Business Activities In External Business Environment

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  • Unit No: 1
  • Level: High school
  • Pages: 13 / Words 3184
  • Paper Type: Assignment
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Question :

This assessment will cover further questions which are like:

  • Elaborate different size, types and scope in the company.
  • Elaborate the interrelation and functions with effective organizational structure.
  • Elaborate the contemporary areas and positive and negative elements.
  • Give internal weakness and strength of business and their macro environmental factors.
Answer :
Organization Selected : Aston martin


Business environment is one of the crucial aspects which is related with internal and external factors those are affecting the company’s overall function. Employees and ineffective delivery system are taken into account as internal factors which would directly make impacts on the overall growth and profitability. Management of an organisation is having all sort of power to reduce from negative influence of internal factors as they are well in control. Whereas external factors are those that are directly or indirectly impacts on the overall operations of an Aston martin which is operating in automobile sectors (Hilton and Platt, 2013).

This project is based on various types of organisation which operates their business in different areas along with their legal structure, size, and scope. Apart from this, connection among various organisational functions is also being shown under this report. Along with this analysis of the implication of external factors within Austin martin and SWOT analysis is been covered under this report


P1: Concept of various types of organisation

It is essential for a profitable business to make planning according to position in the country. A business can be analysing but become successful with the motive to attain overall aims and objectives of an organisation. There are various types of business organisation that are working. These are categories under public, private and voluntary. All of them are having various aims and legal structure. It is said to be legal obligation that are related with the management team of a company to follow these structure and deliver it best in the process of accomplishing their desired objectives. The essential purpose and legal framework are mentioned below:

Private company:

It is said to be that organisation which is held responsible for earning maximum amount of profit from their operations. The primary purpose of this organisation is to satisfy overall demand of the customers. These falls into various categories which are allowed to certain problem related with the stock and their shareholders but cannot allow making trading on public exchange (Savrul, Incekara and Sener, 2014). Legal bodies would have been minimum control over the functions of private organisation. Aston martin is one of the crucial companies that is operating in auto-mobile production. The segment under which it deals is related with luxury sports cars and grand tourers. This organisation is being originated in 1913 at London my Robert Bamford. The total net worth which is incurred by the company from their overall operations is all about £ 876 million in 2017. The total number of employees working with the company is about 1850.


It is said to be important part of the country economic system which is run by individual and companies, instead of government. The aim is to survive through making maximum profit from the available resources.

Legal structure of private company:


This would consist of business that is basically formed through the two or more than one person with the mutual contain. They all are working with the motive of attaining specific objectives for an organisation. In case there is no any agreement of profit and loss, then it would be distributed in equal proportion.

Sole proprietorship:

This would consist of all those business which are set-up by the single person. Overall liability business is working upon that single bodies and have total control on the function of the company.

Limited company:

This can be further, classified into two different categories which consist of limited share and guarantee. It means that all the liability of members within an organisation is been limited up to the unpaid amount on the overall shares which are held by them during the period of time (Boons and Lüdeke-Freund, 2013).

Public company:

These types of organisation are basically all about serving their best to the country development. On the overall functioning of this organisation, government of the nation has important control over other. The business activities which are associated with this are considered as police, transport, education and other. NHS is one of the public limited company that aimed to deliver medical facilities and services to those people of society that are in need. They used to provide entire services to all over the globe.


These are simply made with the motive of providing specific services rather than earning profit. Organisation is to render with the services to people during the period of time for earning enough to get better pay their shareholder.

Legal structure of public company:

Central government:

It can ensure that proper operation of central and state government authority.

State government:

This can be more valuable with proper functioning that is done through these bodies or agencies.

Local government:

They can ensure that public organisation which can do their task as per the regulations which is delivering by the government (Hamilton and Webster, 2015).

Voluntary organisation:

According to these types of organisation which are made with the aim of delivering activities for the welfare services to the society. These types of organisation are not having the profit motive options. Oxfam is one of the organisations which are working for the purpose of providing necessary function to remove poverty from the community. Some of the services such as advocacy and policy research services to the people.


