisation whether positive or negative.
Economic environment contains economic system, economic policies and economic condition
that affects the operation and helps to control the internal activities (Rosenbach, 2018). Whereas
non-economic environment consist demographical, natural, social, political, environmental, legal
and technological factors which are uncontrollable and can impact business positive and manner
as well. These are influencing factors which arises while organisational activities and make
decisions to work properly. Therefore, it is important for Aston Martin and other organisation to
focus on such factors and make efforts to reduce the negativity. This report will help to
understand about economic and non-economic factors, how they are shaping the behaviour of
respective organisation by involving cultural and natural environments. The aim of this report to
enhance knowledge about environment and factors which affects the operations and maintaining
good behaviour. Moreover, report covers PESTLE and SWOT analysis of organisation which
has affected business and maintaining good behaviour (Hassanien and Dale, 2019).

MAIN BODY
How do the business, cultural and natural environment that are shaping the behaviour of Aston
Martin organisation
Business environment is said to an external and internal forces like customer
expectations, suppliers, government activities, employees, technology, innovation and demand
and supply, social trends and market trend which influences operations and functions of business
organisation (Vetter 2019).
Business culture shapes behaviour of business organisation behaviour
Business culture is illustrated as norms, values and traditional behaviour of a group that
has an impact on the strategic direction of business organisation. In other words, culture of
organisation is related to behaviour, ethics, values, vision, beliefs, habits, working style and
etiquettes which helps to accept the challenges. Business culture is important factor that shape
the behaviour of Aston Martin by recruiting, building and retaining first class team which helps
to operate the business activities and complete task effectively by accepting challenges. The
corporate culture of Aston Martin is very effective as it helps to retain employees and celebrating
diversity by seeking out, bringing and providing training to employees that is admittedly quite
which helps to accept the challenges easily. Moreover, management of such organisation
prescribes learning curves that helps new staff to learn the ropes and increase organisational
productivity (Fascia, 2018).
Economic environment and its factors that shapes the behaviour of Aston Martin
Economic environment is related to economic factor that affect organisation behaviour
and consumer behaviour by stating how it operates and can be more successful. For organisation
it is important that to focus on profitable factors which can helps to increase the organisational
productivity and profitability (Lin, and et. al., 2018).
Economic policies
Economic policies is consider as course of action that involves decisions made by
government related to spending and taxation, shape organisation behaviour. As different types of
regulations and trade policies are formulated by UK government, followed by Aston Martin in
order to run a business by manufacturing and supplying the sports cars. The management of such
organisation focus on spending of people and taxation policies that helps to operate a business
effectively that is impacting positively. On the other side, in absence of economic policies and

government regulation it may be difficult for organisation to operate and run its business in
competitive market and sale its products. Therefore, economic policies has impacted positively
on Aston Martin operation that suggest where is need to make invest and how can get revenues.
Economic system
Economic system is another element of economic factor that means how a society and
organisation organise available resources, services and goods across the geographic region or
nation under government regulations. With the help of economic system Aston Martin enable to
distribute resources and trade goods and services. In other words, it control the production of
sports cars, labour, capital, entrepreneurs and physical resources that helps to operate business
effectively and manage all business functions. This is influencing factors that affects the
operation of respective organisation positive and increase the profitability (Hansen, 2018).
Economic condition
In addition to, economic condition refers as macroeconomic variables and trends in a
country that impacted on Aston Martin operations such as management focus on changing trend,
unemployment rate, and inflation, fiscal and monetary policies which arises in business
activities. Aston Martin is large size organisation that requires number of employees to work
there so it recruits a large number of employees which helps to reduce the unemployment rate
and increases organisational productivity. Moreover, the population of UK is increasing that is
creating demand of sports cars that help Aston Martin to improve the sale and profitability of
company (Kalitanyi, 2019).
Non-economic environment and its factors that shapes the behaviour of Aston Martin
Non-economic environment is said to external environment that involves political
system, government policies, legal framework, social system, demographic factors, technological
development and natural environment that are uncontrollable in business (Zhang, 2018).
Political system
The political system of UK is stable which has impacted on Aston Martin positively as it
operate its business easily and sale its product in large number without any foundations. At the
same time, it might affect negatively when there is change in government and its tax rates which
can limits the trade of products and services.
Social environment

