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Bentley Motors Limited Company, Governance and its Performance

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Table of Contents
Bentley Motors Limited Company, Governance and its Performance............................................1
Bentley Motors Limited Company, Governance and its Performance............................................3
Introduction..................................................................................................................................3
The Key features of the Company...................................................................................................4
Objectives of the Bentley Motors Limited Company......................................................................5
The key resources of the company..................................................................................................6
Branding and heritage..................................................................................................................6
Skilled Workforce........................................................................................................................8
Supply and Chain Partnership......................................................................................................9
Financial resources.....................................................................................................................10
Global distribution network.......................................................................................................10
Challenges and management Issues in meeting the company’s objectives...................................10
How budgets measure performance and how variance should be investigated to discover their
cause for the Bentley Company.....................................................................................................11
Why the acceptability of an investment proposal depend on the company’s cost of capital; a
project that is acceptable to one company may not be acceptable to another...............................13
Risk appetite...............................................................................................................................14
Capital Structure........................................................................................................................14
Market Conditions......................................................................................................................14
Bentley Company annual report, the function of the audit committee and the issues the
committee has focused on during the reporting year, and suggests any improvements................15
Improvement suggestions according to the audit report................................................................16
Conclusion.....................................................................................................................................17
References......................................................................................................................................18
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Bentley Motors Limited Company, Governance and its Performance

Introduction
In the illustrious world of luxury automobiles, one name reigns supreme, captivating the

imaginations of automotive enthusiasts and connoisseurs alike: Bentley Motors Limited

Company. As a symbol of opulence, performance, and unrivaled craftsmanship, Bentley has

transcended mere transportation, becoming an emblem of refined elegance and automotive

engineering prowess. Steeped in a rich heritage that spans over a century, Bentley has

mesmerized the automotive industry with its unwavering commitment to perfection, a testament

to its enduring success. From its humble beginnings to its position as a paragon of automotive

luxury, this extraordinary Marque has captivated the hearts of individuals seeking an

unparalleled driving experience (Radford, 2022). The key to Bentley's captivating allure lies in

its unwavering dedication to uncompromising quality and unmatched attention to detail. Each

Bentley vehicle is a meticulously crafted masterpiece, blending the timeless elegance of British

design with the cutting-edge Innovations of the modern era. From the hand-stitched leather

interiors to the flawless wood veneers adorning the dashboards, every element is a testament to

the marque's unyielding pursuit of excellence. Bentley as a subsidiary of Volkswagen Group, it

has a well defined governance structure that focus on corporate responsibility and success of the

company.
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The Key features of the Company

The key features of the Bentley Motors Limited Company is focused in ensuring that the

company achieves its mission of producing the best automobiles in the market whereas

maintaining the British heritage and giving unparallel craftsmanship in the industry. Here are the

key features of the company.

Firstly, we have the unparalleled craftsmanship. Bentley Motors Limited Company is

known for its careful craftsmanship, which is unmatched. Each car is proof of the company's

persistent dedication to handcrafted perfection. To ensure that every Bentley exhibits an

unmatched level of creativity and attention to detail, skilled craftspeople precisely mold the

finest materials.

We also have the feature of performance and engineering whereby the Bentley vehicles

combine durability, accuracy, and smooth acceleration to produce thrilling performance.

Advanced technology, creative engine designs, and precise tuning demonstrate the brand's

commitment to engineering excellence while delivering an exceptional driving experience

(Trovão, 2021).

Another feature of the company is use of customization and personalization of its cars.

The company has always promoted customization and personalization since it was kicked in into

the market. With Bentley, clients may fully customize and personalize their cars, taking a

personalized approach to automotive luxury. Bentley makes sure each car is a reflection of its

owner's particular style and preferences, offering a wide range of paint colors, opulent upholstery

selections, and custom interior accents.

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We also have the feature of promoting technology in its services and cars. Bentley

embraces contemporary technologies while being firmly steeped in heritage to improve the

driving experience. A natural balance between luxury and innovation is achieved through the

smooth integration of cutting-edge connectivity capabilities, intuitive infotainment interfaces,

and advanced driver assistance systems with the vehicle's classic appearance.

Offering exceptional customer service is another important aspect of the company.

Giving customers a remarkable experience is extremely important to Bentley. Customers are

given the highest consideration, care, and individualized service the moment they step foot into

the Bentley world (Radford, 2022). Bentley's commitment to its clients goes beyond the initial

transaction, with thorough after-sales service and a premium ownership environment.

