Business and Business Environment Analysis Report - Semester 1

This report provides a comprehensive analysis of the business environment, examining various organizational structures, including private, public, and voluntary sectors, along with their legal frameworks and scopes. It delves into the interrelation between different organizational departments, such as HR, marketing, finance, and R&D, and their contribution to overall business objectives. The report also applies PESTLE analysis to assess the impact of political, economic, social, technological, legal, and environmental factors on businesses, highlighting both positive and negative implications. Furthermore, a SWOT analysis is conducted, specifically focusing on Aston Martin, to evaluate its internal strengths and weaknesses in relation to external opportunities and threats. The conclusion summarizes the key findings and provides insights into the dynamic nature of the business environment and its influence on organizational strategies and performance.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types and purposes of an different type 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............................................................................................................................................5
P4 PESTLE analysis along with their positive and negative impacts.........................................5
TASK 4............................................................................................................................................7
P5 SWOT analysis of Aston Martin............................................................................................7
P6 Interrelation of strength and weakness with external factors.................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11
.......................................................................................................................................................11

INTRODUCTION
Business environment is a wide concept which includes both internal and external factors
which impacts the organisational functions. Internal factors are those which are present within an
organisation (Business environment. 2018). Employees and poor delivery system are considered
as internal factors which are diminished the internal strength of an organisation and negatively
impacts their productivity and profitability. Management of an organisation have an power to
overcome from the negative impact of internal factors as they have sufficient control over them.
External environment also includes many factors which have direct and indirect impact upon the
functioning of an organisation (Hilton and Platt, 2013). These factors are considered as political,
social, technological etc. Aston Martin is Auto-mobile manufacturing company which was
founded in London in 1913. It has over 150 car dealerships in over 50 countries on six
continents, making them a global auto-mobile brand.
This report covers different type of organisations which operates their business in
different sectors along with their legal structure, size and scope of those different type of
businesses and link between different organisational functions. Also, analyse the impact of
external factors on an organisation and SWOT analysis of an organisation covers in the report.
TASK 1
P1 Types and purposes of an different type of organisation along with their legal structures
There are many type of organisations are working within the country. These are classified
into three different headings named as public, private and voluntary. All these organisations
having their different objectives and legal structure (Savrul, Incekara and Sener, 2014). It is an
obligation upon the management team of an organisation to follow these structure and provide
their best in the process of completion of their desired objectives. Purpose and legal structure of
these different organisations are defined below:
Private company
This will includes all the organisations which are held under private ownership. The main
objective of these organisation is to earn profits. The organisations that are fall into this category
are allowed to issue stock and have shareholders but not permitted to trade their shares on public
exchange. Government of country have less control over the functions of private organisations.

Aston Martin is Auto-mobile manufacturer. The segments in which it deals includes
luxury sports cars and grand tourers. This organisation founded in 1913 at London by Lionel
Martin and Robert Bamford. The amount of revenue which is earned by an organisation through
their business operations is around £ 876 million till 2017. The number of employees which are
presently working with the organisation is around 1850.
Purpose of Aston Martin
 To earn large number of profits through providence of quality products to consumers
 To improve brand and product awareness
 To gain advantage over competitors
Legal structure of private company
 Partnership: This will includes the business which are formed by the two or more
persons and groups with mutual agreement regarding accomplishment of particular
objective (Boons and Lüdeke-Freund, 2013). If there is no agreement regarding profit
and loss, then it should be distributed equally among the partners.
 Sole proprietorship: This will includes all those businesses which are set-up by single
person. Overall liability of business is upon that single person and have total control over
the functions of an organisation.
 Limited companies: This can be further classified into two different categories which
includes limited by shares and guarantee. That means the liability of members within an
organisation is limited up-to the unpaid amount on the shares held by them.
Public company
These organisations having the main about is to serve their best towards nation. On the
functioning of these organisations, government of nation has significant control over them. The
business activities which are covered under this are termed as police, transport, education,
healthcare etc.
NHS is a public organisation whose main aim is to provide medical services to those
individuals of society which are deprived from the same. They provide their services n all over
the world.
Purpose of NHS
 Providence of basic medical facilities to individuals of society
 Provide quality services to ensure optimum health care of needy people

