Critical Evaluation of Strategy and Operations of Morgan Motors

This report provides a critical evaluation of the strategy and operations of Morgan Motors, a British motor car manufacturer. It includes an analysis of the company's vision, review of operations, stakeholder satisfaction, and more.

Assessment

EXECUTIVE SUMMARY
The present report is being undertaken with aim of understanding firms strategy, operations,
& other activities. It is divided into two stages which stage 1- includes Morgans Motors critical
evaluation operation firm whereas in stage 2 it includes Deloitee critical evaluation of the strategy
against the industry
success factors. Both stages are being carried out appropriate use of tools & strategies. This report
gives a brief information regarding the auto mobile industry & effectiveness in market.

Table of Contents
EXECUTIVE SUMMARY..................................................................................................................3
STAGE 1 – A critical evaluation of operation of Morgan Motors ......................................................4
INTRODUCTION................................................................................................................................4
Review of operations ......................................................................................................................5
Operation of company.....................................................................................................................5
Evaluate the extent to which operation satisfies at least 3 stakeholders.........................................6
CONCLUSION....................................................................................................................................6
STAGE 2 Critical evaluation of the strategy against the industry
success factors.....................................................................................................................................7
APPENDIX..........................................................................................................................................7
1. Summarise the critical issues emanating from your PESTLE.....................................................9
2. Determine the strength of Porter Five Forces ...........................................................................10
Critical evaluation of the strategy of Morgan Motors...................................................................12
CONCLUSION .................................................................................................................................15
REFERENCES ..................................................................................................................................16
Books & Journal:...........................................................................................................................16

STAGE 1 – A critical evaluation of operation of Morgan Motors
INTRODUCTION
Business is wider and broader which involves ample number of functions, operations &
activities which are to be carried out in proper manner. Morgan Motors, a British motor car
manufacturer headquartered in UK. The company was founded in 1910, by H.F.S Morgan. Their
main vision is be the strong brand in future & demand for product from customers worldwide.
(Xiao, 2020). The main purpose of this report is to understand strategy & operation of undertaken
firm. The company follows hierarchical structure in their management.
Review of operations
Vision of Morgan Motors
The vision of Morgan Motors is to develop a strong brand & first preference of demand

from their existing as well as new customers. To accomplish their vision of organisation they are
using new strategies & modern concepts with their old design cars. (Rawlinson, 2016). Their
operation of activities is relatively niche because of which it is easier for them to arrange necessary
resources & capital. The operation of company is being examined through use of Value Chain
Analysis which further explained below-
Operation of company
Firm has divided itself into primary & support activities to carry out their operations.
Primary activities-
Inbound logistics- It depicts the arrangement of materials from vendors, storing them &
handling those materials within the entity. Morgan uses aluminium & also they have recently started
using BMW's engine. s
Operations- These type of activities mainly concerned with production unit of products or
services . In reference with Morgan, they made hand made cars with ash frame. Due to this
uniqueness they are still in demand. (Pan, 2019).
Outbound logistics- In this, distribution of final output is being focused. As firm took
time to produce cars, waiting time of final output is long for around 1-2 years. So, distribution of
products is time consuming.
Marketing & sales- This depicts the needs & demand of customers & is responsible for
creating awareness of products. In relevance with chosen firm, they do not marketing of product at
higher level because of their low productivity. But still, their demand is much more higher than
supply in market.
Service- It depicts the need to deliver after sale service like pre-installation, guidance etc.
Support activities
Procurement-
This stage is for purchasing materials or resources which are required for firm operations.
HRM- This activity is mainly concerned with selecting,k recruitment, motivating of
employees at workplace. In relevance chosen entity, they they have around 150 personnel that have
extensible knowledgeable and skills (Nurmi, 2018).
Technology development- It is focused on innovation related to technology, invention, etc.
For example- Morgan Motors purchasing Aero 8 model, BMW engine etc.
Firm infrastructure- This activity focused on managing of planning, controlling etc. with

