Impact of Business Environment Factors on Bentley Motors Operations

This report provides a comprehensive analysis of Bentley Motors' business environment. It begins with an introduction to the business environment and its impact on organizations. The report then delves into the different types of organizations, including private, public, and voluntary sectors, examining their vision, mission, size, and scope. It explores the interrelationships between various organizational functions within Bentley, such as human resources, operations, production, marketing, and finance. The report further examines the positive and negative impacts of the macro business environment on Bentley's operations, utilizing a PESTEL analysis to assess political, economic, social, technological, environmental, and legal factors. An internal and external analysis of Bentley is conducted, highlighting its strengths, weaknesses, and their relationships with external factors. The conclusion summarizes the key findings and insights regarding Bentley's business environment and strategic considerations.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 .........................................................................................................................................1
P1 Different type of organisation public, private, voluntary......................................................1
P2 Vision, mission, size, scope of different organisation...........................................................3
TASK 2............................................................................................................................................5
P3 Relationship between various organisation function.............................................................5
TASK 3............................................................................................................................................6
P4 Positive and negative impact of macro business environment on organisation operations...6
TASK 4............................................................................................................................................8
P5 Internal and external analysis of Bentley...............................................................................8
P6 Interrelationship of strength as well as weaknesses with external factor..............................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment is a combination of internal as well as external factor which are
having an affect on organisation's activities positively as well as negatively. It is a management
responsibility to analyse these elements so that they can run whole business task effectively in
long period of time. In this report, Bentley it is a auto-mobile manufacturing firm which are
offering high class product to their clients. It was establish in year 1919 by H. M. Bentley and
W. O. Bentley. Bentley motors limited is operating their business from their home location
Britain. Volkswagen is a parent company of Bentley since 1998 (Al-Swidi and Al-Hosam, 2012).
In this assignment, types of organisation private, public, non profits with their size, scope is
covered. It also discusses interrelationship between various function of company and positive as
well as negative impact of macro environment on business operation. This report cover internal
strength and weaknesses of particular company and its relationship with other external elements.
TASK 1
P1 Different type of organisation public, private, voluntary
There are several types of business that are being run at market place with diversify aim,
objectives and many more. Here are explain purpose of different organisation in detail:
Private organisation: Private company can be defined as an organisation that have sell
their products to public may be or may not be. In private firm, government can not impose their
thinking or opinion on their operation activities, only legal regulation has follow by organisation.
They are required to complete their work according to management as well as board of director's
direction (Bryman and Bell, 2015).
Bentley is a British manufacturing unit that are produce high quality cars to their clients
those are belongs to high segment. Approx 3600 employees are working here are earn 1,453
million revenue in the year 2012.
Purpose of Bentley
 Continue innovation in their product through this they are able to enhance technological
improvement.
 Manufacturing high quality cars so that they can build a brand value as well as customer's
loyalty in long run.
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 Bentley increase their efforts in after sale services so that they enhance customer's
satisfaction.
 Identify geographical market in order to select target buyer easily and sell high volume to
potential consumers.
 Build core corporate value so that make unique combination of performance as well as
luxury.
 Expand their market in new markets or nation so as to make global presence of brand.
Legal structure of private firm: Partnership: Two individual or group of companies has think about to entire to
partnership contract due to increase professional knowledge, build strategic alliance, rise
resources and many more (Christopher and Holweg, 2011). Partners make partnership
deed in which they explain liabilities, role, responsibility, profit sharing ratio etc. of each
partner and they work accordingly as well. Sole proprietorship: This kind of firm is run by individual person and no other person is
working here. They are completely responsible for all losses as well as profits and no one
other people are liable for it. For example, restaurant, cafe, confectionery store etc. Limited company: Limited by liabilities of public, limited firm are not fully liable toward
their consumer, suppler etc. and all their liabilities mention in memorandum of article and
association of article. In this, owner of enterprise are safe from their dues or unpaid
amount according to some circumferences. For this, they are required to follow all
regulation related to companies act of United Kingdom.
