Business Environment Analysis: Bristol Auto Industry Report

This report provides a comprehensive analysis of the business environment, focusing on the case of Bristol, a UK-based automobile manufacturer. The report begins by defining the business environment and then explores the purposes of different types of organizations, including partnerships, private, public, and voluntary organizations, with a specific focus on Bristol's vision, mission, goals, and strategic objectives. It then delves into stakeholder analysis, examining Bristol's relationships with consumers, shareholders, employees, suppliers, and the government. The report further assesses the responsibilities of the organization towards its stakeholders and evaluates the impact of economic systems, including command, free, and mixed economies, on the firm. The report also discusses the impact of taxation, inflation, labor force, and business behavior on the UK economy and evaluates competition policy and regulatory mechanisms. It examines different types of market forces and how they shape the behavior of organizations, particularly in the context of Bristol. The report also analyzes the importance of global trade to UK organizations, the impact of global factors on national business activities, and the role and impact of EU policies and directives on businesses. The report concludes by summarizing the key findings and insights from the analysis.

BUSINESS ENVIRONMENT

Table of Contents
Introduction..........................................................................................................................................3
Task 1....................................................................................................................................................3
1.1 Determining the purposes of different types of organisation.....................................................3
1.2 Explaining the Stakeholder concept for organisation................................................................4
1.3 Responsibilities of the Organisation towards stakeholders.......................................................5
Task 2....................................................................................................................................................6
2.1 Describing the economic systems and their impact on the firm................................................6
2.2 Discussing how taxation, inflation, labour force and business behaviour impact the UK
economy...........................................................................................................................................6
2.3 Evaluating competition policy and regulatory mechanisms of UK governments.....................7
Task 3....................................................................................................................................................8
3.1 Stating type of market and comment on their impact on the behaviour of organisations.........8
3.2 Explaining various type of the market forces............................................................................8
3.3 Explaining how the business and cultural environments shape the behaviour of a Bristol.......9
Task 4..................................................................................................................................................10
4.1 Describing the importance of global trades to UK organisations............................................10
4.2 Assessing the importance of the global factors that shape national business activities..........10
4.3 Assessing the role and impact of EU policies and directives on the business........................11
Conclusion..........................................................................................................................................11
References .........................................................................................................................................12

INTRODUCTION
Business environment can be defined as a combination of all the internal and external
factors of organisation which create impact to design its business strategies in the market. It affects
the functioning of staff members, supply and demand, rules and regulations of company etc (Lee,
2014). Knowledge of business environment is necessary for firm to increase its growth and
development in the market. Bristol is an auto mobile car manufacturing company which provides
luxurious cars to its consumers in the United Kingdom (Useem, 2014). The present file explains the
purpose of various types of organisations. Further, it describes business environment of United
Kingdom to manage the operations of organization in an effective manner. In addition to this, it
represents the nature of cited corporation in the market. However, this report also introduces impact
of global factors on UK business organisations. At last, it will assess the impact of European Union
polices on Britain based corporations.
TASK 1
1.1 Determining the purposes of different types of organisation
There are different types of organisations situated in the United Kingdom. Purpose of these
organizations are represented in below paragraph:
Type of organisations
 Partnership organisation- This type of company is operated by two or more people. Purpose
of this firm is to gain profit from the consumers in the market. Then after, they consider on
the public service in order to make optimistic brand image in the nation. For example,
Bristol is also a partnership organisation in the United Kingdom (Welford, 2014).
 Private organisation- In this ownership, business is managed by one or many people as per
the demand of market. The main aim of this firm is to achieve better profit from customers
in the market (Botha, Kourie and Snyman, 2014). Operating private business is very risky
due to many complexities like legal, social and political issues. For example, ASDA is a
retail organisation which is considered under private firms.
 Public organisation- In this type of firm, maximum shares are contained by government in
the market. The main purpose of Public organisation is to provide social service for people
and earn income by providing equal priorities (Andersson, Forsgren and Holm, 2015). For
example, British Airways is a public company which gives equal focus on public service and
profit generation in the nation.
 Voluntary organisation- It is created by a group of people in order to provide completely

