Role of Business Environment in Shaping Organizational Behavior

This study explores the role of business, cultural, and natural environment in shaping the behavior of organizations. It discusses the impact of internal and external factors on Bentley Motors and conducts a SWOT and PESTLE analysis. The analysis helps Bentley Motors devise strategies to achieve its corporate objectives in a rapidly evolving marketplace.

Contemporary
Business
Environment

Contents
INTRODUCTION...........................................................................................................................3
Role of business, cultural as well as natural environment in shaping the behaviour in
organisation:...........................................................................................................................4
SWOT ANALYSIS................................................................................................................7
PESTLE Analysis...................................................................................................................8
Conclusion.......................................................................................................................................9
REFERENCE.................................................................................................................................11

INTRODUCTION
Business environment of organization contains all variables that may be intrinsic or external
to organization and also have an influence on business operational processes and mechanisms. It
is essential for business to sustain all variables in the insight that can eventually affect
organizational functioning. A further rationale why business environment is needed that
these helps to formulate procedures and determine how adverse consequences from these
variables can be transformed into favourable ones or business possibilities. It also can let
organization recognize what it's really planning for its competing companies. It provides the rival
companies upper hand to business (Arnold, Beauchamp and Bowie, 2019).
There are several inner and even some external forces/factors that have a significant effect on
company or organization. Internal factors/variables usually entail strengths, major weaknesses,
key opportunities and considerable threats from competing companies, owing to market
scenarios, etc. But at the other side, external variables are very diversified throughout business
environment. external variables in the business environment are political, technological,
economical, legal, social and environmental factors. each of such factors has a distinct
perspective of affecting the entity. All of these variables are analysed and sceptically analysed by
the large corporation. Approaches and techniques are formed by an entity that keeps such aspects
in consideration in attempt to leveraging most of its internal toned and aim to boost conservation
and competitive advantage via global market (Bernstein and Szuster, 2018).
The study covers various aspects of business environment in context of Bentley Motors.
Company is leading and most established organisations in UK. Bentley Motors is mainly
engaged in research, production, designing and sale of luxurious automobiles in the UK and also
in many developed regions across the world. This study reviews economical and non -
economic factors throughout the business environment as well as how such variables affect the
organization. Here, the business environment contains economic circumstances, strategies and
practices. While non-economic variables comprise of all socioeconomic factors, environmental
forces, political, legal forces, etc. in this paper, a comprehensive evaluation of the inner
environment of enterprise is carried out by means of a SWOT model as well as PESTLE analysis
of external environment is carried out. These two analyses allow a company to quickly devise its
objectives and tactics to accomplish its corporate objective in a rapidly evolving marketplace.

Role of business, cultural as well as natural environment in shaping the behaviour in
organisation:
There are variety of variables/factors that affect the conduct and operations of a company.
multiple factors, that are outside and not connected to the function of the corporation, could have
a significant influence on the organization's actions. Following are these variables and their
impact on Bentley, as follows:
Natural: There are number of variables included in the normal business environment. They
cover all factors of geographic region, climate conditions, preconceptions, etc. Climate change is
becoming a serious problem in world today, including UK. The existing human way of living
and technological progress have consistently proven to be much worse as a result of global
temperature rise. Straightforward instances can be chosen to take since there is huge drop in the
percentage of energy sources available in marketplace. The primary reason underneath this is the
high consumption and manufacturing of petrol fuel and diesel vehicles. In contrast to this
authorities, different protocols have also been established for automobile manufacturing linked to
environmental damage that they trigger to the ecosystem (Black, 2019). Owing to all these
changes happening in natural environment, Bentley Motors is needed to make utilization of
manufacturing techniques that are minimally hazardous to natural environment. Multiple
sustainability initiatives require to be used to make sure environment protection. These laws and
regulations generally have a favourable impact on the enterprise, since they have different
prospects for the corporation to quit working towards its objectives. Bentley's motors seen the
variable as an obvious benefit and use solar energy, electronic environment friendly vehicles that
assist operating effectively.
Cultural: Culture encompasses religious and cultural values, social structures, beliefs
etc. related to an organization. Though taking account of the United Kingdom, there are a variety
of individuals who belongs to different groups, originating from the various caste groups and
hailing diverse cultures values. Cultural identity occurs in organisations with specific personal
values and views. This has a significant influence on the functioning of companies, as it helps
enterprises to cope successfully with all these principles and convictions from various
communities (Culture of business shapes behaviour. 2018). In current market age, marketers
concentrate on mostly establishing relationships with its customers. Following diverse cultures is
indeed a favourable strategy on part of company, bringing customers nearer and helping the

