Business strategy

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1. Impact and influence of external environment.....................................................................4
M1. Critically analysis the external environment.......................................................................7
TASK 2............................................................................................................................................7
P2. Identify the internal capabilities with the help of internal environmental analysis..............7
M2. Critically evaluate the internal business environment.......................................................10
TASK 3..........................................................................................................................................10
P3. Application of porter's five forces model to evaluate the competitive forces in market .. .10
M3. Strategies to improve market position...............................................................................12
TASK 4..........................................................................................................................................12
P4. Application of various theories, models and concepts which are useful in developing
effective strategic plan..............................................................................................................12
M4. Strategic management plan................................................................................................14
D1. Critique and interpret prominent information to develop strategies..................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business strategy is concerned with effective strategic plan which is developed by
company in terms of attracting customers and also tends to enhance sales within the competitive
business environment. It is essential for having efficient strategies that are developed by
company and also useful in taking effective decisions which is useful for company to accomplish
its mission and vision. With the help of these strategies, company prominently deal with negative
impact regarding the changing external business environment in terms of sustaining with the
profitability of market (Yuan, Cheng and Ye, 2016). To carry forward this report, Bentley
Motors is considered which is the British Independent manufacturer for the luxury sports car and
founded by H.M. Bentley and W.O. Bentley in 1919, headquarter in England. Along with this, it
is concerned with expensive cars and suitable promotion with the help of fictional character like
James Bond. The report tends to discuss regarding the internal and external business
environment and for this, company also tends to apply various theories regarding the significant
theories which is useful in achieving competitive advantage in market. Besides this, effective
recommendations are given for growth strategies which is beneficial for company.
TASK 1
P1. Impact and influence of external environment
Vision: The vision is to provide effective experience and the effective turnaround over
the past years in terms of securing their position within the market for developing long term
strategy.
Mission: The mission of company is to offer best services in each and every area of
business in terms of achieving and offer most rare customer experience in terms of working best
at the organisation considering the strong support for community.
Objectives: The objective of company is to strive for the right things and committed
towards the truth which is both in the action and words. Moreover, they also tend to offer
services to their customers with the objective of forefront of their business.
Strategies are developed as the suitable set of significant action plans which is developed
by the manager of company in terms of taking effective decisions which is helpful to reach
towards the effective goals and objectives in defined period of time (Munandar, 2017). By
developing prominent strategies, organisation tends to achieve competitive advantage in market

by providing products to their customers considering the change in taste and other preferences.
For this, effective tools are useful in terms of identifying the external environment of company
considering the effective strategies.
PESTLE Analysis
The external factors cannot be changed and controlled and also tends to create the
prominent impact on the functioning of business in both positive and negative manner. It tends to
depict the positive impact considering the suitable advantage for the growth of company and
tends to deal with negative impact which is essential for prominent strategies to eliminate
negative factor. Thus, probable factors that impact Bentley Motors and its strategies are
mentioned as: Political: It is concerned with government intervention within the process of company as
it includes various elements like foreign trade policies trade restrictions Labour Law and
many more. In terms of implementing business prominently it is essential for manager of
Bentley Motors to make sure that the prominent interventions are considered at the time
of developing policies for business (Ocasio and Radoynovska, 2016). Moreover, the
political factors also have impact on company because they restrict the functioning of
complete regarding its execution. It also leads to influence strategies of Bentley Motors
because of changes in political parties that rule with frequent period of time. In regard to
reach for the significant business objectives managers need to make prominent
improvement and policies respectively. Economical: This factor undertakes interest rate economic growth inflation customers
and many more. From the perspective of the manager of Bentley Motors it is essential to
become aware regarding the changes as all of them tends to leave impact on the
functioning of company. In UK Government support the big industries as the leads to
generate higher revenues and profitability which is beneficial for the economy
considering its trade policies (Das, 2016). For this the prominent changes in the economic
factor leads to impact strategy as existing one need to be suitable modifications. Social: It leads to undertake various elements including attitude gender age purchasing
behaviour culture and many more which depend on the customer and considered as the
part of economy. Business strategy of Bentley Motors that influence because of social
elements as the frequently changes. It prominently leaves impact on the supply and

