Business and Business Environment Analysis Report: Aston Martin, UK

This report provides a comprehensive analysis of the business environment, focusing on the British luxury car manufacturer, Aston Martin. It begins by examining the types and purposes of various organizational structures, including private, public, and voluntary sectors, and their respective legal frameworks. The report then delves into the size and scope of different organizations, using Aston Martin, the National Health Service (NHS), and Oxfam as examples. It explores the interrelation between different organizational departments, such as human resources, finance, research and development, and marketing, and their links to achieving organizational objectives. Furthermore, the report assesses the positive and negative impacts of the macro environment, including political, economic, social, and technological factors, on Aston Martin's business operations. A SWOT analysis of Aston Martin is presented, followed by an examination of the interrelation between its strengths and weaknesses with external factors. The report concludes with a summary of the key findings and insights into the complexities of the business environment.

Business and Business
Environment.

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types and purposes of various types of organisation along with their legal structures .......1
P2 Size and scope of different organisations..............................................................................3
TASK 2............................................................................................................................................4
P3 Interrelation between different organisational departments and their link to objectives.......4
TASK 3............................................................................................................................................6
P4 Positive and Negative impact of macro environment on business operations.......................6
TASK 4............................................................................................................................................8
P5 SWOT analysis of Aston Martin............................................................................................8
P6. Interrelation of Strength and weakness with external factors...............................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment is an integral part of effective and efficient management of
business. It refers to total surroundings which have a direct or indirect influence on function of
business. The company Aston Martin, UK is selected for better understanding of Business
environment. It is British manufacturer of luxury sports cars and grand toures. As there are
various types of organisations like public, private and voluntary sector organisations and legal
structure is being explained. Apart from this, size and scope of chosen organisation has been
explained. The report covers various types of business and link between organisational functions
and also impact of macro environment on organisations. As due to globalisation, companies are
producing goods in different countries, so for that impact of business environment factors and
SWOT analysis has been also discussed.
TASK 1
P1 Types and purposes of various types of organisation along with their legal structures
There are various types of companies are operating its business in country. These
businesses are classified as Public, Private and voluntary. These organisations have their
different purpose and legal structure. These legal structures will helps an organisation in
performing their specific goals and objectives effectively. Purpose and legal structure of these
companies are as below:
Private Company:
The private company is a business, which is owned or held under the private ownership.
These type of companies have shareholders and they issue their stock but they are not allowed to
issue their shares on public exchange. As the government of country have less control over the
activities and functions of these organisations.
Aston Marting Lagonda Global Holding Plc is a Auto-mobile manufacturer, founded in 1913 by
Lionel Martin and Robert bamford. The company is traded at London Stock Exchange. The
revenue of company marked in 2017 was 876 million GBP. The company has around 1900
employees (Siewiorek and et. al., 2012).
Purpose of Aston Martin:
 To generate maximum revenue by and get customer satisfaction by providing quality
products and services to its customers.
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 To create its brand awareness worldwide.
 To take competitive advantage by providing customized products to its customers.
Legal Structure of private company:
Partnership:
Partnership is a mutual agreement between the two or more person, who shares same
objective. The agreement contains element like salary of partners and ratio in which profit will
be distributed etc. If there is no agreement for profit and loss sharing ratio, then it would be
distributed equally.
Sole Proprietorship:
It is kind of business which is set up and maintained by a single person known as an
owner of business. The benefit of this is, owner does not need to share its profit and loss to any
other and one has fully control over its business.
Limited Companies:
` The limited companies can be classified into two categories which are limited by shares
and guarantee. As it means liability of members within a company is limited up to unpaid
amount on the shares held by them (Smith, 2016).
Public Company:
Public companies are those which activities and functions are significantly control by the
government of country. The main of these companies is to give their best for betterment of
nation. This company includes various activities like police, transport, education and healthcare
etc.
The National Health Service (NHS) is a public organisation of London whose aim is to
provide medical services to needy individuals of society. It is largest public sector of company in
UK by with total 14,00,000 employees.
Purpose of NHS:
 To provide the best health care services to societies needy people.
 To create awareness in society about healthy lifestyle.
