Business Environment of Aston Martin


  • Unit No: 1
  • Level: High school
  • Pages: 13 / Words 3246
  • Paper Type: Assignment
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Question :

This assessment will provide certain questions which are like:

  • What are the purpose and function of Aston Martin.
  • What is the size and scope of organisation.
  • Analyse the strength and weakness of Aston martin.
Answer :
Organization Selected : Aston martin


Business environment represent the sum total of the internal and external factors that have effect on functioning and working of an organisation. It include employees and workforce, customers needs and demands, management of the organisation, supply and demand chain, business suppliers, owners and partners of company, activities and policies of government, social and market trends, economic and political change and many more elements which directly or indirectly effects the productivity and profitability of a firm (Ali, Islam and Rahman, 2019). This assignment is business and business environment for which three organisations are selected from different business sector of UK. Aston martin is taken as Private sector organisation, NHS (National Health Service) is chosen form Public sector and Save the children is selected as Voluntary sector. This report is based on various types of organisations and also include a description about their size and legal structure. Beside this connection among different organisational function and structure is also there. A last, use of PESTEL and SWOT analysis is also included to identify impact of environment on business.


LO 1

P1) Different Type and Purpose of Organisations

An organisations is basically represent a group a people and other assets which are working together for accomplishment of any specified task. In business environment a wide range and types of organisations are found having different purpose and legal structure which are explained below:

Private sector-

The organisations or firms belong to this category are managed and run by private individual or group of individuals and there main purpose is maximization of profit and expansion of business operation (Ayios, 2018)

Legal structure

On the basis of their legal structure and composition private sector is classified into following three types:

Sole proprietorship-

In this type of private sector organisation all the activities and functions of an organisations is controlled and managed by single individuals who is solely and fully responsible for all risks and profits. Many provisions related with their registration and tax return are made in UK which separates it from other private sector organisation.


It is basically an association or group of two or more individuals who combinedly operates and mange a business and members of partnership form can vary from 2 to 20 (Beatty, Samuelson and Abril, 2018). all the rules and regulation regarding sharing of profit and liability of a partner are mentioned in partnership deed and in UK provision of partnership act, 1890 are also applicable on partnership firms.

Private limited companies-

These are the organisations where large number of shareholders are owners of organisations jointly and having a limited liability up to the value of shares hold by them. These private organisations are bounded by its MOA and AOA which are two important written documents containing all the relevant information about a company. Apart fro this Companies act, 2006 is also applicable on private companies in UK.

Public sector-

Organisation of this sector are fully or partially controlled with government and related legal authority of a country with the main purpose of serving the society of nation through providing public facility like health and education, easy transportation, roads, police, army, etc.

Legal structure

On the basis of their control, accountability and legal structure, public sector is divided into three types.

Central government-

These organisations are under the direct control of central authority and government of a nation thus, all the legal laws and policies formulated by central controlling body are applicable on them (Boone and, 2019).

State government-

The firms and organisation belongs to this category are managed by government of a particular state in which the main operations of company are conducted. Thus, it legal structure and regulations are governed by government of that specific state.

Local government-

These organisations are managed and control by local body or authority; and their legal laws and policies are formed by local government and properly managed by municipal corporation.;

Voluntary sector-

In this sector mainly NGO and other charitable trust and social organisations are included which are having main purpose of serving society through creating value for deprived and vulnerable group.

Legal structure

Following types of charitable organisations are included in this sector on the basis of their legal structure:

Trusts –

It is a group of people who works together for welfare of society and through making and collecting charity and donation for achievement of that purpose. Members of a trust are mainly governed by rules and provisions of trust deed (Hamilton and Webster, 2018)(Kasemsap, 2018).

Company limited by guarantee-

It is regarded as one of the most common type of organisation in voluntary sector and its members are controlled by provisions of its AOA and MOA.

With passage of time role and importance of these various types or organisation are increasing and playing a important role in growth of economy through creating better job opportunity and increasing standard of living. Apart fro this better international relations are also established by these organisations through incensing integration and trade at international level.

