Analysis of Business Models and Corporate Strategies

This assignment delves into the world of business strategies and models, examining the concept of SWOT analysis as a tool for evaluating strengths, weaknesses, opportunities, and threats. It provides a comprehensive overview of the technique's application in various industries, including airport competition, environmental education programs, and biotechnology spin-offs. The assignment also touches on the use of SWOT analysis in research and development, such as in proteomic analysis and transcriptomics. With its emphasis on practical examples and real-world scenarios, this assignment is ideal for students looking to gain a deeper understanding of business strategy and model innovation.

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Applying appropriate frameworks to analyse the impact or influence of macro
environment on the organisation.................................................................................................1
LO 2.................................................................................................................................................3
P2 Analyse the internal environment and capabilities of Lands Rover......................................3
LO 3.................................................................................................................................................5
P3 Applying Porter's five forces model and evaluate the competitive force of a given sector...5
LO 4.................................................................................................................................................6
P4 Applying various theories and concepts which interpret strategic planning in relation with
Land Rover..................................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business strategy is related to a strategy that includes competitive actions which attracts
the customers and improves the performance of Lands Rover to achieve the organisation goal.
This guide the business how to perform the activities so that goals can be achieved(Abraham
2013). The organisation chosen for this report is Land Rover which is an established car brand.
This is a multinational car which was established in 1948 and its headquarter in London. The car
of this brand are popular for luxury and its excellent features as offering multiple designs. This
Lands Rover is mainly famous for its continuous innovation. This report will cover impact or
influence of business strategies of chosen Lands Rover and analysing its internal environment
which assess strengths and weakness of an organisation internal capabilities, structure and skills.
This will also cover evaluation of competitive forces related to market of chosen Lands Rover
through porter's five force model and various theories, concepts and model or interpret and
strategic planning.
LO 1
P1 Applying appropriate frameworks to analyse the impact or influence of macro environment on
the organisation.
The external environment affects the operations of the organisation. The Land Rover is
the world biggest brand which manufactur the custom car bodies by using high quality
technology and machines which reflects the best product in relation with cost and auto mobiles.
The external factors affect their strategy and their operations which made the assessment of
external factor essential for the effective operation of business. The approach through which
external factors are analysed is PESTLE analysis. PESTLE analysis is an effective tool to analyse
external and internal factors which will impact the operations of Land Rover. The brief
explanation of the factor which affect the operation of Land Rover are as-
 Political Factors- This factor includes governance system, taxation policies and political
stability. From the last two years, Lands Rover is getting benefit of low taxation rate
which resulted in higher profits. The Lands Rover has to manage diverse regulations
which is present in various markets. The present governance in this industry is changing
which make Land Rover to keep focus on changing policies so that it would affect less
with the operations of the Lands Rover(Sternberger and et al., 2019).
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 Economic Factors- The economic factors include economic performance, skill level of
workforce, availability of core manufacture and exchange rate. The availability of skilled
workforce in Lands Rover can lead to increase in more opportunities for the organisation.
The increase in economic performance will increase the chances of expansion. The land
Rover has grown 9-10% due to increase in government expenditure and increase in
investment in other sector. The volatile exchange rate influences the investments plan of
Land Rover for both short term and long term(Ahamad Nalb and Al-Amri 2013).
 Social Factors- These factors include migration, demographic, leisure interests and
attitude towards health and safety. In present market, the migration is negative which do
not allow Land Rover to bring talent from the outside country to manage their operations.
The media plays an important role in creation of public opinion and the Lands Rover has
to analyse it and work to maintain a good position by building efficient marketing
network. The Land Rover produces mainly experiential products and services and the
firm is required to put more efforts so that they can meet expectation which result in
achieving competitive advantage in the market.
 Technological Factors- This factor include technological innovation, research and
development and network speed. The fast growing technology is disrupting the supply
networks which provide direct assessment to the channel partner which lead to increase in
profit sharing. The research of investment at micro and macro level is increased which
lead to increase in innovation of new ideas. The technology has reduced the life cycle of
product which makes supplier to develop products at rapid rate. The Land Rover has to
keep focus on the advancement related with increase in speed or access so that cost can be
minimised.