organization to get quite loyal clients. Bentley Motors has since coming up with numerous new
developments and technologies to satisfy the technological requirements of its consumers.
Company got French racing group to participate it, this is also bound up to offer exceptional
bomber skiing experience, and it's also taken major measures to develop together talented female
entrepreneurs (Boone and et. al., 2019).
Demographic environment:
Demographic factor focuses on style of living, age, earnings groups, social
variables, etc. When describing the UK as well as Bentley Motors living standards that
people are embracing, they appear to get an adverse impact on the company.
Underemployment is rising as a result of several multi-national companies looking to
move out of nation. Rising inflation has recently been seen as a result of customers'
changing perceptions for lower cost and quality products instead of Bentley's luxury
products. A further factor that strikes Bentley harder is that, in attempt to keep
on millennial spending plan, public transport infrastructure is much easier and time-
saving instead of buying a vehicle. There are some other beneficial effects on the Bentley
of demographic variables. The business will take on a different consumer group of young
people. Together with comfort, because they do sell sports vehicles, they can quickly
enter this emerging business segment (Fascia, 2018).
Business environment:
The business environment comprises of an economic environment that has an impact on
the operational activities and processes of the enterprise. It comprises of a set of
economic circumstances, different legislation as well as all other aspects that occur within
business environment. Such influences, while affecting an entity, allow it to work in a scalable
way when adapting for the appropriate modifications. Bentley Motors is leading manufacturing
firms throughout the UK. Since the implementation of BREXIT, country's economy is seemed to
have undergone a variety of transitions and improvements in working (Hansen, 2018). In
year 2016, Britain passed a vote announcing that it should leave the European trade council.
There had been a large proportion in favour of such decision, and nothing can be executed to
prevent it. Such decision had a negative impact on the economy, that had a massive effect on all
organizations, including Bentley. Here are all the factors that adversely impacted Bentley, as
follows:

Economic Policies:
There are variety of initiatives in the UK that specifically impact the nation's automobile
industry. This influence could be seen explicitly on Bentley, and will have a bearing on the
operation of Bentley both within the nation and within European Union. Relevant and sufficient
resources have been given to achieve sustainability. An instance can be used where the budget
of government contains 20 billion to improve the competitiveness and efficiency of the
automobile industry and to put creativity to bear (Hassanien and Dale, 2019). However, such
policies ensure a better functioning and an effectively digitized infrastructure for development of
electronic vehicles. Its effects on the Bentley Motors is optimistic and much more liberal. It
should provide the company with an atmosphere that is consistent with its goal of technical
development. The situation is special with EU rules. The rationale for this is that several terms of
negotiation remain ongoing between entire EU and UK, and there's still pure conjecture in
the BREXIT. It will have a huge influence on Bentley Motors as business in both the UK and the
EU. The corporation could be adversely impacted because Bentley would have to deal with
manufacturers and the measures could prove difficult for its commercial field (Kalitanyi, 2019).
Economic systems: The program also applies to taxation, prices, the car industry
and so forth. It also involves international exchange when examining Bentley Motors.
Keeping all of market into account, there are variety of developments that are apparent in
regard to automotive sector. The explanation can be taken from a recent movement that
has taken hybrid vehicles into account. Such a shift in consumer understanding has had a
beneficial effect on the company as it creates an atmosphere that encourages creative
growth. Bentley is now active on this field and has produced a range of designs for such
hybrid cars (Lin and et. al., 2018). A variety of incentives are also being given to the
group, which are primarily focused on the overall automotive industry. Speaking of other
causes, such as poverty, taxation have not yet been beneficial to Bentley. The value of the
pound has decreased, which is making contributions to an increase in the inflation in the
United Kingdom. This presents Bentley with more complex supply chains, poor human
services, unstable trading relations and strategies that have a detrimental influence on the
corporation 's behaviour.
Economic Conditions: Bentley Motors manages its business throughout the UK. This
economical as well as geopolitical partnership of the government with other countries has a

strong effect on the organization as well. Examples may be seen whereby BREXIT would have a
detrimental effect on the nation in regard to its interaction with other European nations (Ngibe
and Lekhanya, 2019). This would contribute to the elimination of free trading barriers enjoyed
previously by the group. The effect on the Bentley Motors would be as it would lead in more
costly production and that business would also have to face further problems outside of United
Kingdom. Besides that, Bentley is considered to be making significant inventions that it utilizes
in its vehicle. There are also a variety of pieces that are manufactured from EU members.
BREXIT will start making those imports complicated for Bentley, which will have a further
detrimental effect.
There is yet another significant thing that has an impact on Bentley Motors Employment.
BREXIT has an influence on nation's labour market. That's because all employees who belongs
to EU has abandoned their job opportunities and also have reverted away to their roots. They 're
undertaking this move so that they shouldn't fall prey to the false trust that government has given
them. It illustrates how Bentley have an adverse impact on the business environment through
economic conditions. BREXIT has now brought a number of changes to Bentley, and potential
predictions are being made as to what improvements could be introduced in the potential for this
business. There is also no equal trade deal here among Union and UK. The confusion has
rendered Bentley and several other businesses in the central way wherein no definite way ahead
(Rosenbach, 2018).
SWOT ANALYSIS
Swot analysis helps a firm to study and analyse all the internal factors which are affecting
the position of company in the market. It includes strengths, weaknesses, opportunities and
threats for the company. Swot analysis conducted on Bentley motors is as follows.
Strengths: The high quality of vehicles produced by Bentley motors along with innovation,
durability and speed are the major strength for the company.
Weaknesses: it is necessary for company to focus on expansion which it is not doing. It is
also necessary for company to target the customers who have high disposable income as per the
prices charged by company. Environmental crisis created by pollutants released by automobiles
of Bentley motors is also one of its weakness.
Opportunities: Development of new electronic car which would not require any fuel to run
our a great opportunity for Bentley motors (Bzeouich, Lakhal and Dammak, 2019).

