Business Environment Report: Tech & CSR Impact on Rolls-Royce

This report provides an analysis of the business environment affecting the automobile sector, with a specific focus on Rolls-Royce. It identifies key issues such as Corporate Social Responsibility (CSR) and the impact of technology, further elaborating with a PESTLE model analysis. The report discusses the positive and negative impacts of technology and CSR on Rolls-Royce, including aspects like safety, brand recognition, and potential conflicts with profit motives. Challenges faced during the report preparation, such as data collection and source availability, are also addressed. The study concludes by highlighting the importance of adapting to the dynamic business environment and leveraging technology and CSR for sustainable growth, and the student's learning experience.

Business environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Identification of two key issues affecting Auto-mobiles sector..................................................1
PESTLE model............................................................................................................................2
Positive and negative impact of technology and CSR on Rolls-Royce motor cars....................4
Challenges faced during the preparation of this report...............................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment is the collection of the respective internal and external factors of
the business that affects the business positivity and negatively(Bah and Fang, 2015). Present
study is based on the organisation Rolls-Royce that is British Luxury automobile maker. Rolls-
Royce was founded in the year 1998 by Charles Rolls. Report will include Identification of two
key issues affecting the Auto-mobiles sector. Report will also include Pestle model and will
categorise the two issues. Further report will include Positive and negative impact of technology
and CSR on Rolls-Royce motor cars. At last report will include different challenges faced during
the preparation of this report(Business environment, 2019).
Identification of two key issues affecting Auto-mobiles sector
Key issues affecting the automobile sector
The companies work in the business environment which is continuously changing and
dynamic and this involves many of the factors which impacts the business and other different
sectors dealing in different business(Weyer and et.al., 2016). The different key issues impacting
the automobile sector of UK is discussed in the adjoining points below-
Corporate social responsibility-
This is the responsibility of the company towards the environment and the society in
which they are working. This is the major concern in this globalized and highly competitive
world (Chen, Feldmann and Tang, 2015). This is majorly due to the fact that this is the latest
trend going on in the society. It is so because of the reason that the consumers have become more
con concerned towards the protection and safeguarding of the environment in which they live. It
is so because the automobile sector harms the environment in form of the pollution which the
cars and other vehicles of different companies of automobile sector spread. This pollution harms
the environment in which the people live.
Also, this is a key issue for the automobile sector because of the reason that if they do not
take care of the society and environment then this have a negative impact on the working and the
goodwill of the companies as well as the whole automobile sector. The underlying reason behind
this fact is that if the companies does not pay attention to protecting the environment then the
consumers will not trust the automobile sector and this will reduce the sales for the companies
within the automobile sector. Therefore, this increasing trend of corporate social responsibility is
an issue for the automobile sector. Also, for managing the requirements for the protection of
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environment the company has to invest funds for upgrading the environment(Shen, Govindan,
and Shankar, 2015).
Technology-
This is another major issue which is faced by the automobile industry. This is because of
the dynamic business environment and globalization. It is so because of globalization the that the
company can trade with any country and because of this many new technologies are being
entering into the automobile industry of UK. This is also an issue which impact the whole
industry because if the sector does not adapt to these strategies than the companies within the
automobile sector will become obsolete as the new technologies are not being adopted. Also, if
these technologies are to be installed then also many problems are being faced. These are like
first the industry needs to research for the technology and its viability that if it is installed then
whether the technology will be success or not.
Also, the industry needs to research for the cost which will be levied on the installation of
the technology within the industry. One more impact on the industry is that if new technology is
being implemented within the industry as a whole then it needs to provide this information and
relevant training to the companies comprising the automobile industry (Hoffman, 2019). The last
impact of this issue is that for installing the new technology more funds are needed and this
increases the cost for the industry.
PESTLE model
There are different macro environmental factors that affects Auto-mobiles sector in
global environment. These factors are as following:-
 Political factors:- There are different political factors that are affecting the Automotive
industry, for example:- tax policy, environmental law, tariffs etc. As government in
global market is favouring low emission vehicles and sustainable products, companies are
required to work accordingly with respect to different technological changes. With
increase in demand of environment friendly vehicles, technology that is fuel efficient and
low on emission can be easily accepted by the government in global market. It is
therefore important for the auto-mobiles sector to focus on issues that are rising due to
technological changes(Sahoo and Rath, 2018).
