Business Strategy - Aston Martin

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Added on 2021-02-22

Business Strategy - Aston Martin

Added on 2021-02-22

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Business StrategyStudent Name:Cristian Matusoiu

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Application of appropriate frameworks for the analysis of impact and influence of macroenvironment.................................................................................................................................1M1 Critical analysis of macro environment to determine and inform strategic managementdecisions.......................................................................................................................................3P2 Analysis of internal environment and capabilities of the organisation...................................4M2 Critical evaluation of internal environment to assess strengths and weaknesses..................8P3 Application of Porter's five forces model for the evaluation of competitive forces...............8M3 Appropriate strategies to improve competitive edge and market position based on theoutcome......................................................................................................................................10TASK 2..........................................................................................................................................11P4 & M4 Application of range of theories, concepts and models to interpret and devisestrategies planning for the organisation.....................................................................................11D1 Application of environmental and competitive analysis to produce strategic directions....14CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15

INTRODUCTIONBusiness strategy is a type of competitive action or move which is taken by organisationsto attract large number of customers, strengthen performance, achieve long term business goalsand attain competitive advantage. It guides enterprises to carry out all operations in systematicmanner so that a desired outcome could be acquired (Agarwal, 2014). The company which isselected for this report is Aston Martin. It is one of the largest automotive organisationsexecuting business all around the world. It was founded by Robert Bamford and Lionel Martin inyear 1913. This assignment covers various topics such as analysis of impact and influence ofmacro environment on business's strategy, assessment of entity's internal environment andcapabilities. Apart from this, analysis of competitive environment with the help of Porter's Fiveforce model and application of theories, concepts and models are also covered in this project.TASK 1P1 Application of appropriate frameworks for the analysis of impact and influence of macroenvironmentMacro environment: The conditions which are available within the economy andaffecting the environment are known as the part of macro environment. There are various factorswhich are considered as its elements. These are inflation, deflation rates, gross domestic product,fiscal policy, employment etc. In order to analyse influence and impact of all of them on AstonMartin, PESTLE analysis will be used.PESTLE analysis: It is a tool which is mainly used for the purpose of determiningimpact of external factors on organisational policies and procedures. Strategy managers in AstonMartin use it to formulate strategies for future so that negative situations which may take place infuture could be dealt and responded properly. It has six different elements political, economic,social, technological, legal and environmental. Detailed analysis of all of them in context ofAston Martin is conducted below:Political: This factor is related to governmental intervention in the organisationalprocedures (Baker and Hart, 2016). The elements which are covered by it are foreigntrade policies, labour law, trade restrictions etc. In order to execute business in systematicmanner, it is very important for strategy manager of Aston Martin to make sure that allthe interventions are focused by them while formulating policies for business. All the1

political factors have impact upon organisation because they bound companies to executebusiness under certain laws. These are also influencing strategies of Aston Martinbecause political party’s changes with time and rules are changes by them frequently. Inorder to reach long term business goals, the managers have to make improvements inpolicies accordingly.Brexit is one of the main political factor which has affected theorganisation because due to this most of the organisations are not able to import or exportmaterial from other countries. It has resulted in higher cost of production and lower costs.Economic: The elements of this factor are economic growth, interest rate, inflationdeflation, disposable income of businesses, customers etc. For strategy manager in AstonMartin, it is very important to be aware of changes in such components because all ofthem may leave impact upon business. In UK, government is supporting such industrieswhich are generating higher profits and benefiting economy by losing the trade policies.Frequent change in economic factors will influence strategy of the company because oldone will require to be modified (Beltagui, 2018).There are different economic factorssuch as trade policies, tariffs and taxes. Higher profits requires higher payment of taxeswhich affect the funds of the company (Economic factors for Aston Martin, 2019).Social: All the elements such as belief, attitude, age, gender, buying behaviour, cultureetc. that are dependent upon customers are considered as the part of it. Business strategyof Aston Martin gets impacted and influenced due to social factors because all of themchanges frequently. It directly leaves impact upon demand and supply of products whichare sold by the company. For example, currently demand for electric vehicles isincreasing continuously and if enterprise is not able to meet it, then it may resultadversely. In order to ignore their negative impact and influence strategies are changedby managers. Technological: New ways of engineering, techniques, technology advancement etc. areconsidered as technological factors of PESTLE analysis. Strategy manager in AstonMartin pays attention toward all such types of factors in order to ignore its negativeimpact upon business and its strategies. As such elements are changing continuously so,the company has decided to launch cars with latest technology (artificial intelligence).With the help of it, organisation will be able to generate higher revenues and increaseprofitability (Bentley and Gibney, 2017). As mostly petrol based cars are sold by Aston2

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Business Strategy - Aston Martin