P2) Size and Scope of Range of Different Organisations

The organisation which belongs to different sector are having mainly having a diversified size and scope on the basis of their mission, vision, business objective and legal structure (Khatun and Miah, 2019). An overview of all the three selected organisations with information about their size and scope, mission, vision, etc. is provided below:

Aston martin

This organisations belongs to private sector and on the basis of its legal structure it is a private limited company(plc). Aston martin is a British manufacture of luxury sports cars was founded in 1913 by Robert Bamford and Lionel Martin (Aston Martin, 2019). The headquarter of this organisation is in Warwickshire, England, United Kingdom. Being a private sector organisation its mission is to maximize its profit and vision is to make efforts for future expansion at international level in the areas where its operations are still not exits. Thus, the main aim and objectives of Aston martin is to target a large share of market for attracting more customers. In the stakeholders of Aston martin all its employees, partners, customers, directors, shareholders, etc. are included. Aston martin is a large sized organisation operating in more than 53 countries of world which includes US, Canada, UK and many parts of Asia.

National health service

NHS is a public sector organisation which is operated and control by government of UK and its operations are managed by Department of health and social (NHS, 2019). National health service is system of pubic heath care providers in United kingdom. The NHS is having a mission of providing comprehensive, universal and free heath services for the well fare of society which also include providing free dental treatment and optical care. The vision of NHS is to provide best health service system to ordinarily resident of UK without much charges or at free of cost. It objective include creation of a atmosphere of equality in providing health and social services so that every individual whether rich or poor can have best medical treatment. It is a large sized public sector organisation with more than 1700000 employees and operating in various location of UK which includes England, Scotland, Wales, etc.

Save the children

It is a Voluntary sector organisation and on the basis of its legal structure it is a registered company limited by guarantee (Save the children, 2019). It is having a vision of providing safe environment for children through creating opportunity for their development and education thus creating a better world for them. The mission of save the children organisations is to create changes in world for providing survival and other basis rights to children. The main objective of Save the children organisation bis to reduce the number of deaths of children through rescuing them from war areas. The operations and functions of this voluntary organisation is meet through amount of donation and charity made by its stakeholders. Save the children is a vast international organisation operating in around 120 nations.

LO 2

P3) Relation Between Different Organisational Functional

Aston martin is a famous manufacturer of luxury sports cars operating in around 53 countries of thus,; having a vast level of operations. To bring clarity and proper coordination in its work and function use of functional organisational structure is used by Aston martin. The organisational structure of Aston martin is provided below:

The various functions of Aston martin are described below:

Marketing function-

This function of Aston martin helps it to identify and source potentially successful products in its marketplace; and then effectively promote its cars which differentiating; it from other similar products, thus attract more customers (Kopnina and Blewitt, 2018)(Nikitina and Lapiņa, 2019).;


This function or department of Aston martin is responsible for manufacturing of luxury cars for its customers and maintain a coordination between demand and supply thus, ensure timely delivery of products to customers.

R&D –

This department or function of Aston martin is concerned with developing and designing new models of cars with new innovative and creative features thus, makes its product more valuable than that of competitors.


This department is related with proper and timely maintenance of reports and budget through recording day to day financial transaction of Aston martin. Thus, control on expenses and other wasteful activities is the main purpose of this function of Aston martin so that cost efficiency and proper estimation of profit can be made.

Interrelation of functions in Aston martin

To ensure the coordination in efforts and to maintain the proper flow information and data for effective decision making and strategy formulation, interrelation and collaboration of function is necessary. This interrelation of function in context of Aston martin are explained below:

Finance and marketing-

A collaboration between finance and marketing function provide more effectiveness in marketing tolls through allocating sufficient amount of money for advertising and other marketing strategy (Shu, Jain and Liang, 2019). This interrelation helps in creating better awareness of about features of cars of Aston martin thus, attract more customers and yield better revenue.

Production and R&D-

A correlation of production and R&D functions ensure availability for product with most innovative and latest features as the new feature developed and designed by R&D department are finally implemented and executed by production department thus, this interrelation ensure availability of best product for customers of Aston martin.

