Bentley: Environmental & Business Challenges in the Auto Industry

This report provides a comprehensive environmental analysis of Bentley within the automobile industry, critically evaluating the challenges arising from both internal and external business environments. Utilizing SWOT analysis, the report identifies Bentley's strengths, weaknesses, opportunities, and threats, focusing on aspects such as brand popularity, target segment limitations, technological utilization, and environmental effectiveness. Furthermore, the report employs PESTLE analysis to assess external factors, including political, economic, social, technological, legal, and environmental influences, particularly in the context of Brexit and the COVID-19 pandemic. Porter's 5 Forces are also applied to understand competitive dynamics, such as the bargaining power of buyers and suppliers, the threat of new entrants, and rivalry among competitors. The value chain analysis illustrates Bentley's internal activities, highlighting primary functions like inbound logistics, operations, marketing, and services, as well as secondary functions like procurement and technological advancement. The report concludes by examining Bentley's competitive advantage through CSR practices and sustainability initiatives, demonstrating the company's efforts to reduce environmental impact and enhance its overall performance.

Assessment 1 Environmental Analysis of
Auto-mobile Industry

Table of Contents.
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Critically evaluation of challenges of internal and external business environment.....................3
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business Environment is basically defined as the factors that may tend to affect the
internal and external working of industry. With the help of business environment identification
of opportunities, fully utilization of resources and improves the overall performance of firm.
Business environment is an important aspect at all the level of business. The report is based on
'Bentley' which falls under the category of one of the top luxury car brand based in U.K.
Analysis shows about critically evaluation of challenges of their internal and external business
environment. Furthermore, it also shows about the details on the challenges they encounter in
trading under international business.
TASK
Critically evaluation of challenges of internal and external business environment.
For measuring the challenges of internal business environment 'Bentley' may tend to
utilize SWOT analysis (What Is a SWOT Analysis and How to Do It Right, 2021). As with
utilization of SWOT company able to analyse strength, weakness, opportunities and challenges.
Strength Weaknesses
Popularity: One of the major strength of firm
includes the huge and wide popularity of
'Bentley' as being quite, unique because of its
luxury and sporty nature invention of cars.
Technology utilization: Another strength that
company posses is being accessing and
utilization of the available technology
(Nashiruddin, 2019). As all the cars being made
of superior and with high end technological uses.
Research and Development: 'Bentley' strength
in their R&D department as being famous and
popular for their unique and beautiful car
designs across the globe. With time to time
company have impressed the world with suave
and modern car designs.
Target segment: One of the challenge that
company tend to posses regarding the target
customer. Being one of the high and luxury
car manufacturer brand tends to only focus
and selling of vehicles to a limited segment or
niche target population.
Longer waiting time: For maintaining high
quality standards 'Bentley' only aims at
manufacturing or producing limited number
of cars. As being one of the challenge
regarding a lot of customers requires to have
longer waiting time period for their turn.
Limited Reach: Another challenge that
company faces regarding wide range as,
being into limited countries for business. New

Uniqueness: With company not emphasizing
much on the promotions and providing their
customers with extremely sufficient services.
Being expensive and high standardized quality
adds as well as attracts more customers.
High Brand Value: With firm acquiring high
brand equity provides company competitive
advantage over other firms. Apart from that also
tend to improve the customer base for the
enterprise.
markets have many potential and affluent
buyers for the enterprise to serve and acquire
more new personnels which may aid in
expanding.
Not being environmental effective: Issue
being faced by company regarding the not
providing environmental friendly cars. The
enterprise becoming highlighted for
manufacturing or producing auto-mobile
which tend to cause environmental pollution.
Opportunities Threats/Challenges
Acquisition: One of the major opportunity firm
may seek is by merging or acquiring other
smaller companies (Newman and et.al., 2020).
As enterprise may start catering to other
segments of the population. This may tend to
increase the rate of returns as, this will also aid
firm in entering into new markets analysing and
observing.
Promotions: As from the above studying
'Bentley' don't tend to focus on promoting their
products. So company may uses different
facilities like advertisements or sponsor
premium-ship for firm to increase their
customers and brand value also gaining
competitive advantage over other firms.
Changing towards environmental friendly:
As 'Bentley' may try to change their weakness
into opportunity with starting to look more into
Change in economy: The major challenge
being faced by company is regarding the new
changes in economy. After the pandemic
economy may tend to face major problems
and change which causes firm to face the
issues. After the Brexit exit also tend to
impact the economy with decrease in
investors, lowering down of production and
many enterprises to being stopped.
Competition: Company may tend to face
huge competition because of their marketing
campaigns. Other competitors may tend to
use this as their opportunity and hamper
themselves resulting in decrease in sales and
growth for firm.
New laws: Another major challenge faced by
firm regarding the new change towards laws
and rule by the government. Post pandemic