relevance of accounting, strategies etc.
Technology development is to be considered as operation extent to which informations is
accessed. Thus, it is essential to focus on this so that process are carried out efficiently.
Evaluate the extent to which operation satisfies at least 3 stakeholders
Technology development- It is the operation activity which satisfies the stakeholders
because with help of technology development new information is accessed effectively. So, three
stakeholders are mentioned below-
Customers-
When new technology is being adopted by firm, it attract more customers towards business
that corporation is being aware about market trends. Due to this, demand of customers are easily to
be achieved (Yudiono, 2019).
Employees-
When new technology is developed, it increases knowledge of employees to access new
tools & software's. This, makes employees free from workload & makes them efficient.
Shareholders-
This operation increases value of shareholders because through this competitive advantage
gained by them in market. Furthermore, it enhances their way of doing by using more advanced
tools as well as techniques.
CONCLUSION
` After analysing the above matter, it is seen that operation of Morgan Motors is flexible &
changes according to need or demands of clients or customers. So, to access operation of entity
Value Chain Analysis has been discussed. It gives detailed information about how they operate their
functions & activities. Also, three stakeholders have been mentioned which are satisfied by
operations of enterprise. Vision of entity is being also briefly carried out which reflect main aim of
enterprise. The main objective of carrying out is to critically examine strategy & operation of
organisation. So, Value Chain has been used in report briefly which shows operations & working of
entity.

STAGE 2 Critical evaluation of the strategy against the industry
success factors
APPENDIX
TRENDS References
Political It includes environmental
law, tax, labor law etc. In
relevance with Deloitte, it
affects the business as
because of impact of Brexit
affects their operations.
Lawton, 2018.Strange Power:
Shaping the Parameters of
International Relations and
International Political Economy:
Shaping the Parameters of
International Relations and

Mega trend is that Brexit is
likely to be resolved which
might have positive impact
on market. (Lawton, 2018).
International Political Economy.
Routledge.
Economic This factor involves tariff,
non tariff, inflation rate etc.
In relevance with chosen
enterprise they have been
affected by interest rates. As
in some of the countries
services provided by them
are being charged at higher
prices. Mega trend is that
interest rate will be more
higher due to current
situation of pandemic (Henry,
2020).
Henry, 2020. An Economic Analysis of
Rewind, Premium, and Standard
Efficiency Vertical Hollow Shaft
Motors for Irrigation.Applied
Engineering in Agriculture,36(2),
pp.115-123.
Social This factor comprises of
value, beliefs, attitude, etc. It
is essential to focus on these
variable because they affects
working environment of
work place & employees
behaviour.
Huang, H.H., 2018. Perspectives on
early power mobility training,
motivation, and social participation in
young children with motor
disabilities.Frontiers in psychology,8,
p.2330.
Technology It is most crucial elements
as Deloitee uses most
advanced technologies for
their clients demands &
services. With changing
period of time they have
improved their used
technologies like cloud, big
data, machine learning etc.
In this, mega trend is that
Mabry, J.E., Glenn, T.L. and Hickman,
J.S., 2019. Commercial Motor Vehicle
Operator Fatigue Detection
Technology Catalog and Review.

due to fast moving
expansion of technology, it
has become important to use
high level of tools.
Environment
These are factors which
includes pollution, waste
management, green agenda,
etc. These also affects the
overall organisational
development because it they
rarely focus on these which
have negative impact on
their goodwill.
Bengtsson-Palme, 2018.
Environmental factors influencing the
development and spread of antibiotic
resistance. FEMS microbiology
reviews, 42(1), p.fux053.
Legal
This element involves
contracts, agreements,
mutual which are enacted by
law. Deloitee legal team are
active towards their all
contracts with their clients
which prevent them from
facing problem.
Paradis, 2016. Competency to stand
trial evaluations in a multicultural
population: Associations between
psychiatric, demographic, and legal
factors.International journal of law and
psychiatry,47, pp.79-85.
1. Summarise the critical issues emanating from your PESTLE
There are several issues which reflects from PESTEL which are mentioned below-
 Time consuming- The PESTEL Analysis is time consuming because each section of
analysis require a deep research which is time consuming process. Further, it distracts
individual from their roles & core responsibilities.
 Mishandling of information- In this tool, when credentials & data are collected it is not
easy to handle them which results in mislead & conflicts. Due to this, many problems were
faced during the process (Hernández, 2017).
 Difficulty in data collection- Another issue is that it was difficult to collect data for
proper analysis which leads to used of wide variety of resources. It also leads to wastage

