Evaluation of Macro Environment and Internal Environment of Bentley Motors

Business
Strategy

Table of Contents
Table of Contents.............................................................................................................................1
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
P1) Evaluation of macro environment.........................................................................................2
M1 Analyse the macro environment that inform strategic decision making...............................4
TASK 2............................................................................................................................................4
P2) Internal environment and capabilities...................................................................................4
M2 Analyse the internal environment to assess strength and weakness.....................................7
TASK 3............................................................................................................................................7
P3. Porter's five Forces model.....................................................................................................7
M3 Appropriate strategies to improve the competitive edge......................................................8
TASK 4............................................................................................................................................9
P4) Strategies and theories to attain the business goals by strategic planning............................9
M4 Strategic management plans................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Business strategy is considered as action and set of tactics which are used by organisation to
increase their organisational productivity and profitability. Different businesses have different
objectives and goals which are important to accomplish in certain period of time. The
management of organisation should have plans and strategies which can help to maintain the
quality and productivity of their business and increase profitability (Madhushree, Kumar and
Aithal, 2018). There are different routes and ways to fulfil task and goals that is business
strategy, helps to face the problems and get them a better solution. To understand about business
strategy Bentley Motors has been selected that is larger size company accomplishing goals by
formulating effective strategies and implement them effectively. This report covers different
contents such as impacts of macro environment on business organisation, internal environment
and capabilities, porter’s five forces and models that assist strategic direction available on
organisations.
TASK 1
P1) Evaluation of macro environment
Macro environment is consider as condition or situation which are situated in economy as a
whole and impacting on business. This environment involves inflation, GDP, monetary policy,
fiscal policy and inflation which are important factor and affecting the business. To start any
business and running it continuously organisation should focus on such factors that states which
factor can impacts negatively. For instance, Bentley Motors is automobile company that is
running business by considering all such factors are as defined:
PESTLE analysis – This is a tool and framework which is used by marketers to analyse and
monitor the macro environment and identify which factor can impacts negatively. In Bentley
Motors, the PESTLE analysis is defined below:
Political – This factor is mainly related with political system which is formulated by
government which help to run and support the business on the other side it can bound a business
due to some strict legislations. Different factors are covers in political system such as stability,
taxation rate, government policies, fiscal policy, GDP etc. which are set by government. In UK,
Brexit situation has created an opportunity for Bentley Motors as taxation rates are reduced
which helped to increase the sale and productivity of such organisation. On the other side,
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changing fiscal policy continuously can challenge the productivity and profitability of company
so this can also impacts negatively (Zhu and Chertow, 2017).
Economical- This factor involves following determinants such as interest rates, exchange
rates, economic growth patterns, disposable income and buying behaviour which can affects the
business. UK’s economy and growth is developed in better ways where people are able to spend
their disposable income in good quantity which helps to increase the sale of Bentley cars that
states it impacts positively. On the other side, changing buying behaviour can switch customers
towards other brand there it is important for management to understand people then introduce
products accordingly (Patel and Chrisman, 2014).
Social – This factor of PESTL is related with society that involves demographics condition,
culture trends, population, changing needs and wants of society and age distribution. The
business of Bentley Motors affected negatively as needs and wants of people are changing day
by day where luxurious people are demanding more luxurious and standard cars that is creating
cost of organisation while manufacturing so it affects negatively because sellers are selling raw
material at high cost (Rogmans and Abaza, 2019).
Technological – This dimension of factor is related with technology which is used by
organisation to improve their business productivity and profitability. This is important for
companies to adopt the new technology in their selling, producing and distribution process which
improve business activities. The manager of Bentley Motors are using technological factor which
helps to run a business by improving distribution chain in different location. This is favourable
factor which affected business positively. On the other side, while adopting new technology and
introducing something lot of money and resources need to used which can reduce the
profitability of chosen company.
Legal – This is important for all organisations to focus on laws and legislations which are
used to run a business and maintain it continuously. Many dimensions are involves such as
advertising, consumer protection laws, product labelling and safety and etc. Bentley Motors is
working under all legal factors such as consumer protection law, advertising a standard and
health and safety law which helps to maintain the business. This helps to continue and run a
business by following all legislations that increases profits (Yuan, Cheng and Ye, 2016).
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