Analysis of Business Strategy in Bentley Motors: A Case Study

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
Application of appropriate framework to analyse impact and influence of macro environment 3
Critical analysis of macro environment to determine and inform strategic management
decisions.......................................................................................................................................5
Analysis of internal environment and capabilities of the organisation.......................................5
Critique of internal environment to assess strengths and weaknesses of entity..........................7
Application of Porter's five forces model for the evaluation of competitive forces....................8
Appropriate strategies to improve competitive edge and market position based on outcome....9
Application of theories, concepts and models to interpret and devise strategic planning for
company.......................................................................................................................................9
Application of environmental and competitive analysis to produce strategic directions..........12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy is a technique which is used by organisations to attain competitive
advantage within the market where all the operational and executional activities are performed.
With the help of effective strategies, a company can improve its performance, attain long term
business goals and increase competitive advantage (Afuah, 2014). The way in which operations
are required to be carried out is also analysed by it. In order to complete this project, Bentley
Motors is selected which is a marketer and manufacturer of luxury cars. It is established in
Crewe, England, United Kingdom. This project covers various topics such as analysis of macro,
micro environment, capabilities of enterprise with the help of specific frameworks. Along with
this, porter's five forces model and application of theories to find strategic direction are also
covered under this assignment.
Application of appropriate framework to analyse impact and influence of macro
environment
Macro environment: It can be defined as the environment which is available outside of an
organisation and leave negative as well as positive impact upon functionality of business. Junior
strategy manger in Bentley Motors uses PESTLE analysis which helps it in formulating effective
strategies.
PESTLE analysis: It is a combination of six different elements which are required to be
focused by business entities to run all the operations appropriately. These are political, economic,
social, technological, legal and environmental. All of them are analysed by junior strategy
manager of Bentley Motors in detail (PESTLE analysis of Bentley motors, 2019). The description
of them is as follows:
Political: There are various types of political involvements in the business operations
which are known as the part of such factors. Different components of it are trade restrictions,
policies etc. All of them are affecting strategies of Bentley Motors and the whole organisation
because of political instability in UK. Managers have to make modifications again and again in
policies of business as changes in government results in changes in rules (Brinkschröder, 2014).
As organisation is operating business all around the world but the trade barriers in India are very
high for it which are affecting it to sale its vehicles there. For this purpose management have to

reformulate all its expansion strategies according to the trade policies of the country so that
growth could be acquired for business.
Economic: All the elements which are related to changes of economy are considered as
the part of such factors. These are exchange, inflation, deflation, interest rates etc. All of them
are impacting and influencing strategies of Bentley Motors because slight fluctuation in them
leaves direct impact upon businesses and purchasing power of clients. For example, if inflation
or deflation fluctuates then it will affect the purchasing power of customers. Due to this the
company may have to face an issue of decreased sale which could be dealt by formulating
strategies such as keeping detailed information of economic changes. In order to ignore negative
effect of economic factors such as Brexit, it is very important for management to be aware of
changes in political situations.
Social: All the factors such as taste, buying behaviour, culture, belief etc. which are
related to society are known as social elements. Demand and preferences of customers regarding
cars changes with time and due to this strategies of Bentley Motors get affected because
managers have to form new decisions to meet their expectations. Now a days fully autonomous
cars are highly in demand in the market but Bentley is not selling them. In order to reduce the
negative impacts of this social factor it is very important for the management to formulate
strategy to launching new cars in the market so that attention of customers could be grabbed.
Technological: Advancement in latest techniques, latest ways to engineer cars etc. are
technological factors which are required to be focused by all the large as well as small
organisations to maintain their presence in the market. Bentley Motors is spending money in
research and development activities which helps it to meet the latest technology in automotive
market. It positively influences and impacts organisational strategies as all the latest techniques
in the market are used by Bentley to manufacture luxury cars (Ceglińska and Cegliński, 2014).
Legal: There are various types of laws, acts and regulations which are imposed by legal
authorities of United Kingdom for all the businesses which are running its operations within it.
Some of them are employment law, consumer right, advertising standards etc. All of them may
get modified with time because market conditions may bound government to alter them. If the
changes which are made in them are frequent then, it may impact and influence strategies of
Bentley Motors adversely because it is very difficult to make change in organisational policies
frequently.