Public firms: Government also work in operating organisation with the aim of public
welfare like construct hospital and run it, educational institute, electricity and many more.
Through this, they are provide necessary item to citizen at economic price resulted no one private
organisation create monopoly in the industry (Cross and Miller, 2011). NHS work in health care
sector and focus on improvement in people health.
Purpose of NHS
 The main purpose of NHS is to offer economic treatment to individuals who are not able
to pay high amount.
 They are continuously trying to improve quality of facilities services through this they are
able to build positive image in consumer eye.
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 Administration of NHS has to develop action of plan to manage all operational process
effectively.
Legal structure of public firm Central government: Central authority also work like making road, airlines, hospital etc.
in order to enhance quality life of all citizen as well as overall nation development. State government: They are focus on implemented of inter connectively, water supply,
produce electricity and many more through this full fill necessary requirement of
individual (Dibrell, Craig and Hansen, 2011). Local government: Authority focus on area as well as social development through this
citizen live their life smoothly.
Voluntary firm: Voluntary firm means business those are work for public welfare it is
also called non profit organisation. Aim of the voluntary organisation is enhance living standard
of all individual and provide them equal opportunities to grow. Oxfam is work for social
development with aim of reducing poverty. For this, they develop action of plan which covers
pro-migration, advocacy and disaster etc.
Purpose of Oxfam
 Reduce poverty from the whole world and offer them necessary facilities like education,
hospitality, houses at lower cost.
 Main objectives of the company is enhance quality of life to all person those are live in
the world.
P2 Vision, mission, size, scope of different organisation
Each one organisation has different legal structure as well as purpose, accordingly they
are operate whole business unit effectively in order to achieve specific goals in limited period of
time (Gharajedaghi, 2011). Here are explain size, scope, vision and mission of different
organisation with comparison:
Private organisation: It is privately owned and run so that no government interference
has been made resulted operate whole business task effectively. In United Kingdom, several
private firm are established and increase employment opportunities globally. Size of private
enterprises are:
 Maximum employees: 50
 Minimum employees: 2
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Here explain size, scope, vision, mission of two private organisation:
 Bentley was founded since 1919 and around 3600 people are working here in order to
sale product at international level. Scope of the company has very large due to
continuously increase in per capita income. Vision is to offer highly technical cars to
their clients with mission of continuously development of current feature as well as get
higher customer's satisfaction (Kolk, 2016). Costa coffee has run their business through 3401 store world wide and approx 1280
outlets. Company has hug opportunities at market due to continuously increasing demand
of coffee. Costa coffee vision is providing rich taste of coffee to buyer by implementing
latest technology. Mission of Costa coffee is protect individuals from medicated coffee
those are create negative impact on health.
Public company: Government has run business unit with the hope of social as well as
country development. Here explain two type of public firm with their size, scope, vision and
mission as follows:
 NHS has work at international level and approx 1.5 million employees are working here
in this around 150273 are doctors, 317966 nurses. They offer healthcare services at
lower cost so its create lots of scope for NHS at market place. Vision of the firm is
enhance quality of life and mission is provide low cost treatment to individual those are
not able to pay large amount (Li and et. al., 2011). Another public sector unit is BBC it was established in the year 1922 and approx 20,916
employees are working here resulted they earn £4.954 million revenue. Vision of the
company is develop trust among clients, provide quality of services with creative idea.
BBC mission is they believe in power of communication and media through this they
reduce poverty and support individuals to understand right things easily.
Voluntary organisation: Company those run business unit non profits has came under
this. In United Kingdom, each one organisation has donate money out of their profit those earn
certain amount of profits. Two non-profits firm are explain as follows:
 Oxfam has work in order to remove poverty from the whole world. Approx 20 charitable
enterprise are came under this and support Oxfam in different location. Vision of the
company is provide equal opportunities to all individual in each on field and mission is
expending working area in order to create global presence.
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 British heart foundation is a another NGO that established in the year 1961. with them
approx 50 charitable trust are working and help organisation to identify individual those
are survive with some heart issues and not able to take treatment (López-Gamero,
Molina-Azorín and Claver-Cortés, 2011). Vision of British heart foundation is reduce
heart issues and mission is increase reachability so that they are serve their services in
other different poor nations.
