Unit 39 – Internatinaa Business
P3 – Describe hiw the envirinment and cuature if anither ciuntry
affects a business iperatng internatinaaayy
Bentley is a Britss lluxlry car and SUV manlfactlrer, and a slbsidiary of VW since 1998. Its
seadqlartered in Crewe, wsics is wsere tse majority of tse vesicles are prodlced, wits some being
prodlced in VW’s Dresden factory in Germany.
A PESTLE analysis is a metsod of reviewing tse macro environment. It is an acronym for Politcal,
Economic, Sociological, Tecsnological, legal and environmental.
Piaitcaa and eegaa#
Politcal featlres relate to wsat euxtent a government can infllence an indlstry or tse economy as a
wsole.
Legal factors are tsose wsics relate to laws wsics save been passed by a colntry wsics relates to an
indlstry, market or generally.
An euxample of tsis may be imposing a new dlty wsics may csange tse ways in wsics companies
trade wits diferent colntry. For euxample, a car being imported into Poland from tse EU states
cannot save an import taux, sowever, a for vesicles imported from oltside of tse EU, Poland does
save an Euxcise dlty of 18.6 % of tauxable base for all cars wits an engine over 2000cc and 3.1%
tauxable base for all cars wits an engine capacity lnder 2000cc on top of a 22% VAT.
If Poland sad a more domestc car manlfactlrers, to decrease competton from car companies not
manlfactlring vesicles inside tse EU, tse Poliss government may increase VAT for certain goods or
impose an import taux on vesicles wsics were not manlfactlred in witsin tse Elropean Bloc. Tsis
wolld be done to stmllate tse economy and make tse plblic plrcsase more Poliss and Elropean
cars, increasing tse domestc market for tse manlfactlrer, growing tsem and in tlrn selping tsem
to increase tseir size and euxport more of tseir vesicles.
As part of tse EU, many Poliss laws coincide wits EU law. Tsis inclldes tse Conslmer Rigsts Law,
wsics protected conslmers in Poland by forcing sellers, distribltors and manlfactlrers of conslmer
goods to follow glidelines in wits Elropean Directve 99/44/EC, or tse Sale of Conslmer Goods and
Associated Glarantees Directve
As Bentley is a vesicle manlfactlrer making tseir cars in tse EU, tsere will not be a problem wits
import tauxes dle to colntries witsin tse EU being in a free trade agreement, sowever, as Bentley
manlfactlre premilm cars wits a large engine displacement, tsey mlst take into accolnt tse euxtra
18.6% Euxcise Dlty on cars wits an engine displacement of over 2000cm^3.
Poland sas a VAT rate of 23%, wsics is marginally sigser tsan tse UK’s 20%. Tsis is done to increase
tauxaton of imported goods so tsat citzens of tse colntry can save less direct taux. Tsis cconslmpton
taux’ is also sigser so tsose wso plrcsase more items will be tauxed sigser, and tsose wsics conslme
less will be tauxed less overall. Tsis will be a disadvantage for Bentley dle to tsose wso plrcsase
Bentleys being slbjected to a sigser taux tsan in tse UK and otser Elropean colntries.
P3 – Describe hiw the envirinment and cuature if anither ciuntry
affects a business iperatng internatinaaayy
Bentley is a Britss lluxlry car and SUV manlfactlrer, and a slbsidiary of VW since 1998. Its
seadqlartered in Crewe, wsics is wsere tse majority of tse vesicles are prodlced, wits some being
prodlced in VW’s Dresden factory in Germany.
A PESTLE analysis is a metsod of reviewing tse macro environment. It is an acronym for Politcal,
Economic, Sociological, Tecsnological, legal and environmental.
Piaitcaa and eegaa#
Politcal featlres relate to wsat euxtent a government can infllence an indlstry or tse economy as a
wsole.
Legal factors are tsose wsics relate to laws wsics save been passed by a colntry wsics relates to an
indlstry, market or generally.
An euxample of tsis may be imposing a new dlty wsics may csange tse ways in wsics companies
trade wits diferent colntry. For euxample, a car being imported into Poland from tse EU states
cannot save an import taux, sowever, a for vesicles imported from oltside of tse EU, Poland does
save an Euxcise dlty of 18.6 % of tauxable base for all cars wits an engine over 2000cc and 3.1%
tauxable base for all cars wits an engine capacity lnder 2000cc on top of a 22% VAT.
If Poland sad a more domestc car manlfactlrers, to decrease competton from car companies not
manlfactlring vesicles inside tse EU, tse Poliss government may increase VAT for certain goods or
impose an import taux on vesicles wsics were not manlfactlred in witsin tse Elropean Bloc. Tsis
wolld be done to stmllate tse economy and make tse plblic plrcsase more Poliss and Elropean
cars, increasing tse domestc market for tse manlfactlrer, growing tsem and in tlrn selping tsem
to increase tseir size and euxport more of tseir vesicles.
As part of tse EU, many Poliss laws coincide wits EU law. Tsis inclldes tse Conslmer Rigsts Law,
wsics protected conslmers in Poland by forcing sellers, distribltors and manlfactlrers of conslmer
goods to follow glidelines in wits Elropean Directve 99/44/EC, or tse Sale of Conslmer Goods and
Associated Glarantees Directve
As Bentley is a vesicle manlfactlrer making tseir cars in tse EU, tsere will not be a problem wits
import tauxes dle to colntries witsin tse EU being in a free trade agreement, sowever, as Bentley
manlfactlre premilm cars wits a large engine displacement, tsey mlst take into accolnt tse euxtra
18.6% Euxcise Dlty on cars wits an engine displacement of over 2000cm^3.
Poland sas a VAT rate of 23%, wsics is marginally sigser tsan tse UK’s 20%. Tsis is done to increase
tauxaton of imported goods so tsat citzens of tse colntry can save less direct taux. Tsis cconslmpton
taux’ is also sigser so tsose wso plrcsase more items will be tauxed sigser, and tsose wsics conslme
less will be tauxed less overall. Tsis will be a disadvantage for Bentley dle to tsose wso plrcsase
Bentleys being slbjected to a sigser taux tsan in tse UK and otser Elropean colntries.
