Business Contexts and its Management

This report evaluates the internal and external environmental analysis of Aston Martin, change management, organizational culture, operational management, and stakeholder analysis. It also discusses the application of the PDCA cycle in business planning.

Business Contexts
and its Management
Table of Contents
1

INTRODUCTION...........................................................................................................................3
MAINBODY....................................................................................................................................3
PART - 1..........................................................................................................................................3
Internal environment analysis ....................................................................................................3
Mc Kinsey 7s Model:..................................................................................................................3
External environment analysis....................................................................................................5
Managing change, Organisation culture and Operational management: ...................................6
Stakeholder analysis:...................................................................................................................7
PART - 2..........................................................................................................................................8
INTRODUCTION...........................................................................................................................8
MAINBODY....................................................................................................................................8
Application of relevant planning model:.....................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
INTRODUCTION
Business is refers to an organization or an enterprise that engages in various commercial,
industrial along with professional activities. Management of business is crucial as it allows in
effective alignment of goals as well as objectives. In addition to this , it allows an organization to
have utilize its resources in an optimal manner and ensure high level of productivity as well.
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Moreover, proper management of business allows in saving cost that can be utilized in other
operations of the business to improve performance (Boone and et.al., 2019). For the following
report Aston Marin has been taken into consideration which is a British independent
manufactures of luxury sports cars and headquartered in Gaydon, UK. The following report will
consists of evaluating the internal and external environmental analysis of the chosen organization
through various analytical tools. Furthermore, the report will highlight, change management
along with organizational culture and operational management. In addition to this, it will also
consist of stake holder analysis of the chosen organisation (Gitman, McDaniel and Shah., 2018).
MAINBODY
PART - 1
Internal environment analysis
Mc Kinsey 7s Model:
McKinsey 7S model is one of the popular strategic planning tool used in analyses of
company's organisational design by undertaking key internal elements such as structure,
strategy,skills,staff, style,systems and shared values. In relation to this, the purpose of this model
is to effectively align these elements and helps the organisation to achieve its objectives in an
effective and efficient manner. The key understanding of this model is that all 7S elements are
interconnected in a manner that if one area is changed than it is compulsory to change the rest of
areas to operate in an effective manner (Liu., 2020).
The seven elements of McKinsey model are divided into “Soft” and “Hard” areas.
Strategy, structure and systems are considered as hard elements that are easier to determine and
manage as compared to soft elements. On the other side, soft elements contain Style, staff, skills
and shared values which are difficult to manage but are important areas to increase the
competitive position of the company. The following explanation on seven elements of McKinsey
are:
 Strategy: It refers to development of short term or long term plan in order to attain
organisation's goals and objectives and to achieve sustainable competitive advantage in
the market. In context to Aston martin, This model guides the company to make sound
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long term and short term strategies which allows it to analyse its challenges and
opportunities in response to competitive environment.
 Structure: It represents the manner in which business units are designed and organised
and also describes the information about who is accountable to whom. This element is
flexible to change in case if it is not aligned with other elements. In context to Aston
martin, this model helps the firm to design and formulate competitive business divisions
by analysing challenges and opportunities of structure in relation to its competitive
environment (Razmi, Mehrvar and Hassani., 2020).
 Systems: It refers to activities and procedures which is required to perform day to day
tasks and provides guidance to managers involved in decision making process. In context
to Aston martin, the model helps the firm to follow certain procedures in order to perform
their daily operational tasks and also helps in decision making process by analysing
challenges and opportunities behind every decision.
 Skills: It refers to the abilities and competence level of firm managers necessary to
perform task in a best possible manner . In context to Aston martin, the model helps the
firm to identify skills required to implement new strategies in the competitive market.
 Staff: It is concerned with recruitment of employees needed by the company in order to
run its operation effectively. In context to Aston martin,it helps the firm to recruit and
train staff members which helps the firm to gain competitive edge in market.
 Styles: It represents the manner in which the company is managed by top level managers
and also tells about mode of interaction and their actions. In context to Aston martin, it
helps the firm to find a best possible management style for the company's leader.
 Shared values: This is the foundation element of McKinsey model that sets the norm and
standards in order to guide employees behaviour and actions of the company. In context
to Aston martin, this model helps in setting standards of performance that helps the
company to review their actions in an appropriate way.
External environment analysis
There are various external environment factors that impact an organization and influence
its overall operations. The various factors need to be evaluated by a business in order to develop
suitable strategies in overcoming the challenges as well as identify vital opportunities in the
market. In context to Aston Martin, the organization has to evaluate its external environment in
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order to determine the dynamic changes and how its impacts its operation. Given below are some
of the external factors that influenced the operations of Aston Martin:
Unemployment rates:
The high rate unemployment impacts the operation of the organization as it reduce the
overall purchasing power of customers as well as disrupts the economy of a region which
negative influences various operation of the business.