of time as well as other useful resources.
 Changeable factors- The above given PESTEL Analysis states that these are flexible in
nature which means that regular awareness was to focussed in market to gather correct
credentials.
So, above discussed issues specifies that it is difficult to carry out PESTEL analysis as it
requires a deep market research so that results are accomplished. \]
2. Determine the strength of Porter Five Forces
Porter Five Force model is strategy tool which is used by organisations to analyse
competitive forces to carry out the functions or operations of business properly. This model includes
five elements which are described as follows with their strength-
Competition in industry- This force depicts the intensity of competition in business sector
amongst their rivals in market. Its main strength is that it assist Deloitte to examine their rivals
through which they will be able to implement effective strategies & accordingly decisions making is
carried out (Cha, 2018).
Bargaining power of suppliers- Vendors are most crucial for business because they help in
distribution of product to final consumers. Their main strength is that they have strong connections
& knowledge of market through which they arrange resources for company. In relevance with
chosen entity, they have most trustable suppliers which help them in carrying out their services.
Bargaining power of buyers- Then comes power of buyer in which Deliotee keeps their
bargaining power high because they provide good services. This is beneficial for them because, they
gain profit from their clients (Silva, 2019).
Threat of substitutes- They have ample number of substitutes for their product & services
like Capgemini, SAP, etc. which deals in same number of services in market. This factor is main
strength is that it provides information regarding weak area of company's services.
Threat of new entries- It is another force in which it depicts that entry of new entities have
great impact on environment. In this sector, threat of new entry is at moderate level because it is
difficult for them to access clients for their products.
Main strength of Model
 Identify business position- This model main strength is that it help in identification of
company's position which results in appropriate decision making.
 Examine strength area- By carrying out the model, it assist organisation to analyse either

main strong area in which growth rely (Dunn, 2018).
3. Summarise industry environment
Industry environment of business is essential to be examined so that employees are able to
work in proper manner. In context with chosen corporation, they have optimistic environment as
they are focused towards their employees growth & development. It also reflects awareness of
company regarding their management, society employees etc. So, undertaken entity has both macro
and micro environment which help them in accomplishing corporation objectives.
 Identify critical survival & success factors
There are various types of critical survival & success factors (CSF'S) which have a deep
impact on business environment. Also, with out these elements it is not possible to carry out
business operations (Gino, 2018). So, CFS are discussed below-
Operations (Process, work )- It is survival & success factor as in this main or actual process of
project, process is being carried out. Without operation, activities of departments cannot be
initiated.
People- It involves employee, learning, development, etc. which help in getting the work done.
They are one who take roles, responsibilities to finish given task (Prajogo, 2016).
Marketing- This is another survival & success factor in which it focused on customer relationship
management, sales, promotion etc. They help in generating profit/ increasing revenue of entity.
 Identify how industry environment is likely to change in future given influence of mega
trends identified
The industry environment of Deloitee, is being likely to change in near future as mostly
with their technology & management structure. It is crucial to analyse that they currently focus on
their statistics which help them to use their data in correct way. Also, with identified mega trends,
it is seen that requirement of personnel in business will change at deep level. This is because
competition is increasing at higher level which will change need of market. Due to this, there will
be huge requirement of high skilled professionals. Deloitee will change their strategies, will hire
more experts, new infrastructure, polices in management in their working environment.
Critical evaluation of the strategy of Morgan Motors
1. Identify resources of organisation
According to resource based view, resources are most crucial to be used in business because
they help in supporting operation & activities of enterprise. In case of Morgan Motors, they use

high quality of resources, materials. Like as mentioned above in operations section, the cars of
Morgan are made of steel chasis, ash frame which are of good quality. There are several resources
which are essential for them & are described below-
 Aluminium- It is most crucial resource of entity because cars of MM are made of pure
aluminium. The aluminium which they use is of high quality which they use it in with most
efficient way ( Čepel, 2018).
 Machines & engines- This is also crucial resource of MM because in their hand made cars
they use high updated machines as well as new engines for their car like currently they are
using BMW engines.
2. Identify capabilities of organisation
In reference with MM, capability of firm has deep impact on their goals & objectives. They
have several capabilities which are mentioned below-
 Uniqueness- Morgan Motors have a unique capability of products & services. This is
because they sell their own products like cars with human hands, have unique designs etc.
Due to their uniqueness, they have high demand in market (Frei, 2018)
 Investment decisions- Another capability of company is that they invest their money, time,
with appropriate decision after a deep market research. Also, they have high skilled
employees which assist them in their investment decisions like they have currently invested
in BMW engines for their car modification.
 Structure- It is another capability of business which is being focused because it shows that
Morgan have hierarchical structure through which they are able to manage people in their
management. Organisational structure help in making decisions properly & maitaining
discipline.
3. Evaluate resources & capabilities
VRIO Analysis
It is a tool which is used by entities to analyse business decisions & strategic schemes.
Through use of VRIO, it is easy to examine company's crucial strategies, decisions & other
activities. (Xiao, 2020). So, it has various components which are mentioned bellow-
Valuable- In this, it reflects those resources which are most crucial for business . In context
with with MM, their most valuable resources are Craft skill, high experienced workers, unique
cars.

