Analysis of Internal Environment and Capabilities

This report analyzes the internal environment and capabilities of Aston Martin using Porter's Value Chain model and McKinsey's 7S framework. It discusses the resources, capabilities, and activities of the company and how they impact the business strategy. The report also highlights the strengths and weaknesses of Aston Martin's internal environment.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1. Application of frameworks for analysing influences and impacts that macro environment
have on business and strategies....................................................................................................1
LO 2.................................................................................................................................................5
P2, Analysis of internal environment addition to capabilities with suitable framework.............5
LO3................................................................................................................................................10
P3. Application of Porter's Five forces model for evaluating competitive market forces.........10
LO 4...............................................................................................................................................13
P4. Application of concepts and models as well as devising strategic plan for organisation....13
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Business strategy is said to set of actions assisting managers to attain particular objectives
(Agarwal, 2014). It is a master plan implemented by institutional managers for carry forwarding
operations, achieving desired ends as well as securing position in competitive market. Business
strategies are designed for meeting challenges, achieving effectiveness, gaining command on
critical situations, mobilising resources, directing efforts, perceiving as well as utilising
opportunities together with securing advantageous positions. It is considered as backbone of any
enterprise as it acts as roadmap to lead towards desired objectives. The present report covers
application of frameworks to analyse the impacts as well as influence of macro environment of
entity and its strategies. The report further includes analyse of internal environment as well as
capabilities of selected firm with appropriate frameworks. Further, Porters-five-forces model is
applied for evaluating competitive forces with market. At last, range of theories and models are
applied for selected organisation.
To understand the aspects of Business strategy, Aston martin is selected. The enterprise
was established in 1913 and has headquarters at England, united Kingdom (Aston Martin. 2019.).
It is one of the large enterprise which is independent manufacturer of grand tourers as well as
luxury sports car. The company provided employment to more than 3400 individuals. The vision
of entity is The company has mission of simply becoming best in every area of the business.
Objectives of the entity is to design luxurious products with modern elegance as well as style.
From the annual reports of 2017, it is said that the company has sold around 5117 sports cars
across world (Sales figures of Aston martin. 2019). The company has generated revenue of
£1,096.5 million and operating income of £146.9 million in the year 2018.
LO 1
P1. Application of frameworks for analysing influences and impacts that macro environment
have on business and strategies.
Introduction: Business strategy can be defined as competitive moves or actions that are
used to attracts customers, strengthening the business performance and compete successful in
order to make higher profits. The main object of business strategy is to develop the business and
gain competitive advantages. The task will cover some points such as PESTLE framework that
1

affects the businesses, Porter's Diamond Model to select the best strategy and stake holder
analysis that affects external stakeholders.
Business strategy: Business strategy is used to know the summary that how a company
will achieve its goals, meet with customer's satisfactions and sustain the competitive advantages
by spouting a business.
According to Alfred D Chandler, (1962) author of Strategy and Structure, pp13
“Strategy is the finding of basic long term goals and objectives of an industry and the
adoption of courses of action and proper allocation of resources for the purpose of accomplishing
goals.”
According to William F Glueck, (1972) author of An invitation of strategic management
Strategy is a unified, comprehensive and integrated plan which is design to assure the
common objectives of an organisation are achieved (Burlton, 2015).
Difference between both
Definition provided by Alfred D Chandler says that strategy is used to allocate the proper
resources, take corrective actions in order to determine the long term goals of organisation.
Where as William F Glueck says strategy is integrated plan which is prepared to attain the
business goals and objectives.
Similarities
According to both author strategy is a wider term used to focus on organisational
objectives whether short term or long term. It helps to attain the higher profits by comparing with
other organisation and develop the plans accordingly.
PESTLE analysis: This analysis is used to evaluate the external environment in order to
run a business. The PESTLE analysis of Aston Martin helps to know the which factor can affect
the organisation in UK. The details of analysis in context to UK country given as:
Political: This factor states that how UK's government intervenes in economy and affect
the business. It can include political stability, foreign trade policy, labour law, trade restrictions
and so on which impacts on Aston Martin such as:
Positive impact: Political stability of UK is beneficial for Aston Martin as it can run its
business by following stable government policy that helps to operate a business successfully.
