Business and Business Environment Report: Analysis of Aston Martin

This report provides a comprehensive analysis of the business environment, focusing on various business categories such as private, public, and voluntary organizations, and their respective legal structures. It examines the size and scope of different organizations, using Aston Martin as a case study for a private company, alongside examples of public and voluntary entities like NHS and Oxfam. The report further explores the interrelationship between different organizational departments, such as human resources, marketing, finance, and operations, highlighting their common objectives and how they contribute to overall business goals. It also delves into the positive and negative impacts of the macro environment on business operations and concludes with a SWOT analysis of Aston Martin, assessing its strengths, weaknesses, opportunities, and threats, and relating these factors to external influences.

Business and Business
Environment.

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Business categories purposes and their legal structures ..................................................1
P2 Examining the different organisations on the basis of their size and scope......................4
TASK 2............................................................................................................................................6
P3 Relationship between several departments of organisation and their common objectives6
TASK 3............................................................................................................................................7
P4 Both positive and negative impacts of macro environment over the operations of
businesses...............................................................................................................................7
TASK 4............................................................................................................................................9
P5 SWOT analysis of Aston Martin.......................................................................................9
P6. Relations of external factors with the strength and weakness of the entities.................10
CONCLUSION..............................................................................................................................11

INTRODUCTION
The Environment of business is crucial part associated with the business and its
operations and it is also essential for knowing the effectiveness and efficiency of the
management of business. It is considered as total outside forces which influences the business
operations either directly or indirectly. The report shows the better understanding of business
environment by illustrating the case of Aston Martin (U.K), it is considered as the great example
for examining the context of Business environment. It is British manufacturer company which
manufactures the luxurious and sports cars. although in economy there are various kinds of
organisations belongs to different sectors that are mainly public and private sectors. Besides this,
size and scope of chosen organisation has been respectively described in this report. The report
covers several kinds of businesses and links between organisational functioning and also pertain
the influencing impact of macro environment over the operations and running of organisations.
In context of globalisation, companies are providing goods and services of several kinds in
different countries throughout the entire world and facing the impacts of external environment
factors and SWOT analysis has been also examines in order to describe the influencing effects of
external affecting factors of the business environment.
TASK 1
P1 Business categories purposes and their legal structures
There are several kinds of organisations are performing their business operations in
different countries. These organisations are categorized into Public entity, Private entity and
voluntary entity. These entities have their different motives, objectives, purposes and legal
structure. The Entities are bounded to adapt these legal structures and perform with their
maximum potential for achieving the desired objectives. Some purposes and legal structures of
these organisations are as follows:
Private Company:
The private company performs the private businesses far from the controls of government
and their authorities, which is owned and controlled by the private owner or individuals. This
kind of organisation have permission to issue their capital stock and have private shareholders
but shares of these companies cannot be directly issued to general public share or on public
exchange. The government of country creates the regulatory authority for controlling their
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funding from issuance of shares But the operations of these organisations are beyond control of
government of these organisations.
As in case of Aston Marting Lagonda Global Holding Plc is super cars(automotive or
auto-mobile) manufacturing company, established by Lionel Martin and Robert bamford in
1913. This organisation listed at London Stock Exchange. The turnover of company recorded in
2017 was approximately 875 million GBP. The are around 1900 employees working in this
organisation according to the employees of year 2017.
Purpose or Aims private sector companies:
 To maximising the revenues by maximising customer satisfactions.
 To develops brand name throughout the entire world.
 To enjoys competitive advantages by facilitating best products to its customers.
Legal system of Private companies like Aston Martin:
Partnership:
The term “partnership” is a contract of business formed between the two or more persons,
who agrees to shares same profits or losses and objectives. The agreement pertain the terms and
conditions regarding the contract like profit sharing ratios, duration of partnership or maturity of
contract etc. also pertain the information about the each partner of the business entity.
Sole Proprietorship:
The term “Sole” refers to single individual and the “proprietor” refers to the individual
trader., it means the business entity which is wholly controlled and managed by the single
individual. The sole trader enjoys the full control over the business along with the unlimited
liability.
