BMGT490 Business Policies & Strategic Management

Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
Instructor: Dr. Hisham Al-Radhi
Done by:
1. Thoria Al-komim
2. Manal Sharhan
3. Rasha Atif
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
Table of Contents
Background:.............................................................................................................5
Current Situation:...................................................................................................5
Current Performance:............................................................................................5
Strategic Posture:...................................................................................................6
Mission:.............................................................................................................6
Vision:...............................................................................................................6
Values:...............................................................................................................6
Objectives:.........................................................................................................7
Strategies:..........................................................................................................7
Strategic Managers..................................................................................................9
Board of Directors:................................................................................................9
Top Managers:.......................................................................................................9
External Environment:...........................................................................................9
Societal Environment:...........................................................................................9
Economic:..........................................................................................................9
Technology:.....................................................................................................10
Political–legal:.................................................................................................11
Sociocultural:...................................................................................................11
Task environment:...........................................................................................12
Internal Environment:..........................................................................................13
Corporate Structure:............................................................................................13
Corporate Culture:...............................................................................................15
Corporate Resources:...........................................................................................16
Analysis of Strategic Factors................................................................................18
Situation Analysis:...............................................................................................18
S. Strengths:.....................................................................................................18
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
W. Weaknesses:...............................................................................................18
O. Opportunities:.............................................................................................18
T. Threats:........................................................................................................18
Review of Current Mission and Objectives:.......................................................19
Strategic Alternatives:...........................................................................................19
Strategic Recommendation:.................................................................................19
Implementation:....................................................................................................20
Evaluation and control:........................................................................................20
Tables:....................................................................................................................21
IFAS:...................................................................................................................21
EFAS:..................................................................................................................23
SFAS:..................................................................................................................25
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
Background:
introduction
Lamborghini car is a company located in Italy（ Sant'Agata Bolognese) it is a sports car
manufacturers, Lamborghini was founded in 1963 by FeiLuJi Europe. but in 1980,It's went
bankruptcy.1998 years become part of AUDI, at present is owned by public Group (Volkswagen
Group) one of its brand. Lamborghini's mark is a head full of strength,bull going to attack,and
express the founder has bullfighting's personality
With 165 dealerships throughout the world, the company has seen global sales growth for the last
nine consecutive years, with 8,205 cars delivered in 2019. few-off build of only 63 units, the
company delivers unique new hybrid technologies, featuring the world-first application of a
supercapacitor for hybridization, new materials technology, and unsurpassed Lamborghini
performance.
Current Situation:
Current Performance:
Automobili Lamborghini continues its global growth and marks new historic highs: 8,205 cars
delivered in 2020.
In Fiscal Year 2020 (1 Jan – 31 Dec), Automobili Lamborghini S.p.A. continued its strong
global growth. With an increase of 43% from 5,750 to 8,205 cars delivered to customers around
the world, the Italian super sports car brand achieved sales growth for nine years in a row and set
another historic sales record
Lamborghini increases worldwide sales by 43% to 8,205 units
Global sales growth for nine consecutive years
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
Strong sales performance for both super sports car model lines: V10 and V12
Super SUV continues high sales momentum: almost 5,000 Urus delivered to customers
Record sales performance across all regions: EMEA, America and Asia Pacific
USA confirms its position as largest single market
Strategic Posture:
Mission Statement: “To deliver the most desirable luxury super sports cars we aim to
uncompromising Quality up to the finest detail. Quality is a Core competence of Automobili
Lamborghini.”
We can see from the mission statement that quality has crucial importance for Lamborghini.
They choose it over everything and consider outstanding quality their biggest advantage.
Vision Statement: “Design and produce the most reliable, appealing, and innovative luxury super
sports cars worldwide, with the purpose of exceeding expectation of our customer.”
Lamborghini gives big importance to the preferences and expectations of its customers. It wants
to continuously improve itself and keep up impressing and cheering the customers.
Values :
" sensual " Evocative styling and performance .
"uncompromising " no expenses spared to meet high standards .
"Aggressive " Engineered to inspire fear in its rivals
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
"challenging " Not for the faint hearted
"Extreme " pushing the limits in every aspect .
"Exclusive " Only for the most deserving , select few.
" Italian " Designed to inspire fear in its rivals.
Objectives:
The objectives of Lambergini include:
to strategically develop hybrid variants for all next-generation super sports car models.
presenting new models and initiatives within exclusive and personalized settings and events for
customers and media
to growth in the large economies around the world and due to its young and attractive product
portfolio
to growth in new dimensions of both unit sales and turnover in the medium term
embraces innovation to make life a more satisfying and thrilling experience for everyone.
to be more progressive and more sustainable.
