Management of Innovation in the Automobile Industry: A Case Study of Bentley

This report explores the management of innovation in the automobile industry, focusing on Bentley. It discusses the industry overview, customer requirements, business capabilities, and competencies. It also analyzes the internal and external focus of Bentley, supply chain management, and potential solutions for future growth.

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Table of Contents
INTRODUCTION...........................................................................................................................3
Summarise of Industry................................................................................................................3
Customer’s requirements ...........................................................................................................4
Business innovative capabilities and competency .....................................................................4
Internal Focus..............................................................................................................................4
External focus..............................................................................................................................6
Hybrid internal and External focus.............................................................................................8
Supply chain management...............................................................................................................8
Summary of first three stage.....................................................................................................10
Potential Solution......................................................................................................................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Management of innovative is important process as it helps company to create strong
brand image in minds and hearts of customers by delivering them services that are beyond their
expectancy level. Globalisation has contributed in innovation or development of new technology
so that activities can be performed within limited time frame and cost. Company that effective
adapt to new innovation and changes are able to gain maximum satisfaction level of customers
and expand its market share within limited time frame and cost. Thus, management of innovation
is crucial as it lead to sustainability of organisation for many years. Bentley is British
manufacturer and marketer of luxury cars that has started its operation since 18 January, 1919 in
automobile sector. Company have its operation across worldwide with huge products like Flying
spur, Bentayga, Mulsanne and Continental GT to satisfy requirements of diverse individuals.
This report has covered detailed related to automobile industry, customers requirements and the
way company capabilities and core competences contributed in satisfaction. Models, tools and
framework like Mckinsey 7 S have been used to compare or conduct self assessment and it has
compared capabilities with external forces. At last, find key potential solution that could
contribute in resolving issue or problems and summaries all key points that needs to be
considered by company for future growth and success.
Summarise of Industry
Automobile industry comprise range of organisation that are involved in development,
designing, marketing and manufacturing of motor vehicles so that people can easily travel from
one destination to another. It can be stated that it is one of the largest revenue generating
industry thereby employing number of individuals and earning maximum profitability. There are
several innovation in automobile industry with increase in price of petrol and diesel so that
customers can have another next best alternative for fulfilment of their requirements. So, now- a
days, demand of electrical cars have increased at rapid stage that force companies to launch in
order to fulfil customers expectancy (Dandage, Mantha, and Rane, 2019). Bentley operates in
automobile industry so it has earned maximum revenue and market share by satisfying
requirements of customers in effective manner. It is also estimated that automobile sector will
grow to $300 billion by 2026, as more and more people wants to have sport and luxury car for
having travel, fun and enjoyment.

Customer’s requirements
Customers Requirements are ever changing or dynamic in nature as they depend on
several factors like price, availability of alternative options and their interest level and attitude.
Currently most of the people prefer to have innovative and more qualitative products or cars that
have more facilities thus it changing customer’s requirements have forced automobile companies
to install new technologies in order to offer seamless experienced to individuals. There are
numerous method through which company can able to meet customers’ requirements such as
communicating consistently, identifying existing needs, trends in particular industry.
Organisation through all such method can easily cater needs of wide range of customers and can
gain competitive advantages. Therefore, effective market survey and use of information
technology can contribute in finding existing customers requirements and effective strategies that
could contribute in meeting them.
Business innovative capabilities and competency
From the CW1, It have been analysed that strength of Bentley lies in its strong brand image as
popular sports and luxury car. Most of the individuals are aware of quality of services provide by
company thus they are always motivated and influence to be part of this organisation rather than
other competitors. It also has capabilities to make innovative car design that attract and induce
maximum number of individuals to purchase its car in order to satisfy their respective
requirements. Company by finding more focusing on eco friendly or electrical car range can
easily grow and expand its business by fulfilling needs of people beyond their expectancy.
Bentley can make use of its innovative capabilities and competency to enter into international
market or new emerging market in order to enhance its profitability and market share
(Saengmuang and Sitjongsataporn, 2020). As it will helps company to think more and more
different ways or method to deliver services to end customers so that it can sustain for longer
time frame.
Internal Focus
McKinsey 7s Model
 Strategy: Looking at the strategy it has been identified that strategy of company is based
upon quality, design and value of sustainability. It had been understand that the company
generally used to focus on their strength and on the basis of the same used to plan variety
of the different sort of activity of the company in the best way possible.

