Business Contexts and its Management

This document provides an in-depth analysis of business contexts and its management. It covers topics such as external environment analysis, internal analysis, competition, operation management, and managing changes. The document also includes recommendations for further development.

Business Contexts and
its Management

Table of Contents
INTRODUCTION.......................................................................................................................................3
PART 1.......................................................................................................................................................3
External environment..................................................................................................................................3
Internal analysis...........................................................................................................................................5
Competition.................................................................................................................................................6
Operation management................................................................................................................................7
Managing Changes......................................................................................................................................7
Stakeholder Analysis...................................................................................................................................9
PART 2......................................................................................................................................................10
RECOMMENDATIONS...........................................................................................................................10
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11

INTRODUCTION
The organization is very important in economic success and development. It is also useful
in creating employment that increases economic situation of nation. It signifies the present
pandemic that put devastating effect on organization belongs from diverse industry. Due to this,
the organization is confronting enormous reduction in sales as well as profit margin. There are
different kind of industry who focuses on earning profit margin during the pandemic like online
learning, online fitness and so on. In current assignment, Aston Martin is the company which is
taken into account. It is well known organization of automotive sector. It was founded in 1913
within London and presently expanded organization at international level. It is assess that the
company facing large adverse effect due to the crisis related to covid-19. The current assignment
signifies micro and macro analysis of company by using proper tool like Blue Ocean Strategy,
PESTEL analysis and so on. In assistance of this, the competitor analysis has included in this
assignment in addition with proper technique related to operation administration. And, it involve
change administration model like Lewin’s model for executing changes within business
organization in an appropriate manner. Therefore, the stake holder analysis has also carried out
in report by using power and also influences grid matrix in addition with proper recommendation
for further development (Alves, Fernandes and Raposo, 2016).
PART 1
External environment
There is different kind of element that is prevailed in external atmosphere that
significantly impact the organization. It is important for the management to undertake
assessment of external atmosphere so they so that they can take necessary proceedings
accordingly so that the PESTEL analysis related to Aston Martin is going to be mentioned
below:
Political factors connected with prevailing political atmosphere of nation. It signifies
changes within present government that bring changes within existing policy of organization. In

reference of Aston Martin its future will affected with financial that aids assistance that is
received through government authority in context of subsidiary.
Economic factors it signifies economic situation, demand, supply and so on. Due to
COVID-19, the automotive sector must be affected in adverse manner. In demand and need
within market is reducing drastically due to decrease in buying behavior of user. In reference of
Aston Martin, the organization assesses £118.9loss due to effect of covid-19. In assistance of
this, there are different kinds of staff due to lack of task and work that negatively affect economy
of nation.
Social factors involves diverse element that is connected with buying or purchasing
behavior of user and its personality. In current time, due to economic downturn, the individual
person does not need to invest within luxury product. In context of Aston Martin, the focus is on
investing significant contribution within CSR activities for formulating favorable brand image at
marketplace.
Technological factor in current time, technology is important part of organization. In
assistance of this, UK is determined as twelfth largest producing of vehicle so it is important for
organization to emphasis on design and bring innovation within vehicle. In reference of
respective organization, they required to put appropriate amount of research for manufacturing
advanced vehicle (Andersen, 2020).
Environmental factor the customer increases their concerns regarding environment, thus
the demand for fuel consumable vehicle that are good from atmosphere perspective. In context of
chosen company, they required to manufacture fuel appropriate for vehicle for dealing with
recession at market place
Legal factors herein, there are different kind of rules & regulation which is followed by
organization in automotive sector. There is diverse regulation that is connected with import as
well as export of vehicle. Therefore, the taxation lenient within UK as compared to another
nation thus it is possible for Aston Martin to execute organization in an appropriate manner.
Trends in external environment

 It signifies within upcoming years, the usage of artificial intelligence focuses on
enhancing significantly within an automotive sector. In order to deal with pandemic that
affect on Aston Martin that required increasing investment in artificial intelligence as
well as other technical advancement.
 In current time demand or need of electrical vehicle is rise as individual person increase
their consent regarding environment so the organization required emphasizing on
improvement of electrical vehicle in order to minimize environmental pollution in
significant manner.
 In assistance of this, the application related to big data as well as data analytics has
increased in automotive sector. It is assess that organization focuses on assessing in
managing information in proper way.
Market size
TAM it signifies total addressable market that is really higher in reference of chosen
organization.
SAM it signifies service that is available within market that signifies potentiality of
organization. In present situation, in context of Aston Martin, they focus on serving to premium
user around the world (Breuer and Lüdeke-Freund, 2017).
SOM signify service obtainable market that signifies market that is acquired by
organization in industry. In reference of Aston Martin, it focuses on acquiring market share
within UK as well as other nation around the globe. It is generated around 1.1 billion pounds by
sales or marketing of vehicle.
Business cycle analysis
Expansion in this kind of economy, they encounter higher level of growth in increasing
production level in industry and enhance it in appropriate manner.
Peak it signifies growth that is reach to maximum level, it signifies the maximum
development potentiality of organization.

