BM461 - Aston Martin: Navigating the Global Business Environment

This report provides a comprehensive analysis of Aston Martin's global business environment using the PESTLE framework. It identifies political, economic, social, technological, legal, and environmental factors impacting the company's strategies and operations. The report highlights the impact of Brexit, economic challenges due to COVID-19, changing consumer preferences, technological advancements in alternative fuels, and evolving legal and environmental regulations. Furthermore, it discusses key drivers of change, such as changes in legislation and technological development, that management must consider for future strategic decisions. The analysis emphasizes the importance of adapting to these external factors to maintain competitiveness and achieve sustainable growth in the global automotive market.

BM461 Global Business
Environment

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
PESTLE Analysis........................................................................................................................1
Key drivers of change..................................................................................................................2
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Business environment is characterised as inter relation of factors and forces, difficult to
predict, highly flexible and dynamic. Aston Martin is a UK based company which operates in
automotive industry (Aston Martin. 2021). The company manufactures grand tourers along with
luxury sports cars.
The project includes conduct of PESTLE Analysis and major drivers of change which are
required to be taken into consideration while deliberating for future organisational direction.
MAIN BODY
PESTLE Analysis
PESTLE Analysis is technique to scan extrinsic factors that impacts business strategies and
operations at large extent. In context to Aston Martin, conducting PESTEL Analysis will assist in
establishing knowledge about external factors impacting decision making. It makes handy for
companies to devise plan better. PESTLE Analysis of Aston Martin is conducted below:
Political: In UK, uncertainty surrounding planned exit of EU from UK or decision of
BREXIT impacts adversely on strategies of companies. For example, due to BREXIT, various
outlets of Aston Martin which were opened in EU had to close that declined sales volume of the
company.
Economic: Available credit crunch in UK impacts automotive industry adversely.
Moreover, COVID-19 pandemic have declined revenue generation system of Aston Martin as
major of its employees have left the jobs due to which there was misbalance in working among
functions towards organisational efficiency.
Social: In UK, used car market is growing continuously. In contrary, consumers of the
country are shifting their preferences as well as reducing purchasing of luxury sports cars that
impacts of sales of products and models of Aston Martin leading to impacting on its brand image
among target audience (Camillus, Bidanda and Mohan, 2017).
Technological: Within UK, growing interest in alternative fuels as well as moving
towards electrification is putting pressure of automotive, including Aston Martin, to adopt
innovative technologies in products. It influences organisational financial position in market as
huge part of revenues are invested in adopting technologies.
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Legal: Government of UK has implemented necessary amendments or legislation for
automotive industry. In aspect to Aston Martin, compliance with regulations, new legislation and
policies impacts on strategies to raise capital along with research costs.
Environmental: In UK, people and businesses are more concerned for protecting
environment. In this aspect, Aston Martin works by carrying out practices towards trends of low
engine capacity as well as new drive technologies (Štrukelj and Gajšt, 2019).
Key drivers of change
For a company, it is significant for managers to put focus on major drivers of change while
deliberating for future directions of company. On the basis of PESTLE Analysis, major drivers
of change that is essential for management to consider while making deliberations for future are
below:
Changes in legislation: In a country, when government makes sudden changes in some
of legislation, it drives changes in business processes and practices. In context to Aston Martin,
managers are required to focus on initiatives or practices of government while devising future
strategies.
Technological development: Development in technological aspects results in driving
changes at workplace (Bhattacharyya and Verma, 2019). For example, digitalisation and
advantaged technologies results in adoption of techniques by managers of Aston Martin to carry
out practices to gain sustainability in future.
CONCLUSION
As per information presented, it is concluded that global business environment directly or
indirectly impacts on practices of company to meet corporation social responsibility and revenue
generation system. As per results of PESTLE Analysis, it is determined that key drivers of
change in business are technological development and changes in legislation.
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REFERENCES
Books and Journals:
Bhattacharyya, S. S. and Verma, S., 2019. The intellectual core and structure of international
business strategies (IBS): A co-citation analysis. Review of International Business and
Strategy.
Camillus, J. C., Bidanda, B. and Mohan, N. C., 2017. The business of humanity: strategic
management in the era of globalization, innovation, and shared value. Productivity
Press.
Štrukelj, T. and Gajšt, N., 2019. Indispensability of socially responsible business policy.
In Corporate social responsibility in the manufacturing and services sectors (pp. 93-
125). Springer, Berlin, Heidelberg.
Online:
Aston Martin. 2021. [Online]. Available through: < https://www.astonmartin.com/en/>
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