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Leading Innovation and Change Module | Report

   

Added on  2020-02-14

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Leading Innovation and Change Module
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Table of ContentsINTRODUCTION...........................................................................................................................1PART 1............................................................................................................................................1Situational Analysis.....................................................................................................................1SWOT Analysis...............................................................................................................................1PESTEL Analysis........................................................................................................................4Competitive Analysis of Aston Martin........................................................................................5Key Challenges faced against strategic ambitions for shareholders values gains.......................6Proposing resolution through intervention of an agenda of feasible and desirable change forincremental value addition...........................................................................................................7Assessing the impact upon current business practices and organizational learning....................8Reviewing wider implication if proposed changes are not implemented....................................9PART 2..........................................................................................................................................10Literature review............................................................................................................................10PART 3..........................................................................................................................................15REFLECTION...............................................................................................................................15CONCLUSION..............................................................................................................................18REFERENCES..............................................................................................................................18
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INTRODUCTIONInnovation and change management is the most important aspect for business because itsupports business to ensure upward direction with increase overall rate of return. It enablescorporation to carry out all operational activities effectively as they are able to cater need ofbuyers. Present report is based on Aston Martin which is British manufacturer of Luxury sportscars and grand tourers. The corporation was founded in 1913 by Lionel Martin and RobertBamford in order to offer quality services with continuous innovation and change. Aston MartinRacing and Lagonda are subsidiaries of selected organization. The unique selling proposition ofcompany is ultimate luxury and powerful performance which contribute towards increasingcustomer base. Strong engineering and designing team of company make it possible to delivergood quality of product (Innovation on the cards for luxury automaker Aston Martin, 2016).Furthermore, situational analysis has been done by focusing on internal and externalenvironment of business. It is helpful to understand current performance, productivity andcompetitive position of organization. In addition to this, key challenges associated with strategicambitions for stakeholder value gains have been evaluated. Apart from this, feasible anddesirable changes are proposed by company through which value addition can be ensured.However, impact of proposed changes on current business practices as well as the organizationallearning challenges are also highlighted.PART 1Situational Analysis SWOT AnalysisStrengths: The biggest strength of Aston Martin is Legacy because it has developeditself as a luxury brand that has been around more than 102 years. In addition to that business hashigh brand equity. A well-developed rich and prestigious heritage is another strength of AstonMartin. The values leading to strong customer connect which denotes customer loyalty. Thecited brand pride for its craftsmanship denotes the strengths of business and it has a strongengineering & designing team. The brand is known for its ultimate luxury & comfort in carsalong with cutting age innovative and technological features. Aston Martin has gained significantimage as a sport car brand and has a strong presence in racing and motor sports events. The1
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marketing initiatives of business are the biggest strengths as it has created marketing andbranding through advertising (Aston Martin SWOT Analysis, USP & Competitors. 2016).Weaknesses: The major weakness of Aston Martin is its limited product portfolio inemerging economies which restricts it from capturing enough market share. Along with this,Aston Martin has a limited model range with lower price which is not as per changingdemographic. It denotes that the mentioned company has comparatively lesser marketpenetration. The people in emerging economies are now capable to afford luxury cars butweakness for Aston Martin is that these market have not been targeted yet, hence, there is limitedproduct portfolio in emerging economies.Opportunities: The cited company has various opportunities to develop its market inemerging countries for which it can go for expanding automobile market. Aston Martin can useits historical values and heritage to leverage it for acquiring new customers from marketplace.The corporate entity has various opportunities to increase market penetration while usingextensive distribution as well as focusing on increased promotion. Addition to this, the businessattract more customers through adopting competitive pricing. Putting steps into spare partsindustry is an opportunity for the mentioned company for which it has to increase the availabilityof service and spare parts (Aston Martin SWOT Analysis, USP & Competitors. 2016).Threats: The organization has threats of competitors in the market place which affects itsbusiness operational and profitability. The competition with leading brands such as MercedesBenz, Porsche, Bentley, Lexus, Audi, Maserati puts another threats to business. Fuel cost hascontinually been increased which proposes threat to business in regard to decreasing sales. Thereare many competitors which are trying to offer competitive products along with same features atlow cost, this aspect can be a threat to business. Product innovations by leading competitors canalso be a threat for business entity (Aston Martin SWOT Analysis, USP & Competitors. 2016).. Table 1 SWOT AnalysisStrengthsStrong legacyHigh brand equity/ imageRich historical heritage and values WeaknessesLesser market penetration Narrow defined marketLimited product portfolio 2
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Qualified engineering & designingteam Innovations (Aston Martin SWOTAnalysis, USP & Competitors. 2016).Brand image as a racing and sportvehicle Strong marketing and branding Less market share in emergingeconomics (Aston Martin SWOTAnalysis, USP & Competitors. 2016).OpportunitiesNew market penetrationConverting into public limitedCompanyIncreasing vehicle marketHistorical values and heritagecould be leveraged to attractnew customersFocus on market penetration(Aston Martin SWOT Analysis, USP& Competitors. 2016).Extensive distribution andincreased promotionCompetitive pricingIncreasing the availability ofservice and spare partsThreatsContinuously increasing fuel costsIntense competition from bigautomobile giants such asMercedesBenz, Porsche, Bentley, Lexus, Audi,MaseratiCompetitive products offering withsame features at low costProduct innovations by competitorsPESTEL Analysis PESTEL analysis is conducted to carry out in-depth research into external factorsaffecting business of Aston Martin. The external factors including political, economic, social,technical, environmental and legal. Here is a PESTEL analysis of Aston Martin|: 3
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Political factors: Political stability is a major factor affecting the business of mentionedcompany. Including this, EU regulation related to increased export prices and tax structure of UKgovernment affects Aston Martin’s business practices. However, business is also affected bypressure groups but company has adopted a territorial growth strategy which expose company todifferent export taxes and market restrictions (Michel, Todnem and Burnes, 2013).Economic factors: Being a global brand, Aston Martin is affected by economic factorssuch as exchange rates, currency fluctuations, interest rate changes and purchasing power ofindividuals in the society. Inflation in the economy and GDP growth rates affects business in asignificant manner. Social factors: The social factors of business significantly affects the organization and itspractices. Being a luxury brand, it deals with cars of high prices which satisfies the needs andwants of individuals. The target market of Aston Martin is small as there are less people withpurchasing power who by products (Martin, 2013). The people in the society with luxury lifestyle demand more cars as compared to middle income level. Consumer purchasing power is thesocial factor affecting individuals as compared to others. Technological factors: The emerging trend of technology provides a progressive way tobusiness and affects it in a significant manner. Aston Martin has proved itself as a technicalleader as it believes in innovation and offers well balanced product with desirable technologicalfeatures. The automated production line has supported company to increase its sales whilereducing cost of business. New technologies in automotive field possess significant impact onbusiness, however, innovative marketing and advertising affects business in a positive manner(Martin, 2013). Environmental Factors: Within UK, road transportation is the biggest sources ofpollution in the UK which lead to poor air quality and other negative climatic affects. Thegovernment of Britain is imposing some regulations on CO2 emission from cars. The automotiveleader is making cars with the technology of efficient reduction of CO2.Legal factors: The legal environment consists of laws related to trade practices. TheEuropean Commission is new laws covering competitive behaviour, product standards, labourlaws etc which are significantly followed by Aston Martin (Martin, 2013). 4
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