Legal structure of public company
 Central government: They ensure effective functioning of central and state government
departments.
 State government: They ensure that proper functioning is done by state government
agencies.
 Local government: They ensure that public organisation must do their activities as per
the regulations provided by government.
Voluntary organisation
This will includes all the organisations which are established with the purpose of
providing activities for the welfare of society. These organisations not having the aim about
earning profit (Hamilton and Webster, 2015).
Oxfam is voluntary organisation which provides their functions for the purpose of
removal of poverty from the society. There are many other activities which are performed by
Oxfam includes disaster relief, advocacy, policy research etc.
Purpose of Oxfam
 To remove poverty from society
 To provide educational programmes for enhancing the awareness of individuals
P2 Size and scope of different organisations
All the organisations having their different size and scope irrespective of the industry
from which they belongs. The size of scope of the organisations which are falls into the different
category i.e. public, private and voluntary are defined below:
Aston Martin
Size: Aston Martin is British Car Manufacturer of luxury sports car and grand tourers.
This will provides their products and services in all over the world. The products in which this
organisation deals includes Auto-mobiles and Luxury goods. Aston Martin have more than 150
dealerships around in almost 50 countries in six different continents. In 2017 the Net income
which is earned by an organisation through their operations is around £ 79 Million. The number
of employees whom are presently serve their services within an organisation is around 1850.
Scope: This can be identified from the services and products which are offered by an
organisation. At present this organisation manufactures Auto-mobiles and announced to turn

itself into global luxury brand that deals in different kid of products like speed boat, bicycles,
real estate and clothing (Wetherly, 2014).
NHS
Size: The size of an organisation can be identified from the point of the employees
working in the organisation and their services which they serve in different nations. Around 1.5
million employees are working and provide their assistance in delivering their service in all over
the world. This organisation comes into existence in 1948. The basic aim for which this
organisation works is to provide their services free of cost to the needy individuals of society
who are deprived from such basic amenities.
Scope: Scope of can be identified from the services which are served by NHS. Three
different type of functions which are served by this organisation includes basic medical facilities,
dental and optical care.
Oxfam
Size: The total number of other charitable organisations which comes under the
governance of Oxfam is around 20. This organisation is founded in 1920. They provide their
services in all over the world with the help of large number of volunteers.
Scope: The main activity of this organisation to remove poverty from society. Instead of
that there are many other functions in which this organisations deals includes advocacy, disaster
relief, pro-migration and policy research (Smith, 2016).
TASK 2
P3 Interrelation between different organisational departments and their link to objectives
Aston Martin is a private organisation and having an aim about earning large amount of
profits and capture large market share. In the success of this objective main support is provided
by the different departments which prevails within an organisation. All these departments have
their different role and objectives but some point interrelated to each other (Brym annd Bell,
2015). Such interrelation between the different departments of an organisation and their guidance
in accomplishment of overall objectives can be understood from the points which are defined
below:
 Human resource with Marketing: The main function of HR department within an
organisation is about recruitment of employees and workforce planning. They ensure

