Contemporary Development in Business and Management Assessment

This assessment discusses the impact of frameworks on organizational decisions and evaluates the response to global forces in the contemporary business and management environment. It explores the micro and macro environmental factors affecting organizations, including customers, shareholders, competitors, suppliers, political, economic, social, legal, technological, and environmental factors. The assessment also examines the concept of corporate social responsibility and sustainability and its relevance to Aston Martin, a British luxury car manufacturer.

Contemporary
Development in
Business and

Management
Assessment

Executive summary:
Contemporary business environment consist of a situation of high completion because of
the high pressure that is present because of various stakeholders that are related to a organisation
both internally & externally. The external environment is divided into two major competitors that
is micro environment factors and macro environment factors. Micro environment consist of
factors that are related to a specific organisation such as suppliers, customers. Macro
environment consist of political, legal, technological, economical & legal factors. The concept of
corporate social responsibility and sustainability is also getting popular with the changing times.
Organisations have become more aware to change themselves according to customers demand
and expectations to ensure their long run survival in the changing macro environment.

Table of Contents
Executive summary:.........................................................................................................................3
INTRODUCTION...........................................................................................................................5
TASK 1............................................................................................................................................5
Critically evaluate frameworks that are affecting organisational decisions...........................5
TASK 2............................................................................................................................................9
Evaluate Organisational response to various global forces....................................................9
Relevance to business entity as well as its influence on the business decision making along
with the policies of the enterprise. .......................................................................................10
Evaluation of the effectiveness of business organization response: ....................................11
Areas of improvement with regards to the current business entity : ...................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
There are different developments that are part of the external business environment that is
changing very fast because of large number of external factors. There is a need to conduct a
detailed analysis of different factors that posses impact on the business functions. Present report
is based on Aston Martin that is a British manufacturer of luxury cars & tourers. It was founded
in year 1913 by Robert Bamford and Lionel Martin (Katsitadze and Tushishvili, 2020). Its
headquarters are present in Gaydon, England in UK. Present report is based on the discussion of
understanding of the external business environment to insights of transnationals response
according to such dynamic environment. Further there is analysis of corporate social
responsibility & the concept of inscrutability related to relevance for Aston Martin. There is
evaluation of organisation response to this aspects and further some of the areas that have be
improved is recommended for the organisation.
TASK 1
Critically evaluate frameworks that are affecting organisational decisions
Company overview: Aston Martin is a popular UK automotive brand that is dealing in top end
sports cars catering to needs of their target customers across different parts of the world. This
brand was established in the year 1914 and sine there has been many Changes that have affected
the functioning if this brand (Grefen, and Turetken, 2020). Year 2007 was one of most
successful year as there were sales of 7300 cars. In present scenario they are occupying the
leading position in terms of luxury vehicles and future plans to expand across different parts of
UK. They are having approx 100 dealerships in 30 countries located in different parts of the
globe such as south Africa, Russia Japan, Saudi Arabia, UK, China and many more countries.
External environment consist of both micro and macro environmental factors. These
factors posses a impact on the way functioning is taking place. Presently there is discussion of
different micro environmental factors that are affecting the organisation as mentioned below:
Micro factors: There are some factors that are posing a direct influence on the organisation
regularly. These form are part of micro environment of every business and has a relation with the
immediate are of operation's that affects the process of decision making and overall performance
of a organisation. It is very crucial to develop a understanding of the all such elements that
comprises of the micro environment and it consist of aspect such as customers, organisations,