 Environment factors- These factors include customer activism, recycling and
management of waste or extreme weather. The strategy formed by Land Rover has to
focus on the customer awareness and not only exceeds legal standards but to be
responsible stakeholder. The Lands Rover is required to make plans for the regulations
regarding recycling so that they can meet the expectation of their customer. The waste
management is required to be done for the units which are near to urban cities and
government is also taking step to manage the waste. This weather consideration is
necessary to manage the cost of the Lands Rover.
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 Legal factors- These factors include data protection laws, environment laws and guides,
business law and legal protection of employees. The protection is provided legally
through intellectual property, patent and copyright which will impact the operations of the
Land Rover which affects their efficiency. The business laws made by government for
governance of all the operations of business. The Land Rover consider all these aspects
before entering into international market. The protection of important data is also very
important criteria which is a ethical part not a social part of the Lands Rover and in this
Lands Rover has to consider about legal and technological aspects (Albero and et. al.,
2013).
LO 2
P2 Analyse the internal environment and capabilities of Lands Rover.
The internal environment and capabilities are identified so that Land Rover. Lands Rover
can use this assessment so that the Lands Rover can use them and identify their internal
capabilities. SWOT is an effective tool that can be used by the Lands Rover to determine its
internal strengths. This technique can be used by Lands Rover by utilising the external
opportunities, business strengths, threats and build to improve the efficiency of the Lands Rover.
The explanation of this analysis related to Land Rover are as follows-
 Strengths of Land Rover- This is the one of the leading brand and has many strengths
which is the reason for being a leading brand in the market place. These are the following
strengths of the company are as follows-
Strong brand Portfolio- The Land Rover has built a strong brand position in the market
which can be extremely useful for the company to expand their market.
Automation of activities- This result in consistency in quality of the company product
which has allowed companies in previous years to increase and operate at same time to produce
more but with the forecasting demand conditions.
Reliable Suppliers- The company has a strong reliable supplier which allows the
company to overcome any challenges faced by company related to supply chain.
Successful merger and acquisition- The merger and acquisitions which are performed
by the company and this has successfully integrated all the technology companies in previous
years to operate at high level and possess reliable supply chain.
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 Weaknesses of Land Rover- There are some weaknesses which are faced by the land
Rover and the companies can form strategies and improve the area where the weakness is
present and these are as-
High attrition rate in work force- The Land Rover has high attrition rate in comparison
of other organisation and have to focus more on providing training and development to their
employee so they can perform better and become a strength for the company(Chen and Miller
2012).
Limited success outside core business- The Land Rover is one of the leading brand of
cars and it faces many challenges as it is hard to adopt other culture for a new product.
Days inventory is high compare to the competitors- This makes the company to raise
more capital so the company can invest in other channel which impacts the long term growth of
Land Rover.
 Opportunities of Land Rover- The Land Rover can focus on various opportunities in
market place and these are as follows-
New environment policies- The new opportunities developing at market place open a
new field for player which represent higher opportunities for company to gain more advantage
through new technology to gain market share in the new product sector.
Stable free cash flow- The stable cash flow allow company to invest in more product
segment. As more cash means more investment and higher investment lead to higher profit. As it
involves spending on new technology which opens a new field for the company.
Decrease cost of transport- The cost of transportation is decreasing due to lower
shipping prices which allow to bring down the cost of product of the company which provide an
opportunity to boost the profits or charge lower price from the customer to gain more market
share.
New Taxation Policy- The new policy can open the new opportunities to established
player to increase their profitability.
 Threats of Land Rover- There are various threats that company has to face and form
strategy to remove it which are as follows-
Intense competition- The profitability in that sector has increased competition or
allowed new players to enter into the market in previous year which has put more pressure on the
existing players.
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Rising pay level- The rising pay level related to hours and increased pay rises in china
has lead to immense effect on profitability.
New environment regulations- The new regulations in different environment will be a
threat for the company for the existing players(Yagüe-Perales and March-Chordà 2012).
LO 3
P3 Applying Porter's five forces model and evaluate the competitive force of a given sector.
