Corporate Strategy: Frameworks, Analysis, and Decision Making

This document provides an in-depth analysis of corporate strategy, focusing on the application of suitable frameworks, analysis of the external and internal environment, and strategic management decisions. It explores the impact of political, economic, social, technological, legal, and environmental factors on business operations. The document also examines the strengths, weaknesses, opportunities, and threats of Bentley, a luxury car manufacturer, and suggests strategies for leveraging its resources and capabilities to gain a competitive edge.

CORPORATE
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Application of suitable framework which impacts the functioning of company and
external environment...................................................................................................................1
M1. Critically analyse the external environment and determine the strategic management
decisions......................................................................................................................................4
TASK 2............................................................................................................................................4
P2. Analyse the internal environment and capabilities of company...........................................4
M2. Critically evaluate the internal environment in order to assess the strengths and
weaknesses of organisation's internal structure...........................................................................6
TASK 3............................................................................................................................................7
P3. Application of Porter's five force model in order to evaluate the competitive forces of
market..........................................................................................................................................7
M3. Provide suitable strategies in order to improve the competitive edge and position of
market..........................................................................................................................................9
TASK 4............................................................................................................................................9
P4/M4. Application of suitable theories and models in order to devise strategic planning for
company......................................................................................................................................9
D1. Critique the information of environmental analysis in order to develop strategic
directions, objectives and tactical actions...................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Corporate strategy is considered as the highest strategic plan which is useful in analysing
and describing various corporate goals and directions which needs to be achieved with the
suitable strategic management activities. It is considered as the long term procedure which is
useful in defining the vision of company and helps in analysing the overall goals for company
which are valuable to set suitable strategic goals (Rugman and Verbeke, 2017). It is termed as
the basic plan which helps in describing and answering many questions such what, when, how
and so on. Corporate strategy is the continuous plan which is capable enough to change the
surroundings and environment and determine the market related situations. Bentley is considered
for this report which is a British company and manufacture and market its product at
international level and deals in luxury cars and SUVs. Headquarter of company is in Crewe,
England, UK and founded by W.O. Bentley in 1919 and it is the subsidiary of Volkswagen
Group. In this report, suitable frameworks are applied which are useful in determining and
analysing the influence of external organisations and also analyse the impact of internal
environment by using suitable approaches. Furthermore, Porter's five forces is used in order to
analyse the competitive forces which are present in market sector and at last, suitable theories are
used and devise a strategic plan for the company.
TASK 1
P1. Application of suitable framework which impacts the functioning of company and external
environment
Bentley is the British manufacturer which deals in luxury cars and SUVs and now they
want to expand their business and cover developed and developing areas. For this, company
conduct environmental analysis in order to determine the macro factors to get suitable
understanding regarding the current and future market conditions (Johnson, 2016). For this,
PESTLE analysis is conducted which is useful in analysing the various environmental threats
and opportunities that is useful for company in eliminating the risk factor and these components
are discussed as under: Political: It plays an important role in determining those factors which impacts Bentley
and its long terms profitability in specific country or market and impacts the chances of
survival can make it quite diverse. In addition to this, risk factor gets vary because of
1

uncertain changes and appraise the extent of total systematic risk that Bentley may be
exposed which include level of political stability which company has seen in current
years. Also the integrity of politicians take part in corruption activities which results in
repercussions that leads to impeachments of high level employees. For this, the laws of
country enforces the regards of business like contract law which depicts that what is
allowed or not (Bentley Capital Limited PESTEL Analysis & Environment Analysis,
2018). For this, the trade barriers of host country impacts the would has been protected
and also gets limited trade barriers which put negative impact on the trade partners that
harm company by preventing potential exports. Economical: This factor pertains the economy of country and describe various changes
which include inflation rate, foreign exchange, interest rate, GDP and current stage of
economic cycle (Rothaermel, 2016). This factor results in impacting the aggregate
demand, investment and also influences the climate of environment which make
company more profitable and likely to incur loss. For this, the the economic system in
which company currently operates its business is considered as monopoly, oligopoly or
somehow related with perfect competition. The GDP of country impacts the growth of
company as after Brexit many legislation and policies gets change which influences the
growth and limitedly expected to grow in near future. In respect of this, exchange rate of
country impacts the profitability of company and also engages it into international trade. Social: This factor reflects the society in which company operates its business and also
encompasses the future culture, belief, values and so on which may hold it as community
(Keyes, 2016). It also consider the lifestyle of customers, their education and knowledge
level and beliefs of society which helps in designing the products and promoting them to
become successful in future. For this, various factors include demographics of
population, respective age and gender which impacts the certain product hat may be
marketed by them. In addition to this, company needs to be aware about the health
standards as examine the environment that does not impact the health of employees and
customers and also important for the environmental protection predominates in industry.
Moreover, it also describe the class of distribution among the population that would be
unable to promote the premium product to public. To some extent, differences in
2