Moreover, growth of such organisation can be sustain in UK because there is no need to accept
the changes which can divert the business activities.
2

Negative impact: Changes in foreign trade policy in UK country affects the negatively.
This may impact on Aston Martin or manufacturing industry in UK as their performance
performance effected negatively because company has to understand new foreign trade policy
that can reduce the productivity of organisation as well as need to provide the training to its staff.
Economical: This factor involves interest rates, economic growth, exchange rate,
disposable income of consumers and interest rates in UK country. This factor may impact on
Aston Martin organisation such as:
Positive impact: This factor may impacts positively such as low interest rate helps to
increase the production in UK because companies can get loan at low interest rate and
manufacture the products effectively (Cavusgil and et. al., 2014).
Negative impact: High inflation rate can affects the UK and Aston Martin negatively as it
has to pay high prices in order to buy raw material and other parts which reduces the productivity
and well as number of customers because it increases the prices of sports cars which customers
do not agree to pay.
Social: This factor is related to society and changing demand of customers that need to
follow by organisation for growing their business. It covers population growth, heath
consciousness, age distribution, change in demand of customers and so on within the UK, whose
are impacting on Aston Martin in UK such as:
Positive impact: Population growth such as birth rate in UK is a good indicator for Aston
Martin as it develop the future demand towards its products which affects business positively.
Negative impact: Different attitude and demand of people may reduce the sale of Aston
Martin in case of not analysing attitude and behaviour of people who are in UK country.
Technological: This is related with technological landscape changes in UK that can
affect the business performance. It includes new technology for producing goods and services,
distributing goods and services in new way and communicating with target market that impacts
on business:
Positive impact: To bring new technology by understanding customer's wants can be
beneficial for Aston Martin as it can crack the competition and helps to grow the UK's economy.
Negative impact: If country and management of Aston Martin are not up to date then
other organisation can grab the opportunity which can effect business performance negatively.
3

Legal: It includes health and safety rules, consumer rights and other laws in UK country
that affects organisation such as:
Positive impact: By following health and safety rules and minimum wages act Aston
Martin can retain the employees for long term in UK.
Negative impact: If UK's organisation not follows legal rules and legislation then
employees can leave the organisation which impacts negatively.
Environmental: This factor is related with environmental factor in UK such as carbon
effect, pollution etc. which can impact on Aston Martin such as:
Positive impact: By following environment safety law and reducing the carbon emission
it can grow good environmental effect in UK country and helps business organisation to continue
their business positively.
Negative impact: In case of not following environmental law it can be out from business
industry.
Porter Diamond Model: This model is used by Aston Martin in order to gain
competitive advantages that are as defined:
Factor condition: It consider different types of resources which may or may not present
in nation (Cavusgil and et. al., 2014). In UK, there are all resources such as human resources,
capital, natural, infrastructure and knowledge that helps Aston Martin to compare with
organisation and gain competitive advantages.
Demand condition: It consider market size, growth rate and market sophistication that
helps to run a business successfully. The market size and growth rate of UK is high that helps
Aston Martin to run a business by innovating ideas and get benefits. This helps to run a business
successfully.
Relating and supporting industry: Aston Martin manufacture cars in UK that can share
access to wind tunnel which helps to create competitive advantages. This used different types of
technology to produce the products and which can attracts customers more.
Firm strategy, structure and rivalry: It is related with UK's strategy, structure and
competitors that helps Aston Martin to eliminate the competitors by developing attractive
strategy and structure in order to gain competitive advantages. In business industry, Aston
Martin has many competitor such as Tesla, Toyota, Bentley Motors etc. who are running their
business in competitive environment.
