Poster and Briefing Paper on Business Environment - Coursework Example

Poster and Briefing Paper on Business Environment Contents Significance of International Trade to UK Business Organisations 3 Analyse the impact of global factor on UK business organisations 4 Impact of policies of the European Union on UK organisations 6 References 8 Significance of International Trade to UK Business Organisations International trade can be defined as exchange of products, capital and services across borders. There are some advantages and disadvantages which can be observed in international trade. Discussing about the advantages this can be said that a company can utilize its resources in a greater way if it is involved in international trade. Company can import products which cannot be possible to produce locally or in domestic region of that company. Again it can provide a variety of choices or option to its customers. Bentley automotive is a British car manufacturing company which also expanded its business across many countries in the world. So naturally they are getting the above mentioned advantages while they are running their business activities in the international market. Apart from the above mentioned advantages the company is also getting competitive advantages from the global market. In this inter depended world global trade is an important necessity towards each and every company and Bentley automotive is not an exception in this field (Ferrell and Hartline, 2012). UK trade and investment has a target to help and assist more than 20, 000 businesses in a year and especially business in England usually can access services from the staffs of UK trade and investment. Bentley is one of those businesses which can get help from UK trade and investment. It is an important point that international trade can increase a country’s gross domestic product as it is one of the major parts of the any country’s economy. Again every business entity is a small part of this major part. Therefore, each business entity’s contribution is important to develop the economy of a country. Hence this can be said that the success of Bentley automotive in the international trade is important in its country’s economy. The company can gain significant global market share from international trading activities. As per latest data this can be said that this company has already achieved 205 % market share and currently it is recognized as world’s leading luxury car manufacturing company. In UK, one in four cars sold above € 1, 50,000 is the product of Bentley automotive. Again it is the 3rd largest automotive research & development investor in UK and ranked in 20th position in the world market (Great Britain National Audit Office, 2009). As this company has taken participation in the international trade so its dependence in the domestic market has been reduced. The company can use other sources for collecting automotive parts which are required in manufacturing procedure. Again the company can import more advanced technological facilities which will help to produce cars in unique design. The company can offer new features along with its existing products which will attract more customers and increase the volume of sale. At the same time amount of revenue and percentage of profit also will be increased. Bio fuel demand is increasing day by day in the context of global automotive business. Bentley has implemented such facilities in their manufacturing products which will be benefitted for the society and reduce a certain percentage of environmental pollution (Hutt and Speh, 2012). Analyse the impact of global factor on UK business organisations Few global factors influence international trade of a business organization and these will help to increase the level of multiculturalism in UK based organizations. Global factors also help to increase the scale of international trade. By using PESTEL analysis impact of global factors can be analyzed on the UK based organizations such as Bentley automotive. Political factors include the level of bureaucracy in international affairs, level of international political stability, tariffs between UK and other countries, threat of global terrorism, the extent of freedom which is used by media, trade control initiative which has been taken on the basis of global context, global patent, copyright, intellectual property disputes etc. Economical factors include global economic crisis, impact of the World trade Organization (WTO) and World Bank, fluctuation of stock prices and unstable situation of global stock market, impacts of economic globalization, increasing importance of off shoring and outsourcing initiatives etc. Impact of global warming tendencies, increasing the level of pollution in air, increasing the level of ‘Green’ concept, activities and initiatives of global environmental organizations etc are included among environmental factors. Legal factors include rules and regulation regarding global data protection, increasing the level of ‘legal globalization’, others laws and regulations which are also related to data protection, health and safety law, changes in cross country employment etc. Technological factors include adoption of technology as competitive edge as there is significant increase of the number of competitors, regular innovation of new communication technologies, and improvement of industry specific technologies and development of the level of global technological infrastructure. Social factors include changes in family pattern [family pattern changes due to the single parent concept, same sex marriages etc], changes in family value on the global context, increasing the number of population due to the migration and immigration practices, greater concern for minority in the society, increasing mobility among different social classes etc (Newlands and Saee, 2012). Now the above mentioned factors impact in a significant way on the activities of Bentley automotive while they are doing trade in the international market. Some economical factor such as recent hike in oil prices, stringent credit policies of World Bank affected its business activities. Again this can be said that the company is not still able to produce such kind of luxurious cars which can completely emit harmful pollution into the environment. But the company invested a huge amount of money in bio fuels which will impact in a positive way on the environmental factors. Again the company is facing global financial crisis due to recession. A huge number of competitors are there in the global market and also in the same industry. Mercedes Benz, Rolls Royce, BMW etc are among those giant competitors who are ruling the automobile industry in the world market. To compete with those competitors the company should do more technological improvement in their existing products and offer new designable models to its customers. The company should increase its presence in the emerging economies. Some political and legal factors such as strict government rules and regulations in some countries create disturbance to expand its business operation in those countries. Impact of policies of the European Union on UK organisations European Union (EU) always plays an important role in influencing business activities of UK organizations. They are supporting on the field of taxation and spending, laws, directives and regulations etc. They are encouraging business activities by providing support and subsidies. They are also giving necessary advices which are helpful for improving business activities. Local businesses of UK are directly impacted by European Union. As per European Union Liberalization policy (which was introduced in the year 1993) this can be said that all the member countries in European Union will face competition with each other in equal terms. Again no such import and export tariffs are imposed when products or services are exchanged between two European Union member countries (Geyer, Mackintosh and Lehmann, 2005). Here business entities are getting benefits from the membership of this union as they can avoid the high amount of tariffs in their business operations and face more amount of profit in business. Britain is one of the significant members in European Union and being a British car manufacturing company Bentley automotive is also getting the tariff free facilities in case of import and export activities. Again the company can get available fund from European Union as and when necessary but funds are given only after analyzing the proper and actual requirement. Again legislations and regulations implemented by European Union are in favour for flourishing the business activities of member countries. So here Bentley automotive is getting some flexible areas or regions where they can expand their business activities without any difficulties. European Union is the largest trading bloc in the world which has more than 500 million inhabitants. Supply chain system is also improved in this region and 40 % of total UK supply chain is involved in European Union only. So Bentley automotive is getting all the required materials in proper time and can continue its manufacturing activities without any interruption. This company also get facilities of improved distribution network provided by European Union. EU also helps this company in case of compliances of fuel economy statistics. This company also build good trade relations within European Union which also helpful for the improvement of this company in the global market. In case of research and developments, engine design the company is also getting support and innovative ideas from the member countries. For manufacturing eco boost engine components are sourced mainly from European Union. EU also creates an atmosphere of trade negotiation among member countries. Bentley automotive can access collective bargaining power and standardization of products as a part of European Union. References Ferrell, O. and Hartline, M. 2012. Marketing Strategy. Boston: Cengage Learning. Geyer, R., Mackintosh, A. and Lehmann, K. 2005. Integrating UK and European Social Policy: The Complexity of Europeanisation. Cambridge: Radcliffe Publishing. Great Britain National Audit Office. 2009. UK Trade and Investment: Trade Support. Great Britain: The Stationery Office. Hutt, M. and Speh, T. 2012. Business Marketing Management: B2B. Boston: Cengage Learning. Newlands, D. and Saee, J. 2012. The Global Business Handbook: The Eight Dimensions of International Management. 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