economic and environmental production. Brand
may change or innovate new ways like less
energy and fuel consuming engines which
results in less of pollution.
Entering into new markets: With the help of
this opportunity company may increase their
brand value and size. By expanding into new
markets brand may tend to increase their
customer base.
likely to result in changing the old ways or
methods which cause 'Bentley' to adopt new
methods for being in the market and operate.
Increase Fuel Rates: A serious challenge
faced by the company with post pandemic
new laws being implemented to save the
natural resources.
For the critically evaluation of challenges regarding external business environment
company most likely to utilize PESTLE analysis (PESTLE analysis, 2021). This aid firm in
analysing the external factors impacting.
Political Factors: Different political factors plays a significant role in analysing and
determining challenges faced by the company. 'Bentley' faces challenges regarding with political
instability as, after the Brexit exit not just the brand but whole auto-mobile industry faces issues
regarding the new laws and rules implemented. The supply chain may tend to majorly being
disrupted along with companies suffering with major losses. With the new regulations regarding
Brexit exits also aids other companies to capture market.
Economical Factors: The macro economic issues may likely to affect and causes
different types of challenges for firm to face (Vasilev and et.al., 2017). After the Brexit exit and
Post covid together tend to provide various challenges for firm in regarding many companies to
shut down, lowering down of assembly lines and many more. Transporting vehicles and valuable
parts being under high risk activities which resulting in damage, lowering down of efficiency as
well as shutting down of major facilitated area under which 'Bentley' majorly works.
Social Factors: Separate cultures and way of doing things impact the major social
environment of organization. Global trade tensions and head-wins with fight for the market stays
relevant (Johnson, Gerry, 2017 ). Apart from that various cultural exchanges after the COVID
situations cause 'Bentley' to recruit and select various individuals with diversified culture and
norms may tend to affect the business of firm.

Technological Factors: The technology is fast disrupting various industries across the
world. After the pandemic 'Bentley' technology's impact on product offering as company requires
adapting new policies and take preventive measures for resolving the upcoming challenges (Li,
Wang and Ding, 2018). Not just that but organization also may utilize the available limited
resources and try to incorporate and made new innovations. This challenge also cause enterprise
to develop various methods or ways which likely to solve various problems.
Legal Factors: Factors which may tend to impact the working of industry with various
norms and rules interpreted by the government ( Atrill, Peter, McLaney, 2017 ). As the company
most likely to face this challenge as both Brexit exit and Pandemic causes new amendment to
being under consideration. New rules and regulations put 'Bentley' under the pressure as firm
requires to follow new regulations by government which causes them to decrease in sales and
profitability lowering and shutting down of various parts of business as well as impact the
production & operation functions related with logistics.
Environmental Factors: Different markets may tend to have different environmental
standards which causes challenges and also impact the profitability of firm. The company
requires to keep some keen sight on utilization of their resources as they have been recognized as
the brand not keeping the environment sustainability (Jurich and Walker, 2018). So the Bentley'
faces challenge in using parts and manufacturing of cars which uses high amount of fuel and
also, delivering out high pollution.
Porter's 5 Forces also aids in identifying and analysing 5 major forces which may tend to
determine company's weakness and strengths. As under this Bentley' faces major challenge as
during and after the pandemic. These include:
Bargaining power of buyers: With ever-growing demands of customers may tend to
offer the best products with very less amount as being paid. This results in company to face high
amount of challenge in the long run. As the post pandemic with new rules and laws buyers most
like to decrease or stop buying of cars which may results in firm to lower down prices and in
order to seek more customers.
Bargaining power of suppliers: Under this challenge being faced by company regarding
the various bargaining value of suppliers. As post pandemic suppliers being in the dominant
positions and may likely to decrease the margins of firm (Yoo and Lee, 2018). Various powerful
suppliers in diversified financial sector also utilize their negotiating power to extract very

