University Report: Bentley Motors - External Factors & CSR Analysis

This report provides a comprehensive analysis of Bentley Motors, examining the various external factors influencing its business operations and market growth. It delves into the political, economic, social, technological, and environmental factors, along with the impact of globalization and new competitors on the company's strategies. The report also assesses the relevance of Corporate Social Responsibility (CSR) and sustainability principles, illustrating how these factors influence the company's policies and decision-making processes. It highlights Bentley Motors' commitment to legal, employee, and environmental responsibilities, including its initiatives in renewable energy, international standards, and biodiversity. The report concludes by discussing areas for improvement, offering a detailed overview of Bentley's approach to contemporary business management and sustainability in the automotive industry.

Contemporary Developments in
Business and Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
An overview of the primary external influences on company and their importance...................1
TASK 2............................................................................................................................................3
Relevance of CSR and sustainability and how it influences policies and decision-making of
the organization............................................................................................................................3
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Contemporary development in business management can be understood as the analysis of
various factors which affect business environments, the influence of external and internal factors
on marketing strategies for business growth. It can be defined as the process of development
where progress of the organization is measured by its development and growth along the
contemporary changes raised by these factors. This report shows the importance of
environmental elements and other external forces affect the market growth in the business of
Bentley motors. It presents the evaluation of how company works on strategies to cope up with
the external factors affecting it. The influence of corporate social responsibility factor and
sustainability principles used on the policies and decision-making functions in various sectors of
company. This report also discusses the effectiveness with which company fulfils the social
responsibility factor by keeping its production, technology and emission in check. It also
includes the areas of improvement for the company in response to the sustainability factor.
TASK 1
An overview of the primary external influences on company and their importance
External factors influencing the company can be understood as the factors which are
operating outside business premises of the organization. They impose an important influence
over the operations, relating to survival and growth of company (Alpenidze, and
Sanyal,2019).Firms have little or no control over the external environment forces in which it is
operating which arises the need to continuously conduct environmental analysis,for smooth long
term stabiliyy. Bentley Company keeps close check on these macro-environment factors which
are discussed below and strategies to combat the impact properly.
POLITICAL FACTORS: The political factors include competitive policies, laws and
legislation related to environmental issues related to automotive industry. Rules and political
scenario of a country have a very strong impact over the business of company. Political stability
of country greatly impacts on company's working. Recent issue of Brexit has impacted on the
imports of parts supplied for car built. Bentley has further kept in mind these political factors and
worked out strategies for growth in the highly globalized automotive market of UK(Nkwabi,
and Mboya,019).
ECONOMIC FACTORS: Economy of a country is considered to be one of the most
important element impacting the success of organization. There are several contributing factors
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like economic crisis, fluctuations in interest rates and other similar aspects that will have direct
and strong impact on the consumer buying behaviours for products and services which will
ultimately effect on the profit margins of company (Stawasz, 2019). It is really important for
Bentley to construct down the detail study of environmental factors it needs to work on, how to
fix the price strategies according to the economic situations in country keeping the business goals
in market.
SOCIAL FACTORS: The socio-cultural factors of a country include the demographics of
population, households and what age group factors decide the maximum sales of company.
Research in UK has shown that 80 percent of population using Bentley is below the age of 45.
Bentley has to keep in mind the demographic patterns in mind, their social factors and needs of
young generation, how they impact on marketing strategies for business growth as it is really
important for company. The price strategies for establishing a good place for potential customers
is also a social factor Bentley keeps in mind greatly (Lee and Blouin, 2019).
TECHNOLOGICAL FACTORS: The automotive industry of UK is one of the most
innovative producer in cars and engines production when it comes to technological factor for
competitive growth in companies. This factor has a huge influence on automotive sector and is
very important for the company. Bentley needs to focus on creating a transformed business
environment with premium quality of technology in engines of their auto-mobiles by formulating
technology for CO2 emissions free vehicles. It also needs to focus on research and development
agenda, with higher innovative technological up-gradation according to demands in market
growth (Refaie and Rajapaksha, 2019).