TASK 2
P3 Relationship between various organisation function
There are several different type of organisation function are working together in order to
achieve goals effectively in given time frame. So that, each one department has their own role as
well as responsibilities and it can be effected company performance. Management has appoint
manager in each division in order to manage them effectively and achieve objectives. In Bentley
various section are established some are explain as follows: Human resources: Human resources manager has hire, trained, select, appraise all staff
members in order to enhance their performance. Through this, Bentley are able to
produce innovative features in their cars and develop core competences (Meiners,
Ringleb and Edwards, 2014). They are selecting candidate according to firm requirement
as well as applicants capabilities through this firm are able to run all business task
appropriately. Operations: The main work of this department is manage inventory, maintenance of
machinery, inflow as well as outflows and many more. Management of Bentley has
develop strategies for effectively run operational work through this they are capable to
provide delivery of cars to buyer. Production and R & D department: It is a one of the important division of Bentley they
are continuously trying to improve product quality and develop new innovative feature.
Through this, they satisfy their clients easily and achieve objectives in limited period of
time. Marketing department: Marketing department is conducting market research in order to
know buyer learning style, attitude, thinking, perception, motivation factor and many
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more accordingly manufacturing cars. Thus help them to produce product according to
consumer taste through this enhance customer's satisfaction as well as build loyalty.
 Finance division: Fund manager has construct financial budget for each one division
through this all department has get money for completing their work effectively
(Nishitani, Kaneko, Fujii and Komatsu, 2012). They are also prepare annual report which
are consist balance sheet, profit & loss account, income statement and many more.
TASK 3
P4 Positive and negative impact of macro business environment on organisation operations
There are several macro environmental factors has affect organisation performance
positively as well as negatively so that it is a firm responsibilities to identify them and its impact
on their operations. Through thus they are capable to run entire enterprise task effectively in long
run. Bentley has run their business activities at international level. PESTEL analysis of Bentley
are explain as follows:
Political: Political elements are create long term impact on Bentley profits because they
are run their business work at global level. They are operating diversify financial work which
create high political risk due to cross various nations. Positive: Positive relationship between two nation is very help full for Bentley to sell
their cars easily with low tariff. Political stability reduce uncertainty from market place
resulted Bentley are easily make long term strategies. Negative: High level of corruption in United Kingdom has create negative impact of
organisation performance in long run.
Economical: Some economical factor like interest rate, inflations, foreign exchange
charges, product life cycle, market demand, disposable income capabilities and many other.
These all are affect buyer spendings and create positive as well as negative impact on Bentley
operations (Palo and Tähtinen, 2011). so that, management of the company has develop action
of plan to reduce its negative impact. Positive: Higher disposable income help Bentley to focus on quality of product rather
then its price. Infrastructure quality help to diversify auto mobile sector. Negative: High unemployment rate, exchange charges has affect Bentley performance
negatively.
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Social culture: Belief, values, attitude, perception, social class etc. has affect enterprise
so that it is a management responsibilities to identify these all elements in order to offer product
those able to full fill buyer demand effectively. Positive: Higher education, cross culture environment and demographic population skills
etc. has develop Bentley produce innovative cars to each one individuals with out
thinking of culture. Negative: In present, person are more aware about their health so that petrol, diesel cars
not in individual priorities.
Technological: Research and development department of Bentley has innovate idea to
enhance quality of product time to time. Latest technology help them to achieve target in limited
time period (Pham, Segers and Gijselaers, 2013). Positive: High technical product help Bentley to sell their cars easily at market thus rise
brand value as well as customer's satisfaction. Negative: Technology has modify and change very fast so that it is almost impossible to
adopt it every time resulted they can not achieve goals in given time.
Legal: Anti trust law, employment act, health and safety regulation, data protection,
discrimination law etc. has a legal laws develop by United Kingdom to manage or control work
place. It is a obligation for each one enterprise to implemented at their working place. Positive: It save human rights with in organisation. Bentley has also enforced these all
regulation resulted motivate as well as satisfy all employees with their job resulted
enhance their productivity. Negative: Breach of copy right, patents and any intellectual property regulation related to
auto mobile sector has create negative impact on Bentley performance.
