Business and the Business Environment: An Analysis of Bentley Motors

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Business and the Business Environment
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Table of Contents
Introduction...................................................................................................................... 3
LO1 (P1, P2).................................................................................................................... 4
LO2 (P3)...........................................................................................................................7
LO3 (P4).........................................................................................................................11
LO4 (P5, P6).................................................................................................................. 15
Conclusion..................................................................................................................... 18
Reference list................................................................................................................. 19
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Introduction
Business environment is regarded as the exhaustive total of all internal and external
factors, which influence a business. Modern business scenario is highly competitive. In
order to sustain in the market, analysing and assessing the business environment of the
particular business location is important for business ventures. However, there are
several actors that impact upon business performance of organizations.
“Bentley Motors Limited” is one of the most successful British multinational car
manufacturing companies throughout the UK premises. The company was founded in
1919 by W.O.Bentley in Cricklewood, North London, UK. After that, Roll-Royce
acquired the company in 1931. After that, in 1981 Vickers Plc was undertaken the
company and transferred the company to Volkswagen Group in 1998. The company
has over 3600 trained-employees. Last year, the company generated €1600 million
(Bentleymotors.com, 2019).
This study will shed light on different types of business organizations along with their
size, scope, nature and business objectives. Additionally, interrelation between different
organizational functions will be displayed in this paper. PESTLE analysis will be
conducted to understand the impact of business location over business organization.
Lastly, SWOT analysis will be conducted for assessing the internal strengths and
weaknesses of the company.
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LO1 (P1, P2)
Explain the different types, size and scope of organisations.
P1 Explain different types and purposes of organisations; public, private and
voluntary sectors and legal structures.
There are three different types of organizations that can be found in recent context,
those are public, private and voluntary organizations. Descriptions of these three
different types of organizations have been illustrated below:
Private Organizations
This type of organizations are generally being controlled and operated by a single
individual or a group of different individuals. From the perspective of any economy, this
type of organizations contributes a major share. These organizations are not being
supervised through the help of governments of different countries, however they need to
consider the basic rule and legislations that has been crafted by their respective
government in context of running risk free business (Hamilton and Webster, 2018).
Organizations belong from this category majorly has one primary objective, which is
maximized profit generation. They generate revenue by selling a range of different
products or services. Unique marketing efforts have been taken into consideration by
different public organizations in order to attract consumers. As an instance, Bentley is a
famous UK car manufacturer that falls under the category of public organizations. They
mainly deal with super car and luxury cars (Prajogo, 2016). The key mission of that
organization is to make quality, stylish and astonishing vehicles that can be attracted by
their entire consumer base. In addition to that, they also inherit the business objective of
enhancing their revenue generation by increasing their overall market share.
Public Organizations
Public service organizations has not been run by any individuals as they are controlled
and supervised by central, federal or state government of any nation. Local publics are
generally funding these types of organizations, as the main purpose of these
organizations is to serve people. The government has collected tax in order to run these
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kinds of organizations (Hillary, 2017). However, sometimes public service organizations
make partnership with private organizations in order to enhance the quality of some
specific product or to enhance the overall experience of a particular service. This type of
organization does not have the key objective of maximizing profit generation; instead,
wellbeing of an entire society is the main organizational aim of public organizations at
certain extension.
NHS can be described as a well known public service organization that operate their
organizational functions from United Kingdom (Deasy et al., 2016). The key objective of
the organization is to maintain the wellbeing of an entire community.
Voluntary Organizations
A group of different individuals is generally controlling this type of organizations. That
group of people can be trustees, Governing Bodies and directors. The board of directors
generally maintains fulfilling the key purposes of these types of organizations at certain
extension. Care international can be described as such a voluntary organization that
operates their organizational functions from United Kingdom (Kolk et al., 2016). That
organization conducts several activities that are closely related with individual
development support and humanitarian relief a certain extension.
The key vision of that organization is to eradicate poverty from entire United Kingdom.
The government of UK assist them at fulfilling their key objectives at certain extension.
P2 Explain the size and scope of a range of different types of organisations.
Bentley is a large and famous UK car manufacturer that has over than 100 years of
service history. They have a great scope of further development as their stock market
price is very high and the value raise in a consistent manner. However, they have a
huge production cost, which is the key reason why they always need to raise the price
their products at certain extension (Kljucnikov et al., 2016). In addition to that, the key
objective of this organization is to generate as much profit as possible from their primary
investment. They can easily meet up with their prefabricated business objectives at
certain extension.