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a) Stakeholder analysis: This is a project management tool which is used to determine the
actions which are necessary to attain business goals. This Matrix is used by Aston Martin to
analyse the effects of share holders such as:
Competitors: In UK, there are many competitor of Aston Martin such as BMW,Jaguar,
Mercedes- Benz etc. who can be barrier to attain the business goals as they are also providing
same products.
Suppliers: In UK, suppliers has high involvement such as they provide raw material and
important information to Aston Martin which helps to gain competitive advantages.
Customers: It is also external stakeholders who buys products from organisation and
increases the productivity as well as profitability of Aston Martin.
b) PESTLE analysis and Porter's Diamond model is are helpful for Aston Martin such as
by suing PESTLE it can analyse which factor can impact business organisation so, it can be
control. Moreover, by using Porter's Diamond model respective company gain competitive
advantages.
Conclusion:
From the LO1 it can be concluded that strategies are the important that helps to attain the
business goals effectively. PESTLE states which factor can affect business organisation and
Porter Diamond model states how Aston Martin can get competitive advantages that helps to run
a business nationally.
LO 2
P2, Analysis of internal environment addition to capabilities with suitable framework.
Introduction: Internal environment involves events, culture, factors addition to members
that has potentiality to influence organisational decisions. It includes elements which are present
within organisational boundaries. The task discusses about internal environment, capabilities as
well as resources. Techniques such as Porter’s Value Chain model and McKinsey’s 7S
framework are used to analyse internal environment of Aston Martin.
Internal environment: Internal environment is defined as constituent of business
environment that is composed of many elements which are present inside institution and results
in impacts on choices, activities addition to decision making (Internal environment. 2019).
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Internal environment of Aston Martin is composed of members, culture, management practices,
machines, work procedures and working climate.
Resources: Resources are defined as valuable together with valuable possessions which
are available for usage within production procedures. Key resources that an entity has are capital
resources, raw materials, human resources as well as monetary resources. All the resources are
combined at selected institution for designing finished car.
Capabilities: Capabilities are said to ability or potentiality to perform as well as choose
way to achieve certain outcomes. In other words, the set of tasks which a system is able to work
at certain level of performance.
Techniques to analyse internal environment
Porter's value chain model: The model was devised by Michael Porter in 1985. the
model emphasis on activities as well as systems linked with customers as central principle
despite on departments or accounting expense categories. To examine internal environment,
Strategic Planning Manager of Aston Martin uses the framework for detailed analyses of
activities (Porter's value chain analysis. 2019). There are primary activities and supporting
activities that are as follows:
Illustration 1: Porter's value chain analysis. 2019
§
(Source: Porter's value chain analysis. 2019)
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Primary activities: The activities which have immediate effect on sales, production,
support and maintenance of products as well as services that are to be supplied are primary
activities. Following elements are are part of primary activities of selected firm:
Inbound logistics: It includes transportation, storage as well as delivery of commodities
coming into business. All the procedures involved in bringing raw materials, storing in
warehouses and internal distribution are performed under such element. Such element is strong
within Aston Martin as the company carefully handles materials, schedules vehicles, control
inventory as well as returns to suppliers.
Operations: The conversion of raw materials into final product is functions by operations.
Such system acts as guiding principle for value creation (Chen and Jermias, 2014). The system is
also strong within Aston Martin as managers effectively maintains equipments,assembly cars and
facility operations for making sports cars from the raw materials.
Outbound logistics: When outputs are finished as well as ready to send then value chains
moves towards outbound logistics areas where goods goes out of business. At Aston martin, the
element is weak as various time Outbound logistics activities are not carried out on set time that
further fails to deliver demanded cars to customers.
Marketing and sales: Activities associated with putting products in the market and
generating customer relationships falls under such element. The activity that needs more focus
are communication, promotions as well as marketing to increase sales. The element is weak in
Aston Martin as marketing activities including promotions are not done in right manner and
various times delivers false commitments to customers that reduces values of end sports car.
Service: It is related to after sale service that includes all activities which maintains
products value to clients while developing relationships as per the procurements of products.
The management of Aston Martin uses this element strongly as company has various staff
members that satisfies grievances of unsatisfied customers.