Social environment has taken the place in Aston Martin ait products and services which
are provided by selected organisation are according to demand and desire that attracts customers
and increases the sale. Hence, social and political factors are shaping the behaviour in selected
organisation (Yin and Quazi, 2018).
Demographic environment
Non-economic environment also involves demographic environment that means specific
target which is used by organisation to execute its business and run it effectively. Aston Martin
uses demographic environment to identify target market for its specific sports cars that helps to
increase the sale and market image. For instance, management are mainly targeting to high
profile people between the age group of 25 to 50 years. By targeting and using demographic
environment it can increase the sale and productivity of business corporations (Arnold,
Beauchamp and Bowie, 2019).
Technological factor
For running and operating a business successfully it is important for organisation to adopt
innovation and bring new technology that can attract customers as well as help to maintain the
operation effectively. It helps to shape the behaviour of organisation for instance, Aston Martin
that is luxury sports car maker providing different models of cars to the customers. Management
of such organisation conduct market and bring new technology to manufacture cars which helps
to produce new products and services. This helps to increase organisational producing and
shapes organisational behaviour positively (Wielki, 2018).
Legal factor
This means rules and regulations which are governed by governmental authority to
execute and operate business effectively. Aston Martin is following all legal frameworks which
are related to organisation and its operation such as minimum wages, anti-discrimination act,
health and safety act, data protection act, equality, consumer protection act etc. It helps to
increase the production and profitability by retaining customers effectively. On the same time, it
can affect negative in case of not following legislations which might limits the productivity and
increases employee turnover situation. Therefore, this factor shape the organisational behaviour.
Natural environment shapes the behaviour of business organisation
Natural environment is related to living and non-living things that occurs naturally and
influences behaviour of organisation. Ecological and geographical are those factors which helps

organisation to increase operational activity of Aston Martin by focusing on soil, vegetation etc.
By considering such factor organisation set their standard and get involves in business activities
that helps to execute business operations effectively. Moreover, climate and weather condition
are natural resources that arises in businesses and impacted the behaviour of Aston Martin. For
instance, the demand of sports cars and other services can be reduce due to changes in climate
condition. This means changes in climate affects the needs and wants of people that highly
affected the operation of selected organisation. This is important for organisation to focus on
climate and provide kind of products and services that help to manage the business activities
(Ngibe and Lekhanya, 2019).
Topographical factors
Topographical factors are those factors which involves height, direction of slope,
steepness of the slope and structure of corporation that influences growth and development of
business by bringing variations and changes. In context to Aston Martin, hierarchy structure is
followed by organisation where employers and employees are allow to communicate easily and
coordinate effectively. Such structure helps management of chosen organisation to establish clear
authority for work and department. In this authority, it allocate resources, reward and punish
employees which helps to operate a business. The disadvantages of such structure is centralize
power and authority at highest level that create difficulties to make decision on day to day
operations. Therefore, this factor can impacts negative on behaviour of corporation and reduces
productivity (Bernstein and Szuster, 2018).
Location aspects
Location is highly important for organisation because such factor greatly in to how initial
customers can find an organisation and how an existing customers visits mostly. As customers
are important for all organisation who contribute in success of organisation by purchasing good
and services. Moreover, this provide feedback to company which increases market image and
profitability. Aston Martin is taking advantages of such factor by opening number of car stores in
UK and other nation which helps customers to buy products easily and retain existing customers.
This increases sale of sports cars and satisfying customers. Hence, location aspects is important
factor in business environment which uses to operate a business by selecting an appropriate
location and place where customers can visit easily and make decision to buy the products. A

part from this, Aston Martin has online stores where customers has option to put their query and
get answer, influences organisational behaviour (Ryan and Garrett, 2018).
PESTLE and SWOT analysis with examples
SWOT Analysis: It represent both internal and external analysis which is done by
company in order to gain competitive advantage over other rivalries that deal in similar type of
industry. The manager of Aston Martin constantly upgrade its strength and overcome existing
weaknesses so that they can either exploit the opportunity or mitigate threat to systematically
maintain the operations of luxury sports car (Woiwode and Woiwode, 2019).
Strength
 The company has effectively maintained its global image within Automobile sector due
to which it gets the advantage of high recognition value which helps in setting the unique
image of brand. It is relatively tough for existing as well as new rivalry to affect the
position of firm.
 Being luxury sports car the company usually charges premium prices for its offerings due
to which it gains the high profitability margin. Along with that Aston Martin has
effectively maintain the large customer base of loyal customer to whom they serve
significantly.
Weakness
 Aston Martin encompasses limited range and choices in their sports cars which restrict
the choices of prospects. Although they serve supreme level of quality but most of the
time customer looks for the wide product line or alternatives to make best possible
choice.
 As Aston Margin only targets only to the premium range of customer which furthure
restricts their market. Like the other competitors of company probably have high ration of
customer. Thus, the company need to accommodate the need of their customer and
expand market significantly.
Opportunities:
 Aston Martin is using new technology and innovation in its products as well and
supply chain that helps to capture high market share and increases number of
customers.