Legal Structure of Public company:
Central Government:
The central government made some laws regarding public companies so companies work
according to rules and regulations.
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State Government:
As state government has also formulated some policies for public companies so they can
serve in a legal way to country.
Local Government:
It sets some regulations for companies to do their functions as per regulations.
Voluntary Organisation:
This kinds of organisations are established with aim of social welfares. There main aim is
betterment of society rather earning profits.
Oxfam is voluntary organisation which established with aim of removing poverty from
society. The other activities which are performed by company is policy research, advocacy and
disaster relief.
Purpose of Oxfam:
 To reduce and remove poverty from society.
 To provide educational programmes for enhancing awareness of individuals.
P2 Size and scope of different organisations
The size and scope of various organisation is depend on the industry from which they
belong. In this various categories organisation falls under this category like Private, Public and
Voluntary are defined below:
Aston Martin: It is a private limited company, size and scope described below for this:
Size:
Size is basically measured by number of employees working in manufacturing sector.
Aston Martin is a British car manufacturer and product availability of company is all over the
world. The company has more than 150 dealership in almost 50 countries. The net income of
company is around GBP 79 Million. Around 1900 employees are currently working for
organisation.
Scope:
The products and services offered by an organisation considered as an indicator to
identify scope. As currently company manufacturing Auto-mobiles products and soon it will turn
itself into manufacturing the various kid products like bicycles, real state, speed boat and
clothing.
NHS: This is a public limited organisation. The scope and size for company are as follows:
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Size:
The size of company can be identified by number of employees working there. As
National health service is biggest company of UK as more than 1.5 Million employees are
working there. This was founded in 1948 with aim of providing quality medical facilities to
individual of societies.
Scope:
There are three various types of functions which are served by the NHS which includes
basic medical facilities, dental and optical care. As company will provide free suggestion for
healthy life of individuals
Oxfam: It is a volunteer organisations. The size and scope for this is describes below:
Size:
The total number of charitable organisations that comes under governance of Oxfam is
approx 20. It was founded in 1920 and it serve their services around the world with help of large
number of volunteers (Sekaran and Bougie, 2016).
Scope:
The main activity of Oxfam is to reduce or remove poverty from society. As apart form
this, company deals in various function for betterment of society. These includes disaster relief,
pro-migration and advocacy.
TASK 2
P3 Interrelation between different organisational departments and their link to objectives
The Aston Martin is a private company, which is operating its business activities with a
motive to maximise its profits and to increase its market value in a business market . As in the
success of organisation objectives there are various department which prevails within an
company. Different department have their different roles and objectives but at some point these
are interrelated to each other also. The inter-related function of management plays an crucial role
in achieving overall objective of an organisation. The inter-related function between different
departments of an organisation is described as below:
Human Resource with Marketing:
Human resource department plays an important role in managing and recruiting of
employees. The main function of Human resource department is recruitment of employees and
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workforce planning for completion of organisational objectives. The human resource department
and marketing department of company are closely interrelated with each other. As the right
candidate will require for doing marketing and branding of Aston Martin. So for right employee
marketing department of Aston Martin will need help of human resource department. A better
relation between these departments will help company to find right employee and overall
organisation goals can be achieved .
Finance with operation departments:
The main function of finance department is to evaluate the need of funds various
department and according to formulate the budget for respective department. The allocation of
funds provides an aid to every department of organisation for optimum utilisation of their
resources. The efficient allocation of funds proved as an effective financial aid for departments.
As to perform the operations in Aston Martin it requires an enough amount of fund. With the
adequate funds Aston Martin would be able to introduce the new features in their cars. If
operation management department use the funds efficiently then it will reduce cost of their
operations and profit will be maximised. So it shows a clear interrelation between finance and
operation department of company.
Research and Development with Marketing:
The role of research and development department in an organisation is to analyse recent
trends in a market in accordance with their potential customers and also to aware an organisation
about current taste of their customers. On the other hand, marketing department of Aston Martin
makes marketing strategies to promote their products and services. In this context, marketing and
research and development department of Aston Martin are inter-related as research and
development provides information about demands of their customers and their competitors
capacity, which helps its marketing department to formulate effective marketing strategy to
improve their productivity in a business market. (Savrul, Incekara and Sener, 2014).