demand of product which is sold by the company. For instance, the electronic vehicles
are increase in demand and if company is not able to meet then it negatively impacts the
sales and profitability of company. Technological: It depicts that there are various methods for the technological
advancement like techniques and so on which are useful for the manager of Bentley
Motors in terms of paying attention towards the factors that leads to improve the
technology of company. For this element tends to change prominently as company decide
to launch car with the latest technology including artificial intelligence and with the help
of it is able to generate suitable revenues and enhance profitability (Hernández, Lemus
and Medrano, 2020). In regard of this petrol-based vehicles are sold by Bentley Motors
but in present time because of the increasing demand of electronic cars company also
form strategies to sold electric vehicles with suitable policies and norms that impact the
trends. Legal: This element focusses on various factors like consumer right product safety and
Advertising standards and many more and all of these norms put positive impact on
Bentley Motors due to the developed strategies by the manager which is helpful in
developing suitable market image (Filippov, 2017). Few of the elements changed
prominently that impact strategy of Bentley Motors as due to the situation manager need
to make prominent changes within the organisational policies. Most of the time it is quite
difficult to execute frequent changes in the process of business that leave negative impact
on the functionality as if laws are not properly compiled by the Bentley Motors then it
results to words the legal interference within the operations. Environmental: This type of elements undertakes Environment protection norms
including pollution climate change and many more. In terms of implementing no
operational activities within the strategic and systematic way the manager of Bentley
Motors needs to pay attention towards the components of external environment. It
prominently impacts the strategies and the company because if vehicle in future is
developed by company which create home for the environmental conditions then
company need to make suitable modifications in their strategy to eliminate the negative
impact (Naughton, 2018).
Stakeholders Analysis

As per this strategy the stakeholders of an organisation are examined and prominent
groups are developed on the ground of significant characters including the level of participation,
interest, power and concerning activities of company. Few steps are mentioned as:
Step 1: In this stage the stakeholders of company are examined for Bentley Motors considering
the government, shareholders, customers and so on.
Step 2: Stakeholders are classified on the basis of: High power, high interest: These individuals are prominently involved and also satisfied
with the suitable activities of company including shareholders. High power, low interest: These people have low interest and also tends to impact
prominent activities of an organisation like government. Low power, high interest: They have high interest but cannot impact the prominent
activities of company like customers. Low interest, high power: These individuals are not interested and they also does not
want to take interest that leads to impact suitable activities like suppliers.
Step 3: This stage prominently communicates with the suitable development of stakeholders
considering the goals and objectives which are accomplished.
M1. Critically analysis the external environment
External environmental components are those which cannot be changes and significantly
controlled but also tends to impact the business strategies which should be changes in terms of
gaining maximum benefits of probable factors to gain significant competitive advantage in
market that can be achieved. It is essential for Bentley Motors to change its probable business
strategies to adjust within the dynamic environmental condition which is helpful in achieving
sustainability for the longer period of time in market area.
TASK 2
P2. Identify the internal capabilities with the help of internal environmental analysis
The internal environment is concerned with the internal resources and capabilities of
business which is helpful for company in terms of accomplishing prominent goals and objectives
in effective manner. It is essential to undertake internal factors of business and also identify
prominent strengths and weaknesses in market which is estimated with the help of using suitable
capabilities in terms of offering the significant opportunities that exist in market and also tends to