suppliers, competitors, intermediaries and market. Discussion of these factors in concern with
Aston Martin is mentioned below:
 Customers: It is one of most important factors that can posses a impact on the way
decision are made in the organization. It is related with various aspects such as income
level, taste & preferences (Shet, 2020). Customers are the base of every business. Aston
martin is willing to prepare top designs of cars for their clients. Aston Martin does not
have a specific segment of target customers as they are targetting both male & female
customers. For example the target customer for their first SUV is a 40 aged entrepreneur
with children. But in comparison with other similar brands Aston Martin has a low
market share as they only concentrate on use of luxury market and because of this they
are both willing to enter into nay other market. Shareholders: Shareholders are base of every organisation as they are willing to make
their investment to enhance their level of earning. Management of Aston Martin is
willing to take timely decisions such as in year 2019 Aston Martin has hosted their first
electric future event in London that showcases their zero emission power-train
technology. Where they mainly focussed on confounding of their traditional thinking and
taking advantage of the advances taking place in autonomous driving technologies and
electrification. These efforts on part Aston Martin is focussed on enhancement of their
brand image that has a directly impact on the overall revenue in terms of higher returns to
their shareholders. Customers: customers are one of the most important stakeholders that are affecting the
sales of a organisation. There is a very small range of models that are leading to a
limitation for their consumer choices. The target market of Aston Martin is approached
by use of a content driven strategy that is build on heritage of this brand. They have
partnered with James bond that is a key source of creating brand awareness buy
manufacturing of 10 units of DB. Competitors: There is very high competition from many existing brands such as Porsche,
Bentley, Jaguar (Prasetyo, Setyadharm and Kistanti, 2020). This is creating a situation of
extremely high competition that is impacting the way investment is being made in new
product launches. There is a very attractive opportunity for Aston Martin such as there

can be expansion towards budgeted motor vehicles apart from luxury segment cars. This
will help in having a option for a regular use car as compared to high luxury option.
 Suppliers: Suppliers are also one of most crucial stakeholder in every organisation as
they determine the smooth functioning by ensuring regular supply of raw materials. It is
very important to maintain long term relationships with the suppliers to ensure that there
can be attainment of cost advantages. They are willing to move towards a production of
14000 cars a years from 4000 cars. In Aston Martin majority of their suppliers are
denoted as “Cottage industry” Suppliers. Some of these small suppliers have failed to
keep up with the changes and this is leading to some production problems as reported by
the chief executive of Aston martin that is Andy Palmer.
Above mentioned are some of the micro environmental factors that are part of external
business environment but are specifically affecting a brand. These factors are not affecting whole
industry but specific organisation as a whole.
Macro environmental factors: there are several factors that are part of external environment on
business that is going to affect them in long run. There are some external factors that have both
positive and negative impact on the way organisation is functioning (Tamunomiebi and John-
Eke, 2020). For this there is a need to understand the positive and negative impact on Aston
martin that can be further used for making a detailed analysis of external macro environment.
This information can be further used for the purpose of formation of strategies in order to
enhance the productivity & sales of the organisation:
Political factors: There are many different factors that are part of political environment
and posses a impact on the way organisations are adopting it in the course of their regular
functioning. The negative aspect of this political factors is that there is lot of uncertainty related
to the exit plans of UK from EU. This factor is affecting organisation externally in such a way
there are changing rules, regulations, new policies and new boundaries because of which there
has to be Continuous Changes that has to be made in the internal policy formulation of this
brands that are part of automotive industry.
Economic factors: Economic factors consist of factors such as disposable income, interest
rates, retail price index, unemployment rates and gross domestic product (GDP). These factors
have affected automotive industry of UK and there has been changes that are made by such
brands in recent years (Fischer, 2015). In year 2018 the pre taxed profits of Aston Martin in the