GLOBALIZATION: The globalization factor has changed the scenario of automotive
industry in UK. It has boomed the success and growth in industry, consumers in it and the whole
western economy. Process of globalization has brought many opportunities for business growth
and given economic freedom to companies. Bentley has worked on globalization factor by
keeping the need to innovate technologies according to competition and advancement in
demands for various potential targeted consumers. It has taken initiatives to adopt new policies
and marketing strategies to be a leader in the global market of auto mobiles (Tran and Nguyen,
N., 2019)
EMERGENCE OF NEW COMPETITORS: In the age of globalization and free market
economy trade has led to emergence of various new companies in the competitive market place.
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Automobile industry in UK has seen large number of companies with competitive technologies
entering into the consumer market. This external influence is really important and has a huge
influence in present business scenario. So, Bentley has to work on the strong zone and weak zone
of other companies as well to combat strongly with the increasing competitive market growth. It
works on serving the best quality of service, with unique highly innovative technology used in it
cars.
ENVIRONMENTAL FACTORS: The environmental factors affect greatly to a company's
production criteria, the emission levels of CO2 in environment and how company strategically
adopt environmental friendly ways to bring technology in marketplace. Bentley is committed to
produce cars with responsibility sourced materials to effectively reduce the environmental
effects. The engines used in cars have technology to significantly enhance fuel economy, reduce
carbon emission and develop highly advanced and sustainable technologies for future. It is the
first and longest holder of this standard (Van Nguyen, and Nguyen, 2019).
IMPACT OF SOCIAL MEDIA: The impact of social media platforms and brand
awareness in relation to consumer decision-making and buying behaviour impacts the business
environment greatly. This is a primary external factor very important for the organization as
social media has an effective impact on both the consumers and marketers and is becoming the
most welcomed online selling platform. Bentley has a powerful social media image which
effectively influences the image of brand, purchasing behaviour of customers and thus has built a
consumer loyalty when it comes to be the leader in automotive industry and market growth.
TASK 2
Relevance of CSR and sustainability and how it influences policies and decision-making of the
organization
Corporate Social Responsibility is a self-regulating business model which covers wide
array of issues. It helps company to be socially accountable, it forms integrate grouping of
practices to meet the changing interest and concerns of itself, stakeholders and the public within
society and organization (Kandhadai and Chander, 2018). It is concept that states that it is the
responsibility of the organization operating within society to contribute towards the welfare of
the society which creates a positive impact on society at large (Hishan and et.al, 2017).
Corporate Sustainability is a comprehensive approach which is focused on the role the company
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can play in meeting sustainable development and creating and maintaining long term social,
economic and environmental value.
Many business adopt corporate sustainability in order to ensure ethical, responsible and
continuous success. Some companies adopt these practices because it has realized its importance
as it has power to influence both personal and professional lives. Bentley Motors have based its
CSR and sustainability strategy on four areas or philosophies which have been discussed below.
Legal Responsibility: It refers to the government laws and regulations that business
should obey. Meeting with the relevant legal standards is very important for displaying social
responsibility. Bentley motors adheres to all legal laws and regulations and other company
policies. This helps in minimizing the risks for management and employees and also helps in
protecting the company's brand image (Turker, 2018). Bentley Motors have avoided bribery on
international level and it has refused to use power for any personal or business gains which has
enforced equality and fair competition in the industry. It follows all the regulation as it knows
violating any of this law will incur fines and other consequences, as in case of Volkswagen
scandal which cost it £4.8 billion to recall its vehicles. It focusses more on its legal responsibility
to avoid government intervention which can cause disruption in the functioning and negative
brand image.
Employee Responsibility: It refers to engaging the employees in the CSR activities
which help in boosting employee's work ethics and performance. It creates a positive impact on
the employee’s attitude and level of awareness (Chen, Li, and Li, 2019). It enhances sense of
integrity and cultivates positive perception about themselves and employer. Bentley motors
provides several offers such as apprenticeship, internship, placements etc. which helps in
developing employees skills and which is beneficial for both employee and the organization.