deal with concerning weaknesses and threats in effective manner (Cordell and Thompson, 2019).
For this, few tools are used which are helpful to identify the internal factors of business:
VRIO Analysis:
It is undertaken as the strategic management technique which is useful for the effective
functioning of business by identifying the innovative factors of business which is useful in terms
of gaining competitive advantage in marketplace. Few factors of VRIO analysis of Bentley
Motors is mentioned as:
Capabilities Valuable Rare Inimitable Organised
Marketing
activities
YES NO NO NO
Profitability YES YES NO NO
Human resource YES YES YES NO
Brand image YES YES YES YES
 Valuable: By undertaking the above table it is identified that there are four prominent
capabilities of Bentley Motors which is useful for company to implement their
operational activities. These include the marketing actions human resource profitability
and brand image which are valuable for company and because of them it is helpful for the
manager of company to analyse actual position of company and develop plan for the
future purpose (Elsevier, Volden and Samset, 2017). Rare: This factor depicts the marketing activities which are used by Bentley Motors as all
the organisation perform suitable activities in terms of spreading awareness. It includes
profitability human resource and brand image are some of the suitable capabilities of
Bentley Motors which are real because not all the factors are able to generate suitable
profitability and acquire effective Band image with skilled employees. Imitable: Profit is not imitable as other organisations in the automotive sector including
Tesla Bentley and others generate same profitability that are achieved by company every
year. Effect of brand image and skilled human resources are imitable by the company
which is possible for the Rivals to imitate this capability.

 Organised: This factor undertakes the human resources of Bentley Motors that are
organised by company because of effective focus on the manufacturing process. The
brand image is effectively managed by Bentley Motors tiles the strategic managers of the
company tried to fulfil the basic needs of customers which are sold by company in terms
of paying attention towards the quality.
McKinsey's Model: Strategy: It is concerned with the prominent business strategies which is useful in
computing and dealing with the dynamic market conditions and also helps in sustaining
market over a long period of time. it is essential for Bentley Motors to change its strategy
within the dynamic business conditions so that it exist within the market. Structure: As per this the business divisions and units are organised in company
regarding the flow of information within the strategic way (John Wiley & Sons.
Lindborg, 2017). The structure of Bentley Motors is Flat which is useful to form and
transfer information in company in terms of accurately taking decision for the benefit of
organisation. System: It includes the suitable process which is followed by Bentley Motors in its daily
operations and prominently takes decisions on the frequent basis. Skills: These factors are concerned with the abilities of employees in Bentley Motors and
how efficiently they can work regarding the accomplishment of goals and objectives of
company within defined period of time (Agarwal, 2014). These skills prominently
effective for company in terms of increasing benefit which is accomplished by company. Staff: This factor is concerned with the composition of workforce in Bentley Motors so
that prominent job vacancies can be filled with employees in terms of having effective
skills by which company can accomplish their goals. Style: It is concerned with the suitable style which is used by the administration of
Bentley Motors in terms of deal with the employees and their skills. For this democratic
leadership style is useful for Bentley Motors so that employees can take effective
participate in the decision making of company.
 Shared values: It leads to undertake the significant standards and norms that are guided
regarding the behaviour of employees in Bentley Motors and effectively worked in terms
of accomplishing objectives of company.

M2. Critically evaluate the internal business environment
Internal analysis is helpful for company considering the significant capabilities and
resources of business which is efficient and useful in terms of achieving suitable goals within the
stipulated period of time. For this, both VRIO and McKinsey's framework is useful in terms of
knowing regarding the prominent internal strengths and capabilities of company. For this, the
internal factors are useful in terms of making effective policies and strategies by which company
can accomplish success in market area.
TASK 3
P3. Application of porter's five forces model to evaluate the competitive forces in market
This tool is helpful in terms of determining the competition within the industry and taking
effective strategic decisions regarding the overall situation. In relation with Bentley Motors the
prominent competitive position is identified and discussed as underneath: Threats of new entrants: It depicts that when a new competitor arrive in the market then
it leads to increase the competition and existing organisation also get affected because of
services which is offered by the new entrant. Automotive sector is considered as the joint
industry and for these organisations are willing to enter in it in terms of getting profit and
achieving competitive advantage and for this it is important to get proper fonts and
suitable market research (Beltagui, 2018). It also represented that there are several
barriers to take entry in the sector. Hence the threat of new entrants for the Bentley
Motors is low because it is not easy for the new arrivals to give tough competition to
Bentley Motors. Threat of substitute: The products which are offered by company offers significant
benefits and also essential for company otherwise it can be treated as substitute. Bentley
Motors is the well-known company in automotive industry in which various types of
vehicles are available including electric customised fully automatic and many more
which are sold by company to their potential customers (Bentley and Gibney, 2017). For
this most of the vehicles are sold by Bentley Motors on the basis of petrol and there are
various substitute present in the market. It also represents prominent threat of it within
the organisation which is quite high for the customers and they can switch to the
customised electric and automatic vehicles.