amount of prices from 'Bentley'. The higher impact of supplier bargaining results in lowering
down of profitability of firm and increasing the operation functions.
Threats of New Entries: This challenge being faced by the firm consist of entry of new
firms in the competition market which results in lowering down the market capture. As due to
the pandemic crises 'Bentley' faces new challenge as various new companies from China enters
into international market (Krzywdzinski, 2017). Apart from that but these competitors also
gradually tends to increase their customer base and market share.
Substitute Products: Another major concern being under the company regarding the
availability of substitute products. If the consumers may not able to purchase the products they
likely to buy substitute goods. For example, if consumers aren't able to buy Bentley's car they
may switch to other company.
Rivalry among Competitors: Major challenge face by brand as higher competitors
resulting in decrease in prices and overall profit earning (Whittington, and et.al., 2020). As
company operates in avery competitive market leading in price determination.
Value chain analysis aims at providing understanding regarding internal strength and
weakness of firm (What is Value Chain Analysis?, 2021). Bentley's Value chain analysis consist
of:
Primary Activities
Illustration: Value Chain Analysis
(Source: What is Value Chain Analysis? 2021)

Inbound Logistics: Various activities related towards with warehousing, receiving and
inventory management of firm.
Operations: The major production or conversion of raw material into finished good is
done.
Outbound logistics: Activities regarding distribution and packaging of the manufactured
cars.
marketing and Sales: As the name suggest includes the functioning marketing and
selling as well as promotions and advertising.
Services: Providing customers with after sales services like installing, quality assurance
and etc.
Secondary Activities
Procurement: The sourcing of raw materials and equipment from suppliers is being
done.
Technological Advancement: Research and development, innovation and adaption of
new technologies is addressed.
Human resource: All the activities like recruiting, hiring, selection, retention and more
is being processed.
Infrastructure: Company's infrastructure overhead and financial planning may being
incorporated for the betterment.
Competitive Advantage: In the case of competitive advantage 'Bentley' being able to
utilize various CSR practices which likely to aid firm in gaining more of customer base than
rivals. Apart from that, with the usage of various techniques company being able to achieve
sustainability as some rival companies not even practice CSR (Baskentli and et.al., 2019). The
enterprise have structured approach to the management of sustainability strategy for being able
to aid in environment, economic and social changes. Being one of the brands that aims in
reducing environmental impacts and focusing on energy and environmental management. With
the making and maintaining environment better company helped to drive significantly progress
in performance, which results in reduction in energy consumption with 54%. Apart from that but
company also being able to lower down their CO2 emissions with 84 percent. Not just that but
brand being able to reduce their water waste and VOC emission also, these help 'Bentley' in
providing more sustainability along with gaining more of competitive advantage.

CONCLUSION
From the above analysis it has been concluded that business environment plays an
impactful role with analysing and observing about opportunities and gaining competitive
advantage. The report shows about critical evaluation of challenges in according to its internal
and external environmental factors affecting. Furthermore, analysis also shows about Porters 5
Forces which aims at providing measurement regarding competition intensity, attractiveness and
profitability of market. Moreover, the report gives details about value chain analysis uses by firm
for evaluation of areas of improvement. Lastly, analysis shows about the competitive advantage
of firm concerning their core values on sustainability.

REFERENCES
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and low‐wage approaches to high‐tech manufacturing in the automotive industry. New
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Vasilev, V. L. and et.al., 2017. Internal control in the system of innovation management in the
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