Objectives of the Bentley Motors Limited Company

Bentley as one of the most successful luxurious cars company operates with several

objectives that promote its success. To begin with product excellence, delivering great high-end

vehicles that showcase the brand's dedication to craftsmanship, performance, and design is

Bentley's main goal. The company aspires to constantly surpass customer expectations and

produce automobiles that set the bar for excellence in the industry.

Another objective of the company is customer satisfaction whereby the company strives

to offer an unmatched customer experience and guarantee the highest level of satisfaction for its

affluent customers. The business concentrates on comprehending and satisfying the particular

needs and preferences of its clients, providing individualized service, and forging lasting

connections (Stobbs et al., 2022).

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We also have the objective of global market expansion whereby Bentley wants to increase its

presence internationally and seize possibilities in developing markets. To improve its position in

important global markets, the company concentrates on strategic expansion activities, such as

market research, product localization, and dealership network development.

Operational excellence is also another objective of the company whereby in every aspect

of its value chain, Bentley strives for operational excellence. For the purpose of upholding high

standards of quality, maximizing productivity, and ensuring financial sustainability, the

organization focuses on optimizing manufacturing processes, supply chain management, and cost

effectiveness.

 Promoting employee development is also another objective. Bentley values its staff

members and works to promote a culture of talent development and engagement. To attract,

keep, and develop top personnel, the organization makes investments in training programs,

chances for professional progression, and initiatives promoting employee wellbeing. These are

key objectives that run the company and make the company stay competitive in the world

market.

The key resources of the company

Branding and heritage
The company has various key resources that promote success of the company. Key

resources of the company stretch wide for such big corporations. Firstly, we have brand

reputation and heritage. In the car business, Bentley Motors Limited has a legacy and brand

reputation that is highly regarded. These characteristics are essential to setting Bentley apart

from its rivals and forming its reputation as a mark of unmatched elegance and craftsmanship.
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Bentley's brand reputation is built upon a century-long legacy of excellence, refinement,

and prestige. The brand is synonymous with exceptional craftsmanship, timeless design, and a

commitment to delivering the ultimate in luxury and performance. Bentley's reputation has been

cultivated through a consistent dedication to creating vehicles that embody the highest standards

of quality, comfort, and exclusivity. The brand's reputation is further strengthened by its

enduring association with British elegance and heritage. Bentley vehicles have long been favored

by discerning customers, including royalty, celebrities, and influential individuals, who

appreciate the brand's heritage and the prestige it represents. Bentley's reputation is also

bolstered by its continued success in motorsports. The brand has a rich racing heritage, with

victories at prestigious events such as the 24 Hours of Le Mans (Alexander, et al., 2020). These

accomplishments highlight Bentley's engineering prowess and reinforce its reputation for high-

performance luxury vehicles.

Bentley's heritage is deeply rooted in the company's origins and its founder, W.O.

Bentley. Established in 1919, Bentley has a storied history of crafting exceptional automobiles.

The brand's early years were marked by a focus on performance, innovation, and endurance,

which laid the foundation for its subsequent success. Bentley's heritage is exemplified by iconic

models such as the Bentley Blower, the Bentley Speed Six, and the Bentley Continental. These

vehicles have become legends in the automotive world, embodying the spirit of adventure,

elegance, and power that defines the brand.

The brand's heritage is also reflected in its design language, which seamlessly blends

classic elements with contemporary aesthetics. Bentley vehicles feature signature design cues

such as the prominent mesh grille, muscular lines, and the Bentley Flying B mascot, paying

homage to the brand's rich history while embracing modernity. Moreover, Bentley's heritage is
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intertwined with its commitment to craftsmanship. The brand's dedication to handcrafted

excellence remains steadfast, with skilled artisans employing time-honored techniques to shape

and finish every aspect of a Bentley vehicle. The meticulous attention to detail and the use of the

finest materials ensure that each Bentley is a true work of art.

Skilled Workforce
Bentley's skilled workforce consists of artisans, craftsmen, engineers, designers, and

technicians who possess exceptional expertise in their respective fields. These individuals are the

driving force behind the brand's commitment to craftsmanship, attention to detail, and

uncompromising quality. Bentley's artisans and craftsmen are experts in their craft, meticulously

handcrafting various elements of the vehicles. These skilled artisans specialize in disciplines

such as leatherworking, wood veneer application, stitching, and metalwork. Their craftsmanship

ensures that each Bentley vehicle is a masterpiece, with painstaking attention paid to every

detail.