 Bargaining power of customers: It depicts the number of buyers for the product which
is sold by company are hi instead of the bargaining power of customers which is low. But
considering the opposite situation the power will be high by which they can bargain on
the basis of substitute product. Within the automotive industry there are various number
of buyers for the organisations and most of the individuals are willing to purchase it.
Along with this Bentley Motors has strong customer base in the market area which is
acquired by them and due to this the power of bargaining of customer is low because of
the large number of customer base. Bargaining power of suppliers: As per this element it is identified that it depends on the
power of suppliers by which they can enhance the price of raw materials which is
delivered by them to the organisation and manufacture their products. Moreover, there
are n number of customers and suppliers and because of this the bargaining power of
suppliers is low (Donnelly, Begley and Collis, 2017). But in relation with Bentley Motors
the bargaining power of suppliers is moderate because Bentley Motors has Limited
number of suppliers because the manufacture qualitative and expensive vehicles. Bentley
Motors is one of the important parts of automotive industry as they tend to sell raw
materials on the higher prices to the other organisation in terms of having suitable
profitability.
 Competitive rivalry: This factor of model is used to identify the competition level which
is available in the sector. Moreover, with the help of it both small and large business
organisation can identify that they are capable enough to survive within the market with
various competitors of the company (Espejo, 2015). Bentley Motors is related with
automotive industry in which several organisations tends to implement their operational
activities including Jaguar Volkswagen Tesla and many more. Therefore, all of these
Enterprises are undertaken as the major Rivals of Bentley Motors and due to this the
competitive rivalry in the sector is high for the company.
By considering the above discussion it is identified that Bentley Motors can deal with the
prominent competition which is present in market by developing suitable policies and strategies
which is helpful for them in terms of accomplishing success and growth and also helps in making
sustainable in the market full stop it is also identified that changing market Trends are essential
in terms of bringing changes in the business strategies to continue for the survival in market.

M3. Strategies to improve market position
In terms of improving the overall market position, it is essential for the business to
analysis the suitable number of competitors which are present in market area considering the
suitable level of competition in the market place. For this, the effective position is identified
considering the pressure for competition in market area and also tends to calculate which is
possible with the help of Porter's five forces strategies which is developed by company in terms
of making effective market position which is enhanced by achieving prominent opportunities in
market and also tends to deal with significant threats in effective manner.
TASK 4
P4. Application of various theories, models and concepts which are useful in developing
effective strategic plan
Strategic planning is concerned with identifying the prominent Strategies and plans that are
developed by company by considering various activities and organised for the particular
direction so that the goals and objectives of company can be achieved. Strategic planning is
essential considering the objectives of company that are achieved by allocating the resources and
also useful in gaining suitable goals of company.
Ansoff Matrix: It is undertaken as the strategic management technique which is useful in
developing strategies for company in terms of having suitable market growth and its prominent
strategies are mentioned as underneath: Market penetration: In this same products and commodities of company is provided in
the market in terms of enhancing advertisement in the market by undertaking the large
number of customers and attraction towards the company. Bentley Motors can opt this
strategy in terms of increasing their promotional and selling activities within the targeted
market area by which they can increase their customer base and market area (Klyatis,
2015). In terms of Bentley Motors they opt this strategy by considering the marketing
expenses and also leads to increase suitable marketing by considering the increasing
advertisement and publicity to attract maximum number of customers which is useful in
reaching towards the company and positively impact the profitability. Market development: As per this strategy current products and services of an
organisation are offered in the new market area and by this the prominent customers and