 Economic factors:- The different economic factors that are affecting automobile sector
are economic growth, exchange rate, inflation rate etc. These factors are impacting the
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profitability of organisations as whenever the economic conditions are not appropriate,
sale of the vehicles usually falls. The taxes on the high priced or luxury vehicles is quite
high in global market. These factors are also leading to technological issues as
organisation have to take use of new technology and many times they adopt these
technologies from global market in order to produce their offering faster and cheaper. If
exchange rate or inflation rate is high in global market, it becomes tough for the
organisation to adopt the technology.
 Social factors:- The social factors like cultural trends, health and safety, preference of
people etc. affects the automobile sector(Redshaw, 2017). As the preference of the
society is shifting from luxury to eco-friendly and sustainable products, It is having direct
impact of its CSR activities as well as technology adoption. Organisations in this sector
are adopting technology that is leading to low emission vehicles and fuel efficient
vehicles and adopting different CSR activities in order have sustainable work culture.
 Technological factors:- There are different technological factors that are affecting auto-
mobiles sector like automation, technology changes etc. With the demand of more
sustainable and low emission vehicles, different technological changes have to be
adopted by the organisations that will lead to huge cost for there business. However,
these changes leads to innovation and helps the organisation have more quality and
productivity.
 Environmental factors:- The different environmental factors like weather conditions,
climate change etc. affects the auto-mobiles sector. As there are many countries where
weather condition is quite cold or snow fall is there. The auto-mobiles sector works in
order to have technology that provide engines that do not easily get affected in such
situations. So, environmental factors are affecting the auto-mobiles sector with respect to
technological changes(Luthra, Garg and Haleem, 2016).
 Legal factors:- Different legal factors that affects the auto-mobiles sector are health and
safety law, discrimination law etc. Auto-mobiles sectors get affected by these factors as
they have to fallow these laws in order to have product quality and safety. On the other
hand, in order to have health and safety of people, organisations have to work on
technology and CSR activities that leads of fuel efficient vehicles that do not lead to air
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pollution and leading to technology that safe the customers with the help of air bags from
different road accidents.
Positive and negative impact of technology and CSR on Rolls-Royce motor cars
Technology and CSR is having both positive and negative impact on Rolls-Royce cars in
following manner:-
Positive impact of technology on Rolls-Royce cars:-
 Safety:- With the help of technology, Rolls-Royce cars are able to provide effective
safety measures for the customers. There are different features like anti lock braking,
stability control, blind spot detection, lane deviation warning and many more that protects
the user from chance of accident and these technologies are the key building blocks for
autonomous driving systems(Helfand and et.al., 2016).
 Technology leads to sustainable products:- As the demand of sustainable products is
increasing in global market, Rolls-Royce is working for fuel efficient vehicles. These
technological changes are bringing positive reputation of Rolls-Royce with sustainable
products in demand.
Positive impact of CSR on Rolls-Royce cars:-
 Better brand recognition:- With the help of different CSR policies, Rolls-Royce cars have
gained a better brand recognition. Company is putting efforts to provide sustainable
products that are environment friendly and also provide different safety measures for the
customers that is making its reputation more effective in market(Aliyev, Wagner and
Seuring, 2019).
 Increase in sales:- With effective brand image, the sales of the Rolls-Royce cars have
gradually increased due to adoption of different CSR policies in its business.
 Customer loyalty:- As customers have build up trust on the offerings that Rolls-Royce
cars is providing with respect to safety of customers as well as environment, they are
becoming loyal towards the offerings that also leads to business profitability.
Negative impact of technology on Rolls-Royce cars:-
 Technology dependence:- The negative impact of technology on Rolls-Royce cars is that,
all the business process is dependent of technology itself and regular failing in systems
due to technology may affects the business(Liu and et.al., 2019).
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 Safety:- Though technology have provided different safety measures to the customers as
well as working employees of Rolls-Royce, but there are safety issues that come with the
cost of hacking and data breaches. These hacking may lead to data loss that affects
business negatively.
Negative impact of CSR on Rolls-Royce cars:-
 Conflicts with profit motive:- While having focus on different CSR activities, the profit
motive of the organisation get lack in some way. Although it is creating good reputation
of Rolls-Royce but also affecting the profitability in negative manner(Tomé, 2017).