Strategies:
Lamborghini Group Strategy:
1. Increase brand awareness
“We saw there was the potential for big growth in terms of global brand awareness of
Lamborghini,” Domenicali offers. “In new markets, our heritage has zero value. They don’t
know about Lamborghini. Success in new markets is with the younger generation, which is why
we must show that we are the coolest, the sportiest and the most dynamic brand.”
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
2. Grow sales
Last year, Lamborghini’s global sales leapt up by almost 70%. Were Domenicali a less humble
man he might attribute that particular success to his own radiant genius, but he’s quick to point
out that a sizeable leap was inevitable following the launch of the Urus super-SUV. This being
its first full year on sale, the marque will almost certainly post another record sales year in 2021.
3. Continue building show-stopping engines
Manufacturers throughout the supercar sector have been moving away from normally aspirated
engines and towards turbocharging – Ferrari very much among them.
4. Introduce a fourth model line
If sales continue to grow as Domenicali forecasts between now and 2025, his company will then
be in a position to introduce a fourth model to complement the entry-level Huracán supercar
5. Carry on building cars for people who love driving
“People have been in love with cars for a long time and they want to drive them,” says
Domenicali. As the mainstream automotive sector hurries towards an autonomous future and a
short-term rental rather than ownership model, Domenicali believes there will be demand for
high-end performance cars for a long time yet
Strategic Managers
Board of Directors:
_ There are 8 members of the board of directors all of them are internet.
_ Stephan Winkelmann, president and chief executive officer
_ Polo Poma chief financial officer
_ Maurizio Reggiani chief technical officer
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
_ Ranieri Niccoli manufacturing officer
_ Giovanni Perosino chief commercial officer
_ Kati Bassi chief marketing and communication officer
-Federico Foschini chief procurement officer
-Umberto Tossini chief human capital officer.
Top Managers:
_ There is only one chairman:
_ Stefano Domenicali, chairman.
External Environment:
Societal Environment:
Steeple is a model to analyse the macro environmental.it including
society,economy,political, technology and environmental factors.This strategy tools can
effective understanding market growth or decline, the potential and working direction.in
those factors will be analyzed in detail of Lamborghini company.
1.social environment: the phenomenon of Lamborghini mania has promoted sales of
Lamborghini and competent.
2.technological environment: the manufacturing level of car has been improving very fast.
Lamborghini have to running fast and set Farrari as a goal to catch up with.
3.economic environment: in recent year, the world has been experiencing recession
period.so, Lamborghini will slow down its economic growth.
4.political environment: the government of the Italy, Lamborghini’s homeland, offers
strong support for Lamborghini to develop. because that can improve the economic growth
of government.
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
5.environmental factors: people have a weak opinion on green issue, because, its
make cars very slowly and that's doesn't affect their products and services.
Internal Environment:
Corporate Structure:
Large organizations like Lamborghini automobile company have a tall organizational structure
that looks like a pyramid, with several management layers that reflect a more complex reporting
structure with each and every employee having a specific operational role. A brief outline of the
Lamborghini Corporate Hierarchy is given below:
Top:
President/Chairman forms the top of the Lamborghini corporate, pyramidal structure.
Top Level:
The Board of Management includes the Vice President, Secretary, Treasurer and the Directors of
the various departments like Development, Production, Finance, Purchasing and Supplier
network, Sales and Marketing, Human Resources and After Sales. The Chairman or President is
the governing officer of the Board.
Second Level:
This level includes of the Executive Director.
Third Level:
This level comprises of the Office Manager Accountant: Managing Editor: Art Director
Advertising Director and Volunteer staff.
Fourth Level:
This level forms the lowest rung of the organizational structure and comprises of the receptionist
Membership.
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
Thus, a large company like Lamborghini has a well-organized corporate structure with many
layers of management.
Corporate Culture:
1. Desire and Satisfaction:
The Lamborghini Group culture is having the desire in order to build new paths, thinking ahead
and breaking new ground. They look for employees who have:
1. The team spirits
2. 2. Initiative
3. 3. The desire to learn new things every day; hiring those who want to get experience and
do something extraordinary.
2. Teamwork and Personal Development:
Like with most company cultures where teamwork is important, the Lamborghini Group culture
believes in being great and creative as team. They are constantly motivating peers to attain even
greater heights, in order to make their products even more remaining. The Lamborghini Group
value and treat each other with respect; thus, employees are connected by a strong sense of unity.