their base can be developed by company that leads to enhance the sales and revenues of
Bentley Motors. In relation with Bentley Motors they can opt this strategy in terms of
expanding their business will in the market area so that they can increase their revenues
and sales and for this strategy expansion is also done that leads to enhance the expansion
cost of Bentley Motors which will impact the profitability of company (Linn, Sanden and
Piekkari, 2018). Product development: In this the new products and services are offered by company
within the significant market area which is useful in attracting customers for the new
products of an organisation. In relation with Bentley Motors they can opt this strategy in
terms of bringing innovative change within the prominent services that leads to increase
sales. This strategy also need increment in research and development that leads to
increase the cost of company in terms of developing prominent products and services that
can impact the profitability of company.
 Diversification: With the help of this strategy new products are prominently offered by
company in the market area in terms of expanding the product line and market area as
well. In relation with Bentley Motors deletes to offer innovative services within the
market to attract potential customers (Mackie, 2019). It is considered as the risky strategy
because it leads to increase cost of the company as in this effective research and
development is required for D Business expansion strategies that influence the
profitability of company.
By taking the above discussion it is identified that Bentley Motors should use market
development strategy for the safe and suitable expansion that need less research cost for the
development of new products and also useful in terms of creating new customer base it is helpful
in developing brand image.
Porter's generic model: This strategic tool is useful for the company in terms of identifying the
ways that can increase the competitive advantage in the market and few factors are mentioned as
below: Cost leadership: As per this strategic company need try to become the leader in the
market by offering suitable products at the low prices which is helpful in attracting
customer towards the products. Moreover, if this strategy is applied then company need
to eliminate the prices of products in terms of becoming the cost leader (Rowlinson,

Hassard and Decker, 2014). It leads to impact the profitability of company as it might not
be able to accomplish the expected sales. Differentiation: In this company try to offer different commodities to their customers in
terms of increasing customer satisfaction that can be accomplished by attracting large
number of customers. It also requires significant amount of innovation and suitable
research within the organisation that leads to prominently differentiate the products and
also impact the profitability of company.
 Focus: It depicts that when the cost leadership and differentiation is applied then
company need to focus on the target market as the target customers need to be attracted
towards the commodity (Sudharshan, 2019). For this strategy, company prominently
target the specific products by which they opt suitable strategies that impact the
profitability of an organisation.
By taking the above discussion differentiation strategy should be opted by Bentley Motors
which is helpful for them to attracting large number of customers by offering them unique and
customised product. It is also useful for them to create suitable brand image in the market by
attracting large number of customers towards the company.
M4. Strategic management plan
Strategic management plan is useful in terms of developing effective mission and vision
for company by identifying the prominent factors that leads to impact the business functioning.
The strategic plan for Bentley Motors is mentioned as: Vision: The primary vision is to offer effective customer experience by offering
qualitative services to secure their position in market in terms of developing long term
sustainability. Mission: Mission is to offer best quality and useful services and also tends to take
support of significant community. Strategies: In relation with Bentley Motors, market development strategy is helpful as in
these existing products are offered by company within the new market area which include
less risk factors in comparison to others. Objectives: The primary objective is to increase the market share by 20% within the next
3 months.

 Tactics: In terms of enhancing the prominent use of technology is beneficial to offer
suitable services in more effective and efficient manner.
D1. Critique and interpret prominent information to develop strategies
It is essential for the organisation to develop prominent business strategies by analysing
the effective internal and external environmental factors that leads to impact the running and
functioning of business. It is also helpful in developing effective policies which is useful for
organisation to accomplish significant goals and objectives of company. For this, several types of
details and information is offered considering external business environment which is collected
with the help of PESTLE and VRIO analysis and also useful in knowing regarding the prominent
strengths and capabilities of company. It is also essential considering the prominent strategic
policies which is opted by company to grow sustainability in market area.
CONCLUSION
By considering the preceding discussion, it is identified that organisations need to
effectively identify the prominent marketing environment and its concerning factors undertaking
both internal and external analysis. For this, company opt suitable frameworks which is helpful
in dealing with the negative factors in terms of taking advantage of the positive elements. For
this, several tools and techniques are helpful in terms of developing effective strategies and plan
which is useful for company in terms of accomplishing long term objectives and goals in
prominent way. Therefore, it is essential for an organisation to opt effective tools that are applied
with accurate strategies for the chosen organisations regarding the expansion in market.

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