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NHS is a famous and well-known public service organization that conducts their
operations from health care industry. The key objective of that organization is to serve
the well-being of their entire consumer base at certain extension (Policy et al., 2018).
They are being funded through the help of their government bodies, which allows them
to grab scope of further development. In recent context, they are conducting several
marketing activities in order to attract more consumers at their organizational place,
which ultimately provides them the opportunity of further growth. However, as they
belong from the health care industry, their overall scale of profit cannot be diminished.
However, they need to consider start making SMART objectives for themselves, which
will ultimately be helpful at overall growth.
Care International can also be described as a large and famous organization that
belongs from United Kingdom. They have over than 1 million employees worldwide as
they operate their business in more than 94 different countries (Chang, 2016). This
organization has been connected with both public and private international sectors at
certain extension. The overall well being of an entire society can be described as their
key organisational objective as they are closely associated with a number of different
big projects worldwide. As they serve different countries and different regions
altogether, they have a better scope of future development.
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LO2 (P3)
Demonstrate the interrelationship of the various functions within an organisation
and how they link to organisational structure.
P3 Explain the relationship between different organisational functions and how
they link to organisational objectives and structure.
Since Bentley belong form the car manufacturing industry, they inherit a range of
different departments that are closely linked with each other and the key purpose of
every department of that organization is to generate as much revenue as possible (Ji-
fan Ren et al., 2016). The most important debarments from the perspective of Bentley
have been described below:
Marketing- This department of that particular organization is closely associated with the
marketing efforts of that organization. It provides general description regarding a
product of Bentley towards their entire consumer base at certain extension (Nohria,
2017). It brings a range of different consumers to both physical and web based location
of hat organization. Moreover, influencing the decision making process of the consumer
s is also possible through the help of marketing department belonging from Bentley.
The marketing department of that organization is generally doing different activities
regarding promotion, social media advertisement and things like that.
Logistics- It observes different activities that are related with moving the cars from the
factory towards the physical location of the stores. Key activities that have been
performed by the logistics department of the organization are closely associated with
storage, transportation and different things like that. Additionally, delivery of right car at
right place at the right time also falls under the responsibilities of logistics department of
that organization at certain extension.
Human resource management- Human resource department of that organization
can also be described as the personnel department of that organization. It handles a
diverse range of things that are related with employment selection, training and
development. Without the help of proper human resource management team, it is
entirely impossible for any car manufacturer organizations to move up their revenue
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generation by increasing their overall productivity at certain extension. The HR
managers are solely responsible for building a competitive ye sustainable workforce at
the organizational culture of Bentley (Evans et al., 2017). In addition to that,
administrative works of hat organization has also been monitored and supervisor
through the help of this human resource department.
Finance- This can be described as the most important department belonging from
entire Bentley since it assist them at managing their overall cost structure for increasing
revenue generation. The key aspect of this part of the organization is to manage,
supervise, control, plan, audit and organize the entire cost structure of that organization.
In addition to that, financial report for calculating the overall revenue generation and
cost per profit can also be accessed through the help of finance department of that
organization. Different long term and short term financial planning has also been done
through the help of finance department of that organization. Lastly, the finance
department has also done payment scale of individual shareholders.
Customer Service- Consumer service is the integral part of the organization as the
rate of consumer satisfaction can be judged and modified accordingly through the help
of consumer service department of that organization. In addition to that, this department
carefully gathers consumer complaints in order to provide effective solutions at certain
extension. Their consumer service department can answer any question or query
regarding any car of Bentley. They can also recommend preferable choices for their
entire consumer base.
Operation- Operation department of that organization is closely related with the
physical stores of that organization. In recent context, the organization is planning at
expanding their overall business in both domestic and international context. Therefore,
their entire operation function can be very helpful in this specific context. Functionality of
different stores, major cash operations, data management and things like that are
generally being managed and supervised through the help of operation department of
that organization.
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Figure 1: Organizational Structure of Bentley
(Source: Bentleymotors.com, 2019)
In recent context, organizations can use a range of different organizational structures
such as functional, divisional, matrix, flat organizational structure and many more.
IN context to Bentley, they use functional organizational structure that divides the key
area of an organizational chart into two separate divisions at certain extension. Every
function of that organization is closely related with their other business functions, as it is
impossible for the organization to scale up their revenue generation while considering
same cost (Virglerová et al., 2016). Key interrelationship between different functions of
the organization has been described below:
The operation function and marketing function of the organization is closely linked
with each other and the key purposes of both organizational functions are same, which
is to provide optimal consumer satisfaction. Marketing function generally set targets for
the entire operation function as they pressurize to move up the productivity for
supporting the increasing demand. In addition to that, stuffs belonging from marketing
department is generally associated with releasing new products in a fast pace whereas
the main duty of operation department is to taste the viability of different cars before
releasing them in their market sector.