Bentley's engineers and designers are responsible for translating visionary concepts into

reality. They leverage their technical expertise, creativity, and engineering knowledge to develop

innovative solutions and push the boundaries of automotive design. These professionals play a

crucial role in refining vehicle performance, enhancing safety features, and integrating cutting-

edge technologies into Bentley's offerings. Bentley is committed to the continuous development

and training of its workforce (Trovão, 2021). The company invests in programs that enhance the

skills and knowledge of its employees, ensuring they stay abreast of the latest advancements in

automotive technology and manufacturing processes.

Employees at Bentley go through extensive training programs that provide them the skills

they need to flourish in their positions. This involves instruction in cutting-edge technologies,
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modern production processes, and customer service. Initiatives for ongoing learning and

development help the workforce adapt to shifting market trends and uphold Bentley's standards

of excellence. Employee engagement and motivation to perform well in their respective positions

is guaranteed by the brand's dedication to employee well-being, career advancement, and

recognition programs. This in turn helps Bentley's professional personnel feel proud of their job

and promotes the consistent delivery of great vehicles.

Supply and Chain Partnership

Partnerships and the supply chain are essential components of Bentley Motors Limited's

operations and have a big impact on the business's success. Bentley's supply chain encompasses

the network of suppliers, vendors, and logistics providers involved in the sourcing, production,

and delivery of materials, components, and services required for manufacturing its vehicles. The

supply chain plays a crucial role in ensuring a seamless flow of resources and maintaining the

high quality and standards associated with the Bentley brand. Bentley carefully selects suppliers

based on their ability to meet stringent quality requirements, sustainability standards, and

delivery schedules. Suppliers must demonstrate their capability to provide high-quality materials

and components that meet Bentley's exact specifications and contribute to the exceptional

craftsmanship of the vehicles.

In addition, Bentley engages in strategic alliances and collaborations to benefit from

knowledge, gain access to cutting-edge technology, and strengthen its competitive advantage.

These collaborations offer beneficial tools and chances for research, development, and market

expansion. Bentley makes the most of the knowledge, resources, and synergies of its partners by

establishing solid partnerships across numerous industries. Through these alliances, the business
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can gain access to cutting-edge technologies, improve its product offerings, streamline

operations, and broaden its geographic reach.

Financial resources
Bentley benefits from the financial resources provided by its parent company, the Volkswagen

Group. These resources support the company's operations, investments in research and

development, marketing initiatives, and expansion plans.

Global distribution network

In order to serve customers worldwide, Bentley's global distribution network, which consists of

accredited dealerships and showrooms, is a crucial tool. Wide geographic coverage, access to

target markets, and a unified customer experience are all guaranteed by the network.

Challenges and management Issues in meeting the company’s objectives

The company encounters various challenges that have proven to be a hindrance in

meeting the set objectives. Bentley competes in the fiercely competitive premium auto industry.

To compete with other well-known companies in the market, you must continually innovate,

stand out from the competition, and anticipate changing consumer tastes. It is a big challenge to

manage fierce competition and constantly deliver vehicles that surpass consumer expectations.

Another challenge is that the automotive industry faces increasing pressure to reduce its carbon

footprint and embrace sustainable practices. Meeting stringent emissions standards and

environmental regulations requires significant investments in research and development to

develop cleaner and more fuel-efficient technologies. Adapting to sustainability requirements

and transitioning to electric and hybrid vehicles poses management challenges in terms of

technology adoption, infrastructure development, and supply chain adjustments.

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Rapid advancements in automotive technology present both opportunities and challenges.

Incorporating advanced features, connectivity solutions, and autonomous driving capabilities

requires significant investment in research, development, and talent acquisition. Ensuring that

Bentley remains at the forefront of technological innovation while maintaining the brand's

heritage and craftsmanship is a balancing act that requires careful management.

Ensuring the prompt delivery of high-quality components from several suppliers

throughout the world is a key component of managing a complicated global supply chain. There

are continual issues that need for effective supply chain management solutions, including

coordinating with suppliers, controlling inventories, minimizing supply chain disruptions, and

preserving supplier relationship.