Support activities: The elements involved in such activities generally assist primary
activities so to gain beneficiary advantages. The elements with support activities are connected
with Aston Martin that are as elaborated:
Procurement: The function to acquire inputs that are used in value chain of business are
said to procurement. The inputs that are purchased by Aston martin are laboratory equipments,
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raw materials, machines, buildings along with office equipments. The company has strong
procurement function as they manages vendors as well as procure resources at the time needed.
Technological development: Such elements creates values by using optimization along
with innovation. Aston martin manufactures their cars as per the technological innovations and
new technologies which states that the element is strong.
Human resource management: It has relevancy with workforce development. Managers
of Aston Martin places competent person at right position that shows that the element is strong as
management never takes human resource as granted (Cooper, 2017). Recruiting team brings as
well as trains talented candidate that further provides huge benefits to entity.
Firm infrastructure: The concerns of such element are related to maintaining daily
activities or operations within business. The element is strong in Aston Martin as proper
activities are delegated with line management, financial management addition to administrative
handling that performs the operations effectively.
Hence, Aston Martin is benefited by Porter's five force model as it ensures values which
are created by exceeding costs, gives competitive edge and improves production capacity. In
contrary, evaluation of the analysis is lengthy approach and it loses overall strategy of business
various times.
McKinsey's 7s framework: It framework is used to analyse organisational effectiveness
as well as capabilities through seven elements. It reviews capabilities of business, determine the
ways to best realign new strategic direction and assess changes that are required to support
digital organisational transformation (McKinsey's 7s framework. 2018). The 7 elements in
relevance with Aston martin are as described:
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Illustration 2: McKinsey's 7s framework. 2018
(Source: McKinsey's 7s framework. 2018)
Strategy: The plan framed by entity for gaining sustained advantages as well as
successfully competing with other firms in market are said to strategy. The managers of Aston
martin emphasis more on product development strategy in which they launches various
variations of luxury cars addition to grand tourers. The firm has strength in this element as
strategies benefits in achieving set objectives effectively.
Structure: The another element that helps managers of entity to handle all operations.
Hierarchical structure is followed at workplaces of Aston Martin that leads towards proper
communication. It is also strong element at chosen premise as it outlines the authority
responsibility relationship at workplace.
Systems: It defines the ways job gets done. It helps in keeping business operating as well
as moving forward. Existing management team of Aston martin has more emphasis on marketing
systems together with managing human resources as to acquire growth.
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Skills: It is associated with skills of employees as well as that of business. Organisational
core competence along with distinctive capabilities are skills (Fox, 2012). At selected form,
managers emphasis on decision making skills, problem solving skills, learning skills, self
management skills and technological skills as all these helps in accomplishment of
predetermined objectives in set duration.
Shared values: Standards, values and ethics set by managers to provide direction to
personnels so that they can perform critical operations are categorised within shared values. The
element is strong at chosen institution as it stretches and creates feeling of camaraderie as well as
cohesiveness among employees.
Style: The ways operations are managed, influences performances, interacts and takes
actions to lead the company are said to style. Management team within the firm focuses on
participative and democratic styles so to provide supervision for implementing strategic
decisions.
Staff: The element is linked with number of personnels needed at workplace and the ways
they will be hired, trained, rewarded as well as motivated. Staff element strong at designated
entity as they have huge number of productive employees that makes contributions in
organisational development.
Thus, the company attains benefits by McKinsey's 7s framework as it helps in proper
emphasis towards strategy implementation and coordination of essential tasks. It benefits in
coordination plans with managerial practices. At same time, the model misses various grained
areas that arises gaps between conception and execution of strategies.
Conclusion: As per the above discussion it is concluded that internal environment of
Aston martin is analysed through McKinsey's 7s framework as well as Porter's value chain
model. The strong and weak elements are clearly analysed with the both techniques.
LO3
P3. Application of Porter's Five forces model for evaluating competitive market forces.