time period between January & March. This brand has increased their spending on development
of new models but they have suffered a lot because of unfavourable currency shifts. This figure
has been affected by a currency shift amounted to 5 million pounds. The currency of this brand is
hedging before the Britain vote of leaving EU that has expired. This is leaving to more exposure
towards volatility of international shifts taking place in the currency. There has been a recession
that is leading to increase in prices across different parts of the world. In UK its automotive
industry is following a track where there has been declining of sales since year 2006 when it was
hit by recession especially in the real estate sector.
Social factors: There are lot of changes that are part of social environment this aspects is
related to the Changes that are taking place in the society. There has been changes in the
consumer demand that is affecting Aston Martin as automotive brand of UK. They have made
Changes according to such changes preferences in their product lines. This has resulted in to
positive impact in terms of increasing of sales as other competitors of Aston Martin are not able
to meet specific customer requirements. Since 2009 this brand is involved in new projects such
as Rapide that is a complete new range as it does not constitute the usual two door, two seats
drove but will be a type of saloon car. This attempt was to respond to the changing customer
needs and approach a completely different market segment by offering more utility of products
to their customer.
Legal factors: There are some legal factors that are related to threats towards external
environment. Such as there has been EU regulations related to CO2 emissions. Car engineering
is basically divided in two major categories that is electrical engineering and mechanical
engineering (Gerasimov, and Gerasimov, 2015). They are emphasizing on using of manual
labour to ensure that work is properly done. There counterparts from porsche is relying on use of
precision of computer technology for the purpose of assembling of their cars.
Technological factors: In case of automotive industry it becomes to adopt the latest
technology in order to ensure their survival for a longer duration of time period. Such as there is
use of hybrid engine technology that is adopted as a available option. Aston Martin is willing to
use each inputs for creation of perfection that is to be reflected in their final products. Their
products represent the blend of innovation and heritage in terms of vision & overall designing of
products in terms of best performance on road. Aston martin is involve in continuous
developments such as their first SUV DBX is a new type of Aston Martin that is based on

luxury, beauty and driving dynamics. They are brimmed with latest technology to ensue safety of
their customers along with additional fulfilment of requirement related to comfortability. They
also offer luxurious options that is leading to maintaining of proud heritage as a Aston Martin
BD.
Environmental factors: There are changing preferences of development of environment
friendly options that is taking place in the external environment. Such as there are regulations of
European Union regarding CO2 emissions. Further, there has been fuel shortages and fluctuating
fuel prices that is leading to high danger affecting the position of brand. Customers tendency has
shifted towards buying vehicles that are fuel efficient, environment friendly and then using that
for manufacturing of cars (Hope Sr, 2016). For this Aston Martin is willing to use their expertise
in their luxury car segment so that they ensure that their production is going on regularly and
with proper up-gradation. For this Aston Martin is also tuning up with some fuel efficiency
vehicles that are more environment friendly.
From the above made Pestle analysis it can be said that the external environment of every
business consist of both threats and opportunities that leads to positive and negative impact
because of continuous changes that are taking place in this dynamic environment. There are
many opportunities that are part of external business environment such as that includes
expansion of their global presence. Use of more marketing options in their existing markets.
Launching of budgeted auto-mobiles by adopting techniques of launching mid ranged products.
TASK 2
Evaluate Organisational response to various global forces
Corporate social Responsibility (CSR) and sustainability: CSR refers to a concept
used by large number of business organizations in order to develop and create positive brand
image of the company at the competitive marketplace. This is a technique used as a self
regulating business model which assist an organization in order to become socially accountable
for all the stakeholders, for themselves and towards public (Kurtz and Berston, 2019). Therefore,
CSR refers to one of the most effective method used by large number of business entity so they
can contribute their share towards the development of society. It has also been said that this
practice is also known as corporate citizenship sometimes which have their influence on each
and every aspects like economy of the country, well being of the society, environment as well as