social services to citizens in the nation. Many charitable trust and orphanage are come under
this category (Wang and Altinay, 2012). For example, National Society for the Prevention
of Cruelty to Children is also a voluntary organisation which is work for the welfare of
children.
Vision of Bristol
Vision of Bristol is to create extra ordinary automotive engines in order to provide better
cars to the consumers in all over the world (Our vision, 2016).
Mission of Bristol
Mission of the organisation is to provide better luxurious services and products to the
customers in order to increase its market share in the auto mobile market of UK.
The main purpose of organisation is to offer better sales services for elite and premium class
consumers by developing effective relationship with them. Further, firm wants to enhance its profit
and brand image by completing requirements of its customers.
Goals and strategic objectives
 To become first priority for premium and elite class consumers by creating better brand
image in the national and international level.
 To increase 5 % market share by manufacturing effective cars.
 To increase 5 % Sales of its products in auto mobile market.
 To provide better sales and services for elite and premium class consumers.
1.2 Explaining the Stakeholder concept for organisation
Bristol applies many efforts to accomplish its goal and objectives. Further, corporation has
many stakeholders like consumers, shareholders, suppliers, employees as well as government in the
United Kingdom.
 Consumers- Management of Bristol tries to provide better services to their consumers by
taking proper feedback and complaints from them before and after selling cars. Firm uses
many tools like customers relationship management (CRM) to manage its database in order
to provide better services to them (Craig, David Campbell 2012). This software helps to
solve problems and interprets requirement of their consumers by registering issues of them
in an appropriate manner.
 Share holders- Management of Bristol provides better dividends to its shareholders on time.
Firm shares its expansion plans and other projects for creating better awareness about

upcoming model of cars with investors in the meeting. In addition to this, organisation
solves various queries of shareholders in order to make effective relationship with them
(Lee, 2014).
 Employees- Bristol tries to make better relationship with its employees at the workplace.
Further, firm arranges meeting with staff members in a regular time intervals to know the
requirements of them like salary, promotions and other issues. Management of corporation
tries to sort out feasible needs of them (Useem, 2014). These efforts contribute effectively
for Bristol to increase its efficiency and performance in the auto mobile market.
 Suppliers- Organisation manages good relationship with its suppliers in the market. Firm
discusses various quality issues with vendors regarding raw material of cars. This way,
corporation improves the quality and efficiency of its products. In addition to this,
management of Bristol gives timely payments to its suppliers which contributes effectively
for firm to manage better relationship for future.
 Government- Organisation pays all the taxes like VAT and income tax on time and it follows
rules and regulation of British government in order to manage its business operations in an
appropriate manner.
1.3 Responsibilities of the Organisation towards stakeholders
There are many responsibilities organization towards stakeholders in the nation..
Management of the organisation conduct Corporate social responsibilities (CSR) activities for every
associates in the nation.
Firm also understand the needs of its customers by conducting effective research in the
market. This process increase the frequency of consumers as comparison of previous years by good
service in the UK. Many premium and elite class consumers purchase cars of Bristol from the
market. Organisation earns good profit from them by applying better efforts in making their
products and services.
Management of firm complete its responsibilities with suppliers by managing better
relations with them in the market. Due to this reason, organisation gets better quality of raw
material from its vendors. Suppliers of Bristol solve its complaints regarding raw material in the
market.
Influence of organisational responsibilities creates positive impact on its shareholders in the
nation. Frequency of investors has been increased as compare to past years in the market. Further,
Bristol improves its brand image in the mind shareholders and consumers.