 The expansion of market in context to Aston Martin is available in several
countries that helps to maintain the selling activity and profitability.
Threat:
 The threat for Aston Martin is increases in petroleum prices which increases
products prices.
 There is high competition for Aston Martin that can reduce the organisational
productivity and selling activity.
PESTLE analysis – This is a concept which is used by organisation in marketing
principles to analyse which factor can impacts on operation and profitability. In other words, a
tool used by enterprise to track the environment which help in operating and planning to launch
new product and services. In Aston Martin, PESTLE analysis is done by management that are as
defined:
Political factor – This element state the extent to which government may influence the
economy. In UK, tax policies, fiscal policy and trade tariffs are levied by governmental authority
which has impacted on Aston Martin positively. In case of changes in tax and duty it become
challenging situation to operate its business in competitive environment. Brexit is defined as
withdrawal of United Kingdom from European Union that has impacted on business such as,
companies was set up in European country had to stopped their business and it also limits the
trading activities. Such factor has impacted negatively as lack of selling products in market
because of Brexit. This factor levied legislation on business to run their activities in other nations
other than European nations (Ngibe and Lekhanya, 2019).
Economical factor – It determines economy's performance that directly impacts on
organisation and have resonating long term effects. For instance, rises in inflation rate of UK's
economy affects the prices of company's product and services as it increases. This also affects
the purchasing power of consumer and changes in demand of Aston Martin's products.
Therefore, it factor has impacted on organisational performance due to rises in inflation rate.
Social factor – It scrutinize the social environment in business environment by involving
cultural trend, demographics, population, changes in traditions, lifestyle etc. that has impacted on
organisational operation. Aston Martin is focusing on cultural trend and lifestyle of people where

it produce new cars according to customer’s desire that helps to operate business successfully
and maintaining business performance (Bernstein and Szuster, 2018).
Technological factor - The relation of such factor is pertaining to innovation in
technology that may influences operation of company and market. Under this, Aston Martin
introduce new technology and innovation to manufacture different model of cars which attracts
customers and encourages them to make buying decision. Moreover, it bring new technology in
the process of supplying the products which increases organisational sale and profitability as
well (vom Brocke and Mendling, 2018).
Legal factor – When organisation is running its business then it is need to follow legal
framework or regulation that affects the business environment. Aston Martin is larger
organisation that operates its business by following consumer laws, labour laws, safety
standards, consumer protection act, anti-discrimination, minimum wages etc. It helps to to
operate business in competitive environment and increase market share by attracting customers.
Environmental factor – The relation of environmental factor involves surrounding
environment and ecological aspects which increases organisational effectiveness. Aston Marting
is operating its business successfully in UK by contributing in Corporate Social responsible
activities which is important to improve the efficiency and influencing customers. Moreover,
wastages reduction, reducing carbon emission error and recycling procedure are maintaining by
corporation that that increases organisational sustainability (Black, 2019).
Conclusion
From the report it can be concluded that business environment is related to internal and
external factors which are important to run a business effectively. Internal environment involves
various factors such as investors, economic system, policies and regulation that governed by
management to run a business. This factor can be change and control by internal management.
To run a business effectively it is important for organisation to conduct research and make plans
that can help to operate a business successfully. Internal factor provide information regarding
demand and supply of customers that shared by management in order to attain the business goals
by making decisions. Policies and regulation are formulated by government in order to make an
effective economy. Natural, economic and non-economic factors are those factors which are used
to maintain an organisational behaviour and increases effectiveness. If government has changed
the tax rate and interest rate then it may affect the operation of Aston Martin negatively. Because

