Analysis of Bentley Motors' Contemporary Business Environment Report

This report provides a comprehensive analysis of the business environment of Bentley Motors, a prominent automobile company based in the United Kingdom. The introduction outlines the importance of analyzing both internal and external factors, including economic, cultural, and natural environments, to identify opportunities and threats. The report includes a SWOT and PESTLE analysis to evaluate Bentley Motors' strengths, weaknesses, opportunities, and threats, considering factors like BREXIT, economic policies, and the impact of cultural and natural environments. The cultural environment explores how Bentley adapts to different cultural settings. The natural environment addresses the company's efforts towards developing eco-friendly vehicles and managing waste. The business environment section covers the impact of economic systems, conditions, and policies on Bentley's operations, particularly concerning BREXIT and its implications on trade, labor, and profitability. The SWOT analysis highlights the company's strengths in quality and innovation, while also pointing out weaknesses like limited market expansion and environmental impact. Opportunities include the potential for electric cars, and threats include the impact of BREXIT. The report concludes with a summary of the key findings and their implications for Bentley Motors.

Contemporary Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
Role of business, cultural as well as natural environment in shaping the behaviour in
organisation............................................................................................................................3
SWOT and PESTLE Analysis of Bentley Motors.................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
All those internal as well as external factors which have an effect on working operations and
functioning of a business are known as business environment. It is important for a business to
analyze continuously such factors in order to identify threats as well as opportunities available
for a business on time (Roy, A. and et. al., 2018). These factors also help businesses to make
their strategies. Businesses can convert threats into opportunities Also analyze their competitors
future plans strategies promotion and other aspects.
In order to make their place in market it is important for companies to study environmental
factors deeply. Economic environment has a huge effect on organizational a behavior. The factors
Economic environment have a huge effect on organizational behavior the factors such as
economic system economic policies and economic conditions will be discussed further when in
this report. There are also some non-economic factors apart from this that includes natural, cultural
and demographic factors. In this report SWOT and PESTLE analysis of company have also been
conducted in order to clear list all the internal as well as external factors that are affecting
functioning and operations in a business directly or indirectly.
In context to given report Bentley motors have been Selected have been selected in order to
conduct a study. This company deals in automobile sector in the United Kingdom. The functions
of this company include research and development, manufacturing, the motion and send Selected
have been selected in order to conduct a study. This company deals in automobile sector in the
United Kingdom. The functions of this company include research and development,
manufacturing, the promotion and selling of automobiles to different parts in world. In this report
an analysis of very important factors that are economic and non-economic on business and its
working is being mentioned effectively. When discussing about Bentley Motors these economic
and non- economic factors are continuously discussed.
A study of all the non-economic factors is also being discussed in this report further. These also
have a deep effect on business of Bentley Motors. These non-economic factors also include
cultural, demographic and natural environment around company as well. Headquarters of
Bentley Motors is situated in Crewe, England. W.O Bentley founded Bentley Motors in year
1919. Bentley Motors takes care of assembling of its car in its factory situated in Crewe (Yang,
D. and et. al., 2018). There have been a number of mergers in this company since it was
founded. Some of its very famous models are Flying Super, Continental GT, Mulsanne,

Bentyaga, Bentley Speed Six etc. However, for now intellectual property right stays with Rolla
Royce Plc. It was earlier a part of Rolls-Royce aerospace and then it was sold to BMW AG.
Role of business, cultural as well as natural environment in shaping the behaviour in organisation
Cultural Environment:
A set of combination of beliefs and values, practices, customs which a society and people living
in it follow in a given geographical location in which a business is running and functioning all of
its operations is said to be Cultural environment (Verbeke, A. and et. al., 2019) . In order to
develop personalities and ideologies in citizens cultural environment plays an important role.
Social or physical setting in which a business survives and functions in a given geographical
location. In this society, individuals and their relation with each other everything is included.
This is important for a business so as to build strong relationships with their customers as well as
their employee. It helps them to develop customer as well as employee satisfaction towards
business and organisation. There are a number of different cultures and people from different
beliefs present in United Kingdom. These different cultures, customs and settings are included in
it. Taking Bentley Motors into consideration company focuses on different features and
advancements for different cultural settings. They try to focus on all the different aspects
important in a business setting and then fulfil needs required by all of them.
Natural Environment:
A natural environment consists of all the living as well as non-living things present in th
surrounding of an organisation. This includes all the natural resources such as minerals, water,
resources for business, fuel and gases. Due to extraction of this resources by businesses often
natural surrounding gets affected and balance in nature is seen to be disturbed. In United
Kingdom global warming is a major issue rising in terms of natural environment. Major reason
behind this is depletion seen in natural resources and also damage to environment and
atmosphere through the pollutants that businesses are releasing in environment. When taking
Bentley Motors into context, company is looking on developing such vehicles which do not have
negative effect on environment (Dülger, M., 2018). Also, all its wastes from industries are
released in environment only after being treated well. Company is also developing electric cars
which may not require any kind of fuel for functioning. This might also help company to reduce
the use of fossil fuels.