social beings of the nation. Therefore, it has been said that this is a method which assist in
improving the environment as well as society with the help of providing positive contribution by
the company towards the society. With the help of this concept, a business entity can boost their
overall brand image with the help of giving positive contribution towards the people and the
society. As a result, it has been concluded that the concept is quite beneficial for both the
customers as well as for the company which as a result increase the morale of staff members in
long run.
Apart from corporate social responsibility it has been said that sustainability is the
another goal in reference to CSR within a business organisations as they assist them in various
actions which supports the communities, individuals and the business environment in a positive
and fruitful manner (Rejnuš, 2015). All these elements needs to be successfully executed within
the workplace so that competitive advantage will be gain by the organisation.
Relevance to business entity as well as its influence on the business decision making along with
the policies of the enterprise.
Aston Martin Lagonda is a British independent manufacturer deals in luxury sports cars
along with grand tourers. The company was founded in the year 1913 by Lionel Martin & Robert
Bamford. It has been said that this is a business entity which is able to successfully launch
various management aspects within the business entity. It has also been said that the company
takes lot of efforts in order to maintain themselves leaders in the sector at the competitive
marketplace by adopting various strategies and policies associated with Corporate Social
Responsibility. As a result it has played quite significant role in order to make their staff
members realise about their rights and requirements. CSR refers to a term which assist in
safeguarding each and every human rights of the staff members as well as protect them from any
kind of abuse and unethical behaviour (Schaltegger, and Burritt, 2017). This is a concept which
also assist in ensuring that every employee is satisfied enough in order to deliver their efforts for
performing each task related to their job roles in an effective and appropriate manner.
Influence on the decision making process: Every activity, function and aspects of a
business entity have their influence on the implementation of corporate social responsibility
within the business organization. It has been said that CSR is one of the logical procedure which
have their specific structure needs to be followed by the management team. It is also very
essential to consider all the business functions of the business entity as their responsibility

towards the society (Wilkinson, Redman and Dundon, 2017). Reason is that society are the one
most essential key which help in providing resources to the manufacturing process so they can
develop high quality products and services at the competitive marketplace.
Managers of Aston Martin Lagonda emphasise on their approaches which needs to be
adopted by them while adopting CSR practises. There are some essential approaches involved in
the process of manufacturing which have their influence on the overall performance. There are
ample number of practices used by Aston Martin Lagonda in order to attract customers as well as
for retaining their workers for a long duration of time period. Along with this, they also maintain
transparency between the management and staff members while working within the organization.
In addition to this, it has also been concluded that execution of CSR practises help in keeping
every staff member satisfied as well as happy.
Evaluation of the effectiveness of business organization response:
The stakeholders of Aston Martin Lagonda are going to be addressed with the assistance
of various corporate social responsibility practices and initiatives. It has been identified that there
are usually four main sort of stakeholders which highly influenced by the implementation of
corporate social responsibility which includes customers, staff members, investors as well as
communities. All these stakeholders and the CSR initiatives of Aston Martin Lagonda are going
to be discussed as follows:
Customers – They are the one for whom business entity perform all their operations so
they can satisfy their requirements and sell their products to them. In reference to the present
investigation, Aston Martin Lagonda refers to a business entity which usually give their
priorities to the users who are the main stakeholders for any organization. In this context,
customers interest towards the organization are quite high as they are the most essential aspects
who give their money in order to buy their products and services. In addition to this, it has also
been said that they are the one who highly influence the overall decision making process of an
organization as there needs and requirements are dynamic in nature which continuously changes
on a regular basis (Shirokovа Bogatyreva and Beliaeva, 2015). Therefore, it has been said that
they are the most essential stakeholders for Aston Martin Lagonda as they assist in identifying of
overall revenue of a business entity. In reference to the CSR efforts for the customer section
consist of Aston Martin Lagonda smart mobility, innovation of products and services. Along
with this, it has also been said that Aston Martin Lagonda provides products to the users by

