Business and Business Environment Analysis: A Comprehensive Report

This report provides a comprehensive analysis of the business environment, exploring different types of organizations including public, private, and voluntary sectors, along with their legal structures, size, and scope. It examines the relationships between various organizational functions such as HR, production, sales, marketing, and finance, and how they align with organizational objectives and structures. The report further investigates the positive and negative impacts of the macro environment on business operations, supported by internal and external analyses of specific organizations, identifying strengths, weaknesses, and their interrelation with external macro factors. Using Bentley Cars as a case study, the report delves into these aspects to offer a detailed understanding of the business environment and its influence on organizational performance.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1 Different types and purposes of organisations; public, private and voluntary sectors and
legal structures............................................................................................................................1
2 Size and scope of a range of different types of organisations.................................................3
3 Relationship between different organisational functions and how they link to organisational
objectives and structure...............................................................................................................4
TASK 2............................................................................................................................................6
4 Positive and negative impacts the macro environment has upon business operations...........6
5 Internal and external analysis of specific organisations in order to identify strengths and
weaknesses..................................................................................................................................8
6 Strengths and weaknesses interrelate with external macro factors.........................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment is defined as a collection of different factors, some of them may or
may not be in control of company but they can affect the performance, profitability and growth.
Every firm has its own distinctive environment and according to that they perform their
activities. Bentley is the organisation which is taken in this assignment and they manufacture
luxury cars and SUVs. Present report will include different types of organisation along with its
size and scope (Otoo and Drechsel, 2018). Other than this, interrelationship of different functions
that are performed within the organisation and its link to organisational structure is mentioned
for better understanding. With the help of some examples both positive and negative impact of
macro environment on business operations is included. Lastly, internal strengths and weaknesses
of businesses and its interrelationship with external macro factors is mentioned which will enable
us to know factors that can have an impact on business operations.
TASK 1
1 Different types and purposes of organisations; public, private and voluntary sectors and legal
structures
Any company can establish its business in market area but to sustain successfully
enterprise needs to consider some of the factors such as finance, proper planning, strategies,
acceptance of social norms, legal norms etc., Business environment can be stated as the elements
which can be from outside or from inside but it can have some kind of effects on the
performance and sustainability of business (Hacioglu, Dincer and Celik, 2012). For example: if
government makes any kind of changes in tax policies than this can have positive and negative
impact on business. Business environment is important for an organisation in order to identify
business opportunities that are present at market area. In addition to this, it assist company in
tapping useful resources which can provides benefits to the firm.
Therefore, organisation can be classified into three segments and these are explained
below:
Public Sector:
Public sector comes under that portion of economy that comprises of all levels of
government such as state, national and local (Vasilcovschi and Georgescu, 2012). No private
companies, voluntary organisations and household firms are included in this. Thus, it can be said
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that public sector organisations are controlled and owned by government. Child Support Agency,
is a child maintenance group in United Kingdom that look after the well-being of children so that
better facilities can be provided to them.
Purpose of Child Support Agency: It is an executive agency that works for pension
related activities but their main purpose is to administer the system of child maintenance and in
order to do so non-resident parents pay some amount of money so that upbringing of child can be
done in an appropriate manner.
Legal Structure:
Local Government: This is a kind of public administration that majorly constitutes
lower level power in a state. They are responsible for looking at the activities that are going on
local level and they are supervised by top authorities (Toedt, 2014).
State Government: They work in collaboration with national government and share a
right to make proper decisions that can help them in conducting all the activities in a proper
manner.
Central government: They are considered as higher and supreme governing association
within an unitary state. Central government are the one who formulates policies, rules and
regulations so that all the functioning can be done in timely manner.
Private Sector:
Companies that comes under this are run by an individual and are not controlled by any
governmental institutions. Because of less involvement of regulatory bodies, it is sometimes also
called as citizen sector (Hussin and et. al., 2017). Bentley Cars is a car manufacturing company
which was founded in the year around 1919 and later in the year 1998 it was acquired by
Volkswagen. Company develops luxurious and SUV cars for their customers.
Purpose of Bentley Cars: This company works with the purpose of providing best
quality of cars with luxurious features so that customers can enjoy driving their cars.
Legal Structure:
Sole Proprietorship: This is a simplest form of business that is basically run by an
individual and is not a legal entity. Thus, the person is fully responsible for profits and all the
debts which company faces.