 Structure: Looking at the structure of the company it had been identified that
hierarchical structure is generally followed by the company, this will ultimately help the
company in managing the interest level of different employee in organization.
 System: looking at the system which are commonly used through out the operation of the
business it had been understand that there are quite a good number of system which are
generally used in the organization, Some of the system which are generally used in the
organization are recruitment and selection system, team development and orientation
system, transaction processing systems (Sarsby, 2016).
 Style: There are variety of different type of style which had been adopted in the
organization, looking at the specific leadership style which is used in the organization it had
been understand that organization leader generally used to use the democratic leadership style
in the organization. This ultimate used to help the leader in the organization in building good
sort of trust and belongingness.
 Staff: Looking at number of employee in retail sector is 3600. There are variety of different
type of training which are also provided to all the staff member in the Bentley but they
generally lacks in providing training to all the member this will create issue for the
organization in the long run.
 Shared value: Looking at core competency it had been analysed that Unique design
capability is one of the core competency of Ikea in long run. As one of the innovation
which company is looking to bring in the organization is regards of bringing the 3d
design print as well. This was also taken in regards of managing the value of different
customer in the organization as well.
 Skills: Company generally used to provide the training to different employee to improve
the level of skill possess by different employee. Organization will also look to provide
good sort of training to improve skill set of employee in the market as well.


Figure 1: McKinsey 7s Model
(Sources: McKinsey 7s Model, 2019)
External focus
Financial resources: It is one of the biggest resources which is generally possess, by the
company. It had been identified that company is able to make a good name of company in the
market with the help of different product of the company. It had been identified that this has
helped the company in having good sort of financial resources in the organization. This resource
of company will ultimately help the company in overcoming the technological resources. As
with the help of financial resource company will able to buy the new technology to develop
innovative product in the organization (Beattie, 2018) .

Issue: One issue regarding the same is that after Covid 19 pandemic, amount of money
left in the economy of nation is not that good. This will create the variety of the issue for the
organization to fund different operation of company in the best way possible.
Figure 2: Global sales revenue
(Source: Global sales revenue of Bentley Motors from 2009 to 2019)
Human resource: It is another good sort of the resources which is possessed by the
company in current scenario. It had been analysed that 3600 employee generally used to work in
the organization. This is really big number as competitor like Aston Martin and Lamborghini is
not that having that high number of employee in the organization. This resources will ultimately
used to help the company in overcoming the issue pertaining in Industry. As with the help of
good human resource company able to maintain a good amount of efficiency in the organization.
Also, it used to help the company in seeing good sort of innovation in the organization as all the
organization used to provide different suggestion

Issue: One of the issue which is seen by the organization due to this sort of the resources
in the market is that it used to create variety of the issue for organization in regards of managing
training of all the employee in the better way possible in the organization.
Innovation: There is good sort of the capability in the hand of the Bentley to innovate the
variety of the different type of the product in the organization in a way that it used to help them
in building good product line of the company in the long run. It had been identified that there are
good sort of resources and machinery which are possess by the company in general, which will
generally help the company in bringing the variety of the innovation in the organizational
product. This certainly used to help the company in presenting the good image of the company in
front of the other as well. This sort of competency of company generally help the company in
overcoming the issue of competition in the industry. It has been highlights that there are good
number of the competitor who generally used to develop the same type of product in the market.
Issue: Biggest issue related to the innovation is that it used to get it very difficult for the
organization to understand the different opportunity which are present in the market. As need
and preference of customer generally used to change on rapid basis. So understanding one
specific opportunity is really a tough task in long run of business.
Goodwill: It is another competencies of the company in the market, it had been identified
that company is able to build a good sort of goodwill of the company in the market with the help
of the product of the company, company is able to build a good name in front of the other in the
market. This generally used to help the company in overcoming the issue of customer awareness
in the market. As it had been identified that there are good number of the customer in the market
who are having the knowledge about the product of the company in general. As goodwill of
company will generally help the company in managing the product and customer base of the
company in the best way possible in the organization.
Issue: Looking at the issue related to this issue in the market is maintaining the goodwill
in the coming year also. Reason behind identifying the same is that amount of competition has
generally increased in the market (Gürel and Tat, 2017) . This certainly used to create the variety
of the issue for the organization to maintain the same name or goodwill of the company in the
long run of business.

