Business Environment Report: PESTLE, SWOT, and Strategic Analysis

This report provides a comprehensive analysis of the business environment, focusing on the application of PESTLE and SWOT analyses. The PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors impacting businesses, while the SWOT analysis assesses the internal strengths and weaknesses alongside external opportunities and threats. The report also explores the interrelation between these internal and external factors, demonstrating how they influence organizational activities and strategic decision-making. The analysis provides a framework for understanding the complex interplay of these factors and their implications for business success. The report concludes with a discussion on the practical application of these analytical tools and their significance in the modern business landscape, using the UK context as a case study.

Business Environment

Table of content
• Introduction
• PESTLE analysis
• SWOT analysis
• Interrelation of strength and weakness with external factors
• Conclusion

Introduction
Business environment contains many factors which have direct and indirect impact
upon organizational activities. This will include the two different factors named as
internal and external. Internal factors are those which are present within an
organization and under the control of management but having significant impact
upon business activities

PESTLE analysis
While an organization is willing to analyze the impact of external environment on
the ability of organizational activities than PESTLE analysis can help for the same
purpose. This can help large organizations like Aston Martin to analyze the
environment so that the organization can attain all its goals.

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• Political: Government of UK is very much stable and effective and all the
organizations are controlled by the legal authority of the nation.
• Economical: Economic condition of UK is very strong which is creating
opportunities for various companies to run their business effectively.

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• Social: People of UK are having good standard of living and this can result in
changed perceptions and choices.
• Technological: UK is technologically developed but it is less developed as
compare to US there are various negative and positive impacts of technological
factors

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• Legal: The laws which persevere in UK has high in standard and required to
follow by each and every administration.
• Environmental: It includes ecological rules that are introduced by the legal
authority of UK in favor of nature and to save natural resources. These rules are
very important to be followed by every company who is running their business in
UK.

SWOT analysis
Before conducting any new business strategies, it is essential for an organization to
examine their strengths and weaknesses to develop reliable plan by which they can
attain their aims and objectives more quickly.

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Strength
• Good quality cars
• They target cream of the society:
Weaknesses
• Smaller market than other organization:
• Small selection ranges

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Opportunities
• Budgeted auto-mobile:
Threats
• Increase in fuel costs:
• High competition:

Interrelation of strength and weakness with
external factors
All the macro factors are related with the strengths and weakness
of the organizations as all the external factors affects the ability
of organization while performing the operational and execution
activities. The relation of both of them can be understood with the
help of following points that shows that strengths and
weaknesses are interrelated with external macro environment.

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• Political: Such factors are related with the political conditions, laws, trade laws,
tax policy, government rules and regulations and environmental law which are
persist in country impacts the organization activities.
• Economical: The economic condition in UK is quite good and high flow of cash
is present. But the rate of interest is high.