that adequate candidate is appointed in an organisation who effectively serves their
services towards their department and an organisation. The interrelation of this
department with marketing is understood from the point that aid in providence of
candidates which have adequate amount of knowledge about marketing approaches and
theories which are applied practically with effectiveness. This will help the organisation
to accomplish their marketing objectives about capturing large market share.
 Finance with Operation department: The main function of finance department is
about analyse the need of funds of different department and formulation of appropriate
budget. Allocation of adequate amount of fund provides aid to each and every
department of an organisation to optimally utilise their resources. Efficient allocation of
funds proved as a effective financial aid through which operations department of Aston
Martin able to introduce all the new features in their cars and optimum utilisation of their
given resources. This will aid in accomplishment of the objectives of profitability and
fulfilment of customers needs.
 Research and Development department with Marketing: The main function of R&D
department is to analyse the market and identify the current trends which persist among
customers. This department of Aston Martin provides their functioning related to analyse
the abilities of competitors and current demand of customers that are further used by the
marketing department to bring changes in their promotional and targeting strategies to
strengthen the position of an organisation in market. This will aid in achievement of the
marketing objectives and competitive advantage in market.
TASK 3
P4 PESTLE analysis along with their positive and negative impacts
PESTLE is a framework which is used by an organisation to identify the impact of macro
factors upon the organisation (Crane and Matten, 2016). This will provides the opportunity to an
organisation like Aston Martin to assess the situations which are present in market and make
their strategies. All these factors have their positive and negative impact upon the operations of
an organisation which are defined below:

Political: The government of UK is protective in nature. Also, there is huge stability in
the government and effectively govern by the local and national administrations. One the
decision which impacts the UK negatively is about their exit from EU.
 Positive impact: Stability and protective nature of government has positive impact upon
an organisation like Aston Martin because this will provides the opportunity to
implement their strategies effectively.
 Negative impact: Exit of UK from Eu and Corruption governs negative impact upon the
trade of Aston Martin.
Economical: The economic condition of UK is quite strong in comparison to other
countries. There is presence of High GDP and Few issues. But they lost large amount of money
is public services and financial aid (Chen, Chiang and Storey, 2012).
 Positive impact: Presence of high economic floe provides the opportunity to an
organisation like Aston Martin to easily expand their operations.
 Negative impact: slow recovery from economic recession negatively impacts the
business of Aston Martin as they only deals in luxury auto-mobile segment.
Social: The individuals reside in UK have high standard of living. Also, there is
availability of cheap workforce. But on the other hand, the dependency ratio in UK is quite high
and ever increasing education cost.
 Positive impact: Cheap availability of workforce and high standard of living provides
positive impact upon the business of Aston Martin. As this will allowed to improve their
business.
 Negative impact: High dependency ratio and education cost negatively impacts the
purchasing power of individual which has negative impact upon an organisation Aston
Martin.
Technological: There is presence of quality innovation skills and expertise in science in
IT. But in comparison to US there is less technological development present in UK.
 Positive impact: Quality innovative skills provides the opportunity to Aston Martin to
bring changes in their auto-mobile as per the demand of consumers and trend.
 Negative impact: The growth opportunity present in front of an organisation US is quite
high in comparison to UK which impacts the decision making of management.

Legal: The laws which persist in UK has high in standard and required to follow by each
and every organisation.
 Positive impact: This will have positive impact on an Aston Martin as help to gain the
trust and loyalty of consumers and government.
 Negative impact: This will arise in the situation when organisation is unable to follow
such legal laws. In this case they have to face fine.
Environmental: This will includes environmental regulations which are made by UK
government and required to adhere by organisations operating their business in country.
 Positive impact: Aston Martin is auto-mobile manufacturer require to follow
environmental regulations as to attain the support of government (Charter, 2017).
 Negative impact: UK is much strict regarding environmental aspects. If not followed
then they have to face consequences in terms of fine and discontinuation.
TASK 4
P5 SWOT analysis of Aston Martin
SWOT is an effective tool which is used by an organisation for the purpose of identifying
their strengths and weaknesses to build appropriate strategies through which they can achieve
their goals. This will aid an organisation like Aston Martin to identify the opportunities available
in market and to grab them through usage of their internal and external strengths. Application of
this tool towards Aston Martin is can be understood from the points identified below:
Strengths
Good quality cars: Aston Martin have capable manufacturing and designing team that
ensure that every car which will be manufactured is powerful and perfect in all aspects. People
pursue this brand over other because its performance and brand quality.
They target cream of the society: The cars which are manufactured by Aston Martin
are specialised in nature and not purchased by every one. Everything which is made by this
organisation has perfection in all terms and advertise for the affluent class. They only target to
those persons from where they get best profits and purchase value.
Weaknesses
 Lesser market than other companies: In comparison to all other companies Aston
Martin has lesser market share due to having their concentration on luxury market. They