It would help them attaining through a large range of activities, such as delivering services or other form of direct support and suggest to the group to perform their role in effective manner. This will lead to attain long as well as short changes in coming period of time.

P2: Size and scope of various organisation

In present time, most of the organisation are working with the aim of generating maximum output with the available resources and to sustain for longer period of time. The main part of the size or scope can be varying as per the organisation such as public, private and voluntary.

Aston martin:


This company is operating in British car production of luxury sports car and organising various toreros. It will be use to deliver their items and services in all over the nation. The good which are provided by this company is related with automobile and luxury items. It is having about 150 dealerships in almost 50 countries in several locations. As per the income statement of the company around 79 million of net income is being earned during 2017. The total number of employees working with the company is recorded as 1850 (Wetherly, 2014).


This can be examining from the services and items produced by the company during the period of time. In the current time, organisation is manufacturing Auto-mobile and decided to move into the luxury segment such as speed boat and clothing.


The total size of this particular organisation can be evaluated from the total number of employees that are working within an organisation. About 1.5 million staffs are operating and ready to deliver their effective services in entire nation. The primary motive for which they are working is to provide reliable services which are free from cost to needy people.


It can be examining from the overall services which are served by NHS. There are various types of operations that are performed by the NHS those are associated with the medical facilities, optical and dental care.


The entire numbers of charitable organisations are operating with the aimed to serve the society to satisfy the overall needs which are demanded by the people. This organisation is being established in 1920. They can be providing all the services in which nation can help of wide number of volunteers (Smith, 2016).


This seems to be the primary activity of this organisation to reduce poverty from the community of middle class family. Instead of that they are having plenty of functions in which this organisation can deal with policy research and other pro-migration.


P3: Interrelation among various organisational department and their link

It has been determined that all the above discussed organisations are working with the motive to serve the society and provide economy development of the nation. In this growth of objective its main support is to deliver through various departments which would prevail within an organisation. The role and purpose of this department is having their own benefits and opportunity but some situation it is interrelated to each other. This connection among various departments of an organisation and their regulation is being accomplished with the objective that can be examined from the point which is discussed below:

Human resources with marketing:

The primary function of HR department within an organisation is been recruitment of staff member and its workforce designing (Bryman and Bell, 2015). They are liable for appointing skilled candidates in an organisation that can properly serve their services towards their department within an organisation. The interrelation of this department with the marketing is been clearly understand from the point to aid in training of candidates that are having sufficient amount of knowledge regarding the method and theories those are applicable with effectiveness.

Finance with operation department:

As per this, the main operation of finance department is to examine the requirement of various departments and framed with appropriate budget plan. Proper allocation of reliable amount of capital is been provided to each and every segment of an organisation to make use of resources in effective manner. With the proper allocation of capital can deliver an effective support to the company through which all the operations of Aston martin can be managed accordingly. This will also help in attainment of every objective in order to earn maximum profitability during the coming period of time.

Research and development department with marketing:

The basic operation of R&D segment is to examine the market and evaluate the present trend that is persisting between customers. The activities of research would be conducted by Aston martin to either innovate new process in their business or to go with the ongoing process. The main objectives are to provide an effective base for creativity and innovation to flourish within an organisation. (Crane and Matten, 2016).


P4: PESTLE analysis with its positive and negative implication

In order to determine the current position of the company it is essential to determine all the factors those are affecting the business. It can be easily analysed with the help of using PESTEL analysis.; This will deliver new opportunity to an organisation such as Aston Martin to assess the condition which are shown in the market and make the entire plan in proper manner. Every factor that is having positive and negative aspects upon the operations of an organisation are mentioned underneath:


The government of UK is more effective in nature. As there is wide chances of stability in the local government that are properly govern by the local and national department. As the company export prices are much higher because of EU regulations. ;

Positive impacts:

Perfect stability and protective nature of government has strong impacts upon an organisation such as Aston martin (Chen, Chiang and Storey, 2012).

Negative impact:

With the removal of EU from UK and increase of corruption has govern maximum chances of negative implication on the trade business of Aston martin.