Correction signifies their growth rate is determined as a slow down and in this process
unemployment & inflation is high so there is a need of preparing appropriate strategy.
Trough is determined as a low level of economics related to downturn and after it they
focus is on entering in stage of expansion.
Market & industry opportunity
Blue Ocean Strategy herein, the organization focuses on finding such market through
which lower competition level is present so it is possible to enhance high level of profit margin.
Herein, the company focuses on staying in market until there is a low level of competition and its
market arise in competition. There are different kind of opportunities related to success and
development than company focuses on preparing appropriate strategy in context of adding
innovative feature in existing goods and also launch innovative product within market. In context
of Aston Martin, they use Blue Ocean Strategy by manufacturing innovative goods and also add
some extra features in existing vehicle. This strategy help in meeting with COVID effect in an
appropriate manner (Martinsuo and Geraldi, 2020).
Internal analysis
VRIO Analysis
It is determined as the statement is a tool that is adopted by organization for internal
assessment. It offer significant information in respect of resources that is provided within
company and offer competitive advantage at market place. In reference of respective
organization, VRIO analysis is given below:
Resources Value Rare Imitation Organization
Brand
awareness
Yes Yes No Yes
Access of critical
raw material for
successful
execution
Yes Yes Yes Yes
Competent Yes No Yes Yes

employees
Intellectual
property rights
Yes Yes No Yes
On the basis of analysis, it is analyzed that intellectual property rights is determined as
core competency related to Aston Martin as these are determined as a valuable, rare and not
copied through rival company. Therefore the organization required to adopt resources for
achieving competitive advantage over rivalries at marketplace.
Competition
In current time, every organization required to face competition level in the market. For
this process, the Porter five forces model is used to analyze competition level for chosen
organization (Möller and Halinen, 2017).
Industry rivalry it signifies that competition within an automotive sector is large so
industry rivalry is determined as a higher or larger for chosen organization. There is different
kind of company that is performed to work in this segment like Jaguar, Ferrari and so on.
Bargaining power of customer it is assess that Aston Martin focuses on operating their
business in luxury in which customer already have wider options. Bargaining power of user is
determined as a high due to extensive level of competition in industries such as Queiroz, Telles
and so on.
Bargaining power of suppliers for chosen company, the bargaining power of suppliers
is determined as a high due to limited component that are needed for manufacturing of vehicle. It
signifies that within UK there are around 2600 factor who manufacture that supplies important
resources to all manufacturing organization.
Threat of substitute in reference of Aston Martin is required to face high level of
competition due to increase in competition from other competitive firm. The threat of substitute
is determined is the higher, the user has a wider option in reference of luxury branded
marketplace.

Threat of new entrants in reference of Aston Martin, the industry rivalry is determined
as a moderate and it is well known organization that imposes positive goodwill at market place it
is determined as a luxury brand of car around the world.
Operation management
It is assess that in automatic sector, operation administration is important in maintaining
efficiency level. The operation administration is useful in handling daily operations of
organization in possible manner. In reference of Aston Martin, there are different model related
to operational administration that is given below:
Total quality administration it is appropriately adopted model that emphasized on
quality of goods and services. The primary purpose is to handle quality related to production by
decreasing waste & eliminating inaccurate activities. In context of Aston Martin, their purpose is
to offer quality goods to its user. This technique is adopted; it is useful in increasing whole
quality of good for offering satisfaction to its user (Queiroz, Telles and Bonilla, 2019).
Kaizen is determined as a technique related to operational administration and
emphasized over continuous improvement or development. In context of Aston Martin, they
required to adopt this model by assessing manufacturing procedure on regular basis so that they
can focus on making appropriate improvement within timely manner. In manufacturing &
producing procedure is analyzed so that necessary development is undertaken in whole process
of production.
Six Sigma is determined as a technique related to operation administration that is applied
for increasing quality related to production in appropriate manner. In context of Aston Martin,
they required to use this model in order to produce superior quality goods for achieving
satisfaction level of user with using this technique the organization is capable to produce higher
quality of goods for further betterment.
Managing Changes
Impact of implementing changes