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Partnership: It is a formal agreement that is done between two or more parties. In this
there can be a possibility that some partners have large share of liabilities and some can have
limited liabilities (Sood and Sukthankar, International Business Machines Corp, 2013).
Voluntary Sector:
They usually comprised of organisations that work with the motive of providing benefits
to citizens so that society can be enriched. Voluntary organisations often give services without
thinking of profits and with no and little government intervention. Oxfam is a confederation that
constitutes 20 independent charitable organisations and these are working for eradicating poverty
from the world.
Purpose of Oxfam:
Oxfam work with the purpose of alleviating global poverty and providing justice to every
citizens living in different parts of the word.
Stakeholders: They are the one who have greater influence on the performance of
company and further it can be categorised into two and these are internal stakeholders such as
employees, volunteers and other one is external stakeholders like suppliers, partners etc.,
2 Size and scope of a range of different types of organisations
Public Sector: Companies that comes under this sector provides a range of services mostly
given by government such as infrastructure, public transport, public education, health and care
services etc., Child Support Agency is a department for work and pensions and is a part of Child
Maintenance Group.
Size: In this organisation nearly 100 employees are working and they are analysing areas
where child maintenance is low so that the situations can be handled (Charfeddine, 2016).
Scope: This organisation is running at small level within London and they can think of
expanding its chain in other parts of United kingdom.
Products and Services: Their main motive is to improve the health and other conditions
of children by taking care of their maintenance. Child Support Agency works by looking at how
much child maintenance is due.
Private Sector: They plays a crucial role country's economy and mostly includes industries,
commercial countries but are not owned or controlled by regulatory bodies (Anıl and Ficici,
2017). Bentley Cars, manufacturer and marketer of luxurious cars. Its parent company is
Volkswagen AG since 1998. Company is providing its services worldwide.
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Size: Bentley Car's was founded in the year 1919 headquartering in Crewe, England,
United Kingdom. In almost all over the countries they have their operating companies and in
those firms around 3,600 employees are working for providing better services and facilities to its
customers.
Scope: Although they have their stores in every nation but they can think of opening their
outlets in popular streets of different countries. In addition to this, they are thinking of producing
third-generation Continental sets in which company will redesign their cars into cutting-edge
technology. This will assist companies in attracting large number of customers (Warkentin,
Sugumaran and Sainsbury, 2012).
Products and Services: Their major products are of developing lavish cars by providing
all necessary requirements. For example: Bentley Cars are re-engineering cars that are lighter in
weight and because of which cars is covering zero to 60mph in just 3.6 seconds.
Voluntary Sector: These are the community sectors in which some volunteers tend to perform
social activity without the motive of any kind of profit. Oxfam is doing the same and they are
working for providing basic social services to citizens.
Size: Oxfam is currently operating in around 14 countries and there they are looking for
social problems and working for decimating the same. Large number of volunteers are associated
with these kind of organisation and they are assisting them in executing their plans in an
effective manner (Burayidi, 2013).
Scope: Oxfam can think of expanding its business in areas where they have not explored
yet.
Products and Services: They are giving services on the basis of certain objectives i.e.
sustainable livelihood, social services, life and security, and right to identity. This is assisting
them in enhancing lives of people who are living in society.
3 Relationship between different organisational functions and how they link to organisational
objectives and structure
Every organisation has different departments and they work accordingly so that all the
task and activities can be done in a proper manner without any difficulties (Hahn, Reimsbach and
Schiemann, 2015). Each company has a hierarchy and according to this role and responsibilities
are allocated to each individuals. In terms of Bentley Cars, they have proper relationship between
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each departments whether financial, sales and marketing etc., thus, to understand this in a better
manner it has been explained below:
Human Resource Department: In a company, this department plays a crucial role as
they hire and recruit suitable candidates who are best fit for the job. HR department can be linked
with every division of the company as they recruit candidates according to the seats available.