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Their logistics department assists their marketing department to anticipate the current
rate of consumer demand and it enables them with different equipments like material
leasing, product manufacturing and different things like that. The finance department
approves the budget of conducting marketing and operation at certain extension.
Different plans regarding business expansion has also been done through the help of
different departments like marketing, finance, HR and many more.
The HR department provides appropriate workforce towards the operation department
of that organization at certain extension. Additionally, employees of finance department
and marketing department are also closely associated with the HR department as the
HR department is recruiting them. Lastly, it can also descried that customer service
department and marketing department is also closely related with each other since the
marketing department can assess the present need of their consumer base through the
help of their consumer service department.
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LO3 (P4)
Use contemporary examples to demonstrate both the positive and negative
influence/impact the macro environment has on business operations.
P4 Identify the positive and negative impacts the macro environment has upon
business operations, supported by specific examples.
Political
The recent scenarios of the possible no vote situation has been imparting instability to
the political landscape of UK (Arnorsson and Zoega, 2018). Theresa May have been
delaying the declaration of the Brexit formation has resulted in the emergence of
adversities that has negatively impacted the automobile industry. It is because the air of
uncertainty looms large over the probable cancellation of the international purchase
licenses that is necessary for the movement of the supplies. The organization of
Bentley has been adversely impacted top a great extent as it conducts its operations on
a global scale and most of the aluminium body parts are purchased with the privileged
licenses. The exit of UK from the EU members has negatively impacted the automobile
sector as the enterprises cannot reap the benefits of Free Trade Regulation. The Free
trade Regulation helps the enterprise to translocation the raw materials and supplies
within the EU nation on a duty free basis but the decision of UK to opt out of European
Union will make them to pay high taxes while conducting the business within the EU
nations and resulting in the loss of competitive advantage. The internal politics within
the UK has been a stable one and has made positive influences over the business of
Bentley as they have providing lenient policies for the native enterprises to prosper.
Economical
The decrease in the corporation tax rate from 19% to 17% has resulted in the rise of
many businesses (Bilicka and Devereux, 2016). It has made a positive influence on the
operations of the automobile industry as it is capitally intensive and any sort of leniency
on investment serves as a benefactor prospect. The operations of the Bentley have
been positively influenced as it delves in the implementation of the heavy machinery
and has to pay high corporation taxes for the machines. The decrease in the
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corporation tax rate has certainly added to the organization cause and the organization
also delves in the purchase of numerous warehouses to act as distribution centers, it
also incurs a high amount of corporate tax. Thus, it demonstrates on the two fold
benefits of the company. The increase in the GDP has resulted in the increased funds
for the UK government to alleviate the purpose of the industrial sector. The company
has been receiving credible funding from the UK government to develop the state of the
art fabrication technology. Thus, it reflects on the positive impact of GDP on the
operations of Bentley. The increase in the minimum wage law from £ 7.2 to £ 7.5 per
hour has resulted in the negative impact on the operations of the industry as the
enterprises have not been actuating on high revenues and on top of that, the increment
in the minimum wages has added to further reduce the profit margin. The Foreign
Direct Investment (FDI) has been one of the economic policies that have had a
positive reflection on the operations of Bentley as the FDI inflow has supported their
financial budget to experiment with their supply chain operations.
Social
The demography of UK is sown with the prospects of bright young minds as the
demography reflects on the highest number of educated individual and is ranked as the
5th most educated population on the international scale (Sallis, 2014). Such provisions
have made positive influences on the business belonging to the automobile sector. It is
because the sector is a labour intensive and the presence of the skilled human capital I
of prime importance. The operations at Bentley have been assuaged through the
presence of such exciting prospect that has been asserting their creative ideologies in
the R&D department to design the V12 engines with innovative combustion engines. In
the wake of economic recession the disposable income has decreased the socio-comic
faction has been observant to apprehensive consumption behaviour of the premium
priced cars. Such purchase behaviour has dented the financial revenues of the
company as it mainly deals with the production of the premier end cars. Thus, it
demonstrates on the negative influences that are impacted by the decrease in the
disposable income on the profitable ventures of the company. The young population of
the UK demography accounts for majority population as compared to the presence of
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