It signifies that changes is important for every organization in this regard Aston Martin
bring changes within present practices that is understand by using Lewin model related to change
administration that is given below:
Unfreezing this is determined as a first step related to change in which organization
introduces & launch changes in workplace that is not resist by subordinate. The manager of
chosen organization required to maintain appropriate coordination with staff so that they know
significance of practices of changes.
Changing it is determined is a primal level is in which company apply practices related to
change in proper way. The management team of respective company needed to stimulate
subordinate on continuous basis by offering them necessary advantage.
Freezing is determined as a last stage in which organization required to make sure that
changes must be sustained at organization. Herein, the management team of Aston Martin makes
sure that subordinate get comfortable along with practices related to changes and does not back
on traditional approach related to work (To, Au and Kan, 2019).
Influence of culture on management decision making
This is called Handy’s model of culture that is designed to analyze the effect of culture on
administration practices of decision making. As per this model, there are four kinds of culture
that is followed by company that is given below:
Power culture in this, power must be lies in hand of few individual people belong to
higher level of administration. These people must be authorized to take important decision of
organization.
Task culture the team is executed for achieving task in given time period
Person culture in the individual is concerned regarding self besides company every
individual person provide significance to self rather than organization.
Role culture the role are allotted to every subordinate according to its qualification,
specialization for a full utilization of potentiality or advantages of company

Stakeholder Analysis
It is important part of organization that has great interest within company. The primal
stakeholder of company is customer investor, supplier and so on. In reference of Aston Martin,
the stakeholder analysis is given below:
Identify herein, the stakeholders are assessed in appropriate manner in reference of
respective organization, customer assessed as measures significant stakeholder
Analyze the management team of Aston Martin assess stakeholder and its activity for
executing appropriate strategy or tactics for growth and development in future period of time.
Prioritize after understanding stakeholder analyzing, the next level is to prioritize its
demand in proper way.
Encourage it is a last stage in which stakeholder increase their involvement with
activities of organization in proper way (Tregua, 2020).
PART 2
RECOMMENDATIONS
 In reference of organization, it must be recommended that company required using
PDAC approach for appropriate planning and development of company. PDAC signifies
the regular law related to planning, assessing, doing as well as acting. It offers effective
approach in order to reach problem and appropriately handling changes for the
organization. It appropriately analysis marketing condition in order to prepare appropriate
plan.
 On above explanation, it can be recommended to chosen organization so that they
required making appropriate strategy connected to fuel consumption for success and
growth of organization. It significant that they focus on fulfillment CSR activity
appropriately for that they required to make appropriate strategy that make goods that is
more sustainable. They fulfill CSR activities of organization generate positive image of
goodwill of organization that help in increasing sales of product.

 The other recommendation for chosen organization is that they required to adopt digital
marketing technique in order to attract user in respect of goods and also required to offer
online services to its user as because covid-19 the user is unable to purchase product from
its store and showroom for enhancing sales at the time of covid-19 they will need to use
online method in order to sell its goods and also increase engagement with user for that
the generates better reputation and goodwill of organization.

CONCLUSION
On the basis of above given assignment, it is assess that the organization is very important in
economic success and development. It is also useful in creating employment that increases
economic situation of nation. The current assignment signifies micro and macro analysis of
company by using proper tool like Blue Ocean Strategy, PESTEL analysis and so on. In
assistance of this, the competitor analysis has included in this assignment in addition with proper
technique related to operation administration. And, it involve change administration model like
Lewin’s model for executing changes within business organization in an appropriate manner.
Therefore, the stake holder analysis has also carried out in report by using power and also
influences grid matrix in addition with proper recommendation for further development.

REFRENCES
Books and Journals
Alves, H., Fernandes, C. and Raposo, M., 2016. Value co-creation: Concept and contexts of
application and study. Journal of Business Research, 69(5), pp.1626-1633.
Andersen, T.J., 2020. Managing in Dynamic, Complex and Unpredictable Business Contexts.
In Adapting to Environmental Challenges: New Research in Strategy and International Business.
Emerald Publishing Limited.
Breuer, H. and Lüdeke-Freund, F., 2017. Values-based network and business model
innovation. International Journal of Innovation Management, 21(03), p.1750028.
Martinsuo, M. and Geraldi, J., 2020. Management of project portfolios: Relationships of project
portfolios with their contexts. International Journal of Project Management, 38(7), pp.441-453.
Möller, K. and Halinen, A., 2017. Managing business and innovation networks—From strategic
nets to business fields and ecosystems. Industrial Marketing Management, 67, pp.5-22.
Queiroz, M.M., Telles, R. and Bonilla, S.H., 2019. Blockchain and supply chain management
integration: a systematic review of the literature. Supply Chain Management: An International
Journal.
To, C.K., Au, J.S. and Kan, C.W., 2019. Uncovering business model innovation contexts: A
comparative analysis by fsQCA methods. Journal of Business Research, 101, pp.783-796.
Tregua, M., 2020. Value creation as a picklock to understand business contexts. International
Journal of Business and Globalisation, 24(4), pp.433-451.