Environmental: In present hybrid cars has on top priority of the government as well as
society as whole in order to save nature environment of United Kingdom and world. Positive: Effective waste management help Bentley to run their business activities and
build positive brand image in buyer eyes (Pikka, Iskanius and Page, 2011).
 Negative: Climate changes, environmental pollution laws, so green attitude of citizen has
negatively affect Bentley performance and image because they produce only petrol,
diesel cars rather then hybrid.
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TASK 4
P5 Internal and external analysis of Bentley
Bentley has their own strength, weaknesses, opportunities, threat which are affected by
environment external factor. SWOT analysis if Bentley are explain as follows:
Strength:
 Uniqueness in product feature has a one of major strength of Bentley through this clients
feel superior when they purchase Bentley car. That is the USP of the company.
 High positive as well as luxury brand image of Bentley help them to sell their product
easily. So that, firm has concentrated on specific target market and develop entry barriers.
 Bentley car style is very popular in the industry because of their unique mixture of sports
and luxury cars. Company has separate research and development department those are produce
innovative feature in cars and increase quality of goods as compare to competitors
(Scheer, 2012).
Weaknesses:
 They can not produce hybrid or environmental friendly cars so that they are highly
expose for pollution.
 Less market reach restrict firm profitability as well as market share due to exclusivity
rules company can not focus on emerging countries.
 Clients has waits for long period of time for taking possession of their own car as
compare to their competitors. Niche market segment has affected Bentley sell volume negatively and reduce scope of
growth.
Opportunities:
 At present auto mobile market, lots of opportunities has available for environmental
friendly product. Bentley manufacturing cars those are less harmful for natural
environment so that through this they get positive brand image and market share.
 It is very important for Bentley to focus on emerging market so that expend their market
easily (Teece, 2012). They can not have effective promotional strategies so that Bentley want to focus on that
and sponsor prime time program to rise brand recall.
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Threat:
 Government instability and change in laws has create negative impact on Bentley
performance in long run.
 Continuously rise in fuel price has effected auto mobile industry negatively as well as to
those organisation those are product fuel product.
P6 Interrelationship of strength as well as weaknesses with external factor
Both SWOT and PESTEL has interrelated as well as interdependent to each other so that
it is management responsibilities to identify them and reduce their negative impact on Bentley
performance. For example, unstable government or political party has create threat for company
to launch new product as well as expend it into another nation (Welter and Smallbone, 2011).
Another example, higher growth as well as GDP rate has develop lots of new opportunities for
firm like increase disposable income of individuals, develop new market for sale, enhance
education level and many more.
There are some goals and objectives of PESTEL thus help to easily identify SWOT of
Bentley are detail as follows:
 Management identify problem related to internal as well as external environment which
are create threat for Bentley.
 Allocation of resources and develop process effectively nature environment so that waste
management build strength for the company.
 Analysis future requirement and implemented strategies in order to full fill them
effectively.
 Develop appropriate method in order to support weaknesses effectively.
All off above statements has shows PESTEL and strength, weaknesses, opportunities,
threat of the enterprise are interrelated to each other so that it is a management responsibilities to
manage both of them effectively.
CONCLUSION
Form the above report it is concluded that three type of business private, public,
voluntary all off these have their own strength and objectives to run business at market place.
Macro environmental factor are effect organisation positively as well as negatively and its
develop SWTO of the company. Bentley has work for brand development and customer's
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satisfaction rather then market share so that they are produce luxury cars through this they are
able to provide them quality, latest technology and many other new feature that make then
different from other competitors.
REFERENCES
Books and Journals
Al-Swidi, A. K. and Al-Hosam, A., 2012. The effect of entrepreneurial orientation on the
organizational performance: A study on the Islamic banks in Yemen using the partial
least squares approach. Arabian Journal of Business and Management Review (Oman
Chapter). 2(1). p.73.
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
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