Threats: It is necessary for company to make marketing strategy which might affectively
reach the targeted customers of the company. Company needs to improve its marketing
communication. The competition in market is another threat for the company due to which it
needs to develop various core competencies.
PESTLE Analysis
This refers to study and analysis of all the external factors in the environment of a business
which are affecting the functioning as well as activities in a business directly or indirectly. This
consist of various factors such as political, legal, economic, social, technological and so on. An
external analysis of Bentley motors is mentioned below:
Political factors: The introduction of Brexit had major effects on functioning of Bentley
motors. Due to barriers in trade between European Union and United Kingdom have affected the
company negatively. This raised the prices of raw materials for Bentley motors and also various
other taxation policies affected the profits of the company.
Economic factors: Company had to face a number of economic challenges due to
introduction of Brexit. Due to inflation caused by this legislation company had to cut down its
profit margin. Also there were a number of custom duties between United Kingdom and
European Union which had to be adjusted in the budgets of the company (Stankov, Filimonau
and Slivar, 2019).
Social factor: Social factors refers to the values and beliefs of society in which company is
operating. Various changing perception and behaviour of customers along with their decision
making regarding the purchase is also included in social factor. When considering auto mobile
sector consumers are now focused on vehicles which consume less fuel. Development of electric
car by Bentley motors is a criteria to fulfil social factors in the environment.
Technological factors: When dealing in automobile sector it becomes important for
Bentley motors to remain updated with advanced technologies introduced in market. It is
necessary for companies to invest in technological development so that they can compete in the
competitive market and also remain innovative and upgraded to attract a number of customers.
Environmental factor: Environmental factors refers to all the factors of a company that
affect the environment and nature in which it is dealing. It is required by company to make sure
that they do not deplete any of the resources available to them. Bentley need to take care of the
pollutants which are released by them while production of vehicles and also the pollutants

released by vehicles while operation by customers so that they can fulfil all the required criteria
of environmental laws .
Legal factor: Brexit is affecting operations in Bentley motors heavily. It is necessary that
company fulfils all the criteria as of rules and laws which are introduced in this movement. Due
to this the bargaining power of suppliers for the company is increasing and the company have to
cut down its profit margin or increase its prices (Shahzad and et. al., 2019).
This external analysis done on Bentley motors re-present various issues that arise in the
company due to introduction of Brexit. The Konami of United Kingdom have been majorly
affected due to this legislation. This is what analysis also discovered various internal factors that
is affecting Bentley motors. There are a number of opportunities and stands for the company
which can be efficiently used to generate profits for the firm.
Conclusion
It is required by every business to make sure that they effectively study the external and
internal functions of a business and all the factors which are affecting the operations of a
business. This will help an organisation in preparing a strategy and also attaining all its goals and
responsibilities.
It has been seen that natural resources and environment greatly affect the business. When
considering for Bentley motors it is necessary for company to make sure that production line of
Bentley motors release less pollutants in the environment. The demographic environment proves
to be important to study by an organisation in order to effectively target the customers to whom
the company requires to sell. It is also required by company to maintain positive and healthy
working environment so that all the employees are motivated and encouraged to fulfil all their
duties and activities.
There are also various external and internal factors affecting Bentley motors. It is advised
for Bentleys motors to keep a check on economic culture, system and values. All these directly
or indirectly have an effect on business of the company. There are a number of factors which are
affecting the monitory profits of company directly. It is necessary for Bentley motors to
effectively analyse all the external factors in order to deal with the coming opportunities and
threats for the company.
The swot analysis conducted on Bentley motors mentioned is that Brexit have affected the
business greatly. It is necessary for company to make a flexible strategy so that they can deal

with all the changes happening in the environment. It is necessary for company to focus on
communication strategy and the targeted customers. It is also required that Bentley motors gain
maximum market share giving competition to their competitors and fulfilling all their objectives
and goals in order to sustain in the market place for a longer period of time.

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