This is related with economic situation of UK which is quite positive in accordance with the other nations. The current GDP rate is high as well as has certain issues. They have lost plenty of money in the process of public services.

Positive impact:

Existence of high economic flow can deliver latest opportunity to an organisation such as Aston martin to make easy expansion for their operations.

Negative impact:

Sometime slow recovery from the time of recession is making negative influence of the company.


The people reside in UK have maximum level of standard. Thus, there is proper availability of economical workforce.

Positive impact:

Economical presence of labour forces and maximum standard can provide positive influence on the business of Aston martin. Hence, it will also allow them to make modification in their business.

Negative impact:

Maximum dependency ratios and low level of education cost is negatively impacts on the society development.


There is availability of quality innovation in skills and expertise in formulation of science in IT. In accordance to us there is minimum technological development in the current UK.

Positive impact:

Proper quality of innovative skills can be better option for the Aston martin company to increase their sales in coming time.

Negative impact:

The overall growth opportunity in current situation is quite high as context to the UK market which would make impacts on the company.


There are certain law which is related with the UK standard and need to implement by each and every department of the company.

Positive impact:

It would be having positive influence on an Aston martin to aid in gaining the trust and loyalty of client (Charter, 2017).

Negative impact:

It will consist of rise in situation when an organisation that is unable to follow certain law.


This would increase environmental law which are formulated by the UK government and need to associate with the organisation that is operating in their business.

Positive impact:

The company is trying to make those cars that can release less pollution. Because of this chances of environment protection can be more enhanced.;

Negative impact:

The country is much stricter in accordance with environmental related with aspects.


P5: SWOT analysis of Aston martin

In every business organisation, it is essential to make analysis of the internal factors with the help of using SWOT analysis (Business environment,. 2018).; This would assist in an organisation such as Aston martin to examine the opportunity that is available in the market.


Good quality cars:

Aston martin is heavily relying on heavy duty production and designing team. They can make sure that every car they produce must become more powerful and perfect.


Lesser market than other companies:

In accordance with all other companies. Aston martin which is having lesser market share due to determine their concentration on Luxury market (Andersson, Forsgren and Holm, 2015). They required to do it soon if they do not want many contenders.


Budgeted auto-mobile:

It is having maximum time that Aston martin used to start to incorporate into the wide market. They would have big followers but the common public also wants to have taste of their technology.


High competition:

The company Aston martin is facing tough competition from other companies such as Bentley, Jaguar and other. They would require to get into the market with more on to beat the contenders.

P6: Interrelation of strength and weakness with external factors

It has been seen that there is various connection among external factors in accordance with strength and weakness of an organisation. This can be examined from the below mentioned various points that show how external factors can become the strengths and weakness for Aston martin.


This will consist of political situation, legal, trade regulations, tax policy and other are persist in the nation impacts the organisation overall activities.


It would be beneficial for the company to make their plan according to the regulations that are set by the government for the automobile companies.


Certain strict labour law could impact on the activities of Aston martin as it could be needed to followed while working at the office premises.


The situation in UK is more reliable and having maximum flow of capital in present time. Instead of this, they would have high rate of interest.


Maximum flow of funds becomes the strength as it will assist in increasing capital from the market.


The rate of interest is higher in case company borrows money in huge amount from the individuals.


The attitude and social believe among young people in UK is quite valuable for the latest edition cars.


Maximum demand of sports cars is become the strength for Aston Martin Company.


This approach of effective career is being centric of wide number of UK people that have negative impact on the buying behaviour.


The presence of latest technology is the positive aspects in UK. But this would be needed to change the process of operations.


With the use of advance technology which is the strength for Aston martin as by the help of this they can produce high cost cars for the rich class people.


By the certain changes in the process and employee training it can be easy to attain overall aims of an organisation as well as produce maximum output in coming period of time.

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From the above project report, it has been concluded that there are various sectors that can operate in business activities in external business environment. All the above organisation is having their own objectives and legal structure that is needed to implement in operation functions. ;further, this report has provided various benefits to the company in terms of increase their market shares as well as future sustainability.

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