Changing customer trends:
The changing trend of customers is dynamic in nature and influences the development of
strategies within the organization. This influences its operations relative to development of
products and services.
Competition in the market:
The entrance of new competition along with the existing rivals impact the operations of
the business relative to development of products and offering price as well. This force the
business to constantly develop strategies that will provide the business with competitive
advantage in the market.
Analysis of the sector:
In order to analyse the sector of Aston Martin TAM, SAM, SOW has been utilized in
order to analyse the overall market size as well as performance of the organization. TAM,
SAM, SOW are acronyms that represent different subsets of a market:
TAM:
Total Available Market is the total market demand for a product or service, in context to
Aston Martin, the market cap of the organization is at 1.82 billion dollars and is ranked the
worlds 3,631th most valuable company. The organization has a moderate market share and has
lately been performing well. The overall demand of its products has also seen an increase in
demand as the business is based on producing over 6,000 vehicles in the year (Aston Martin
surge demand).
SAM:
Serviceable Available Market is the segment of the TAM targeted by an organizations
products and service which is within geographical reach. In context to Aston Martin, the
organization is focus on developing luxury cars that is oriented towards upper class. The
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business pays emphasis on developing product with high quality and utilized innovate
technology in order to gain market competitive and improve its performance in the market. In the
year of 2020 the organization had sold over 4,000 vehicles which helps the business to improve
its market share relative to its competitors (Aston Marin is delivering something rare these days).
SOM:
Serviceable Obtainable Market is the portion of SAM that an organisation can capture, in
context to Aston Martin, the organization has the potential to capture a larger market share due to
its established brand image in the market along with popularity of its products. Although the
organization in recent times has not been able to capture the market at its full capacity. This has
reduced both the productivity as well as performance of the organization in the market( Market
cap).
Managing change, Organisation culture and Operational management:
Kurt lewin's change model
This model conveys an easy and practical approach for the understanding the process of
change in the company. According to Lewin, the change is necessary for every organisation in
order to construct a desired level of behaviour necessary for achieving sustainable competitive
growth in the market. This model is widely used by many firms in order to support their change
models (Crosby., 2021).
Unfreezing: This is the initial step where the goal is to educate and create an awareness among
the staff about the advantages associated with change on the company's day to day operational
activities. In context to Aston martin, this model helps the organisation to create an awareness
program for accepting change by showing its merits and how important it is for the firm to
enhance competitive advantage in the marketplace.
Changing: This is the stage where the implementation of change takes place in the organisation.
This is the stage where uncertainty and fear occurs in the mind of staff members regarding
learning of new behaviour, processes and styles. In context to Aston martin, this model helps the
company to introduce and implement new changes in an effective manner. It helps the company
to educate and provide communication support to the staff members in to make them familiar
with the change.
Refreezing: This is the last stage where people in organisation starts to accept changes and ready
to adopt new ways of doing things and processes. Moreover, this is the stage in which employees
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start to build new relationships. In context to Aston martin, this modal helps the employees to
accept change and guides them to undertake new measures according to change in the
organisation. In addition to this, It motivates the employees to stick to new ways by giving
prizes and recognition for their efforts (Memon, Shah, and Khoso., 2021).
Stakeholder analysis:
It is a management tool used to identify parties who are directly and indirectly involved
in the management of company and posses a keen interest in the project of company. In context
to Aston martin, it helps the firm to identify various internal and external parties interested in its
business by undertaking stakeholder analyses There are following 4 types of stakeholder
(Eskerod and Larsen., 2018):
 Higher power and low interest: These type of stakeholder possess a high power in the
market but does not have keen interest in the operations of a business. The parties
involved in this can be customer, government bodies and the sponsor. In context to Aston
martin, this analysis helps the firm to determine parties from external environment who's
activity can put a greater impact on the projects of the company.
 High power and high interest:These type of stake holders have a high power and posses
a high interest in the project of the company. The parties involved in this are mainly
board of directors and head of the company. In context to Aston martin, this analysis
helps the business to identify the parties who are powerful and has a greater interest in
companies project by analysing the internal and external properly.
 Low interest and low power: The stakeholder who possess a low power and low
interest falls in this category. It generally includes ground level employees who possess
low power in impacting the growth of the project. In addition to Aston martin, it helps
the firm to analyse the parties who posses low interest and power through strategical
analysis of internal environment.
 High interest and low power: The parties who have a great interest in the project but
doesn't impact its operation due to low power. It includes suppliers and internal users of
information. In context to Aston martin, it helps the firm to analyse parties who have a
high interest but have a low power by analysing the external and internal environment
properly (Serravalle and et.al., 2019).