educational background among the marketers and target market make it difficult to relate
which is not so careful to lose the connection of interest of target market and priorities. Technological: This factor depicts the price structure and competitive landscape of
industry in short period of time as it become important to constantly innovate and make
changes in products not only for maximising profits by which company become the
leader but also because of preventing the obsolescence in upcoming days (Puranam and
Vanneste, 2016). For this, there are multiple examples of innovative products that
redesign the rules of entire sector. For this, recent developments in technology
breakthrough competitors and also encounter the new technology which is gaining the
popularity because it is important to oversee the level of popularity which is growing and
disrupt the revenues of its competitors. It influences the technology on the cost that most
of the companies wants to increase or decrease the resulting profits greatly (Bentley
Capital Limited PESTEL Analysis & Environment Analysis, 2018). If these profits are in
great number then they reinvest the amount in research and development in which future
innovations impact the level of profits and make sure the sustainable profits for longer
period of time. Legal: This factor depicts the legislations and laws which are the subject matter of
political party holds the majority in government body as it is not much sufficient to
protect the capital and labour and for this, it also appear an desirable place of
employment (Brooks, Chen and Zeng, 2018). For this, company follow Intellectual
property law and related data protection law which are useful in protecting the ideas and
rights of company by which they earn profit because of its information. As because of
this, company can lose its competitive edge that increases the chances of failure. In
addition to this, company also follow discrimination and health and safety act in order to
protect their employees from any kind of problem which include gender, age, disability
and so on.
 Environmental: This factor holds the various standards of environmental protection
which depicts that every company need to follow and make suitable aim to prevent
themselves and become the target of pressure groups which gets boycott due to lack of
environment conscientiousness. It include the present weather conditions which impacts
the competence of company to manage the transportation of their available resources to
3

finished products (Bentley Capital Limited PESTEL Analysis & Environment Analysis,
2018). It would also impacts the delivery dates of products because of unexpected
monsoon. For this, Bentley need to contribute in the endangerment of the already
endangered species by which they does not face the consequences of other law and the
backlash from general public.
M1. Critically analyse the external environment and determine the strategic management
decisions
By determining the above conditions it is analysed that to conduct external environment
is important as it helps in eliminating and reducing the risk factor which present in business
environment. This analysis is useful in developing and making suitable strategies and policies
which are helpful in taking critical business decisions (Chatterji and et. al., 2016). Here, it is
analysed that political factors are important and relatable in order to expand its business. In
relation with Bentley, they mostly consider social factors which are useful for company in order
to expand its business and attain suitable success and growth.
TASK 2
P2. Analyse the internal environment and capabilities of company
SWOT Analysis: It is an approach which is useful in examining the internal factors that
include internal elements of company which are useful in determining the strengths, weaknesses,
opportunities and threats that are discussed as under: Strengths: Bentley is considered as the very popular brand because of its unique luxury
services that provide sporty nature and touch in their products (Foucault and Frésard,
2019). In addition to this, company does not believe in more promotion and
advertisement because their targeted segment belongs from rich class or it can be said
that company target rich class people because their offered products are exclusive and its
maintains their exclusivity. For this, their potential customers feel unique and special in
order to possess and become the part of Bentley family (SWOT Analysis of Bentley,
2019). Thus, it is quite expensive and are of high quality to only represents positive
points regarding the success of its and for this differentiation is best. In addition to this,
Bentley cars offer superiority and excellent services that are beyond technology to normal
cars and here, company develop its power and strength in terms of technology and
4