Bentley's customers have high expectations for personalized experiences and

customization options. Meeting these expectations while managing production complexity;

maintaining profitability can be challenging (Nabbet al., 2020). Balancing individual customer

requirements with efficient manufacturing processes and ensuring consistent quality across

customizations is a management issue that requires careful attention.

How budgets measure performance and how variance should be

investigated to discover their cause for the Bentley Company
In Bentley Company, budgets are significant because they are used as a measure of

performance. Budgets serve as financial plan that set targets and expectations for revenue,

expenses, and other financial metrics. Evaluating actual performance against the budget can

provide insights into the financial health and operational efficiency of the company.
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Budgeting establishes specific financial targets for revenue, expenses, and other financial

metrics. Bentley sets budgeted targets based on its strategic objectives, market conditions, and

historical performance. These targets provide a framework for evaluating the company's financial

performance. Bentley tracks and monitors its actual financial performance versus the budget

throughout the whole fiscal year. Management is able to determine whether the company is on

pace to accomplish its financial objectives by comparing actual outcomes to the budgeted

statistics.

The comparison between actual results and budgeted targets reveals variances, which are

the differences between the two. Variances can be favorable when actual results exceed budgeted

targets or unfavorable when actual results fall short of budgeted targets. Bentley analyzes these

variances to understand the reasons behind the deviations. The analysis of budget variances

enables Bentley to take corrective actions and make informed decisions. If unfavorable variances

are identified, management can implement strategies to address the underlying issues and bring

performance back in line with the budgeted targets. Favorable variances can highlight successful

practices or initiatives that can be replicated or further enhanced.

Bentley Motors can evaluate its financial performance, spot variances from the planned

targets, and take proactive actions to optimize performance by using budgeting as a performance

assessment tool. It gives the business the ability to track development, take knowledgeable

decisions, and promote continual improvement, ultimately assisting in the achievement of its

overall financial goals and long-term success.

However, as performance indicators, budgets have several limits. Since they are based on

assumptions and estimations, actual results may differ from those projected in the budget.
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Additionally, budgets frequently place a strong emphasis on financial measurements, leaving out

non-financial factors like staff engagement, product quality, and customer happiness that are

important to total performance. These include two variances; favorable variances, and

infovarable variances.

Favorable variances emerge when real results surpass predetermined spending limits.

Although favorable variances are sometimes regarded as positive results, it is crucial to look into

their causes in order to comprehend the underlying variables that contributed to the variance.

Investigative work has multiple objectives and they include the accuracy of the budget,

performance assessment, strategic decision making and continuous improvement.

Why the acceptability of an investment proposal depend on the

company’s cost of capital; a project that is acceptable to one company
may not be acceptable to another.
The viability of a project is determined by a number of variables, including the

company's cost of capital, which is one important component. The rate of return needed by

investors to fund a company's operations and investments is known as the cost of capital. It

includes the price of equity, loans, and other forms of funding. Based on their individual cost of

capital, there are a number of reasons why a project that is suitable to one company might not be

acceptable to another.
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Risk appetite
Different organizations' levels of risk appetite have an impact on their cost of capital.

Investors may expect larger returns to make up for the perceived risk, which could result in a

higher cost of capital for a company with a lesser appetite for risk. In contrast, a business that is

more willing to take on risk may have a lower cost of capital because investors may be more

willing to accept lower returns in exchange for the chance of greater profits. As a result, a project

may be approved by a firm that is risk conservative and has a high cost of capital but may not

satisfy the risk-return criteria of a company that is more risk tolerant and has a lower cost of

capital.

Capital Structure
The capital cost of a corporation is influenced by its capital structure, or the ratio of debt

to equity funding. Due to the tax benefits of debt and the lower cost of borrowing, a company

with a higher share of debt in its capital structure will have a lower cost of capital. A corporation

with a stronger reliance on equity funding will, on the other hand, have a higher cost of capital.

A project might therefore be possible for a company with a low debt ratio and a higher cost of

capital, but acceptable to a high debt ratio and lower cost of Capital Company.

Market Conditions
The state of the external markets might affect a company's cost of capital. The needed

rate of return for investors might change depending on variables including interest rates,

inflation, and economic stability. A company may experience greater borrowing costs and a

higher cost of capital if it operates in a sector or area with adverse market conditions. A business

that operates in a supportive market climate, on the other hand, can benefit from lower

borrowing costs and a lower cost of capital. Due to the fact that each company's cost of capital is
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determined by the market, the acceptability of an investment proposal can change amongst

businesses operating in different marketplaces.