Rare- It depicts that those resources which are rarely used by company. In reference with
Morgan's their rare resources are materials (Ash Tree) limited edition & strategies they adopt.
Imitable- It reflects the intensity up to which organisations resources can be intimate or
copied by others. Design of cars can be intimate by many brands in their own cars.
Organisation culture- In case of Morgan Motors, they have friendly atmosphere at
workplace. Due to this, employee have long retention period.
4. Compare resources & capabilities with industry success factors developed above
BASIS Resources & Capabilities Success factors
Importance They help in overall functioning of
firm as they are used at every aspect.
Like Morgan uses resources-
Aluminium & capabilities -
uniqueness at every stage of business
(Rawlinson, 2016).
The success factors assist entity
for survival of business to
achieve goals. Like-
Operation help them in
carrying out all processes.
Needs
Investment decision- In this,
shareholders are responsible for
investment decisions with use of
appropriate strategies.
People- they are factors which
complete given assignment or
task or assignment on time
period. (Pan, 2019).
Essentials
Structure- It is important as it help
in carrying out workflow in
management. MM follows top down
approach at workplace.
Marketing- In this, they help
in creating brand awareness,
decisions, promotion through
business is able to achieve
success in market.
5. Evaluate business sustainability
Sustainability is essential for every firm growth & higher development. It is defined process
of analysing speed of growth of business. In context to selected firm, they use KPI standards to
measure their sustainability as they help in decision making of measurement of progress. KPI are
defined as key performance indicators which assist entity to determine their progress in market and
business. So, there are several KPI'S which are considered while measuring sustainability & are

discussed below-
Energy consumption-
It refers to all energy which is used to complete or perform task or work. In reference with
selected entity, they have high level of energy consumption because they use employee skills at
depth for development of their cars (Nurmi, 2018).
Product recycle rate-
It refers to percentage of recycling of used product by used product & then dividing it by
total number of products that have been sold. In relevance with Morgan Motors, they have
determine this rate by every month which assist them in analysing their resources used per unit.
(Yudiono, 2019).
CONCLUSION
After a brief analysis of above report, it has been concluded that business enterprises have
variety of functions which they carry out in most appropriate way. In this present report discussions
have been made about VRIO, Value chain analysis. Then further, operation of Morgan Motors,
evaluation has been explained. Moreover, in stage 2 Deloitee PESTEL Analysis, resources &
capabilities, comparison between capabilities & resources have been examined and evaluation of

sustainability.
REFERENCES
Books & Journal:
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evidence from Guangdong Province, China. Travel Behaviour and Society,19, pp.45-53.

Rawlinson, 2016.The new European automobile industry. Springer.
Pan, 2019. PESTEL analysis of construction productivity enhancement strategies: A case study of
three economies.Journal of Management in Engineering,35(1), p.05018013.
Nurmi, 2018, November. PESTEL analysis of hacktivism campaign motivations. InNordic
Conference on Secure IT Systems(pp. 323-335). Springer, Cham.
Yudiono, 2019. VRIO Analysis to Measure E-Business Readiness in the Automotive Industry in
East Java (Study on Otobus Company Kalisari and Otobus Company Menggala).Wacana
Journal of Social and Humanity Studies,22(4).
Hernández, 2017. Global value chain configuration: A review and research agenda.BRQ Business
Research Quarterly,20(2), pp.137-150.
Cha, 2018. Critical success factors for mutual collaboration with suppliers in IT outsourcing
industry: a case study of a top IT outsourcing company in Korea.Enterprise Information
Systems,12(1), pp.76-95.
Silva, 2019. Critical analysis of organizational change process: evidences from a steel
company.Business Process Management Journal.
Dunn, 2018, July. Deloitte and the Ethics of Corporate Espionage. InProceedings of the
International Association for Business and Society(Vol. 29, pp. 65-70).
Gino, F., Green Jr, P. and Staats, B., 2018. Reinventing Performance Management at Deloitte (B).
Prajogo, 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International journal of production Economics,171,
pp.241-249.
Čepel, 2018. Business environment quality index in the SME segment.Journal of Competitiveness.
Frei, 2018.Incumbents in the Energy Transition: how Electric Utilities adapt to their Changing
Business Environment(Doctoral dissertation, ETH Zurich).