Introduction: Industry is said to group of businesses which manufacturers or produces
specific type of commodities or services. The task covers information about industry as well as
usage of Porter's five forces model for analysing impact which industrial environment have on
firm.
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Industry: It is composition of various companies that are based on primary activities of
business. In other words, it is aggregation of technical as well as manufacturing institutions in
particular field (Ghezzi, 2013). At present, Aston Martin is active in auto mobile manufacturing
as well as luxury goods. The company generates more revenues from auto mobile manufacturing
industry.
Porter's Five forces Model
The model is used by strategic manager of Aston Martin for identifying as well as
analysing competitive forces that ahas ability to shape the industry and determines pertaining
strengths along with weaknesses of the industry. In addition, the model identifies industrial
structure so that corporate strategies can be formed. Aston Martin currently works in auto motive
industry and the elements of forces are as follows:
Industrial competition: With this force, level of competition is analysed. Within high
competitive industry, organisations exercises little as well as no control on commodity prices. On
other hand, monopolistic competition helps institutions to control product prices. As Aston
Martin works in automotive industry that constitute other entities like BMW, Porsche, Audi,
Lamborghini, Maserati, jaguar and many more. These all are considered as tough competitors of
selected entity that shows that competitive rivalry high within the sector that impacts in negative
manner on Aston Martin as less powers remains in hand on company to charge high prices or
perform better dealings that various times decreases business profitability. The positive effect of
industrial competition force is that Aston Martin can devise distinct strategies so to face the
immense competition and its negative effect is that it impacts on the workings of company in
negative manner when fierce competition exists in the market. At same time, high competition
decreases possibilities of profitability due to having immense competition.
Power of suppliers: When suppliers are more in the market, it shows that they have less
powers and limited supplier shows more powers with suppliers. Strong bargaining power helps
suppliers to sell materials at higher prices and low quality products that impacts on buying firm's
profits as they have to pay more for acquiring materials. Within automotive industry, numerous
suppliers are present to supply raw materials required in manufacturing of cars. In context to
Aston Martin, supplier power are low as if one supplier provides materials at high prices or low
quality then company has options to switch towards another vendor for acquiring materials. With
this, low supplier power can help in increasing profits of entity by switching to supplier who
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provides goods at low cost. Positive effect of suppliers bargaining power at Aston Martin are that
the managers analysing practices of suppliers and frame their plans accordingly to deal with
individual suppliers but its negative effect is that business have to make huge payments so to
make relationships with wide types of suppliers so to gain required resources. Low supplier
power reflects that the raw materials are acquired at relative favourable rates that increases
possibilities of high profit in the automotive industry.
Customer's bargaining power: Customers are the one for whom products are
manufactured (Grover and Kohli, 2013). They have huge powers for demanding higher product
quality at lower prices from industrial producers which impacts on profits of manufacturer as
lower prices shows low profits for manufacturers where as higher quality commodities raises
production costs. Within automotive sector, huge buyers are present so to have luxury sports car.
The customer base of selected entity is strong as well as company has captured huge market
shares within the sector that shows that customers have low bargaining power for the entity due
to uncountable customers. Positive effect of this force is that managers of Aston Martin satisfied
requirements and demands of purchasers through offering and delivering them the desired car. At
same time, negative effect of it is entity has to cut prices according to conditions of customers.
High customer bargaining power results in limited generation of organisational profit that limits
possibilities to make huge revenues in the industry.
Threat of substitute: This means when substitutes of products are available in market the
the values of organisation can be reduced. This can be threat for organisation to have substitutes
of product which impacts on business negatively. In context to Aston Martin, the threat of
substitute are cars, buses and motor cycles which can reduce the sale of business organisation. So
this a threat for respective company which can limits the competitive advantages. Positive effect
of substitute threat is that company begins to think innovately so to retain their customers and
reduce their switching cost but its negative effect is that sue to existence of substitute products
various products of company remain unsold. High substitute threat leads in limited usage of
vehicles of the Aston Martin that results in low chances of profitability within the automotive
industry.