The Land Rover is a leading manufacturer but the company is also facing various
challenges from their competitors which is required to be analyse so that company can earn
higher profit and can acquire higher market share. To study the competitors forces, Porter five
force model which is an effective tool including five industry forces which determine the
competitor forces and their level of profitability. The Land Rover is operating in an attractive
industry where focus is towards high profits and the company also provides luxurious cars where
there are barriers in entry and few substitutes are there. The Porter is an effective tool to
determine company's competitive position in the market and it also help in formulation of
strategy through identifying what is the strengths or weakness which can be transformed into
strength. The application of this model are as follows-
 Threat of new entrant- This is the force which shows that it is difficult or easy to enter
in any market. This depends upon profitability of the company as if industry is profitable
and there are less barrier in entry which attracts competitor and if there are more barriers
on entry like Land Rover is operating in car industry where huge amount of capital is a
barrier for entering. If there are more competitors in the market it will be hard for the
company to acquire highest market share that makes existing companies to make a strong
barrier which restricts the entry of new barrier. The Land Rover is a leading brand and it
is not easy to form any threat regarding the brand as they have created a strong barrier
which is their brand position(,Dennen and Chauhan 2013).
 Bargaining power of suppliers- The supplier power comes when they have high
authority and at that situation they can coat any price or they bargain to charge higher
price which affects the profitability of the company due to increase cost of raw material.
The Land Rover has to analyse the power of supplier of tools used in manufacturing of
car as supplier can coat higher prices if they have strong bargaining power and this power
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built through various reasons such as if there are few suppliers and more players and in
relation with Rover there are few player who manufactures luxurious cars which made the
bargaining power of supplier lower.
 Bargaining power of buyers- The power of buyers depends upon the situation of the
market as if there is high demand then buyer do not possess any power but if there is no
demand in the market buyer has power to bargain and of strong nature. The lower prices
is considered as lower quality because the higher quality product require high cost of
manufacturing that make the price of product higher that raises the power. In case of
Land Rover the power to buyer for bargain is low as company only manufactures product
for only buyers who likes luxurious goods. So the company charge price without
considering the buyer bargaining power(Graham2016).
 Threat of Substitutes- This is a threat which incur when there are various substitutes are
available in the market. The buyer can switch where they will get attractive prices and
quality and buyer normally switch for small level change in price. In case of Land rover,
they only focus on customer who prefer luxurious goods and who prefer better quality.
There are many substitutes of Land Rover such as Rolls Royce and to remove this threat
company require to charge prices less then competitors to gain market share.
 Rivalry among existing competitors- This is a major force which affects the
profitability of the company. The competition is high when there are many competitors
and the growth of the industry is low. The products are not mostly differentiated and the
customer loyalty is low. In case of Land rover, the company prefer customers who are
loyal towards brand and do not shift on other brand for a small change in price which
allow them to focus on loyal customers and reduce cost of advertisement.
LO 4
P4 Applying various theories and concepts which interpret strategic planning in relation with
Land Rover.
The Bowman's strategic clock theory will be applied to interpret the strategic plan and
this theory uses a model that explores the various option regarding strategic positioning which
means that product should be positioned in a way which will give it a strong competitive
position. This is a model which helps the companies in achieving or analysing their position in
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the market . The theory of Bowman reflects that the cost advantage is considered as competitive
advantage which is a main element for a company and harps on positioning of company and the
overall product positioning. The explanation of this theory are as -
 Low price and Low added value- The theory states that coating low price is a technique
to gain competitive position that a company can use in the market. The Land rover tries to
offer low price than its competitors but offers high value to their customer. This position
is not a good position for being a competitor which will not allow to survive in long run
and the Land Rover offers good quality product so it do not fall in this category of
Bowman's theory(.Lewis, Doran and Ohlendieck2012).
 Low price- The company produces large quantities of products and add value on their
products sold in target market. This says that company can charge lower prices with
providing quality to their customers and getting low margin of profit on the individual
product but if the volume of product which is available for sale is high than it can result in
higher profit.
 Hybrid- This is an effective strategy which add value to the product that is consistent and
offered every time when consumer buy the product. The Land rover focus on the aspect
of product differentiation which means providing better features then their competitors
which increases the value of the product and focus on reducing cost so they can charge
lower prices.