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PART - 2
INTRODUCTION
Business planning refers to the overall process of the management relative to developing
plan that include all aspect of the operations of the organization. The aspect of business planning
is crucial as it alls the management to outline the overall goals and objectives of the organization.
In addition to this, it allows the business to establish its overall culture along with value and
mission that the organization will be based on. Moreover, business planning enable a business to
set both short-term as well as long term goals that it wants to chive in a specific amount of time.
MAINBODY
Application of relevant planning model:
PDCA Cycle:
It is strategic tool allows various organizations to formulate theories that are based on the
need to changes and allow the ability to test them in a continuous loop. The PDCA cycle consists
of solving problems and implementing solutions in a rigorous as well as methodical way. Given
below are the four stages of the cycle:
Plan:
The planning stage consists of the mapping out of what the organisation is trying to do in
order to solve a problem along with focus on change process. This step allows a business to
identify and analyse the problems along with opportunity for change. In context to Aston Martin,
this stage will allow the management to develop strategies related to overcoming the challenges
of COVID-19. This will help the business to develop a strategy that is aligned with its goals and
objectives and ensure it is able to improve its performance.
Do:
This step of the cycle pays emphasis on the smaller along with incremental changes in the
organization that enhance the overall process with minimal disruption. In context to Aston
Martin, the organization had to focus on developing plan that is based on improving its sales by
understanding the overall preference of customers and the market trend as well. The situation of
COVID-19 took a huge impact on its operation of the organization. This sept will allow the
business to smooth out its plan to overcome challenges in an efficient manner.
Check:
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This step is initiated once the business have competed its trail of plan and marks the
beginning of reviewing as well as analysing the results. This stage is crucial for a business as it
allows it to evaluate its solutions along with revise the set plan. It helps the business to
understand if its plan has any hindrances or challenges that it needs to further overcome. In
context to Aston Martin, this stage will allow the higher management to evaluate developed
strategies in order to understand any gaps in its intended purpose. In addition to this, it will help
the business to evaluate the overall performance and efficiency of the plan.
Act:
This is the final stage of the cycles and if everything went accordingly to the plan the
business can now implement its tried and tested plan. This new process becomes the overall
baseline for future. In context to Aston Martin, this stage will help the business to implement its
tested plan in order to overcome the challenges in the market that are based on the situation of
COVID-19 pandemic along with customers preference as well as competitors.
CONCLUSION
From the above report it has been concluded that, it is crucial for a business to evaluate
its internal and external business environment in order to identify various opportunities as well as
threats in the markets. In addition to this, the report was able to conclude that the change in
management plays a vital role in an organization and influences its overall performance along
with its culture. Moreover, it is important for a business to manage its operation's in order to
achieve high level of productivity and attain growth in the market. The report also highlighted
that a business should evaluate its stake holders through analysis in order to understand their
influence on the activities of the business.
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REFERENCES
Books & Journals:
Boone and et.al., 2019. Contemporary business. John Wiley & Sons.
Crosby, G., 2021. Lewin’s Democratic Style of Situational Leadership: A Fresh Look at a
Powerful OD Model. The Journal of Applied Behavioral Science, 57(3), pp.398-401.
Eskerod, P. and Larsen, T., 2018. Advancing project stakeholder analysis by the concept
‘shadows of the context’. International Journal of Project Management, 36(1), pp.161-169.
Gitman, L.J., McDaniel, C. and Shah, A., 2018. Introduction to business. Rice University.
Liu, H., 2020, March. Research on Library Data Management Reform: Discussion on McKinsey
7S System Thinking Model. In 2020 6th International Conference on Information Management
(ICIM) (pp. 295-298). IEEE.
Memon, F.A., Shah, S. and Khoso, I.U., 2021. Improving Employee's Engagement in Change:
Reassessing Kurt Lewin's Model. City University Research Journal, 11(1), pp.144-164.
Razmi, J., Mehrvar, M. and Hassani, A., 2020. An Assessment Model of McKinsey 7S Model-
Based Framework for Knowledge Management Maturity in Agility Promotion. Journal of
Information & Knowledge Management, 19(04), p.2050036.
Serravalle and et.al., 2019. Augmented reality in the tourism industry: A multi-stakeholder
analysis of museums. Tourism Management Perspectives, 32, p.100549.
Online:
Aston Martin surge demand.,2021[Online]Available through<https://www.business-
standard.com/article/automobile/aston-martin-surges-as-demand-for-223-000-suv-brightens-
outlook-121022600023_1.html>
Market cap.,2022.[Online] Available
through<https://companiesmarketcap.com/aston-martin/marketcap/>
Aston Marin is delivering something rare these days.,2021.[Online] Available
through<https://www.bloomberg.com/news/articles/2021-08-30/aston-martin-is-delivering-
something-rare-these-days-good-news>
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