Threat of new entrant: Organisational powers are also impacted by new entrant force into
pertaining market. In various industries, competitors requires less time, efforts and investments
to enter into market as well as become effective competitor (Lee and Smith, 2018). Automotive
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sector is among the largest sector in which if an entity has capability to enter then they have to
acquire huge funds, makes lot of investments along with conduct marketing activities at huge
scale. It can be said that to enter in such industry, various barriers are made in entrance of new
company or institution. Hence, new entrant threat with Aston Martin is low as it is very complex
for new organisations to become part of such sector. Low forces shows high profits for the
company as on company do not have to change its procedures to sell luxury cars and generate
revenues. The positive effect of such force is that Aston Martin can enjoy workings in
competitive surroundings but the negative effect is that entrance of tough and strong entrant can
shake the shares on business. Low threat of new entrant reflects that the company can work with
suitable practices that increases chances to make more profits at huge level.
Thus, usage of Porter's five force model can provide some advantages to managers of
Aston Martin as the models determines pertaining competition within industry, planning ahead
and effectively dealing with numerous vendors and customers. At same time, the disadvantgaes
of the model is that it fails to focus on various factors that are bearing in the environment where
entity is operating.
Conclusion: As per the task it is concluded that industry involves endless companies
that performs similar workings. Porter's five forces model is used by selected firm managers for
identifying forces that can hamper daily operations and impacts on profitability.
LO 4
P4. Application of concepts and models as well as devising strategic plan for organisation.
Introduction: Strategies are plans to achieve solutions to problems. Good strategy
consists guiding principles which defines actions that are to be taken by individuals to prioritize
activities for accomplishing desired objectives. The task discuses various types of strategies
supported by distinct frameworks. It also compares corporate level strategies with that to
business level strategies.
Differences between corporate level strategies with business level and functional level
strategies.
Basis of difference Corporate level
strategy
Business level strategy Functional level
strategy
Meaning Corporate level Business level strategies Functional level
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strategy are said to
techniques or
philosophies that
guides entire firm to
achieve its mission
along with objectives
(Murthy, 2012).
are termed to such
techniques or actions
taken to cater customers
value as well as gaining
competitive advantages
through exploiting
competencies.
strategies are
described to those
philosophies which
guides functions of
business to achieve
goals.
Concerned with These strategies are
concerned with
fulfilling stakeholder
expectations and
examining corporate
success.
Business level strategies
are concerned with
attaining customer
satisfaction and
positioning business
against rivals.
Functional level
strategies are primarily
concerned with
motivating functional
areas to generate more
outputs.
Use of Bowman’s strategy clock
The theory is used by Aston Martin managers for analysing as well as understanding the
ways luxury cars should be positioned within competing market so that they can gain advantages
(Page, 2016). It includes the positions that are as follows:
Low price as well as low added value: Herein, by keeping the prices of products low is
one and only method to compete against others. Within the strategy position, prices of
organisational offerings are very low as well as perceived values of customers is also low.
Low price: In this strategy, large quantity products are manufactured and targetted market
values the products. Products are sold at low prices in the market.
Hybrid: such strategy is effective in nature when added value is consistent and products
are offered on ongoing basis.
Differentiation: Such strategy helps in offering distinct products having high quality and
affordable prices.
Focused differentiation: The companies that focuses on exclusive addition to luxury
products keeping quality on high as well as high prices opts the strategy.
Risky high margins: With the strategy, entities charges high prices for commodities
which are perceives having high values by customers.
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Monopoly pricing: In this position strategy, institutions position themselves as leaders
because they are the sole manufacturers that offers particular type of products in market.
Among all, Aston martin should follow focused differentiation strategy so that they can
provide diverse car portfolio to the market.
Comparison between Corporate level strategies suggested by Wheelen and Dessler.
Basis of
comparison
Wheelen and Et.Al Dessler
Strategies Strategies provided by Wheelen are as
follows:
Stability strategies: Such
strategy is adopted when corporates
makes attempts to maintain existing
position as well as emphasis on
incremental improvements through
changing operations as per customer
perspective. It includes strategies like
No change, proceed with caution as
well as profit strategy.