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first
Prisede
nt
VP
second: Executive
Director
Third:Office Managers
Fourth:Receptionist

Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
3. Equal Opportunities and Variety
Working as a team where people will be treated equally and showing no prejudices or bias
should be one of the company cultures. The employees of the Lamorghini Group work in
different countries on different continents, so they are working with a pool of peers regardless of
their nationality, religion and gender.
This means that the best person for a job or a promotion is the person who earns that position
based on qualifications, experience and knowledge. However, diversity includes not only race
but gender, ethnicity, personality, age, education and background. Workplace diversity values
everyone’s differences.
Corporate Resources:
In order for every organization or firm to succeed and survive globally, it requires and must
possess certain resources and competencies. According to our resource, every firm has its own
strategic capability to endure against all chances. The most common resources include
A: Tangible resources which include the physical capital such as the plant, finance and human
labor within the organizations
B: Intangible resources include the non-physical capital such as information, knowledge and
status
Lamborghini’s resources are categorized into:
1. Physical resources which are generally designed and styled technology; supply chain and
agreement management; effective market segmentation
2. Financial resources which turnover, gross margins, profit margins and annual surpluses
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
3. Intellectual capital represented by the excellent reputation in engineering, powerful brand
identity known for its reliability and luxury.
4. Human resources comprising of young and wealthy professionals
Beginning competencies represented by good relationships with the suppliers, expected quality,
reliability and dealings
Core competencies known for its speedy production and technology that are the ultimate driving
machines for Lamborghini
Threshold resources of integrated supply chain, worldwide production and assembly units
supported by young and astute employees
Unique resources of high-quality labor force and excellence in engineering
Cost efficiency at Lamborghini is possible by the contributions of economies of scale, supply
chain, experience and product/process design
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
Analysis of Strategic Factors
Situation Analysis:
Strengths
1- Lamborghini is known for superior handling & high speed i.e. performance
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
2- Technology sharing with the sister & parent companies i.e. Audi &
Volkswagen
3- Small workforce of around 850 employees they design & produce one the
best in class products & satisfy the global demand as well, producing around
1800 vehicles a year
4- Established the standard that to have a mid-rear engine layout & rear wheel
drive design for sports cars & super sports cars
5- Lamborghini has top of the mind brand recall owing to its stylish looks and
power performance
Weaknesses
1- High Price: The quality cars come at a price but it also faces the most
backlash at times of economic crises. In the past, Lamborghini has faced
similar issues when their sales have almost diminished by 50 percent. But
Volkswagen is working better than previous owners.
2- Fuel Cost is High: The powerful cars eat up a lot of fuel and it possesses a
high cost. It also threatens the environment due to pollution.
3- Maintenance charge is too high
4- Specific Repair Regional Shops
Opportunities
1- To go increase customer relations events & activities which will enhance the
ownership experience
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
2- Expand the Availability: Right now Lamborghini is out of reach for
many people and they have to tediously import the car. If the company work
on it then they can have a much better market and consumer base.
Increase in Better Customer Service: It is a hard work to source parts of a
Lamborghini model if something goes wrong. Fixing the car takes a whole lot of
time and often
3- shipping it to a different country doesn’t work. So, setting up service bases
in different countries would be a good option for Lamborghini.
4- Hybrid Cars: Their hybrid car model is still a concept model and hasn’t been
released. But in the near future, an electrically powered car would be
accepted worldwide. Companies like Tesla have already released cars that
are electrically powered. This will be a great move to catch the Eco-friendly
consumers who may move on to different companies if alternatives aren’t
provided.
5- Production of Cars Based on Demand: They have limited themselves to
make a certain amount of cars in a year. But demands are rising in people
and if they do not get a Lamborghini they move on to other similar
companies. So, producing more cars based on demands will increase the
market.
Threats
1- The threat is the niche regional players & custom modifiers who have the
regional presence & ability to make a car to exact taste of the buyer
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
2- Intense competition for Lamborghini in the niche segment from other
premium brands
3- Government policies against high fuel consuming super cars
4- Fuel Consumption: Lamborghini cars eat up a lot of fuel and it isn’t Eco-
friendly at all. So, the company may have threats when people gravitate
towards environment safe options.
Review of Current Mission and Objectives:
1- The point here is that we need to use as well qualitative measurements that are best suited to
company's mission and objectives.
2- Company also needs to recognize the inherent limitations of data generated through non-
probabilistic methods.
Strategic Alternatives:
- Many techniques can be used to formulate strategy including Porter’s five competitive forces,
Porter’s four competitive strategies, the product life cycle,
diversification and synergy, and competitive intelligence.