However, impact of firm responsibilities does not produces effective impact government of
UK (Dey, Bhattacharya and Ho, 2015). Regulatory authorities impose many rules and regulations
on the Bristol which create so much complexities to follow them in a appropriate manner. For
example, management of firm oblige to implement proper health and safety policy for employees at
work place which increases expenditure of company.
Influence of organisational responsibilities also creates positive impact on staff members of
organisation. Management of Bristol reduces inter departmental conflict of its employees by
arranging proper meeting. This way, corporation complete its responsibilities in a appropriate
manner with all stakeholders in the nation.
TASK 2
2.1 Describing the economic systems and their impact on the firm
Economic system creates positive and negative impact on the organisations. It is depend on
the specific economic system in the market.
 Command economic system- In this economic system, government of Britain allocates all
resources to manage business operations in the nation. Company has to register its name to
take its resources in the nation. For example, Bristol has to describe all resources which it
want to take for managing its operations (Lee, 2014). This economic system does not create
effective impact on the organisation because it is totally depend on the functionality of
government whether it allocate facilities or not, it is based on government decision as per
availability of resources for handing business activities of Bristol.
 Free economic system- In this process, organisations of UK makes one group to allocate
resource for managing the business activities of every firm. For example, Bristol takes its
resources as per its requirement by requesting to this board in the country (McCarthy, 2013).
It creates positive impact on the organisation because government of UK does not any kind
of disturbance for allocation of resource which reduce its complexities.
 Mixed economic system- This economic system is made by role of government and business
organisations in the nation. Regulatory authorities and firms develop common board to
allocate various type of resources for every organisation (Worrall and Cooper, 2014). For
example, Bristol also register its name to take appropriate resources which is necessary to
manage business activities in the nation. Mixed economy system creates positive effect on
the organisation because firm can explain their reasons to take any type of facilities.

2.2 Discussing how taxation, inflation, labour force and business behaviour impact the UK
economy
Taxation, inflation, labour force as well as business behaviour create both positive and
negative effects on the economy of United Kingdom. Some of them are stated below the points.
 Taxation- It plays important role to improve economy of UK. For example, all business
organisations like Bristol pay its all taxes like VAT and income tax to government by
understand as responsibility. These efforts contribute effective role for Britain to improve its
economy in the world (Lipitakis and Phillips, 2015). Organisations also feels reliability
regarding appropriate proper environment of nation which provide flexibility to manage
their business activities in the market.
 Inflation- Inflation is a necessary factor for organisation which help to stable the economy of
UK. For example, if inflation rate will increase then it will automatically affect purchasing
power of Bristol organisation in the nation (Hassanein and Hussainey, 2015). It also
produces negative impact on economy of country because it will reduce income of firms.
 Labour force- It is important factor which affects the economy of United Kingdom. For
example, If labour force does not appropriate as per requirement then it will directly affect
manufacturing and other operations of Bristol which reduce income its income in the market
(Useem, 2014). It will also create negative impact on the economy of Britain.
 Business behaviour- There are many business behaviour factors which create effect on
economical condition of nation. For example, if social, political, technological and
availability of resources are effective then Bristol can improve its performance and
efficiency in auto mobile market. It contribute effective role for government of UK to
improve its economy in the market (House and et.al., 2015).
2.3 Evaluating competition policy and regulatory mechanisms of UK governments.
There are many competition policy and regulatory mechanisms which affect Bristol firm in
the market.
 Competition policy- Competition of auto mobile market is very high in the United Kingdom.
As per Haksever, Kim and Pickering, 2012, there are many competitors of Bristol like Audi,
Bentley and BMW which try to innovate new technologies to lure premium and elite class
consumers. This thing increases competition among the auto mobile organizations in the
market of UK. On other side, government of Britain try to control competition in a
appropriate way within auto mobile market. For example, they are released many rules and
regulation which contribute effective role for Bristol to control rivalry among organisations.