Growth strategy: These
strategies aims to acquire larger market
share at short term earnings. It includes
diversification, market development,
product development and market
penetration strategies.
Strategies provided by Dessler are the
followings:
Diversification strategies: One of the
corporate strategy that helps in
expanding legs into new market in
which they are not performing
operations till yet (Peng, 2017). It
involves vertical, conglomerate,
horizontal and concentric
diversification.
Consolidation strategy: In this
strategy, mergers and acquisitions with
smaller entities are done to become
large enterprise for attaining economic
benefits.
Geographical expansion
strategy: In this strategy, entities
expands geographically so that they can
seek various opportunities within
market and achieving high growth.
From the above strategies, Aston martin should follow growth strategy from Wheelan's
framework and geographical expansion from Dessler's framework.
Comparison of business level strategies proposed by Porter and Ansoff.
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Basis of comparison Porter's generic strategies Ansoff Matrix
Meaning The concept of Porters generic
strategy was profounded by
Michael Porter in order to
describe the ways
organisations pursue
competitive advantages
(Sudharshan, 2019).
The matrix is used to devise
strategies that results in future
growth.
Strategies Strategies that are proposed by
Porter are as follows:
Cost leadership
strategy: In this, organisation
aims to become lowest cost
producer for level of quality. It
focuses on mass production for
reducing costs.
Differentiation
strategy: The strategy helps in
developing new commodity
that posses unique attributes or
features that are distinct from
other ones.
Focus strategy: It helps
in focusing narrow market by
segmenting attempts for
achieving cost advantages as
well as differentiation
advantages.
Strategies within the matrix are
as elaborated:
Product development:
In this, new products are
introduced within current
market place with the objective
to attract more customers so
that market image gets
strengthened.
Market development:
Within the strategy, entities
expands business procedures in
new market through offering
existing products.
Market penetration:
The strategy helps in selling
current products within current
market with new techniques in
order to maximise profit
margins (Wang and Verma,
2012).
Diversification: In this
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strategy, an organisation offers
new invention in new market.
This requires proper research
and is more risky.
Recommendations: As per the above Task 1, PESTLE analysis that was used by the
entity to monitor the external environment and it was also analysed that Aston Martin faces
various hurdles in sustaining within the market. For this, the company is recommended that to
follow growth strategy from the corporate level strategies. With this strategy, the managers of
Aston Martin will achieve long term success and gaining benefits in the following environment.
As per the Task 2, internal environment and organisational capabilities were analysed
through Porters value chain and McKinsey's 7s framework. From this, it was analysed that the
selected entity has the entity has valuables that gives competitive edge as well as improves
overall production capacity of the entity. But at same time, the company faces problems in gaps
between conception and execution of developing products. For this, the entity is recommended to
go with product development strategy so that they can gain more shares within existing market
and offer unique innovations in existing cars.
According to Task 3, competitive market forces were evaluated through application of
Porter's five force model. With this, it shows result that there are various forces which impacts
working of the entity. For industry environment, should follow differentiation strategy so that
they can offer different variations in their luxury cars and enjoy competitive advantages. In
addition, the company is also recommended to follow market penetration strategy from Ansoff
matrix and focus strategy from Porters' strategy so to achieve more profits.
Conclusion: As per the above task, it is concluded that there are diverse range of
strategies provided by distinct authors that benefits in achieving beneficiary results.
CONCLUSION
As per the above task it has been concluded that business strategy plays efficient function
in helping entities to achieve their targets as determined by top management. For achieving
goals, it is essential to analyse impacts of macro environment and for this PESTLE Analysis is
suitable one. In addition, for analysing internal environment, techniques of Porter's value chain
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as well as Mckinsey's 7s model helps in understanding the elements existing within business.
Through Porter's 5 forces analysis, there are various forces that are found high and some are low
in industrial analysis. The recommended strategies are growth strategy, geographical expansion
strategy, market penetration strategy and focus strategy that helps in achieving huge advantages.
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