become the leader of industry. Moreover, the designs of cars are more beautiful and
impressive and because of its design, company gets success with its refined and modern
car designs. Company also have high brand value which make themselves less vulnerable
to their competition as it increases the barriers for new entrants within the market place. Weaknesses: It describe that the presence of company is limited in many countries
because they maintain exclusivity in order to lose their emerging market. For this,
emerging countries have rich and affluent people which can become their potential
market but due to this, Bentley is not able to tap new market (Surijah, 2016). To maintain
exclusivity in market area, company set high standards as Bentley not only produce
limited number of cars as they have many customers which are waiting for longer period
of time only to book their item and because of this, company can lose its customers and
which are acquired by Jaguar, Rolls Royce and many companies who over luxury cars. In
addition to this, company has limited market segment as they target rich people and they
have limited amount of scope for growth so, their growth is not sustainable. Opportunities: Currently, company become more environment friendly and also start
looking for more economic and provide better thermal fuel alternatives such as hybrid
cars which strive their stakeholders sustainability. In addition to this, they can easily
acquire other small brands and start providing its services to other segments which can
leverage the brand name of company in terms of high returns (SWOT Analysis of
Bentley, 2019). Moreover, company should focus on the loaded class in emerging their
market segment and also start providing its services to other nations which are at
developing stage. Here, company also advertise its services in order to sponsor its
premium products events to represent its brand name.
 Threats: Government norms and regulations become threats for company as they become
more rigorous for the pollution and environmental acts. For this, company need to look
forward and determine the suitable changes to their bedrock (Arasti, Khaleghi and Noori,
2017). In addition to this, increase in the prices of fuel become the major issue for the
automobile industry and company need to put emphasis on the alternative of fuel such as
electric cars. Furthermore, the competition of company become more visible to the
campaigns of marketing which can hamper their growth and as a result it declines the
sales and the economic factor influences the premium players as if economy of nation
5

face downfall then it impacts Bentley as it becomes hard to find out the suitable solution
to keep stand in dynamic business environment.
VRIO Analysis: It is useful in determining the internal factors and environment and also
provide the sustainability to achieve competitive edge in the targeted market area (Zerfass and
Viertmann, 2017). It also depicts many stages that are helpful in enhancing and providing the
great competitive advantage which are discussed as under:
Resources Valuable Rare Imitable Organised
Human
Resources
✓ ✗ ✗ ✗
Distribution
Network
✓ ✓ ✗ ✗
Organisational
Culture
✓ ✓ ✓ ✗
Financial
Resources
✓ ✓ ✓ ✓
 Valuable: It describe those products which are valuable for company in order to achieve
growth and success as it describe the human resources, distribution channels, culture of
organisation and financial resources (Hardy, 2018). As in terms of manpower, it becomes
difficult to find knowledgeable staff, in relation with distributive channels each and every
company has its own ways to reach out its products to their customers, every organisation
has its own culture and determine its financial resources which should be arranged for the
benefits of company. Rare: This factor describe those factors which are rare for company and does not get
available easily and it includes distribution channels, culture of company and financial
resources and all of them are rare in order to offer its products and services as company
has its own culture to provide its offerings. Imitable: It define those products which does not get copied and it include culture of
organisation and financial resources which describe that norms and culture is not copied
6

and to run business in smooth manner, it require suitable amount of resources which
every company as different.
 Organised: Here, it defines financial resources which needs to be organised in order to
invest suitable capital in their prominent strategies as it helps in determining the right
place which offer appropriate opportunities to attain competitive advantage.
M2. Critically evaluate the internal environment in order to assess the strengths and weaknesses
of organisation's internal structure
By analysing the internal environment it is examined that in order to analyse the internal
capabilities and also describe those factors in which company has suitable opportunities to
convert them into their strengths (Chang, 2016). For this, threats are analysed as Bentley has
only threats from their rivals and competitors which give tough competition to them. In relation
with VRIO, it is analysed that company analyse and know worth of its products which are
valuable, rare and imitable and organised as it helps in determine the competence which is useful
at the time of expansion.
TASK 3
P3. Application of Porter's five force model in order to evaluate the competitive forces of market
This model is useful in examining the competition and various forces which are present
in the business environment that exist within the environment and also describe that each force is
useful in strategically planning and understanding the profitability procedure of industry
(Oppenheimer, 2019). These factors and its strengths various according to industry which gets
varies in terms of profitability and attraction. For this, few forces are discussed as underneath: Threat of new entrants: By determining the new entrants, it does not become threat for
company because, Bentley deals in luxury segment and offer luxury products. In relation
with this, product differentiation is the basic strategy which is opted by company as it is
the primary strategy which company use before developing and launching their products.
Here, company sell differentiated products which are in unique and different in terms of
standardised products (Landreth, 2016). For this, company focuses on advertising its
customers services, because its targeted segment attracted because of services. Moreover,
in order to measure the distribution networks its become easy for new entry to set up their
own distribution channels and to come up with its business. Furthermore, the government
7

