Comprehensive Business Environment Report: McLaren Automotive, UK

This report provides a comprehensive analysis of McLaren Automotive's business environment. It begins with an introduction to the concept of the business environment, highlighting the internal and external factors influencing a company's success. The report then delves into the different types of organizations, including private limited, public limited, and voluntary sectors, using McLaren Automotive as a primary example. It examines the company's vision, mission, and organizational structure. The report further explores the various departments within an organization, such as finance, human resources, and marketing, and their interrelationships. A significant portion of the report is dedicated to the PESTLE analysis, evaluating the political, economic, social, technological, legal, and environmental factors impacting McLaren Automotive. The analysis assesses both the positive and negative impacts of these factors on the company's operations and profitability, providing a detailed understanding of the challenges and opportunities in its business environment.

Business and business
environment

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK 1 ...........................................................................................................................................4
P1 ................................................................................................................................................4
P2.................................................................................................................................................5
TASK 2 ...........................................................................................................................................7
P3 ................................................................................................................................................7
TASK 3............................................................................................................................................8
P4.................................................................................................................................................8
TASK 4 .........................................................................................................................................11
P5...............................................................................................................................................11
P6 ..............................................................................................................................................11
CONCLUSION .............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
The term business environment can be considered as the process of integration of several
internal and external factors that contribute to success of a company. It is essential for every
company to analyse and evaluate all external and internal factors that are required for profit
making of a business in domestic as well as foreign countries. The different elements involved in
business environment are Customers, suppliers, competitors, owner, development in technology,
market, activities of market, social trends etc. In following report, the organisation which is taken
into consideration is McLaren Automotive. It is a British conglomerate that is based in working
survey, United Kingdom. This is an automotive industry which was founded in the year 1981 by
Ron Dennis. In 1963, New Zealander Bruce McLaren established a formula one team which lead
to formulation of this group . This report explains factors of business environment in an effective
manner.
TASK 1
P1
The various types of organisations that are present in a business environment are public,
private and voluntary. These companies have different goals and objectives for functioning in
market and these three types of organisation are explained with an example below-
Private limited – when a organisation is run by a individual person who is commonly
referred as entrepreneur. These companies have some liabilities towards their shareholders and
the shares of this company are not sold to public. Sole managers – In theses organisations, the person who is running the business is
responsible for handling and managing all activities and tasks of the company. In these
organisations, entrepreneur takes care of profits or loss in the business. Partnership – This is considered as best opportunity for starting a private business if the
amount of funds is less with the entrepreneur. There are various types of partnerships in a
business environment and these are two partners or more than two partners. appropriate
way of starting a private business if individual is having limited capital. The partnership
business are based on two categories – two or more partners. In this type of business, all

partners invest money and their contribution is equal in performing overall operations of
the business.
PLC (public limited company) – A public limited company is a kind of company in
business environment which is controlled by the government. The main aim of these
organisations is to help people of the country by utilising the natural resources effectively.
The products which are offered by public limited companies are health care, fertilizers or oil
etc. These companies work mainly for increasing country's overall productivity. Department of Central government – Organisations of a state run and controlled by the
central government of country.
 Local authorities – In every country, working of a particular city organisations are
controlled by some local authorities.
Voluntary Sector: non profit companies are considered as voluntary organisations. The
owners of such organisations don't want some kind of monetary profit. Such as Wellcome Trust
is a voluntary sector founded by Sir Henry Wellcome n UK in 1936. Its main objective was
biomedical search. Trust- trustees are people who are fund providers to these voluntary sector organisations
for their daily operations.
 Unincorporated association- they are included in management committee of
organisation and can also be referred as council. Unincorporated association don't posses
different identity from their trustees.
P2
Scope and size of different companies or organisations is different. Moreover, all
organisations have different mission, structure, vision, its stakeholders, etc. The scope and size
of various companies are given below-
Private limited
These are organisations which are owned privately. Earning high amount of profits is
the main aim of every private limited firm.
Background: McLaren an automotive industry organisation which was started by Ron
Dennis in the year 1985. This is a private owned company which has headquarters in United
Kingdom
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Vision and Mission: Mission of this company is providing great experience to their
customers in automotive industry.
Objectives: The main aim of this company is providing of the company.
Products : This company is related with auto mobiles, vehicles, auto parts, etc.
Size: This company offers its services and products worldwide.
 Structure: This company is adopting Lean organisational structure to attract more and
more customers.
PLC (public limited company)
These companies are operated by government of a particular country to provide people
better services and raise their standard of living. NICE ltd. Is one such public sector
organisation. Background: In 1986 NICE was founded and its headquarters is located in Ra'anana,
Israel. Products and services: This Company offers business intelligence, speech, Software and
video analytics and businesses like IT consulting. Vision: The company is focussing to become one of most prestigious business firms by
their best performance and creating values for all its stakeholders. Mission: “ To become more innovative and informative.” Size: Data of 2016, this organisation has around. 4,930 staff members and its operating
income is approx. $134.2 million and net income is $ 116.9 million. Objectives: Company aims to become one of the leading firms by offering high quality of
goods and services to its customers.
 Structure: NICE Ltd uses matrix organisational structure.
Voluntary sector
These are the organisations whose main aim is not to earn profits but to serve society for
its welfare. Welcome Trust is an example of voluntary sector organisation. Which is offering
services related to biomedical research in UK and it has approx. 2,057 of workforce
according to 2017 data. Wellcome trust has main objective to improve health of their clients.
Vision- “They want improvement in health of human beings and animals for whom they
conduct biomedical research.”