From the above discussion it can be said that interrelation between functional unit is beneficial for Aston martin as provide better control on cost and expenditure of marketing and also ensure effectiveness in marketing so that more customers can be attracted for better revenue. Collaboration of R&D and production Aston Martin. 2019is also useful in manufacturing more creative and advance cars to; target more customers (Singh, 2019). But , this interrelation can also create chaos and complicity in Aston martin if proper flow of communication and information does not take place. Thus, theses functions are properly coordinated with adopting a suitable organisational structure I.e. Functional organisational structure so that effective flow of information and better communication can be establish in Aston martin which also lead to effective decision making.


LO 3

P4) Positive and Negative Impacts of Macro Environment

For analysis and evaluation of positive and negative influence of macro or external environment use of PESTEL analysis is made by Aston martin which is described below:


The political conditions of UK mainly remain stable thus creates positive impact on function of Aston martin but the recent issue of Brexit has lead to reduction in amount of investment and also badly impact the trade relation with Europe. Thus, creating negative impact on sales and profitability of Aston martin.


The average growth rate of UK is 2.45 % with maximum all time high in first quarter of 2019 I.e.9.80% in first quarter which is showing better opportunity for Aston martin through increasing demand and disposable income of customers so that they can afford luxury cars (Sousa and Rocha, 2019). The current employment rate is 3.9% which has enhanced the price of labour thus increasing cot of production for Aston martin.


The society of UK mainly includes rich Christians who are well educated and; fond of luxury items thus, social environment of UK creates opportunity for Aston martin to invest more on its cars to make them more dynamic and unique to attract large number of customers. But this has also created a pressure on Aston martin as if more advance and better featured car is launched by any competitor than its customer can make a shift towards its competitors.


The technology in UK is growing and getting better with a fast speed thus, Aston martin is having a opportunity to make an effective balance with this fast growing technology. It is helpful in creating more innovative and better featured car for customers. But making continuous changes in technology is not easy and quite complex for Aston martin thus, sometime also lead to negative impact through increasing complexity in operation.


Many norms and acts are made by government of UK for protection of environment and society of UK is also becoming more conservative and aware towards environment (Tura, Keränen and Patala, 2019). Thus, this has created an opportunity for Aston martin to come up with electric cars and other renewable energy based products. Many rebates and discounts are also provided to Aston martin for its R&D to develop better technology which will reduce carbon emission in environment.


In this macro element all the legal acts and regulation formed by the government for safety and welfare of employees and customers are included (Yamamoto and Zhi, 2019). This factor of business environment is quite threatening for Aston martin as it has increased the possibility of legal claims and other consequences for Aston martin as labour and customer safety acts of UK are very strict and in favour of individuals.

From above PESTEL  analysis of Aston martin it can be said that various positive factors and opportunity are there for Aston martin in its macro environment as opportunity for technological advancement and fulfilment of environmental needs are there. But at the same time recession created through Brexit issues and legal threat are also exists in business environment of Aston martin.

P6) Interrelation of Strengths and Weaknesses with External Macro Factors

A collaboration between internal strengths and external opportunity yield better result through making use of effective resources for taking advantage of opportunity. This interrelation between internal factors and macro environment also makes an organisation able to counter or handle the possible threat through formulation of effective strategies and at the same time also helps in overcoming weakness (Beatty, Samuelson and Abril, 2018). On the basis of PESTEL analysis and SWOT model of Aston martin it can be said they are having an opportunity in its business environment for making better electric cars and at the same time its strength of creating innovation and creativity through effective R&D department is facilitating a brighter future and growth opportunity for it.

The weakness of Aston martin includes high prices of its luxury cars which has reduced its target market and at the same time its economical conditions is also facing a little recession because of Brexit issue thus, it is the right time for Aston martin to come with some affordable cars so that threats of both slow economy and weakness of high prices can be easily overcome (Boone and, 2019). Thus, it can be said that interrelation of strengths and weakness are helpful and lead to better decision making which are necessary and most suitable for handling an adverse situation and for grabbing a better opportunity.


On the basis of above assignment it can be summarised that there are various types of organisations in a business or corporate environment like private, public and voluntary sector which are further classified into various type on the basis of there legal structure. Each type of organisation is having a different vision, mission and objective like main motto of private organisation is maximisation of profit. Marketing, production, etc. are some main functions of an organisation. At last it can be concluded that use of SWOT and PESTEL analysis is made for evaluation of different internal and external factors of an organisation.


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