Business Contexts and its Management

Business Contexts and
its Management

Table of Contents
INTRODUCTION.......................................................................................................................................3
PART 1.......................................................................................................................................................3
External environment..................................................................................................................................3
Market size:.............................................................................................................................................5
Business cycle analysis............................................................................................................................5
Internal analysis...........................................................................................................................................6
VRIO Analysis........................................................................................................................................6
Competition.................................................................................................................................................7
Operation management................................................................................................................................8
Managing Changes......................................................................................................................................8
Stakeholder Analysis.................................................................................................................................10
PART 2......................................................................................................................................................10
RECOOMENDATIONS...........................................................................................................................10
CONCLUSION.........................................................................................................................................12
REFRENCES............................................................................................................................................13

INTRODUCTION
Business organizations play a great role in economic growth and success. These are also
helpful in generating employment which further improves in economic condition of country. It is
stated that current pandemic has put a devastating impact over companies belong from different
industries. Due to this, companies are facing enormous decrement in their sales and profit
margin. However, there are some industries which earn profit during pandemic such as online
learning, ecommerce, online fitness and more (Sah, 2016). In the current report Aston Martin is
taken into consideration which is a renowned company of automotive industry. It was founded in
the year of 1913 in London and currently has been expanded business at global level. It is
analyzed that company is facing huge adverse impact due to ongoing crisis of COVID 19. The
present report comprises internal and external analysis of organization by applying appropriate
tools such as Blue ocean strategy, PESTLE analysis, VRIO analysis and more. In addition to
this, competitor’s analysis has also been included in the report along with the appropriate
techniques of operation management. Apart from this, it included change management model
such as lewin’s model and more for implementing changes in business in an efficient manner.
Lastly, stakeholder analysis has also been carried out in report by applying power & influence
grid matrix efficiently along with the appropriate recommendations for further enhancement.
PART 1
External environment
There are a lot of elements present in external environment which significantly affect the
business. Thus, it is imperative for managers to undertake analysis of external environment so
that they can take necessary actions accordingly. In this regards, PESTLE analysis of Aston
Martin is given below:
Political factors: It is related with prevailing political environment of country. It is stated
that change in current government brings changes in existing business policies. In context of
Aston martin, their future will be highly affected with the financial aid assistance received by
government authorities in terms of subsidiary (van Vuuren, 2020).

Economical factors: It comprises elements such as economic condition, demand, supply,
cost, employment opportunities and more. Due to ongoing pandemic, automotive industry is
adversely affected. In market demands of cars is decreasing drastically due to decrement in
purchasing power of customers. In context of Aston Martin, the company recorded £118.9 loss
due to impact of COVID 19. In addition to this, they also lay off plenty of staff due to lack of
work which negatively affects the economy of country.
Social factors: It includes different factors which are related with personality, buying
behavior, of customers. In present time, with economic down turn, people are not likely to invest
in luxury goods. Now, Aston Martin is requires to invest significant amount in CSR activities in
order to formulate positive image of brand in market place.
Technological factors: In present time, technology is crucial part of business. In addition
to this, UK is the twelfth largest manufacturer of vehicles so it is essential for companies to focus
over design, and technical innovation in vehicle (Schumacher and Mayer, 2018). In context of
respective company, they also need to put adequate amount in research and development for
producing advance vehicles.
Legal factors: Under this, a lot of legalities, rules, regulation are included which need to
follow by an organization. In automotive industry, there are two major regulations which are
related with imports and exports of vehicles. Here, taxation and rules are relatively lenient in UK
in comparison of other countries. Therefore, it is easy for Aston Martin to operate business in
UK in an efficient manner.
Environmental factors: In current time, customers are more concern about environment
thus demand for less fuel consumable vehicle which are good from environmental prospective
also. In reference of respective organization, they need to produce fuel efficient vehicles in order
to deal with the recession in market place.
Trends in the external environment
 It is stated that in upcoming years use of artificial intelligence will significantly increase
in automotive industry. For dealing with post pandemic impacts Aston Martin needs to
invest significant amount in artificial intelligence and other such technical advancements.