Key
Performance
Indicator
Measurement of
capability/performance of the
Business
Measurement of
capability/performance of
requirements
Of the customer/industry
Importance
To the
business
Financial
resources
Good amount of financial
resources in an organization.
It help in developing more
customer friendly product
It help the
business in
planning
variety of
current and
future
activity.
Training and
development
issue
There is some sort of lacking
in providing the training to
all the employee in an
organization.
This will help the company
in understanding need of
the customer in the market
in the best way possible
It will help
the company
in building
good
employer and
brand value in
an
organization.
Market
research
Find it difficult to resource
the best opportunity present
in the market.
It is very much require in
the organization to being
competitive in the market.
It will help
the company
in building
good
employer and
brand value in
an

organization.
Figure 3: Car sales of Bentley
(Source: Bentley car sales in the United Kingdom (UK) 2016-2019, 2020)
Hybrid internal and External focus
Supply chain management
Relationship
There are variety of different type of supplier through which Bentley generally used to
buy the different raw material and semi finished product in the market and on the basis of the

same used to assemble the same t provide innovative product in the market. It had been analysed
that company is very good at managing the relationship with different employee in the market.
Important
maintaining that sort of relationship with different supplier in the market generally used
to help the company in building good sort of efficiency in the market, as it had been analysed
that with the help of good sort of relationship with different supplier in the market company used
to find it to easy to maintain the efficiency of different task which are carried out in general
(Sarsby, 2016).. This also used to help the company in maintaining the competition in the best
way possible in the market.
How good are they?
Bentley has generally find it very easy to maintain the relationship with different supplier
in the market. It had been identified that company generally used to maintain a good sort of
clarity in the organization. This generally used to help the company in maintaining a good sort of
relationship with different supplier in the market.
Supply
Chain/Logisti
cs Issue
Current
arrangements
?
How
does it
work?
Status? Significanc
e
To the
business?
Supplier of Tyre Partnership with
company X
Company
generally
used to
outsource
the work of
tyre
manufacturi
ng, they
generally
used to
collect the
tyre for
them and
used to
assemble
with end
product
There are two
supplier who
generally used to
supply and there
is good sort of
stable supply in
regards of the
same, as
company has not
faced any sort of
tyre scarcity
issue in recent
past.
Company is
vulnerable to
sudden price
hikes, can
increase costs.

Product delivery
to the customer.
Partnership with
company Z
There is one
product
distribution
channel
which is
used by
Bentley that
is direct
distribution
channel in
an
organization
Company is able
to deliver the
product on time
with the help of
this sort of
distribution
channel. As
customer are
very satisfied due
to same as well.
This is really a
good sign for the
company in the
long run of the
business/
This generally
used to help the
company in
building a good
sort of image
of the company
in front of the
customer in the
organization.
Which help the
company in
building good
companies
image. Also, it
used to help the
company in
retaining the
customer base
of the company
in longer
period of time
in the market.
Summary of first three stage
After understanding the internal and external factor which are impacting the business and
also supply chain of the company it had been understand that there is good sort of resources and
capability of company in the market to bring good sort of innovation in the market. Supply chain
of company has supported the same sort of outcome of the company. As there are good sort of
supplier base in the organization and also company is maintaining a good sort of relationship
with them in the market. Hence, it is very good sign for the company. After that it had been
identified that there are variety of the different type of the issue which is also their in front of the
company to address, some of the issue are training to employee, manage good will and also
market research in the market.
Potential Solution
Issue What needs to be done Resources required Potential