improving them on a continuous basis. The vehicles manufactured by the business entity are of
high quality which are luxurious in looks and safety and are fuel economic which satisfy the
requirements of customers and retain them for a longer period of time.
Employees – Another stakeholder of the company which have their huge impact on the
overall performance of the business entity are their employees. CSR initiative of Aston Martin
Lagonda consist of sustainable staff, training & development session as well as global leadership
development sessions. It has also been said that the organisation adopted workplace safety
policies so they can secure their staff members while doing business operations at the workplace.
This is a business entity which has launched new safety and security standards across the world
which as a result reduce the overall workplace issues and injuries. Along with this, they also
provide equal opportunities and discrimination free environment so that each and every person
can enhance their performance and remain loyal towards them. In addition to this Aston Martin
Lagonda have various development programs which defines CSR initiative as well as dedications
of the business entity in order to support their staff members while performing at the business
entity.
Investors - Investors of Aston Martin Lagonda are highly responsible for raising the
overall profitability of the company at the competitive marketplace. They are one of the most
essential stakeholder of a business entity as they invest their money in the organisation so that all
the operations can be done in an effective manner. By this, they will be able to introduce high
quality products and services along with continuous improvement in their products. In addition
to this, it can easily be analysed that with the help of investors, an organization can easily
maximise their profit and goodwill at the marketplace.
Environment: Aston Martin Lagonda make ample number of efforts in order to
eliminate and reduce the wastage and improve the overall environment in an effective and
appropriate manner. They emphasises on reducing the wastage such as water, resources, material
and energy. For this, they adopt various working and management practices so they can reduce
the wastage of resources and maximise the overall profitability of the company. Along with this,
they also use various advanced and updated technology in order to reduce the wastage and
enhance the overall performance and efficiency while manufacturing vehicles.
With the assistance of above mentioned information, it has been concluded that Aston
Martin Lagonda has high corporate social responsibility performance at the competitive

marketplace. This organisation has some main programs as well as strategies so that they can
address the interest if their stakeholders and retain them for a longer duration. It has been
identified that the CSR initiative assist a business entity in order to enhance their overall
profitability and performance. Along with this, they also focuses on reducing the cost and
innovative products so they can attract new customers towards them.
Areas of improvement with regards to the current business entity :
Aston Martin Lagonda is a well known brand which is involved in the activities related to
CSR practises. This is an organization which is committed towards their stakeholders which
assist them in order to maintain their sustainability at the marketplace. They also take
responsibility for securing the environment and improve social impacts at the competitive
marketplace. It has also been said that Aston Martin Lagonda provides growth opportunities to
the staff members by providing them positive working environment and equal opportunities to
each and every staff member.
It has been said that Aston Martin Lagonda is an organization which made each and
every efforts in order to successfully follow as well as implement all the practises associated
with CSR within their business organisation. It has also been said that management team of the
company keep an eye on the functionality of business entity and take contionus improvement
practices so they can produce high quality and innovative products which will satisfy the
requirements of customers at the market place.
Ethical Corporate social Responsibility
This is associated with emphasis on the stakeholder of organisations. Aston Martin
Lagonda need to ensure that they provide fair treatment to each and every stakeholders and
follow all the ethical responsibility in an effective manner and positive manner.
Supply chain process: This mainly concern with whole network of the supply chain used
by Aston Martin Lagonda within their business entity. It has also been said that there is a need of
shared commitment of manufacturers, suppliers and retailers. Along with this, there is a necessity
of collaboration within the innovation sector which assist in establishing effective supply chain
process at the workplace. This will assist in creating positive brand image of the company at the
competitive environment and maintain long term sustainability at the business world.
It has also been said that there must be sufficient alignment of the product development
with the help of purchasing department which as a result assist the management team in order

increase the efficiency and effectiveness of the organization. It has also been identified that the
concept of CSR practises which says that customers must provide high quality products which
are worth of its prices. This as a result will assist in enhancing their overall satisfaction level. As
a result this will assist them in order to manage the sustainability of business entity at the
competitive marketplace.

CONCLUSION
From the above discussed points it can be concluded that there is continuous
developments that are taking place in business activities posing a impact on the overall business
functioning. Some of the factors consist of investors, suppliers, customers, trends in market that
leads to formation of strategies. There is no control on such external environment factors of any
organisation but they affect the internal and external functioning of every organisation.
Corporate social responsibility is a developing concept that is affecting the way organisations are
using their approach towards external society. Along with this the concept of sustainability is
related to long term survival by utilisation of resources in most productive manner. The concept
of ethical social responsibility is gaining more popularity because of changes that are taking
place in the external environment and increasing of customer requirements.

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Online
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BEAUTIFUL IS RELENTLESS, 2020, [online], Available
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