Business Environment:
Business environments consists of a sum total of all the customers, suppliers,
stakeholders, employees, competitors, owners, product as well as services which are provide by
the business in a market (Silva, D.A.C.S., 2019). The various scales, forms, function and
structure of organisation are also included in business environment. In context of Bentley
Motors, company is said to be one of the largest suppliers of automobiles internationally.
Company is seeing a number of changes in its functioning, operations, processes as well as
revenues and profitability after introduction of BREXIT between UK and EU. When this
memorandum was signed company had no idea it would highly affect its business so no proper
strategies were formulated by business. Trade between United Kingdom and European Union is
no freer. There are a number of factors to be considered before trading between these two. This
decision has seen to hit both the economies and measures are still continuously taken to reduce
its effects. Bentley is taking actions to reduce its effects and carry on their business smoothly in
both of these nations.
1. Economic System:
An economic system in a nation is said to be consisting a number of factors. These factors
majorly include Per capita income, taxes, custom duties applicable on imports and exports, gross
domestic product, inflation rates, foreign exchange rates etc. These are a number of trends which
are seen affecting functions and operations in a business environment. Bentley Motors is trying
to deal with these factors by raising its quality and developing an electric car which might no
more require any fuel for its functioning. Company have already developed a prototype for it
they will now test it in a target market. Once company is done with testing, they may launch their
product in the market (Collis, D.J., Anand, B. and Cheng, J.Y.J., 2018). Also, various taxes are
seen to have negative effect on company. Inflation can be seen on a boom. There are various
factors other than this such as custom duty, restrictions on trade etc which are limiting
companies’ expansion in foreign market as well. There cannot be seen any positive effect on
Bentley Motors from economic systems.
2. Economic Condition:

Due to setting of Bentley Motors’s headquarters in United Kingdom Any political or
economic changes taking place in nation is having a direct effect on Bentley Motors also. Latest
example for such changes can be seen by BREXIT. There have been a lot of speculation due to
this new memorandum and a lot of changes in relation between UK and EU. These two nations
are no more in good terms now a days. The reason is that free trade is no more applicable
between them and custom duties is applied in order to trade now (Schweigert, F.J., 2016). Due to
increase in prices of trade company is raising its selling price in order to maintain its margin.
This have resulted in decrease in revenue in European Union. Even though giving the greatest
number of innovations and technological advancement to its customers it is difficult for company
to overcome this situation. There are a number of parts used in company which were earlier
imported from EU. Even the prices of those parts have increased for the company. These are
some major effects of economic conditions on company negatively affecting situation of
company.
3. Economic Policies:
There are a number of policies in an economy which are majorly formed due to automobile
industry itself. Any changes in these policies will directly affect Bentley Motors as well.
Company have recently spent an amount of 20million in its development and research. If any
major changes occur in policies this amount spent by company can be wasted. Uncertainty of
BREXIT is proving a threat for company and this huge investment made by company. Company
needs to develop strategies in a way that these funds can be utilised to maximum and company
can come over if any future losses are to happen.
Another important factor is its effects on human resource of company. Due to introduction of
BREXIT all the labours from EU are moving back. They want to leave there work and go back
to their homes. This is important for them because it is possible that due to BREXIT, they might
no more be able to leave the country and get stuck here. This requires for Bentley to look for new
labour force. They need to now spend more money, energy and efforts into recruiting more
employees. Training of those employees is also necessary. This will result in decrease in
productivity of company for short period of time until new labours and employees are trained
and brought up to the mark.
From the above-mentioned factors, it can be clearly seen that how important it is for company to
deal with the changes brought in business due to introduction of BREXIT (Drynochkin, A.,

2016). A number of conditions are against the company which are leading to depletion of its
profits. Final decision regarding this factor is still not taken. There are speculations going on for
this memorandum. Possibilities are that there may be some more major effects on company in
coming days. This requires for company to be aware and formulate strategies which are flexible
and can deal with any further threats arising due to BREXIT (Gorostidi-Martinez, H. and Zhao,
X., 2017). SWOT and PESTLE Analysis of Bentley Motors
SWOT Analysis-
SWOT analysis enables a firm to study all the internal factors which have been affecting
business its functioning and its standing in market. Swot stands for strengths, weaknesses,
opportunities and threats. SWOT analysis conducted on Bentley Motors is been mentioned
below:
Strengths Weaknesses
Company attained a differentiated
advantage over its competitors in its
lifetime. Its vehicle is very high quality.
Another strength of company are strength,
innovation, speed and durability of its cars.
Bentley does not focus on expansion. The
target market for company is very limited
and small, the segmentation for this
company is the customers which have a
very high disposable income. Even another
weakness can be the amount of pollutants
which is left in air while production as
well as while operation of its cars (Lim,
D., 2019).
Opportunities Threats
There is a great opportunity for company
that are its new electronic cars. These cars
are already developed as a prototype by
company. They are now giving it a try in
market. After its trial and required changes
in it, it can be launched in market (Damian,
D., 2018).
For time being company have threats from
Company is now facing a number of
threats from BREXIT. It is threatening
company even more than its competitors.
Company is unable to freely conduct its
business as free trade between UK and
European Union does not exist anymore.
Due to heavy custom duties company is