Limited Companies:
The term “limited” refers to the limitations regarding some contexts, these companies are
categorised into two categories which are limited by shares and limited by guarantee. it means
limited by shares means limitation regarding the authorised number of shares and limited by
guarantee means limited liability of members within a company.
Public Company:
Public company is that which activities and functions, authority is significantly fully or
more than half controlling of government of country. The main purpose of these companies is to
generate revenues for government and to make governmental organisations controls over market
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forces(mainly in case when the government organisation enjoys monopoly of producing the
particular goods and services) for growth of nation (Rice, 2013).the medical facilities , transport ,
security by police are performed by these types of organisations. for example, The National
Health Service (NHS) public health welfare organisation of London with the motive to facilitates
medical services to individuals of societies in London. At present it is termed as the largest entity
of public sector in UK by with the strength of total 14,00,000 employees.
Motives or aims of NHS:
 The main motive of public sector companies is to provides the welfare facilities to the
society.
 Government funding can be termed as the main motive of public sector entities.
Legal Structure of Public company or governmental organisation:
Central Government:
The central government creates the regulatory authorities which issues some laws and
regulations regarding public companies and made these laws mandatory for government
companies to work according to rules and regulations.
State Government:
As state government had issued some regulations and rules or some policies in order to
formulate the public companies so they perform within legal trade practices to country.
Local Government:
It follows rules and regulations issued by high level authority government for companies
to perform their functions and operations as per regulations.
Voluntary Organisation:
This type of entities are formed with a motive of social welfares or providing social
services to the society. There main motive is improvement of living standards of society instead
earning profits these are also known as Non for profit motive organisation.
Oxfam is voluntary organisation (works as social welfare entity) which formed with
motive of reducing poverty rate from economy or society and improves the living standards of
society. Besides this, policy research, advocacy and disaster relief are the activities performed
by this entity.
Motive of Oxfam:
 To improve the living standard of society and also reduction of poverty rate.
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 To facilitates health and educational servicing programmes for ensuring
awareness among society.
Legal Structure of Voluntary Organisation
Trust:
 Trust by brand
 trustees only no members
 trust deed as agreement
Unincorporated Association:
 Trustees
 Constitution, a binding contractual agreements
 Risk of personal or individual liability
Company Limited by Guarantee:
 Director (Trustees in a charity or donations)
 Members who guarantee for the terms and conditions
 Memorandum and Articles of association
 Regulated by specified Companies act.
Charitable Incorporated Organisation:
 Trustees
 Members with a legal duty
 constitution
 Regulated solely by charity commission
P2 Examining the different organisations on the basis of their size and scope
The different entities are different according to their size, scope and nature of business. It
is based on the industry under which they comes to. under this three categories of organisations
Private, Public and Voluntary are defined below:
Aston Martin: It is auto-mobile entity of private sector, size and scope described below for this:
Size:
Size of an organisation is generally gauge on the basis of strength of employees presently
working with in the business entity. Aston Martin manufactures the super cars and sale its
products(cars) throughout the entire world. The company has more than 150 dealerships across
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the 50 nations of the world. The net turnover is approx. GBP 79 Million. In present era the
company has the strength of 1900 employees working ion organisation.
Scope:
the outputs provided by the business entity treated as an signal to determine the scope. In
present time Aston Martin manufactures Super sports cars and luxurious cars and soon it will
diverse its business stream into manufacturing of the several kinds of products like bicycles, real
state, speed boat etc.
NHS: NHS is public sector enterprise and organisational informations are as follows:
Size of NHS
The organisation operates at large scale and basically identifies by the strength of the
workforce employed in the organisation. the NHS is large scale entity of UK, it pertain more
than 1.5 Million employees presently working in it and it was established 1948 with motive to
provide medical services of standard quality to the public of UK.
Scope of NHS
the major three functions performed by the NHS, which includes medical services, dental
and health related services. As company facilitates free health related suggestions for healthy life
of people throughout UK.
OXFAM (Volunteer entity)
Oxfam acts as volunteer entity, The organisational information is described below.