policies in the industry need strict licensing and legal legislations which needs to be
fulfilled before launching a product and because of this, it becomes difficult for new
entrants to came into industry and make this threat weak. Bargaining power of suppliers: In relation with automobile industry, there are number of
suppliers which are present and provide raw materials at low cost. In relation with this,
automotive sector has less control over the prices which are provided by their suppliers
(Hickman and Silva, 2018). In relation with Bentley, they deals in luxury products and
services and also use standardised prices to sell their unique and different products which
helps in decreasing the switching cost. Here, the bargaining power of suppliers are high
because of the offered products and services as company provide luxury products and in
relation with this, there are limited number of suppliers. Here, the suppliers does not
contend with other products in same industry that means there is no other substitute of
their product in order to provide its services which makes the bargaining power of
suppliers more strong within the industry. In addition to this, Bentley can purchase raw
materials from those suppliers who provide products at low cost. As if the cost of
products are not so suitable for Bentley and they can easily switch from the suppliers
because of its switching cost is low. Bargaining power of buyers: By considering the number of suppliers, it is described that
there are number of suppliers are present within the industry but by analysing the power
of suppliers it is described that in luxury car segment there are number of companies who
offer this service (Rao and Tilt, 2016). For this, product differentiation is useful in this
industry which is high and describes that the number of buyers are not able to find
suitable alternative in order to produce particular product and because of this, it becomes
difficult that switching makes the bargaining power of buyers weak in terms within the
industry. In addition to this, the income of buyers in this industry is quite low which
pressurise the buyers to provide its products at low prices because they can switch from
one brand to another one so, the prices of buyers in industry is low. In addition to this, the
quality of products are also important as it makes the buyers to purchase products on
frequent basis. Threat from substitute: In relation with this industry, there are very few substitutes
which are present in industry and offer luxury products which are produced by company.
8

As the substitutes are also available and produced by low profit earning industries. For
this, there is no maximum profit in which company can gain and earn profit in industry as
these factors become threat for substitute products which are weak in industry. In respect
of this, Bentley give focus on offering great quality products as the buyers choose its
products and also provide great quality at low prices in comparison to its substitute
products who provide great quality at high prices (Rugman and Verbeke, 2017).
 Competitive rivalry: In automotive industry there are number of competitors present to
acquire whole market area and potential customers and most of them are large in size
which means that sector does not make any move without noticing or analysing the trends
and taste of their customers (Johnson, 2016). Industry in Bentley is growing is expected
to continue to achieve positive and good growth that makes competitors are less involved
in competitive action to acquire suitable position and become the leader of market. In
addition to this, fixed cost is high in this industry which makes company to provide its
full capacity to reduce its prices to attract customers that helps in increasing sales and
revenues.
M3. Provide suitable strategies in order to improve the competitive edge and position of market
By determining the above discussion, it is analysed that company should continuously
analyse its competition in order to survive within the dynamic business environment and most
importantly they need to analyse the new entrants and their suitable strategies in order to survive
within the business environment (Rothaermel, 2016). By conducting prominent strategies it is
determined that bargaining power of suppliers are high in this sector as company deals in luxury
products and because of this, they acquire their target market area.
TASK 4
P4/M4. Application of suitable theories and models in order to devise strategic planning for
company
Strategic management plan is necessary to achieve long term sustainable growth and
competitive position within the market. Through effective planning, manager can organise,
directing and coordinating the activities to accomplish goal and objectives of a business (Keyes,
2016). The manager of Bentley has applied ansoff matrix to enhance the revenue and achieve a
9

significant position within the market and to satisfy the needs of customers. With reference to
Bentley, the manager has presented the strategies of ansoff matrix that are as follows:
Market Penetration: this strategy emphasises on selling existing product in the well
established market. The manager of Bentley could follow this strategy to capture the large
market share within the market by providing new and innovative designs to meet the
requirements of the customers (Puranam and Vanneste, 2016). This boost the sale and enhance
the profitability of the respective auto mobile sector across the globe.
Product Expansion: This strategy focuses on development of new product within the
existing market. The manager of Bentley provide attractive features and new designs to gain
large access of customers within this auto mobile industry with the established market.
Market Expansion: This strategy encompasses on providing the existing product within
the new market. Bentley is one of the renowned brand in UK that has expanded its operations in
different parts of the country to create a strong network around the globe and to satisfy the needs
of the customers.
Diversification: This is a risky strategy as it emphasises on the development of new
market with the new products. The higher authority of Bentley could follow this strategy by
coming with new features and designs in the new market but there is a high chances of failure
whether it would meet the requirements of customers (Brooks, Chen and Zeng, 2018).
On the basis of the above analysis, it can be ascertained that the manager of Bentley
would follow the market penetration strategy to capture the large market share within the
established market across the globe. . The Bentley is one of the luxurious auto mobile industry
that increase the productivity and efficiency within the confine sector of auto mobile industry.
The auto mobile industry that is Bentley has planned to new business growth strategy and its
strategic management plan is presented as follows:
Aim: The aim of Bentley is to expand its operations in different parts of the country
around the globe.
Vision: the vision is to provide technological solutions and deliver the best services in
order to provide effective services to their customers.
Mission: The mission of Bentley is to provide innovative software and services for
sustaining the global economy and environment friendly for improving quality of life.
10