Bentley majorly relies on its highly skilled workforce to perform difficult task and processes
such as wood veneering, leather trimming, car mechatronics and paint finishing. It provides
extensive training to its employees like on job skill development, skill training and career
pathways and development. It also invests in cycle to work scheme to make the journey to work
healthier for employees and reduce environmental damage and pollution. Bentley motors also
support 'Be Fit' programmes which encourages and gives time to it's workers to engage in
promoting healthy lifestyle. It also promotes several small and simple lifestyle changes which
gives health benefits. Bentley also makes donation to its Ben charity for every car sold in UK.
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This charity provides financial and emotional help and assistance to those working in its factory
and their families members at the time crisis and difficulties. Thus, Bentley Motors have taken
some very serious steps in dealing with the changes which are of core importance in the life of its
employees and taking care of it is of much importance. This makes employees satisfied, improve
performance, creates belongingness, develops positivity and reduces employee turnover.
Environmental Responsibility: Under this, it is expected that businesses operates in a
manner that protects the environment from its harmful effects. Going beyond business activity to
protect the environment can bring benefits to the business. From the last decade, stakeholders are
increasingly demanding corporates to be environmental conscious and responsible. Successful
CSR activities of organizations helps in achieving long term success. Bentley Motors have
worked on three areas for developing environmental sustainability (BENTLEY AND THE
ENVIRONMENT. 2019). First is renewable energy, It has already installed 20,815 solar panels
and recently its has added 10,000 more to it, at Bentley's factory. It has the capacity of 2.7MW
and covers approximately 1378 car parking spaces, making it UK's biggest solar car port. 100%
of site's electrical requirement is produced by solar panel and purchased green energy. Bentley
Motor's total solar panel energy capacity is 7.7MW sufficient to cover over 1750 homes and
saving carbon emission by 3,300 tonnes per year. Also, it has replaced its intensive water
processes on site with circulating system which has enabled to company to reuse its water. Water
usage was reduced to 11.00m3 per vehicle (2016). Apart from this, Bentley has reduced its waste
by 85% till 2013 and achieved its recycling facilities has helped in achieving zero-to-landfill
target.
Second is international standards, Bentley has become the first UK automotive
manufacturer to get international recognition with ISO 14001 environmental and ISO 50001
energy management standard (Kim, Kim and Qian, 2018). Third is Biodiversity, with the help of
local bee-keepers, Bentley Motor's have installed two national hives on grassland, which is a
home to 120,000 British Apis Mellifera honey bees. This area has been sown with bee friendly
flowers and it is on the border of Cheshire country which is a perfect habitat for bees. From all
these activities, it can be said that Bentley Motors has really worked hard in protecting its
environment and reducing its negative impact.
Local and National Social Responsibility: It refers to organization's responsibility
towards communities and society for its well-being. Bentley is also the member of Cheshire
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Community foundation, which manages the Bentley's fund and ensures that company's annual
donation is effectively used to different tasks and activities. All Bentley trainees takes charitable
work as a part of development. Bentley supports various local events such as Annual Food and
Drink festival. It has established a club with the local branch of Rotary International where it
meets weekly to socialize and plan community project. Bentley Rotarians have dedicated over
2000 hours for community service which includes renovating garden for cancer patients, setting
up street kitchen for homeless and raising funds for children hospice. It has joined Dementia
Action Alliance. It recruits Dementia champions and delivers Dementia awareness training to its
workforce and builds and develop links within the community. It offers more than 150
placements each year to school and college students, which gives students an opportunity to get
an experience in all areas of business. It also hosts a special day called 'Girls in manufacturing',
this event is exclusively for women where series of workshops are conducted and Bentley's
trainees share their experiences with students. So, it can be said that Bentley Motor's has
participated in various events and programs that are beneficial to all the people locally and
nationally thus fulfilling its responsibility.
All the CSR initiatives taken by Bentley Motors, are designed to ensure that it maintains
position of world's leading manufacturer of luxury cars and it makes sure that its actions have a
positive impact on the society. It constantly evolves to become more efficient in deliver a
sustainable future. It has used innovative methods in deliver its responsibility. It takes all its
decisions based on the impact it has on the community and society as a whole and what are ways
through which it can reduce the impact.