organisation has to pay high amounts on loan and products which can reduce the productivity
and profitability of organisation. SWOT analysis is the tool which is used by corporation to get
the strength and weakness of company. By knowing weakness efforts should be done by
managers in order to convert in to opportunities. From the PESTLE analysis it has recommended
to Aston Martin Company to focus and follow external environmental factors that can help to
increase the organisational productivity. Due to changes in political system, economic changes,
climate changing, changes in social factors the operation of organisation can be problem that
influences business performance negatively. This is important for company to focus on different
types of legislation which can help to improve the organisational productivity and profitability.
Location aspects is an influencing factor that uses to shape the organisational behaviour by
selecting a identifies and appropriate place to sale it products and services. Moreover,
technological aspects is valuable for company that helps to bring new products and services in
organisation and increases competitive advantages (Bernstein and Szuster, 2018).
Recommendation
From the report it has recommended that organisation should adopt changes and
challenges in their business then only it can get opportunities for increasing productivity and
profitability. Such as Aston Marting was making luxury sports cars but by bring innovation and
changes in their process it has planed to introduce electric cars by using technological factor
which is shaping innovation. While running a business there are many factors which can arise in
business process such as technological, demographic, economic, social and environmental factor
which has impacted on business. The culture, ethics and nature are shaping the behaviour of
Aston Martin by understanding customers and employees demand and provide them kind of
products and services so goals can attain in effective time period.

REFERENCE
Books and Journal
Boone, L. E., and et. al., 2019. Contemporary business. John Wiley & Sons.
Rosenbach, W. E., 2018. Contemporary issues in leadership. Routledge.
Hassanien, A. and Dale, C., 2019. Hospitality business development. Routledge.
Vetter, J. S., 2019. Contemporary High Performance Computing: From Petascale Toward
Exascale, Volume 3. CRC Press.
Fascia, M., 2018. Contemporary Elements of Business Philosophy and Knowledge from an
Ignatian Perspective. Available at SSRN 3141136.
Lin, Y. H., and et. al., 2018. A content analysis of airline mission statements: Changing trends
and contemporary components. Tourism management perspectives. 28. pp.156-165.
Hansen, A., 2018. Environment, media and communication. Routledge.
Zhang, W. B., 2018. Economic Growth Theory: Capital, Knowledge, and Economic Stuctures.
Routledge.
Yin, J. and Quazi, A., 2018. Business ethics in the greater China region: Past, present, and future
research. Journal of Business Ethics. 150(3). pp.815-835.
Arnold, D. G., Beauchamp, T. L. and Bowie, N. E., 2019. Ethical theory and business.
Cambridge University Press.
Wielki, J., 2018. An Analysis of opportunities, challenges and key strategic implications
connected with the utilization of the Internet of Things by contemporary business
organizations,“. International Journal of Engineering & Technology. 7(3.13). pp.99-103.
Bernstein, J. and Szuster, B., 2018. Beyond unidimensionality: Segmenting contemporary pro-
environmental worldviews through surveys and repertory grid analysis. Environmental
Communication. 12(8). pp.1062-1076.
Ryan, D. and Garrett, P. M., 2018. Social work ‘logged on’: Contemporary dilemmas in an
evolving ‘techno-habitat’. European Journal of Social Work. 21(1). pp.32-44.
Woiwode, C. and Woiwode, N., 2019. Practical spirituality and the contemporary city:
awakening the transformative power for sustainable living. In Practical Spirituality and
Human Development (pp. 129-151). Palgrave Macmillan, Singapore.
vom Brocke, J. and Mendling, J., 2018. Frameworks for business process management: a
taxonomy for business process management cases. In Business Process Management
Cases (pp. 1-17). Springer, Cham.
Black, K., 2019. Business statistics: for contemporary decision making. John Wiley & Sons.
Kalitanyi, V., 2019. Global Business Environment. In Contemporary Multicultural Orientations
and Practices for Global Leadership (pp. 1-24). IGI Global.
Ngibe, M. and Lekhanya, L. M., 2019. Critical Factors influencing innovative leadership in
attaining business innovation: a case of manufacturing SMEs in KwaZulu-
Natal. International Journal of Entrepreneurship.
Online
Culture of business shapes behaviour. 2019. [Online]. Available through:
<https://www.forbes.com/sites/williamcraig/2017/08/03/8-ways-company-culture-
drives-performance/#63223f906ce0>