Corporate Strategy: Frameworks, Analysis, and Decision Making

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
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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
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