facing problem which may lead to decrease
in its profits as well as its revenues.
PESTLE Analysis-
The study in which all the external factors which are directly or indirectly affecting
functioning and operations in a business is said PESTLE analysis (Maoxing, H. and Qi, Y.,
2017). PESTLE analysis stands for political, economic, social, technological, legal and
environmental factors. Below mentioned is PESTLE analysis for Bentley motors:
 Political Factors- A number of political factors are present in environment which have
an effect on working of Bentley Motors. BREXIT is proven to be an important factor in
politics which had major effects on company. The trade between EU and UK are highly
effected. These changes are only negatively affecting the company. There are no benefits
for Bentley Motors through BREXIT.
 Economic Factors- There have also been a number of challenges which company had to
face economically. Bentley have been affected by BREXIT as major rise in inflation is
seen in economy. These rises are process have led to rise in price of raw materials as
well. These rises are also due to custom duties, which were not applicable earlier between
European Union and United Kingdom.
 Social Factors- These factors are related to belief and values. It also includes changing
perception and decisions of people while taking buying decisions. They are developing
an electric car due to changing perception of people towards environmental benefits.
Bentley have successfully developed a prototype of these cars and will soon launch one
after-market testing of these cars.
Technological factors- It is very necessary for a company to be updated in terms of
technological advancement (Gainochenko, T.M., Kurbatova, A.V. and Kurbatova, E.S., 2019).
When a company is not updated with latest technology it becomes difficult to stay in market and
fight competitors. Bentley regularly comes up with a number of innovations and upgradation in
its vehicles to attract customers.

 Environmental Factors- Environmental factors are necessary to be considered by every
environment. Natural resources are depleting and companies need to take care of
environment in which it is functioning. Bentley is focusing on pollutants its product is
releasing while application. Also, company is focusing on its production methods so that
environment is not damaged by pollutants released by it in air or land. Increasing global
warming is a reason to be focused on.
Legal Factors- BREXIT is largely affecting functioning and operations in Bentley Motors. Due
to this revenue from European Union is seen to be declining for the company. Company have
been facing major losses due to this. Increase in bargaining power of suppliers can also be seen
due to this. Company is now facing troubles as they have to pay higher prices to their suppliers
(Serova, E., 2017).
This was an analysis of all the external factors which are seen affecting Bentley. These
major issues are mostly due to introduction of BREXIT. This have majorly affected all of
United Kingdom’s economy. SWOT also discusses about all those internal Factors which
have been majorly affecting Bentley. Bentley gets to know about opportunities, weaknesses,
threats and strengths of company which can be used to formulate future strategies to do
better in future.
CONCLUSION
It is very important for businesses to make sure that their business environment is studied
effectively and efficiently in order to benefit them in future. This helps an organisation in a way
to carry out its functioning and its businesses effectively and efficiently. This also helps
companies to formulate strategies in order to attract its customers. It helps companies to stay in
market for a longer period of time and also enables sustainable growth along with that. This is
necessary for company to study the industry in which it is functioning effectively. The analysis
of both internal as well as external factors are done in it so that company cannot miss on
something important which might later prove to be a foregone opportunity for the company.
Impacts of natural resources or the natural environment in which a business operates also can
be seen on an organisation. This environment also includes various environmental factors which
effect a business. It is necessary for Bentley to make sure that all of its production line releases
minimum amount of pollutants in air while production of its units. Also, various measures should
be taken by it in order to keep check on pollution released by its vehicles on road. In order for a

business to run successfully it is very necessary to respect environment in which it is surviving.
There is also a negative effect due to demographic environment seen on organisation. This can
be seen as millennials are going towards public transport rather than their own vehicles.
Company however will take advantage of this strategy and is planning on making a new car
which will be sportier along with being luxury as well. It is required by company to also judge
all those cultural factors which have been affecting a business. A business needs to follow all the
All the cultural values and beliefs of customers and people in surrounding where a business is
running. This also helps a company to make healthy and positive environment at workplace. It
helps people including employees and customers to feel belongingness with company. It helps
increasing reputation of company as well.
Business environment also consists of economic environment. Economic environment
consists of economic culture, values as well as economic systems.it is necessary for Bentley to
look over all the factors which either directly or indirectly have an effect on business functions
and its operation. Economic factors have a direct effect on revenues and profits of a firm. It helps
company to make what are the factors which can affect monetary factors in a company in future.
They also let company know what are future benefits company can look to grab in future.
Bentley took a number of steps to make sure that there is no factor like pollutants or custom
duties to lead company into losses. They are also looking into electric cars and various ways to
influence millennials.
During the end of a report this company went through SWOT and PESTLE analysis in
order to learn about internal and external factors affecting business. There are a number of
strengths and opportunities present for business. There are also some of weaknesses and threats
which lead company to losses. Other than this in PESTLE analysis company comes to know how
can it take advantages of various external factors and be aware of various opportunities to gain
its spot in market. Bentley is effectively using this strategy and trying to gain maximum market
share. Thu, it can be concluded how factors have negative as well as positive impact on
businesses.

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