Size:
Oxfam governs approximately 20 charitable institution and it was established in 1920,
since that time it facilitating services across the entire world with the help of large number of
volunteers.
Scope:
The chief operation of Oxfam is to reduce the poverty from nation by providing
educations and employment. Besides this, company perform several functions for improvement
of surrounding people. Oxfam perform major facilitation to society from disaster relief, pro-
migration and advocacy.
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TASK 2
P3 Relationship between several departments of organisation and their common objectives
The Aston Martin is a private organisation established with aim of maximising its
turnover and cover the market entirely. As in the success of organisational objectives there are
several departments which prevails within a company. Different department have their different
roles and functioning but at some point these are interrelated and depends on each other also as
they are the parts of one same organisation. To achieve business objectives of organisation,
interrelation of these departments plays a vital role. The interrelation between different
department of organisation is described as below:
Human Resource with Marketing:
Human resource department performs the integral part in managing, directing and
recruitment of employees. The main function of Human resource department is evaluation the
performance of the workforce employed in the organisation or performance appraisal of
employees. Along with this, the workforce planning is also made by the HRM department for the
proper dividing the workforce according to the priority of the project and department wise. There
is the major links or relation between the human resource department and marketing department
of the organisation. As HRM engages with the recruitment of the employees and it is crucial to
acquire the right person for right job at the right time. It means the marketing department needs
the skilled person to perform the marketing tasks and it is depend on the HRM department to
recruit the right person. It will beneficial for betterment of marketing strategies as for the
betterment of Aston Martin. A effective relationship between these two departments will
benefited for the entity and helps in achievement of organisational goals .
Finance with operation departments:
The finance department is comprises with fulfilling of need of funds by the several
departments. It is essential for each department to make effective and efficient utilisation of
financial and other resources. The effective sourcing of fund will be beneficial when the fund is
utilised by each department in most effective and efficient manner. As in Aston Martin
requirement is of large amount of funds. With the adequate amount of funds the entity can
introduce the new features or advanced technologies in their car productions. So,If operation
management department utilise the funds effectively and efficiently then it minimises cost of
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their operations and leads to profit maximisation. So it depicts a transparent relationship between
finance and operation department of company.
Research and Development with Marketing:
Likely other departments there are also interrelation between research and development
with marketing departments. The main function of R&D is to analyse the market and understand
the new and future trends which is followed by customers and provide that information to
management of company. These both departments are truly engaged in understanding and acting
customer requirements. As the research and development department of Aston Martin provides
the information about strength and weakness of competitors and demand of customers to
marketing department. according to that marketing department will prepare the competitive
strategies to acquire the position of organisation in market. Therefore, the interrelation of
department is essential in achievement of marketing goals and competitive advantage in market.
These are relationship among various functions of Aston Martin which are helpful for
company to achieve their objectives effectively and efficiently.
TASK 3
P4 Both positive and negative impacts of macro environment over the operations of businesses
Macro environment is an environment that is beyond of company's control and
significantly influences performance and ability of organisation. The impact of this environment
can be positive or negative on business operation of Aston Martin. Macro Environment pertain
analysis of Political, Economic, Social, Technological, Environmental and Legal factors (Smith,
2016). The impact of these factors on Aston Martin is described as below:
Political Factors:
Political factors are those factors which can influence the business environment of the
organisation. It involves tax policy, environmental law, foreign trade policy etc. In case, if
government made some changes in laws regarding the manufacturing of automotive sector than
it can create a positive or negative impact on operations. As UK exist from EU that also falls
under political factor and it can also affect the Aston Martin business operations.
 Positive Impact: The UK government has stable and protective nature which has
positive impact on organisations like Aston Martin as this will provide an opportunity to
implement their strategies more effectively.
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 Negative Impact: The corruption level could also increase the cost of operations and
unfair trades for Aston Martin.
Economic Factors:
The economic factors comprises with the growth of country and it directly affect business
operations. As economy of UK is very developed and consumer have more spending power also.