In conclusion, the attractiveness of an investment proposal is influenced not only by the

intrinsic features of the project but also by the cost of financing for the company. The capital cost

and, by extension, the assessments of investment prospects are greatly influenced by factors such

as risk appetite, capital structure, market conditions, and company-specific characteristics.

Bentley Company annual report, the function of the audit committee and
the issues the committee has focused on during the reporting year, and
suggests any improvements
Bentley Company celebrated to years of its design in 2021 and in the annual report of

2022, it managed to record the best financial year since its existence. The company managed to

realize high revenue than before despite the pandemic hit for the last two years (Carrillo, et al.,

2022). According to the reports, the audit committee had the following functions.

The committee was responsible for overseeing the financial reporting. The community ensured

the integrity and accuracy of financial statements and reports. This includes compliance with

accounting standards and regulatory requirements. Secondly the committee was responsible

internal controls and risk management. To protect the company's assets and reduce risks, the

committee evaluates and tracks the efficacy of internal control systems, risk management

procedures, and internal audit operations.

Furthermore, the committee is responsible for internal control and risk management and

also external audit. The committee is in charge of overseeing all aspects of the external audit

procedure, including the selection, impartiality, and efficiency of the external auditors. It
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examines the audit strategy, evaluates audit results, and confirms that the audit scope and quality

are appropriate. Lastly, the committee is in charge of ensuring that the rules of corporate

governance are followed. It might also look at legal and regulatory matters that could have a big

effect on the business.

The members of the Bentley Company audit committee were independent directors who

are financial experts. The directors had the best skills in internal controls and risk management.

The committee also has the outside advisors, and also the delegation authority that have the

authority to delegate any response. The members are delegated with the opportunity to evaluate

the overall performance.

Improvement suggestions according to the audit report

After a successful 2022 financial year according to the financial report, here are some of

the recommendations to the Bentley Motors Company.

First is to invest more in financial planning and analysis. The high the revenues, the high chances

of loop holes therefore it is important for the company to enhance financial planning and

capabilities to forecast revenues expenses and cash flows. It will optimize resources and promote

decision making.

Consequently, the company should enhance supply chain management. Despite the

already established foundation, the company should a more supply chain visibility and foster

strategic partnership with suppliers to manage and have a cost-effective supply chain.

Furthermore it should strengthen the internal controls and be able to evaluate and improve

internal control systems to mitigate risks involved such as fraud and operational inefficiencies.
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Ultimately, the Bentley Company must carefully evaluate its unique requirements and priorities

in light of its sector, competitive environment, and internal resources.

Conclusion
In conclusion, Bentley Motors Company has established itself as a mark of refinement,

performance, and unmatched craftsmanship. It has gone beyond the realm of simple

transportation and is now a symbol of mastery in the field of automobile engineering. This is

evident from the financial year report that shows its excellent performance against its

competitors. The Bentley motors has the best budgeting plan and the most effective internal

control system. All the organs of the company are working towards a common goal, stay ahead

of the rest in the automobile business across the globe by maintaining high quality, with original

craftsman heritage and high performance cars.

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References
Alexander, R., & Hadrill, F. (2020). Bentley Clothing v Bentley Motors. Journal of Intellectual

Property Law & Practice.

Carrillo, H. E., Gaynor, L. M., & Kelton, A. (2022). Do Critical Audit Matters Influence CFO’s

Subsequent Financial Reporting Decisions? The Role of Accountability. The Role of

Accountability (October 26, 2022).

Nabb, A. T., Frank, M., & Bentley, M. (2020). Smart motors and cargo steering drive kinesin-

mediated selective transport. Molecular and Cellular Neuroscience, 103, 103464.

Radford, P. (2022). Prospects for a Global Britain.

Stobbs, J., Zhou, Y., Weber Bain, A., & Swana, K. (2022). Overview of United Kingdom Trade

Mark Cases 2021. IIC-International Review of Intellectual Property and Competition

Law, 53(3), 406-419.

Stobbs, J., Zhou, Y., Weber Bain, A., & Swana, K. (2022). Overview of United Kingdom Trade

Mark Cases 2021. IIC-International Review of Intellectual Property and Competition

Law, 53(3), 406-419.

Trovão, J. P. (2021). Electromobility innovation trends [automotive electronics]. IEEE vehicular

technology magazine, 16(3), 153-161.