 Research and development cost:- For having an effective CSR policies it is very
important to have effective research and development. For the same huge investment is
required and that affect the cost of the business.
Challenges faced during the preparation of this report
During the preparation of this report, I faced two major challenges with respect to time
consumption in data collection and availability of sources related to the topic. It became tough
for me to collect the respective data and information with in the given time as it took time to
collect and interpret the right data in an effective manner. I managed the same with the help of
my time management skills as I divided my topics and do the respective research within the time.
I also took help of my mentor and friends if I was not able to understand any specific topic. The
availability of sources and references was also another issue. But I researched a lot and was
having different sources in hand that helped me out to complete my report effectively. I collected
may sources with the help of internet and have done a deep research with respect to these
sources.
From this experience I have learned various new things that is to manage the time and
work effectively and also to have deep understanding of the different topics before coming to a
particular decision. This experience not only helped me to have effective writing skills, but also
help out me in developing communication skills. I took help of different sources and collected
different information that was valid with respect to the topic. I interpreted each and every data
and then utilized my information in more effective manner. The basic advantage I got from the
collection of data from these sources was that, it became easy for me to have deep understanding
with the topics and coming to a specific decision with respect to different issues that organisation
faces. Previously, I was not aware of many topics but during the preparation of this report I
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gained new knowledge and skills. I gain knowledge related to Rolls-Royce and its business
functions and also different issues that organisation faces. While preparation of this report my
communication skills, time management skills, problem solving skills etc. got enhanced which
will be beneficial for my future projects.
CONCLUSION
From the above study it is been concluded that the two major issues affecting the Auto-
mobiles sector is technology and CSR. Further report also concluded that there are different
external factors that affect the Rolls-Royce and leas to these two issues. Further report concluded
that there are both Positive and negative impact of technology and CSR on Rolls-Royce motor
cars. At last report concluded that there were different challenges that were faced during the
preparation of this report.
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REFERENCES
Books and Journals
Chen, L., Feldmann, A. and Tang, O., 2015. The relationship between disclosures of corporate
social performance and financial performance: Evidences from GRI reports in
manufacturing industry. International Journal of Production Economics. 170. pp.445-
456.
Hoffman, K., 2019. Driving force: the global restructuring of technology, labor, and investment
in the automobile and components industry. Routledge.
Weyer, S. and et.al., 2016. Future modeling and simulation of CPS-based factories: an example
from the automotive industry. IFAC-PapersOnLine. 49(31). pp.97-102.
Bah, E.H. and Fang, L., 2015. Impact of the business environment on output and productivity in
Africa. Journal of Development Economics. 114. pp.159-171.
Shen, L., Govindan, K. and Shankar, M., 2015. Evaluation of barriers of corporate social
responsibility using an analytical hierarchy process under a fuzzy environment—A textile
case. Sustainability. 7(3). pp.3493-3514.
Sahoo, P.K. and Rath, B.N., 2018. Productivity growth, efficiency change and source of
inefficiency: evidence from the Indian automobile industry. International Journal of
Automotive Technology and Management. 18(1). pp.59-74.
Luthra, S., Garg, D. and Haleem, A., 2016. The impacts of critical success factors for
implementing green supply chain management towards sustainability: an empirical
investigation of Indian automobile industry. Journal of Cleaner Production. 121. pp.142-
158.
Redshaw, S., 2017. In the company of cars: Driving as a social and cultural practice. CRC
Press.
Helfand, G. and et.al., 2016. Searching for hidden costs: A technology-based approach to the
energy efficiency gap in light-duty vehicles. Energy policy. 98. pp.590-606.
Liu, J. and et.al., 2019. How Does Leasing Affect Green Product Design?. Mathematical
Problems in Engineering, 2019.
Aliyev, F., Wagner, R. and Seuring, S., 2019. Common and Contradictory Motivations in Buying
Intentions for Green and Luxury Automobiles. Sustainability. 11(12). p.3268.
Tomé, E., 2017. Knowledge management and leadership: the carbon emissions scandal in the
automobile industry. International Entrepreneurship| Przedsiębiorczość Międzynarodowa.
3(1). pp.229-240.
Online
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