 Positive Impact: As UK has high growth rate and consumers enjoys more spending
power so Aston Martin can explore and expand their operations and can also generate
more revenues.
 Negative Impact: The slow recovery from recession can have negative impact on Aston
Martin business.
Social:
The social factors comprise with the issues regarding customers taste and preferences,
standard of living, demographics and social resources. As these should be studied by
organisation for smooth functioning of its operations.
 Positive Impact: The country UK has cheap workforce so the Aston Martin can utilise
that workforce for its operations which will lead to low cost of production and ultimately
company's revenue will increase.
 Negative Impact: Societies demand changes very frequently so it can take time for
company to cop up with their demands and fulfil these demands.
Technological:
Technology changes very fast and obsolescence of technology happens rapidly so Aston Martin
should be aware of new technologies which comes in market.
 Positive Impact: By adopting new technology Aston Martin can improve the
performance of its operations and company can also add new technology in their cars to
attract the consumers.
 Negative Impact: High dependency on technology could lead to low skilled employees
which affects the productivity for company.
Legal:legal factor includes the business laws and rules which are framed by UK's government
and must be followed by the Aston martin and other companies traded in UK.
 Positive Impact: If company performs the practices according to co- friendly system to
than it can help to increase efficiency of business operations of entity. .
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 Negative Impact: If entity uses the heavy machines for production which creates the
pollution then the company has to pay high penalty for that.
TASK 4
P5 Analysation of Aston Martin by using SWOT technique
The SWOT analysis use to analysis of the particular business entity. Under the SWOT
analysation the strength, weakness, opportunities and threat associated with the business entity
are evaluated and analysed. The SWOT analysation of Aston martin are as follows.
Strength Weakness Opportunity Threats
Aston martin is the
established brand.
Very expensive
products.
Better customer
targeting, royal or rich
customers are targeted
by the Aston martin.
No electric cars
produced by the Aston
martin, as fuel prices
rises rapidly.
The company has
excellent value or
image in the eyes of
public.
No focus on marketing
or advertising the
products.
Established brand can
captured easily.
Advanced competitors
like Audi, Mercedes,
Bentley and Porsche
etc.
Aston martin's cars has
advanced technologies
that attracts the
customer.
Famous for several
cases of bankruptcy
Limited production
helps in maintaining
the status and prestige.
Rise in taxes affects
the revenues of the
entity.
Brilliant work of auto-
mobile engineering
can be seen in this
entity.
Very limited
productivity.
It a international
market can expand it's
business criteria across
the different nations of
the world.
Technological
advancement made by
competitors influences
the demand of Aston
martin cars.
impressive
creditability and brand
loyalty.
Short portfolio, which
pertain limited
products.
The entity can be
diversified the
business streams like
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bikes, trucks etc.
Strong financial
position and resources.
Limited number of
outlets.
Can easily acquire the
market of any country
according to desire.
As it is the SWOT analysis of Aston Martin, with the help of this company can prepare
the strategy for future to achieve their goals. It is very important for companies to do SWOT
analysis for identifying its strength and weaknesses. So business will according to prepare the
strategy to eliminate its threats and overcome its competitors.
P6. Relations of external factors with the strength and weakness of the entities
The strength and weakness of an entity are related with the external influencing
environmental factors and supportive reasons are described below.
Political:
The political factors are the main external factors that influences the business operations,
as the instability of political party directly affects the operations of the entities and some factors
that influences the business includes, tax rate, business laws etc.
 Strength: Political stability of UK is quite beneficial for the business entities, and
ensures the entities to operates smoothly without the political interfere.
 Weaknesses: The government interfere in context of company's projects affects the
functioning by corruption.
Economical:
The economic condition is the base of every business operations depends upon the
economy of the region or country. UK's economy is developed economy and is good for the
workings of business entity like Aston martin.
 Strength: UK's developed economy helps the Aston martin to generate more revenues as
mostly people likes super cars and is benefited for the rich customer targeting.
 Weaknesses: weak marketing strategies are incapable in developed economy as because
developed economy of UK involves high competition, as the competitors of Aston martin
have the advanced technology.
Social:
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