to deal with the issue? benefits/costs
Source of Fund Organization has toe
make sure that they
generally used to
make more than one
alternative plan in the
organization to source
variety of different
fund in the
organization. This will
ultimately help the
company in getting
ready for overcoming
variety of the issue
related to carry out
different operation in
the market.
Market research on
continues basis
Staff
Contact
By overcoming this
issue in the
organization,
organization will
definitely find that
they are able to
overcome the issue of
lack of funds and will
also find it to easy to
overcome the issue of
competition in the
market (Yudiono,
Wilopo and Iqbal,
2019). As
organization will be
ready to overcome the
variety of the issue
related to competition
in the market as well.
Training to employee To overcome the issue
organization has to
make sure that they
generally used to
evaluate the variety of
the skill which is
lacked by different
employee in the
organization. After
that organization has
New staff in
organization is
required, also new
technology will be
required to manage
the training in the best
way possible,
This will ultimately
help the organization
in building good
employee base in the
organization. Also, it
will help the company
in managing the
amount of the
employee in the better
way in the

to make sure that each
every individual in the
organization used to
get the same type of
the training. As it will
only help them in
managing the working
environment and
human resource of the
company for longer
period of time in the
organization.
organization as well.
Market research To improve the level
of market research in
the organization,
organization has to
make sure that they
used to use variety of
different type of the
tool in the
organization to
conduct the market
research in the
organization. As it
will help the company
in understanding the
behaviour of the
market in the better
way. Also
organization has to
Marketing tool and
staff
This will ultimately
help the company in
understanding the
customer need and
preference which is
generally prevailing in
the market. It had
been understand that
Market research will
also help the company
in understanding
variety of the thing
which are prevailing
in the market or can
come in the future. On
the basis of the same
company will ultimate
find it to easy to make

make sure that they
used to select the
respondent before
hand itself which will
ultimately help the
company in
maintaining a good
sort of clarity in
regards of collecting
different data in the
research.
variety of the decision
in the best way
possible in the
organization.
Maintaining same
position in market
For maintaining the
same position in the
market, organization
has to make sure that
they are taking variety
of the different type of
the decision in the
organization in a way
that it used to help the
company in managing
the interest level of
different customer in
the best way possible
(Xia and et.al.,2020)..
It had been identified
that company has to
maintain the quality of
the work which is
done by the company
Staff By applying this sort
of change and policy
in the market,
organization will find
it very easy to manage
the amount of the
competition which is
present in the market.
Also, company will
find it very easy to
retain the customer
base of the company
in the long run. As
with the help of this
company will find it
easy to maintain the
position of the
company in the
market as well.

and have to adopt
different changes as
well.
CONCLUSION
It can be conclude from above report that company in highly competitive environment in
order to sustain their business operation needs to be innovative. Management should invest
capital, time, and efforts to find different method that it could used to fulfil needs of customers in
best possible manner. Company by managing innovative technology can charge premium price
from customers thus enjoy high market share and profitability. It has also been learnt from above
analysis that models and framework helps in identify key issue or challenges that have created
barrier for organisation to effective adapt innovation and attain their respective objectives.
Company needs to work on its weakness in order to make best utilisation of available
opportunities and remove several threats that are present in external environment. Short coming
in business operation may be in system or structure of firm lead to dissatisfaction of customers
thus loss of market share of firm. Therefore, management needs to work on company culture,
structure and staff member so that they are ready to accept external changes and innovation so
that company can gain competitive advantages. Effective supply chain and strong distribution
channel contribute company to effective distribute products and services to customers within
minimum time frame. Customers requirements keep on changing as there are numerous
alternative options in automobile industry so Bentley in order to retained loyal customers have to
find different method or techniques that can meet their expectancy. At last it can be summarised
from above analysis that Bentley by focusing more on effective management of innovation have
induce maximum individuals across worldwide to be part of firm for satisfaction of their needs.

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