Thus, this department must select eligible person because company's performance depends upon
selected candidates (Charalampous, 2012). Therefore, HR managers of Bentley Cars are hiring
qualified employees who can perform different activities related to sales and marketing, research
and development, manufacturing department etc.,
Production/Operation Department: This department can be linked with department of
research and development as on the basis of data and information provided production and
operations division manufacture goods and services. Thus, this help them in producing goods
according to the needs and wants of customers. Other than this, research and development after
analysing the market scenario, can provides information related to latest tools and technologies
that can make production process more easier. With the help of R&D, Bentley Cars along with
its engineer are manufacturing cars that are considering all the parameters in terms of class, look,
design, style, comfort etc.,
Sales and Marketing: Customers cannot purchase goods if company is not promoting its
activities in a better manner. So, sale and marketing plays a crucial role in connecting with
customers (Esparza-Aguilar and De la Garza-Ramos, 2017). Thus with the help of this method
company can accomplish their objectives in an speculated time frame. In this, Bentley Car is
adopting different social media platforms through which they can connect with consumers. As a
result, it will improves the sales and profitability of the company, research and development
conduct surveys and take feedbacks from people which helps company in evaluating whether
their products are according to the choices and preferences or not. So, every department can rely
on this department like for example: operation and product development can take reports for
manufacture goods according to the needs and wants of customers in a limited period of time.
Finance Department: This is an integral part of an organisation as they provides each
and every division with funds that are required by them so that work can be executed in an
effective way (Cui and et. al., 2013). But for this, it is necessary that finance department go
trough the activities performing by various divisions as it will help them in evaluating how much
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money are required for performing any kind of task thus, this will allow finance department in
making optimum utilisation of resources in a limited time frame.
Research and Development: in every organisation there is a R&D department that assist
company in determining activities which can fulfil demands and needs of customers. For this,
research and development conduct surveys and take feedbacks from people which helps
company in evaluating whether their products are according to the choices and preferences or
not. So, every department can rely on this department like for example: operation and product
development can take reports for manufacture goods according to the needs and wants of
customers (Tchoffa and et. al., 2016).
TASK 2
4 Positive and negative impacts the macro environment has upon business operations
While running a business in an effective manner it is important that company look after
the both the factors whether it is at micro or macro level. This can have positive as well as
negative impact on business so while formulating strategies company should focus on the same.
So, some of the factors that can affect macro environment are explained below:
Political Factors: This includes competition policies, rules and regulations, laws & legislations
that are important for running business in an effective manner. In relation with United Kingdom,
they have stable government are very supportive in nature. Regulatory bodies of UK, helps
companies with the help of AAP (Automotive Assistance Programme). Car companies who have
lower CO2 emissions are given relaxation through financial measures whereas auto-mobile who
have high CO2 emission rate are imposed with Tax charges (Voznenko and Roman, 2015).
Positive: Companies who are following rules and regulations formulated by government
of United Kingdom are enjoying liberty for example: Companies who are manufacturing less
CO2 emission cars are getting benefits whereas other who have high rates are facing high taxes.
Negative: Issue of Brexit has put a negative impact on auto-mobile industry because 60
percent of parts for manufacturing cars were imported mainly from continent.
Economic Factor: This is related to growth and inflation that happens in a country. Thus, a
sudden change in economic environment of a nation can affect companies who are operating its
business. Therefore, it is crucial that company formulated plan B in order to eliminate any kind
of losses (Pandowo and Tikker, 2016).
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Positive: Economic growth can generate more and more job opportunities for the citizens
of the nation. This will gradually enhance the level of GDP of the nation.
Negative: Sudden modification in economic policies like implementation of new taxes,
or government's intervention in the free market can have a negative impact on business
environment.
Social Factor: This incorporates various demographics such as population, occupation, etc.,
according to the a research it has been evaluated that most of the people who are living in United
Kingdom are above the age of 45 so, company can think of manufacturing cars that are small and
for nuclear family. Because figures shows that around 80 percent of the sales comes from
corporate bodies whereas 20 percent from retail sectors.
Positive: If company will manufacture goods according to the needs and wants of
customers than an increase in sales and profitability of an organisation (Samantaray and
Sriramadhesikan, International Business Machines Corp, 2015).
Negative: Manufacturing cars according to the choices and preferences can be difficult
for companies as it can cost them higher.
Technological Factor: With the change in course of time many new and latest technologies
have evolved and companies are adopting accordingly. As a result, it is helping them in making
superior quality products. It has been analysed that most of the car manufacturing companies are
using technology which can minimise the level of CO2 along with this, firms are focussing on
manufacturing hydrogen propelled cars so that no effect can be done to environment.
Positive: Technology will assist firm in developing cars that are of superior quality and
which can fulfil all the requirements of customers.
Negative: High level of technologies can some what create difficulties for employees to
understand in initial level which can hamper the productivity level of the organisation.
Environmental Factor: According to the current environmental condition companies are very
much influenced and they are looking at all the factors so that Co2 emission, petrol and gasoline
etc., because these are limited resources (Kuhle, 2015).