-The differentiation strategy offers products or services that are of unique and superior value
compared to those of competitors, and sell to a wide market.
-Lamborghini is Known for superior handling & high speed performance its allegedly under the
scanner of environmentalists who feel fuel consumption is a lot.
To increase the global reach as currently it is present in very few regions Government policies
against high fuel consuming super cars.
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
Diversifying into new products such as electric cars, and use batteries for other
products such as solar panels.
2-pause / proceed with caution stability strategy
Slowly introducing new products. One product to test the market response, then going
for a full growth strategy .
3-horizontal growth strategy: product development
Lamborghini utilize its strong R&D department to further develop new product and
target wider range of customers.
4 -horizontal growth strategy: market development
An efficient way to grow is though entering new market. The more customers can reach,
the more cars it sells, the more capital it has to expand and develop the company should
still focus on its niche
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
Strategic Recommendation:
1 -Develop & Implement Culture Change Initiatives In order for Strategy 2025 to be effective and realize
the expected benefits, a break from the old intense, cutthroat Lamborghini culture is imperative .
2 -Improve Brand Image & Regain Consumer Trust
3 -Improve Quality and Productivity
4 -Develop Joint Venture Partnerships to Rapidly Develop Core Competency in Battery Technology
5 -The company should create maintenance and repairable shops in different zones .
Implementation:
It is the process by which strategies and policies are put into action through the development of
programs, budgets, and procedures .
Identify critical success factors
Build and staff the organization
Integrate operation management with other activities
The operations manager’s job is to implement an operation management strategy,
provide competitive advantage, and increase productivity
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
Marketing
- Broad price ranges
-promotion
-Building brand equity
-Surveying the market to identify customers' needs
-Using different distribution channels
-dividing markets into segments and target each segment separately
Resource &development
New products that increase buyer value -
Human resources
Provide sufficient training - .
-recruit new talents with diverse backgrounds .
Information system
-Advance information system to connected all department & employees .
Finance
- Provide great deal of capital .
-Accurate studies in terms of dept. to capital and other ratios .
Evaluation and control:
The strategy of evaluation and control must be observed from time to time so that actual
performance can be compared with desired performance in order to solve problems and correct
actions. This strategy can specify weaknesses in previous implemented strategy plans. Also there
should be contacts with customers to understand their needs and to fix issues.
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
Tables:
Strengths - IFAS
Internal Factors Weights Rating Weight
Scores
Notes
Superior handling &
high speed
0.15 5 0.75 i.e. performance
Technology 0.10 4 0.40
The sister & parent
companies i.e. Audi &
Volkswagen
Small workforce 0.05 3 0.15 850 employee
Established the
standard that to have
a mid-rear engine
0.05 3.5 0.175
Stylish looks 0.15 5 0.75
Weaknesses
High Price 0.15 5 0.75
Fuel Cost is high 0.15 4 0.6
Maintenance 0.10 3 0.3 Costs are high so does the
spare parts
Limited No. Dealers 0.10 3 0.3
Opportunities - EFAS
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
External Factors Weights Rating Weight
Scores
Notes
Increase customer
relations
0.10 3.5 0.35 To enhance the
ownership experience
Expand the
Availability
0.10 3 0.3
Increase in better
customer service
0.10 5 0.5
Hybrid Cars 0.15 4 0.6
Production based
on demands
0.05 3 0.15 Limited cars produced
Threats
Niche regional
players & customer
modifiers
0.05 3 0.15
Government
Polices
0.10 4 0.4 Against high fuel
consumption &
Environment
Intense
Competition
0.15 5 0.75 Such as Ferrari &
McLaren
Fuel Consumption 0.10 4 0.4
Currency
Fluctuation
0.10 3.5 0.35 Operating in Many
Countries
Total Scores 1 3.95
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
SFAS
Strategic Factors Weights Rating Weight
Scores
Notes
Superior handling
& high speed (S)
0.20 5 1 i.e. performance
Stylish looks (S) 0.15 4 0.6
High Cost (W) 0.05 5 0.25
High Fuel Costs
(W)
0.10 4 0.4
Hybrid Cars (O) 0.10 4 0.4 From Free Tarde
Agreements
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
Increase in Better
Customer Service
(O)
0.10 5 0.5 Home Advantage in New
Technology
Intense
Competition (T)
0.20 5 1 Such as Ferrari &
McLaren
Government
Policies (T)
0.10 4 0.4 Against high fuel
consumption &
Environment
Total Scores 1 4.55
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
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Business Policies & Strategic Management.
BMGT490 Lamborghini Strategic Audit
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