Evaluation of Bentley Motor's response to CSR and sustainability
Bentley Motor's CSR standards goes beyond legal requirements through implementing
recycling, environmental sustainability initiatives, charities and local events, investing in hybrid
technology and investing heavily on employees training. It has reduced its carbon emission,
electrical usage by installing solar panels. Bentley encourages equality in the organization but
discourages corruption or bribes. Bentley has implemented green washing as its product emits
high level of carbon. The major problem it is facing is that its vehicles are harmful to the
surrounding and consume natural resources. It tries to resolve the issues related to over
exploitation of natural resources through its zero-to-landfill scheme. Some example of socially
responsible Bentley products will help more clear evaluation of its response. Every new
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generation of Bentley motors vehicle is 10-15% more efficient than its previous models
depicting a progressive approach to sustainability. Also, 80% of the vehicles ever made are still
in use which shows long and sustainable product life cycle. Average Bentley vehicle travels
7,000 miles a year and portfolio averages carbon emission of 340g/km. At last, Bentley Motors is
working on, making its 90% product portfolio as a plug in hybrid.
With reference to Carroll CSR model, Bentley has adopted and fulfilled its responsibilities
which are stated below.
Economic responsibility: Greater return on investment, customer desire for good quality
and priced products, employees desire for safe jobs is the main priority (Krohn Scott, 2018).
Bentley Motors has been successful on this part and is a profitable organization.
Ethical responsibility: It refers to the obligation of working ethically and responding to
customers, public and employees in ethical way. Bentley Motors is committed to reducing its
carbon footprint.
Legal responsibilities: It refers to meeting up with the government rules and regulations
that are required in portraying social responsibility. Bentley Motors abides to all laws and
regulations globally.
Philanthropic responsibilities: It is related to the activities that are beneficial to the
people outside the organization. It includes donation, charity, volunteering activities etc. Bentley
Motors is a part of several charitable trust, provides donation and volunteer several events for a
social cause.
It can be said that Bentley motor is very effective in recognizing its social responsibility
and taking accountability for the same.
KEY AREAS OF IMPROVEMENT
Key areas where company should work in bringing improvement in overall development
of the society, which are stated below.
 The organization should invest more in hybrid technology to reduce carbon emission and
produce more environment friendly vehicles will portray a positive image.
 It should regularly monitor its processes and procedures to ensure it carries out all the
relevant tests and quality check on all its vehicles. By this, company would become able
to take corrective measures within suitable time frame and thereby gets success.
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 Bentley being a part of Volkswagen group, needs to should disjoint itself from
Volkswagen to prevent it from being seen as a part of VW scandal.
 It should provide more training to its employees in the field of corporate social
responsibility and increase the employee awareness which will improve the performance
of its employees.
 It should collaborate with other organizations, to work on higher level with respect to
corporate social responsibility with new opportunities.
 Bentley should work continuously to improve its methods of production and methods of
acquisition of resources.
 It should try to implement the Japanese philosophy of 'Kaizen' which helps in improving
and developing efficiencies. This will not only help and benefit financially but also help
in reducing pollution and environmental damage.
CONCLUSION
From the above analysis, it can be concluded that every organization is affected by the
external business environment which can be positive or negative. Bentley has been facing major
problem from its competitors so it is required to come up with the strategies to overcome this
challenge. Corporate Social Responsibility and sustainability programs plays a crucial role for
the success of an organization and the benefits it carries to the business. Bentley has
implemented several CSR practices for the betterment of the society and environment, however
its product portfolio is contradicting its efforts. It working on developing even more efficient and
highly valuable vehicles keeping in mind the well-being of the society. It is making efforts to
reduce its impact by making every new generation of its vehicles more efficient than its previous
ones with new and innovative ways. It is a never ending process.
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REFERENCES
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Online
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<https://corporate.bentley/en/bentley-corporate/bentley-and-the-environment.html>.
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