Business Strategy: Analysis of External and Internal Factors for Aston Martin

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Apply appropriate framework to analyse macro environment .............................................1
M1 critically analyse macro environment to determine and inform strategic management
decision.......................................................................................................................................4
LO2 .................................................................................................................................................4
P2 Analyse internal environment and capabilities to given organisation...................................4
M2 Critically analyse internal environment to assess strengths and weaknesses of organisation
.....................................................................................................................................................7
LO3 .................................................................................................................................................8
P3 Apply porter's five forces model and evaluate competitive forces of given market sector
for organisation...........................................................................................................................8
M3 Devise appropriate strategies to improve competitive edge and market position based on
outcomes.....................................................................................................................................9
LO4 .................................................................................................................................................9
P4 Apply range of theories, concepts and models interpret and devise strategies planning for
given organisation.......................................................................................................................9
M4 Produce strategic management plan that can tangible and tactical strategic priorities and
objectives...................................................................................................................................11
D1 Critique and interpret information and data applying environmental and competitive
analysis to produce set of valid strategic directions objectives.................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy refers to a long term plan that helps the organisations to attain their
specified goal for enhancing the growth in future. It helps in gaining the competitive advantage
by serving the satisfactory quality products to the customers. this represents as an internal part of
the company and will helps in developing tactics and strategies for gaining the goals in an
appropriate manner. Aston martin is the leading company within UK that deals in all over the
world. This company is belongs to the manufacturing and designing of luxury car for high elite
customers. This project is study on analysis of external and internal factors including strategies
and capabilities of employees to perform particular task within organisation. It also explains the
porter’s five forces model that helps in gaining the competitive advantage within current
marketplace. This also includes several models, theories and concepts to effectively understand
the strategic directions so that firm will gain higher profits and revenues(Sia, Soh and Weill,
2016).
LO1
Apply appropriate framework to analyse macro environment
Aston martin is a leading British manufacturing luxury grand tourers and sports car
organisation. The company established their presence in automobile sector at 1913,
headquartered in England UK. This organisation can serve their goods and services in global
market and in these operations can be handled by numerous employees around 2450.
Vision- Aston Martin vision is based on adding the layers of fascinating for designing,
engineering and maintaining performance of manufacturing cars for the high elite
people(Soltanizadeh and et. al., 2016).
Mission- The company mission is to serving the best and luxury quality cars and tourers in
every area of the society by focusing on fulfilling the customer’s demands and experience. This
business enterprise also supports to the collaboration and cooperation within working culture so
that vision can be accomplished in effective and efficient manner.
Objectives- The main objective of Aston martin is to focus on long term survival in luxury
Car Company through responsible promotion and feasible economic growth.
Macro environment
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It refers to the condition that is related to whole economy rather than a specific region or
state. In this several determinants are included like GDP, inflation rate, fiscal policy,
technological aspects, monetary aspects etc. Manager of Aston Martin enhance their business
growth and profits for this they need to examine the external factors by using PESTLE
analysis(Amran and et. al., 2016). Due to this opportunities can be captured as per needs and
threats can be eliminated that was present as a blockage in earning market growth and longer
sustainability. For understand the factors manager of company can do pestle analysis that can
show below:
 Political factor- As this includes the government stability, trade policy etc. In context of
Aston Martin this factor affect the company operations and profits in positive and
negative manner. Due to free trade policy within UK firm can done their operations on
global level in effective manner that can positively affect the profit margin. but on the
other hand because of Brexit Aston martin can face the issue of selling the goods and
dealing with suppliers within other European countries that will negatively affect the
cost of manufacturing.
 Economical factor- This factor involves spending power, interest rate, inflation rate and
many aspects that will affect the economy of country like UK. Within country the growth
rate is high due to this people are capable to buy the products of Aston Martin. but
because of higher rate of inflation company operating cost is affected in negative way.
 Social factor- It involves the individual attitude, perception, beliefs. As people of UK are
active in encouraging the modern and innovative products. In this Aston martin offers the
high quality innovative design cars to their customers that attracts large base of customers
and company sales would be increase in positive manner(Anwar and Hasnu, 2016).
 Technological Factor- This factor includes the adoption of technology within country
for doing business. UK is the country who adopts the use of advanced technology where
people are active on internet and several digital medium on their routine life. This is one
of the positive aspects for Aston Martin in enhancing sales and growth within customer
market as they highly focus on adopting high technology in designing the cars.
 Legal Factor- This involves the laws and legal rights that was imposed by government
for welfare of customers and employees. in this manager of Aston martin highly focus on
offering fair wages and safety of employees due to this they work effectively with
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