Mission- “To work in such a manner that no one can bring their brightest side in the field of
biomedical research.”
TASK 2
P3
In every organisation, there are different departments for performing different jobs. It is
important for the companies to attain goals and objectives of the company in order to earn
profits. All the departments are related to each other and they work together for achieving the
targets of the company. Different departments of McLaren are interrelated and these perform
together for functioning in the company.
Finance department - The finance department of McLaren is department that handles
every finance related element such as profits, costs, sales, financial performance. The finance
department takes care of other departments by providing them effective funds and money to
achieve the set goals and objectives of the company. This department provides funds to human
resource department so that it can hire new and right candidates who can work effectively in the
company. The marketing department of McLaren takes money from finance department to
promote and advertise it’s services to customers in an appropriate manner.
Human resource department – The human resource department of McLaren company
recruits and hires the best candidate who can work according to the requirements of the
company. It is essential for each and every company to have the right candidate working in the
company as this will help in achieving the targets of company in comparatively less time. In
context of McLaren company, the HR department of this company is hiring best candidates who
can work together for making profits for business. A good employee can contribute in increasing
the satisfaction level of customers and clients. The operations and management department is
directly linked with the human resource department as if skilled and knowledgeable employees
are hired in the company then they will directly reflect in terms of increased productivity as well
as efficiency of the company.
Marketing department – Main objectives of marketing department of McLaren is
associated with various concepts like sales target, volume of sales, adverting, publicity, data
mining, sales compared to its competitors, etc. The McLaren company focuses on marketing
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department to achieve overall goals and objectives of company in specified time. This
department of the company is given funds and money from finance department to function
properly and promote services of the company effectively.
TASK 3
P4 figure out the positive and negative impact of macro environment on business venture
It is systematic process in which various kinds of factors may effect the business process
involve in production. This framework helps to analyse the challenges that are faced by any
company while operating in foreign countries. Before entering into a new country, this company
has to do PESTLE analysis and evaluate the effectiveness of business. In that country. The
various aspect which directly consequence the business venture which are technological, legal,
political, environmental as well as ecological factors. Here are some detailed information given
below:
Political factors – The political factors are those elements which include governmental
laws and rules which will affect the functioning of an organisation. In case of McLaren it is
necessary for this organization to examine the political steadiness of a country before opening
business in that state. When a company operates in a country by following and obeying all rules
and regulations then this helps in avoiding any dispute or fight because of politics or
government. Positive impact - The political factors of company do not change very fastly so it is easy
for McLaren to follow rules and regulations and work effectively in various countries. Negative impact - It is not easy for a company to always follow the government rules
and regulations of government in operating in various countries. So this increases the
chance of conflicts and political issues with the company.
Environmental factors – There are defined as various beliefs and norms of surrounding
of an organisation. This has a huge impact on the profitability of company in market. The various
types of liability laws and environmental laws are present in a business environment which
reduces the efficiency of smooth functioning of the company. Every organisation must figure
out biological regulation before entrance into a new industry or opening a new enterprise in the
active marketplace. The different biological factors which business while operating at global