also never tried to enter into new market. This will impacts negatively upon the
organisation operations as they have to compete with many competitors in market whom
are having large customer base.
 Small selection range: The range of auto-mobiles which is provided by Aston Martin is
limited and available at particular time which limits the consumer choice. They have only
one consideration which is about providence of best quality products to gain loyalty of
customer base.
Opportunities
 Budgeted auto-mobile: High demand and reliability is present in the luxury auto-mobile
market of Aston Martin. This will provides the opportunity to an organisation to enter
into the medium budgeted segment to allow their general followers to taste their
technology.
 Expansion of their availability: There are large number of opportunities are available in
front of Aston Marting to expand their business in several different countries. This is
quite difficult but can be achieved, if proper strategies and advertisement techniques are
applied in local markets (Andersson, Forsgren and Holm, 2015).
Threats
 Increase in fuel costs: Continuous increasing prices of fuel is is one of the threat for an
organisation. This will impacts their business and they should look towards the car
segment that will be electrically powered.
 High competition: There are many other organisations which are operating in market
and provides luxury auto-mobiles such as Bentley, Porsche, Jaguar etc. All these
organisations having their huge brand image and demand in market that becomes the
threat fr an organisation in future.
P6 Interrelation of strength and weakness with external factors
There is huge interrelation between the external factors along with the strength and
weaknesses of an organisation. This can be understood from the below point that how external
factors become the strengths and weakness of Aston Martin which are defined below:
 Political: This will includes the political conditions, laws, trade laws, tax policy and
environmental law which are persist in country impacts the organisation activities. In

terms of political situation UK is quite sound and stable. But on the other strict
regulations are implied related to employees.
◦ Strength: Political stability becomes the strength of an organisation as this will aid to
concentrate on important matters.
◦ Weaknesses: Strict labour laws impacts the activities of Aston Martin as they needed
to adhere them, otherwise they have to face the situation of penalties.
 Economical: The economic condition in UK is quite good and high flow of cash is
present. But the rate of interest is high.
◦ Strength: High flow of cash becomes the strength as this will aid to raise funds from
market.
◦ Weaknesses: High rate of interest negatively impacts the borrowing capacity of
individuals and this will direct negative impact upon the earnings of Aston Martin as
they provide quite expensive auto-mobiles.
 Social: The belief and attitude of young age people in UK is quite luxurious. But on the
other hand they also career centric (Shenkar, Luo and Chi, 2014).
◦ Strength: Demand of young people of luxurious cars is become the strength for an
organisation.
◦ Weaknesses: The approach of career centric of large number of UK individuals has
negatively influence their behaviour to expand too much on auto-mobile.
 Technological: The presence of technology is strong in UK. But this will required to
change the process of operations of an organisation.
◦ Strength: Advance technology is strength for an Aston Martin as they built luxurious
cars.
◦ Weaknesses: Change in the processes and employee training become proved as string
negative point as huge amount of expenses they have to incurred in this case.
CONCLUSION
It has been concluded from the above report that there are three different sectors which
are operated their business activities in external business environment named as private, public
and voluntary. All these organisations having their own different objectives and legal structure
which is required to follow while they are operating their functions. PESTLE is effective
analysis tool which help to analyse the impact of external business environment upon the

business. This will provide opportunity to the management of an organisation to re built their
strategies and make appropriate future plans. SWOT analysis helps to identify their strengths and
weaknesses which aid in the process of gathering important information to grab the
opportunities.