So these are relationship among various functions of Aston Martin which are helpful for
company to achieve their objectives effectively and efficiently.
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TASK 3
P4 Positive and Negative impact of macro environment on business operations
Macro environment refers to the external factors that are uncontrollable and affects
company's growth and overall development. These environmental factors can affects the chosen
organisation Aston Martin in both positive or negative way. Macro environment includes
external political, economical, technological and legal factors, which can impact Aston Martin
described as below:
Political Factors:
The political factors are related with political situation of country. All the policies, taxes
and tariff that a government levies over a trade comes under this category. This factor can affect
the business operations of Aston Martin. The laws and legislations regarding manufacturing of
cars in auto-mobile sectors impacts Aston Martin in positive or negative way (Prajogo, 2016). As
UK exist from EU that also falls under political factor and it can also effect the Aston Martin
business operations. Positive Impact: The UK government has stable and protective laws regarding auto-
mobile industries, which leads in creating a positive work environment for the chosen
organisation, that will helps them in operating their business effectively. Negative Impact: The UK has exist from EU could have negative effect on the big
organisations. And the corruption level could also increase the cost of operations for
Aston Martin.
Economical Factors:
The economic factors also impacts business operations of an organisation but developing
economy of UK helps Aston martin in improving their growth and development. Positive Impact: As the growth rate of UK is high and purchasing power of their
consumers is also high, so it will helps Aston martin in increasing their revenue and in
expanding their business in competitive business environment. Negative Impact: The slow recovery from recession can have negative impact on Aston
Martin business (Kew and Stredwick, 2017).
Social:
The social factors are essential for an organisation for smooth functioning of their
operations. It includes taste and preferences of customers and their living standard.
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 Positive Impact: As country UK have low employees turnover rate, which will helps
Aston Martin in reducing their workforce production rate, that simultaneously helps them
in generating more revenue. Negative Impact: The continuously changing customer's demand will requires extra
efforts from Aston Martin to full fill their customers demand in a dynamic business
environment. (Hilton and Platt, 2013).
Technological:
Technology is changing day by day so Aston Martin should be aware of new
technologies which comes in market. Positive Impact: Technological factor will helps Aston marting in improving their
performance and also in increasing their customers reach in a global market. Negative Impact: These factors would leads to create low employees productivity in an
organisation.
Legal:
The legal factors are most considerable factor for every business. The company must
study the rules and regulation regarding their business in particular country. Positive Impact: If Aston Martin follows the rules and regulations properly than it will
help company to gain loyalty of customers and government also. Negative: Not following of these laws can leads to heavy penalty on company.
Environmental
It includes the factors like weather conditions, climate and geographical location of that
country. Positive Impact: If company uses eco friendly system to perform its business operations
than it can leads to more efficiency on business operation of company.
 Negative Impact: If the chosen organisation operating its business activities that harms
environment in a negative way, then the Aston Martin have to pay fine to the
government. (Hair and et. al., 2015.).
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TASK 4
P5 SWOT analysis of Aston Martin
It is a tool which helps the companies to identify their strength and weaknesses to achieve
their goals and to take competitive advantage. This analysis will help Aston Martin to identify
new opportunities and grab that opportunities for maximising its market share. It will help the
company to evaluate its threats and weaknesses and than remove these threats so company can
perform their task effectively (Crane and Matten, 2016). The SWOT analysis of Aston Martin is
being discusses below:
Strength Weakness Opportunity Threats
Aston martin has high
brand equity .
Less market
penetration
Attract more consumer
through competitive
pricing
As fuel cost is
increasing day by day
so company should
look for new
electrically powered
cars.
The company has
strong consumer
connect.
Limited product
portfolio.
Untapped market can
be captured by
company.
It has many
competitors like
Bentley, BMW,
Porsche, Jaguars and
Audi etc.
Aston Martin uses
advance technology to
design their cars.
High price products as
everyone can not
afford this.
To expand it product
portfolio
Strict government
policies and increased
taxes can effect the
company's sales.