level are atmosphere, environmental condition condition, usage, waste governance, attitude
towards sustainable organization and green energy and other factors which effect the
organization, etc. Negative impact – in some part or region where natural climate occurs and condition are
not in favour of company to operate business activities. Hence it is not easy to run a
business in these places so McLaren has to do a proper research that country where
business has to start must have favourable weather conditions.
 Positive impact – often atmospheric condition and natural climate become a reason for
any company to start business. The favourable conditions and good weather helps in
achieving success in business.
Social factors – The societal culture is referred to way of behaving in the workplace. The
attitude and belief of an individual plays an essential role in analysing the demands and needs of
customers so that company will earn more profits. The different societal cause which should be
figure out by McLaren are interpersonal skills, social interaction, diverse culture and living
standard of individual. Negative impact – The changes in social trends of an individual negatively impacts the
business as it is not so easy for a company to handle and manage changes that occur in
trends or lifestyle of an individual. Positive impact – The modification in social cause which have positive impact on the
company’s functions and operations. According to McLaren customers should be
provided with quality services and products so that the company is able to increase
loyalty and trust.
Technological factors – Technology is a wide area and this is changing at a very high
rate. There is a drastic change in the automotive industry within last 5years. So it is essential for
McLaren to produce latest techniques so that customers and clients shall be satisfied. It is crucial
for company to identify other rivals present in marketplace so to again competitive advantages.
There are various factors which are effect the technological factors such as new innovations,
rapid changes in technology. This changes may effect the business structure and operation
because change in technology will resist to change for some employees.
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 Negative impact – The use of latest technology, equipments and trends creates a lot of
expense to the company. It is not easy for McLaren to immediately make changes in the
company and provide customers latest products and services. Positive impact – The use of new technology is important and it will help McLaren
Group for providing high quality services and goods to customers.
Ecological factors - There are two factors of macro environment factors and micro
environment factors that effects the role and trading operations of an company. In context of
McLaren company the macro ecological factors are savings rate, inflation rate, foreign exchange
rate, economic cycle and the micro ecological factors include competition norms. The McLaren
can effectively use economic condition of the region such as cost of living , per capita income,
inflation rate, gross domestic income these all components may leads towards ecological factors. Negative impact – the important factor for McLaren is operating cost which decide the
price of a commodity. Company should launch their product where economic condition
in is favour government and people have high income. Positive impact - The McLaren can do expansion in countries which have a high
economy and high GDP rate. This helps effective operating of enterprise across different
nation.
Legal factors – This kind of factors have different sets of rule which is used by McLaren
to start a new business in various countries. Manager or head have to figure out the laws,
legislation of particular country to reduce conflict before introducing new product. There are
various laws such as safety law, consumer protection law. Negative impact – This process can effect the company in the aspect of different
legislation. If the governance of particular country may change the new government body
may change the rules and regulation as per there requirements. This kind of policies may
reduce the profit and slow down the expansions.
 Positive impact - It is crucial for McLaren organization to earn more income and spread
out it’s enterprise for raising the global image in automotive industry.
PESTLE Analysis of NICE Ltd.
Political factors - Political factors are those which affects the functioning of any
organisation. NICE ltd. Is a company that is operating in computer peripherals in various
countries. Thus they have to expose to different type of political system risks.

Economic factors – The economic factors which affects functioning of NICE ltd. Are
inflation rate, interest rates, economic cycles, foreign exchange rates, etc. NICE Ltd. Company
can use economic factors of country like inflation and industry indicators like computer
peripheral industry growth and consumer spending.
Social factors – The social factors are those which defined the way or culture of doing
things. The shared beliefs and attitude of individuals helps marketers of NICE Ltd. To design
effective strategies and plans. The products of NICE Ltd. Are made on the basis of
demographics, culture and attitudes.
Technological factors – Technology plays an important role in any industry. It is
important for the company to keep itself updated with latest techniques and technologies. This
will help in growth and also increases competitive advantage in market.
Environmental factors – Every organisation has different environment standards. The
NICE Ltd. Critically evaluates new environmental standards before entering any new market.
The common environmental factors that are considered by NICE ltd are climate change, weather,
recycling, air and water pollution.
Legal factors – The company must follow all legal regulations and rules in order to
maintain smooth functioning of the company. The NICE ltd. Is an organisation which follows
anti-trust law , discrimination law, data protection, employment act, etc. Employees are given all
legal rights within the organisation.
TASK 4
P5
The SWOT analysis is an internal model which is used for evaluating and analysing
various strengths and weaknesses of a company. This model also explains the opportunities and
threats which are an external elements which cannot be directly controlled by the company.
SWOT analysis of McLaren Group
Strength Weakness
 This is a strong brand.  This company produces less number of
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 This provides a state of art eco friendly
manufacturing facility.
 High quality of automobiles served to
customers.
 This company is a racing car champion.
cars.
 The price of products of McLaren are
very high.
 The retailers of this company are very
less.
 This brand has less number of limited
qualified repair shots.
Opportunity Threats
• Introducing Hybrid cars
• Introducing low cost cars
• Co-branding
• Penetration in Potential Markets External
Analysis.
• Sanctions on Russia (Supplier of
McLaren)
• Technological Advancements
• Safety for Customers
SWOT analysis of Nice Ltd.
Strength Weakness
 This company has a culture among
dealers and distributors in which
dealers promote products of the
company and also invest in training
sales team.
 The satisfaction level of products of
this company are very high.
 NICE ltd. Has strong cash flow which
provides resources for expanding into
new projects.
 NICE is a successful company then
also it faces different challenges in
moving to other product segments.
 The days inventory is high as compared
to the competitors.
Opportunity Threat
 This company can boost the
profitability by decreasing the
 The rise of raw material poses a threat
to profitability of NICE Ltd.