Positive: As Bentley Motors is making cars that emission less Co2 so, they have a
relaxation of paying high taxes.
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Negative: Environmental factor can have an negative impact as well for example: if
climatic conditions of an area is not good that company will not be able to deliver goods at
proper time as a result which can loose customer's loyalty.
Legal Factor: There are many laws and legislations which are imposed by government of
United Kingdom such as compulsory fitment of electronic stability, monitoring system of tyre
pressure etc., thus, companies are required to take care of these so that they can run their
business in an effective manner (Jonoski, Jakimoski and Petreski, 2015).
Positive: This will enable company in running their business in an effective manner by
making products determining health and safety of customers.
Negative: As Bentley Cars is operating its business worldwide so to follow all the rules
and regulations of different nations can be quite difficult for them to follow.
5 Internal and external analysis of specific organisations in order to identify strengths and
weaknesses
It is not possible that every company has its positive sides they have some weaknesses as
well and in order to understand the same of Bentley Cars, SWOT analysis is mentioned below:
Strengths Weaknesses
 Bentleys Car's popularity is its biggest
strength so they don't believe in much
promotions.
 Company has unique car designs and
technology they have implemented are
best in class.
 Bentley have a high brand equity
because of which they are less
vulnerable to competition.
 Other than this, their exclusivity
provides customers a special feeling of
driving their cars (SWOT analysis,
2018).
 Company's limited reach to its
customers is their major drawback
because of which their targeted group
are low.
 Other than this, customers have to
weight for a long in order to get their
products or cars because of which their
valuable customers look for rival
competitors such as Jaguar, land Rover,
Rolls-Royce etc.,
Opportunities Threats
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 Bentley can think of acquiring lower
branded cars so that needs and wants of
population from other segments can be
fulfilled.
 Apart from this, they can focus more on
promotions through advertisements,
sponsorship etc.,
 Increase in fuel prices is one of the
serious issue for auto-mobile industry
as customers can switch to cars that are
eco-friendly and less fuel consuming.
 Apart from this, economy also plays a
crucial role because if it fluctuate than
sales can be hampered.
6 Strengths and weaknesses interrelate with external macro factors
External macro factors although cannot be controlled by the company but they are to be
consider so as to operate business in an effective manner. Because these are the elements that can
work as a strength or weaknesses (Warkentin, Sugumaran and Sainsbury, 2012). Thus, some of
the external factors are explained below along with its strengths and weaknesses in order to
understand in a better manner.
Political Factor:
Strengths: As government of United Kingdom is stable in nature which is its strength
therefore, Bentley Cars can operate their business in a proper manner which is enabling them in
delivering goods and services of best qualities.
Weaknesses: Changes in policies and laws can be considered as the biggest weaknesses
because company have to make modifications which can effect sales and productivity of the
firm.
Economical Factor:
Strengths: Increase in the economy, will increase job opportunities for people thus,
Bentley Cars can hire suitable and eligible candidates for their company which will enable them
in providing services and facilities (Burayidi, 2013).
Weaknesses: Economic factor can put an impact on purchasing power of an individual
because if they doesn't get appropriate funds than they will not be able to buy goods or products.
Social Factor:
Strengths: Each company manufacture goods so that customer's needs and wants can be
fulfilled therefore, company have large number of customer base than company's sales can be
improved.
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Weaknesses: Customer's choices and preferences can change on a regular basis so
manufacturing goods in large quality can give leads to losses
Technological Factor:
Strengths: The biggest strengths of technological factor is that it assist firm in
manufacturing best quality products which are as per the customer's choices and preferences
(Hahn, Reimsbach and Schiemann, 2015).
Weaknesses: There can be possibility that company implement technologies that are
hard to understand because of which manufacturing process can be delayed or hampered.
CONCLUSION
From the above report it has been concluded that, business environment in a company
plays a crucial role for running business in an effective manner as it includes different factors
that are important for executing the task in a better manner. Basically, sectors are categorised
under three categories public, private and voluntary thus, it depends upon company in what
sector they want to expand its business. As all sectors are different therefore, size and scope also
differs like companies that comes under private sector work with the purpose of gaining
maximum benefits by providing goods as per the choices and preferences. Whereas, voluntary
organisation work without a motive of earning profits but to provide services through which
citizens can be benefited. Other than this, link between different departments was also mentioned
in order to know relationship between various divisions. Apart from this, conducting PESTLE
and SWOT analysis will give an idea about external and internal factor which can have an
impact on business environment.
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