Strong engineering
team
Can increase market
penetration through
extensive distribution
Product innovation by
its competitors, can
leads to low demand
for Aston Martin cars.
Powerful marketing The company can
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and branding increase its availability
of its service centre
throughout world.
Enough financial
resources.
They can increase the
number of store so
their products can be
easily availed.
According to the SWOT analysis of Aston Martin, it is essential for the chosen
organisation to make effective strategy to achiever their specific goals and objectives. It is also
necessary to use future opportunities to gain a competitive advantages in a business environment.
P6. Interrelation of Strength and weakness with external factors
The external factors of business has huge interrelation with strength and weakness of any
organisations. As interrelation of external factors with Strength and Weaknesses of Aston Martin
are explained as under:
Political:
This factor includes the laws, political conditions, trade laws and tax policy of country.
As the UK political situation is bit stable so one can gain advantage out of it. Strength: As political stability becomes strength of company because it allows business
to implement its plan and policy freely (Chen ,Chiang and Storey, 2012). Weaknesses: Corruption in political parties could increase cost for Aston Martin.
Economical:
The economic condition of UK is strong in compare to other countries and it includes
GDP, purchasing power and inflation etc. Strength: Aston Martin can get benefit from the developed economy like UK. As
because there will be less fluctuation in the economy and fluctuation in demand and
supply will also be less. Weaknesses: As high interest rate will lead to low borrowing capacity of an individual
and low borrowing means consumer will not have enough money in their pocket. And
overall they will spend less on fulfilling their needs.
Social:
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The social factors includes the taste of consumer, their standard of living, attitude of
individuals etc. Social factors are directly related with strength and weaknesses of any
organisation (Bryman and Bell, 2015). Strength: The UK have high standard of living and youths are more attracted towards the
luxury items. As they have more purchasing power also. So Aston Martin can use this
factor as a strength as by targeting youth of particular country. Weaknesses: Large number of individuals who are career centric, they would spend less
on the luxury.
Technological:
The technology is very dynamic now days and one should be very prompt to adapt new
technology to take competitive advantage. Strength: By adapting new technology Aston martin can bring new innovation in their
products and process. And they can take competitive advantage very easily. Weaknesses: If technology get obsolete than Aston Martin might have to bear huge cost
for that (Belás et. Al, 2015).
Legal:
Legal factors are laws and legislation for companies to perform their task ethically. This
is most adaptable and considerable factor. Strength: As Aston Martin follows proper rules and regulation to manufacture the cars. It
leads to gain customer loyalty and trust on brand.
 Negative: The non following of these regulation will leads to pay huge fine to
government.
CONCLUSION
In the conclusion of report, it can be said that there are three different sectors to operate
business activities in external environment these are, Private, Public and Voluntary. The chosen
organisations have different objectives in according to their size, scope and legal structure, which
are essential to be followed to retain their productivity for a longer run. As it is mentioned in the
above report, it is also essential for organisation to perform SWOT and PESTEL analysis that
helps them in making their organisation dynamic and to identify their strength and weaknesses.
This will helps them in using future opportunities to gain competitive advantages in a dynamic
business environment.
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REFERENCES
Books and Journals
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selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Chen, H., Chiang, R. H. and Storey, V. C., 2012. Business intelligence and analytics: from big
data to big impact. MIS quarterly. pp.1165-1188.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Hair Jr, and et. al., 2015. Essentials of business research methods. Routledge.
Hilton, R. W. and Platt, D. E., 2013. Managerial accounting: creating value in a dynamic
business environment. McGraw-Hill Education.
Kew, J. and Stredwick, J., 2017. Business environment: managing in a strategic context. Kogan
Page Publishers.
Prajogo, D. I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences. 150.
pp.35-45.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Siewiorek, A., and et. al., 2012. Learning leadership skills in a simulated business environment.
Computers & Education. 58(1). pp.121-135.
Smith, B., 2016. Nature and Geography: Tragic Voids within Marketing Textbooks and the
External Business Environment. In Global Perspectives on Contemporary Marketing
Education (pp. 47-64). IGI Global.
Online
Business and Business Environment. 2018. [Online]. Available
through:<https://www.mbaknol.com/international-business/concept-of-business-
environment/>
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