 Differentiation- This includes three level which offer product offering high quality at an
average price and offer the highest added value to their customers that helps in getting
higher competitive position. The land rover focus on the quality of product and put all
their effort in their branding which results in current strong brand position of the company
which allow them to retain their customers or earn brand loyalty among customers.
 Focused differentiation- This strategy is highly applicable on Land Rover because the
company focus on Luxury items and expensive products which includes high quality and
high price. The company attain higher profit margins by using promotion to target market
and segmenting strategies. There are high number of competitor which are operating in
similar market segment and there is a fight in keeping higher price than others.
 Risky high margin- The Land Rover put higher margin of profit and charge high prices
of product and it is a very risky strategy as it includes high competition in relation with
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prices and this technique is not effective for long run as buyer will go for the product
which offer same quality in similar range of price so that their cost are low and add value
to their money(.Offringa and et. al., 2014).
 Monopoly Pricing- In this condition, the company feel that it is in a monopoly position
and there is no fear of competitors and they can fix any price for the product. The Land
Rover has half monopoly as they do not force buyer to buy they give choice to their buyer
which is to buy or not to buy as they have a very strong position in the market and
produces luxurious goods.
 Loss of market share- This position of the theory is not a desirable one and it arises
when company is not able to offer products which add higher value to customers. The
Land Rover always offer high value to their customers and coat price according to it.
Strategic plan implementation-
Strategic planning is a procedure to formulate the objective of long term. It is a written
document which includes mission, vision and strategic objective of the company. It involves the
policies and strategies that overseas the organisation and its resources, focus on the efforts and all
the planning related to a strategy(Romero-Gutierrez, Jimenez-Liso and Martinez-ChicoSârbu
2016).
CONCLUSION
From the above report, it can be concluded that business is influenced by external factors
such as political, social, legal etc. the internal capabilities of the company is necessary to be
identified for future growth of the firm which is analysed through SWOT analysis. The five force
model of Porter is used to determine the various types of competitors forces affecting the
business strategies and the bowman's model is used to interpret the strategic plans and their
applications(Sârbu and et. al., 2012).Sternbergerand et al., 2019
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REFERENCES
Books and Journals
Abraham, S., 2013. Will business model innovation replace strategic analysis?. Strategy &
Leadership. 41(2), pp.31-38.
Ahamad Nalband, N. and Al-Amri, M.S., 2013. Corporate social responsibility: Perception,
practices and performance of listed companies of Kingdom of Saudi Arabia.
Competitiveness Review: An International Business Journal. 23(3). pp.284-295.
Albero, B., and et. al., 2013. Analysis of natural-occurring and synthetic sexual hormones in
sludge-amended soils by matrix solid-phase dispersion and isotope dilution gas
chromatography–tandem mass spectrometry. Journal of Chromatography A. 1283. pp.39-
45.
Chen, M.J. and Miller, D., 2012. Competitive dynamics: Themes, trends, and a prospective
research platform. The Academy of Management Annals. 6(1), pp.135-210.
Dennen, V.P. and Chauhan, A., 2013, September. Shall we MOOC? A SWOT analysis at the
program level. In MOOCs Forum (Vol. 1, No. P, pp. 17-21). 140 Huguenot Street, 3rd
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Graham, A., 2016. Airport strategies to gain competitive advantage. In Airport Competition (pp.
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Lewis, C., Doran, P. and Ohlendieck, K., 2012. Proteomic analysis of dystrophic muscle. In
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Offringa, A.R., and et. al., 2014. WSCLEAN: an implementation of a fast, generic wide-field
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Romero-Gutierrez, M., Jimenez-Liso, M.R. and Martinez-Chico, M., 2016. SWOT analysis to
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Sârbu, C., and et. al., 2012. Classification and fingerprinting of kiwi and pomelo fruits by
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Sternberger, A.L.,and et al., 2019. Transcriptomics Identifies Modules of Differentially
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Yagüe-Perales, R.M. and March-Chordà, I., 2012. Performance analysis of research spin-offs in
the Spanish biotechnology industry. Journal of Business Research. 65(12). pp.1782-1789.
Yan, J.,and et. al., 2012. Selection of reference genes for quantitative real-time RT-PCR analysis
in citrus. Molecular biology reports. 39(2), pp.1831-1838.
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