Goal and Objectives: The goal of Bentley is to provide best and innovative technology to
satisfy the needs of customers by building mutual trust and effective relationship with them.
Strategy: The manager of Bentley has used the market penetration strategy to capture the
large market share by increasing the sales and productivity and therefore achieving the
competitive position within the market.
D1. Critique the information of environmental analysis in order to develop strategic directions,
objectives and tactical actions
By critically analysing the above discussed frameworks, it is analysed that situational
analysis is important to conduct within the frequent changing business environment as it helps in
determining the risk factor and probable changes in order to achieve their probable objectives.
Moreover, it describe the internal capabilities of company which is useful in analysing the
prominent actions for the goodness of company and these factors helps in achieving the
competitive advantage in effective and efficient manner.
CONCLUSION
Thus, it is concluded that strategies plays an important role in order to achieve success for
company and these strategies are described as the written method and depicts on the written
document. In addition to this, major part of existing strategies of company results in the
enhancement and development of business activities. Policies and tactics are developed only
when the market conditions take unfortunate turn and these are helpful in achieving the current
situations. In respect of this, marketing environment plays an important role in examining the
present market conditions and internal capabilities by using appropriate frameworks. Moreover,
Porter's five force is used to determine the competitive forces for company and suitable model is
used that is helpful in making strategic plan.
11

REFERENCES
Books and Journals
Arasti, M., Khaleghi, M. and Noori, J., 2017. Corporate-level technology strategy and its linkage
with corporate strategy in multi-business companies: IKCO case study. Technological
Forecasting and Social Change. 122. pp.243-252.
Brooks, C., Chen, Z. and Zeng, Y., 2018. Institutional cross-ownership and corporate strategy:
The case of mergers and acquisitions. Journal of Corporate Finance. 48. pp.187-216.
Chang, J.F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
Chatterji, A.K and et. al., 2016. Do ratings of firms converge? Implications for managers,
investors and strategy researchers. Strategic Management Journal. 37(8). pp.1597-1614.
Foucault, T. and Frésard, L., 2019. Corporate strategy, conformism, and the stock market. The
Review of Financial Studies. 32(3). pp.905-950.
Hardy, J., 2018. 15 Cultural Embeddedness, Corporate Strategy and Foreign Investment in
Poland: A Tale of Two Firms. Knowledge, Industry and Environment: Institutions and
Innovation in Territorial Perspective: Institutions and Innovation in Territorial
Perspective.
Hickman, C.R. and Silva, M.A., 2018. Creating excellence: Managing corporate culture,
strategy, and change in the new age. Routledge.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Keyes, J., 2016. Implementing the IT balanced scorecard: Aligning IT with corporate strategy.
Auerbach Publications.
Landreth, O.L., 2016. European Corporate Strategy: Heading for 2000. Springer.
Oppenheimer, M.F., 2019. Nontariff Barriers: The Effects on Corporate Strategy in High-
technology Sectors. Routledge.
Puranam, P. and Vanneste, B., 2016. Corporate strategy: Tools for analysis and decision-
making. Cambridge University Press.
Rao, K. and Tilt, C., 2016. Board composition and corporate social responsibility: The role of
diversity, gender, strategy and decision making. Journal of Business Ethics. 138(2).
pp.327-347.
Rothaermel, F.T., 2016. Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Rugman, A.M. and Verbeke, A., 2017. Global corporate strategy and trade policy. Routledge.
Surijah, A.B., 2016. GLOBAL ENVIRONMENT, CORPORATE STRATEGY, LEARNING
CULTURE AND HUMAN CAPITAL: A THEORETICAL REVIEW. International
Journal of Organizational Innovation. 8(4).
Zerfass, A. and Viertmann, C., 2017. Creating business value through corporate
communication. Journal of Communication Management.
Online
Bentley Capital Limited PESTEL Analysis & Environment Analysis. 2018. [Online] Available
through <https://www.essay48.com/term-paper/302-Bentley-Capital-Limited-Pestel-
Analysis>./
SWOT Analysis of Bentley. 2019. [Online] Available through
<https://www.marketing91.com/swot-analysis-bentley/>./
12