In addition to this, government of UK is also launched Competition Commission and Office
of Fair Trading, Competition Act 1998 and Enterprise Act 2002 which help in controlling
the competition in the market.
 Regulatory policies- Legal and regulatory policies affect Bristol organisation in the nation.
According to Jordan, 2012 They increase the expenses of firm due to changes in legal,
fiscal polices and fluctuation in inflations rates which creates complexities to manage its
work force and other manufacturing operations in United Kingdom. In addition to this, it
compels the Bristol to change business strategies which consumes so much time in the
market. However, companies act and industrial polices contribute effective role for Bristol to
manage its operations in a appropriate manner which are affected by regulatory polices in
the nation.
TASK 3
3.1 Stating type of market and comment on their impact on the behaviour of organisations
There are many type of market like monopoly, oligopoly, perfect competition, duopoly,
monopolistic as well as monopsony which create different type of impact on the organisation.
 Monopoly- It contains only one organisation as seller in the market. So firm can use high or
uniform pricing strategies to sell its homogeneous products in the market. Firm can increase
more income as comparison of other market (Lee, 2014). For example, BMW is the best of
example monopoly market due to high technology in the market.
 Oligopoly- There are few organisations to sell its homogeneous and differentiated products
in the market. For example, Auto mobile organizations like Bristol are come under oligopoly
market structure because there are few market sellers and many buyers in the market (Pich,
Dean and Punjaisri, 2016). In addition to this, if Bristol can change its prices of its cars then
it can attract more consumers as comparison of before in the market.
 Perfect competition- This market structure contain many organisations and it contains many
buyers and sellers. It follows market oriented and penetration pricing strategies for selling its
products market in the nation. It also increases sales of organisation in the market (Hair and
et.al., 2015). For agricultural commodities organisations are best examples for perfect
competitions.
 Monopolistic- This market structure contains many sellers and buyers to sell its
differentiated products in the nation. Price structure is also different due to differentiated
commodities in the market. For example, restaurants are best example of monopolistic
market structure.

 Duopoly- Duopoly market structure contain two sellers and many buyers in the market.
Organisation can keep high pricing strategies to sell its homogeneous and differentiated
products for buyers in the market.
 Monopsony market structures- This type of market strategies contain many sellers and one
buyer to sell homogeneous products in the market. It also follow low pricing strategies due
to lack buyers in the nation (Magee and et.al., 2013).
3.2 Explaining various type of the market forces
There are many type of market forces like supply and demand, elasticity of demand,
economies of scale and cost and output decisions.
Supply and demand- They affect the market strategies of organization. For example, If supply of
Bristol is higher and the demand is low then firm has to reduce its price in the market. Further,
demand is high and supply of cars is low then organisation has to increase its prices of its products
(Elasticity of supply, 2015). This factor contribute effective role for enterprise to increase its profit
market.
Elasticity of demand – It creates impact sales and price of firm products. For example, It analyses
that how responsive demand is to change price of cars in the nation. It oblige the Bristol to change
its market strategies as per market condition.
Economics of scale- Organization has many cost advantages which is obtained by output, scale of
operation and size. Economy of scale is necessary for firm to decrease its variable cost of products.
For example, it is also useful for Bristol to increase its manufacturing efficiency and performance
by reducing per unit cost and managing quality operations at work place (Kostecki, 2013).
Cost and output decisions- It helps the organisation for development of long term strategies on the
base current performance in the auto mobile market. For example, it aids the Bristol to earn more
profit by increasing sales of its cars in the nation. This way, corporation can achieve better market
share on cost and output decisions.
3.3 Explaining how the business and cultural environments shape the behaviour of a Bristol
Management of Bristol can utilize PEST analyse to shape behaviour of Bristol in the United
Kingdom.
 Political- There are many political factors like taxes and tariffs affect the profit and revenue
of organisation in the auto mobile market. These aspects help in developing proper financial

strategies to reduce expenses of Bristol in the nation.
 Economical- Economic factors like inflation rate, Gross domestic product and fluctuation in
currency rates affect cost of cars in the nation. Some times, they compel the Bristol to
increase prices of its cars due to changes in economic policies in United Kingdom (Useem,
2014).
 Social- Social and cultural aspects like lifestyle as well as trends and requirement of
consumers create effect on the business operations of organisation in the market.
Management of Bristol designs its new cars as per need and latest trend of customers in the
nation (Makos, 2015).
 Technological- Effective technological network like internet and better communication
facilities contribute effective role for Bristol organisation to promote its latest cars in the
market. In addition to this, these factors help in increasing sales of its products in auto
mobile sector of United Kingdom.
TASK 4
4.1 Describing the importance of global trades to UK organisations
International trades contribute effective role for Bristol firm to expand its business in the
another countries. For example, global rules and regulations provide appropriate help to increase
business activities to enter other nations. Management of organisation can increase its business in
developing countries like India, Brazil as well as china which can help to earn better profits (Lee,
2014). This way, management of corporation can expand its existence in many nations. These
efforts contribute effective role for Bristol to increase brand identity and market share which can
enhance its profit in many countries. Further, Organisation can feel huge reliability to manage its
international business operations like selling and purchase of raw material. In addition to this,
knowledge of global trades are necessary for corporation to select market entry strategies and
consider many other decisions. Management of Bristol can also identify the rules and regulations,
culture and competition to develop their business in the another nations. Other wise, company can
get huge loss in the international market. In addition to this, corporation can also take aid of World
trade organisation and international chamber of commerce to set its business another countries. So
information of global trade is essential to manage international business operations.
4.2 Assessing the importance of the global factors that shape national business activities
Global factors plays important role for Bristol organisation to shape its national business
activities. They aids in increasing sales of its cars by applying new marketing strategies in the
nation. They helps in enhancing market share of firm in auto mobile market. Global taxes and tariff

provides effective knowledge to manage expenditure of enterprise in United Kingdom. Further, they
contribute effective role for Bristol to develop its financial strategies in the nation. International
aspects provide better knowledge for understanding rules and regulation of UK by comparing with
other regulations and policies of other countries. In addition to this, they give flexibility to follow
proper legal rules of country.
Further, Life style, trend as well as requirements of other countries helps in providing new
features in the products which aid to increase growth of Bristol in the nation. Importance of global
factors is also necessary to provide diversified knowledge to the employees which helps in
managing sales and other operations of organisation in the nation. In addition to this, they play
important role to develop new strategies and plans to enhance its revenues in the nation (Useem,
2014). On the other side, International factors also encourage to take risks in the business but it
create issue for Bristol to perform its operations in the domestic market.
4.3 Assessing the role and impact of EU policies and directives on the business
EU (European Union) Policies contribute effective role for Bristol firm to create positive
and negative effect on its business activities. Some of them are described below the points.
 Environment policies- EU policies help to perform effective business in the European zone.
To expand its services, Bristol recruit and select many employees which create effective
impact on the government of by providing employment opportunities in the UK. In addition
to this, these policies help in reducing tariff and taxes in the European zones which also
increases its income of Bristol. They decreases many expenses of organisation which are
spent as taxes and tariffs.
 Inflations policies- EU policies contribute effective role for government of UK to keep
stable inflation rate by improving GDP rates and reducing interest rates which provides
helps in purchasing power of consumers in the UK of nation. They create positive impact on
Bristol by increasing its sales in the nation. It also increases profit of organisation in the
United Kingdom.
 Increasing Competition- European polices increase competition of among auto mobile
organisations which creates huge problems for firm to manage its marketing operations in
the nation (Lee, 2014). It also creates negative impact on the sales of Bristol organisation.
 Legal factors- European policies increases work load on the Bristol organisation by
introducing new regulations on the pollution and utilization of new engines which emits less
carbon in the environment. It also increases documentation and paper work of firm which
create negative impact on the Bristol in the nation (Useem, 2014)..

CONCLUSION
From the report, it is found that strategic objectives of Bristol help in completing its goals in
the auto mobile market. Responsibilities of organisation towards stakeholders contribute effective
role to increase its business in the nation. Taxation, inflation and labour force aid the firm to
develop proper business strategies in the market. Further, competition and regulatory policies of UK
affect the operations of Bristol in the nation. In addition to this, market forces like supply and
demand and elasticity of demand plays important role for Bristol to design proper marketing
strategies for increasing its sales in the market. Information of global trades provide effective
knowledge to enter many countries for business new start ups. It can be concluded that increasing
rivalry, legal factors and inflations policies affect business activities of Bristol in the United
Kingdom.

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