Management of Innovation in the Automobile Industry: A Case Study of Bentley
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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 iscrucialasitleadto sustainabilityof organisationfor manyyears. BentleyisBritish 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 automobileindustrysoithasearnedmaximumrevenueandmarketsharebysatisfying 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 communicatingconsistently,identifyingexistingneeds,trendsinparticularindustry. 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 maximumnumberofindividualstopurchaseitscarinordertosatisfytheirrespective 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 marketornewemergingmarketinordertoenhanceitsprofitabilityandmarketshare (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.
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Structure:Lookingatthestructureofthecompanyithadbeenidentifiedthat 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.
Figure1: 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. Figure2: 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
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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 understandingone 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 Measurementof capability/performance of the Business Measurementof capability/performanceof requirements Of the customer/industry Importance Tothe business Financial resources Goodamountoffinancial resources in an organization. It help in developing more customer friendly product Ithelpthe businessin planning varietyof currentand future activity. Trainingand development issue There is some sort of lacking in providing the training to alltheemployeeinan organization. This will help the company inunderstandingneedof the customer in the market in the best way possible Itwillhelp thecompany inbuilding good employerand 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 theorganizationtobeing competitive in the market. Itwillhelp thecompany inbuilding good employerand brand value in an
organization. Figure3: 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
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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 doesit work? Status?Significanc e Tothe business? Supplier of TyrePartnershipwith company X Company generally usedto outsource the work of tyre manufacturi ng,they generally usedto collectthe tyrefor themand usedto assemble withend product Therearetwo supplierwho generally used to supply and there isgoodsortof stablesupplyin regardsofthe same,as company has not faced any sort of tyrescarcity issueinrecent past. Companyis vulnerableto suddenprice hikes,can increase costs.
Productdelivery to the customer. Partnershipwith company Z There is one product distribution channel whichis usedby Bentley that isdirect distribution channelin an organization Company is able todeliverthe productontime with the help of thissortof distribution channel.As customerare very satisfied due to same as well. Thisisreallya good sign for the companyinthe longrunofthe business/ Thisgenerally used to help the companyin building a good sortofimage of the company in front of the customer in the organization. Which help the companyin buildinggood companies image. Also, it used to help the companyin retainingthe customerbase of the company inlonger 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 IssueWhat needs to be doneResources requiredPotential
to deal with the issue?benefits/costs Source of FundOrganizationhastoe makesurethatthey generallyusedto make more than one alternative plan in the organization to source varietyofdifferent fundinthe organization. This will ultimatelyhelpthe companyingetting ready for overcoming varietyoftheissue relatedtocarryout different operation in the market. Marketresearchon continues basis Staff Contact Byovercomingthis issueinthe organization, organizationwill definitelyfindthat theyareableto overcome the issue of lack of funds and will also find it to easy to overcome the issue of competitioninthe market(Yudiono, WilopoandIqbal, 2019).As organizationwillbe ready to overcome the varietyoftheissue related to competition in the market as well. Training to employeeTo overcome the issue organizationhasto makesurethatthey generallyusedto evaluate the variety of theskillwhichis lackedbydifferent employeeinthe organization.After thatorganizationhas Newstaffin organizationis required,alsonew technologywillbe requiredtomanage the training in the best way possible, Thiswillultimately help the organization inbuildinggood employee base in the organization. Also, it will help the company inmanagingthe amountofthe employee in the better wayinthe
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to make sure that each every individual in the organizationusedto get the same type of the training. As it will onlyhelpthemin managing the working environmentand human resource of the companyforlonger period of time in the organization. organization as well. Market researchTo improve the level of market research in theorganization, organizationhasto makesurethatthey used to use variety of differenttypeofthe toolinthe organizationto conductthemarket researchinthe organization.Asit will help the company inunderstandingthe behaviourofthe marketinthebetter way.Also organizationhasto Marketingtooland staff Thiswillultimately help the company in understandingthe customerneedand preferencewhichis generally prevailing in themarket.Ithad beenunderstandthat Marketresearchwill also help the company inunderstanding varietyofthething whichareprevailing in the market or can come in the future. On the basis of the same company will ultimate find it to easy to make
makesurethatthey usedtoselectthe respondentbefore hand itself which will ultimatelyhelpthe companyin maintainingagood sortofclarityin regardsofcollecting differentdatainthe research. variety of the decision inthebestway possibleinthe organization. Maintainingsame position in market Formaintainingthe samepositioninthe market,organization has to make sure that they are taking variety of the different type of thedecisioninthe organization in a way that it used to help the company in managing theinterestlevelof differentcustomerin the best way possible (Xia and et.al.,2020).. It had been identified thatcompany has to maintain the quality of theworkwhichis done by the company StaffBy applying this sort of change and policy inthemarket, organization will find it very easy to manage theamountofthe competitionwhichis present in the market. Also,companywill finditveryeasyto retainthecustomer base of the company inthelongrun.As with the help of this company will find it easytomaintainthe positionofthe companyinthe market as well.
andhavetoadopt differentchangesas 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 needsto work on itsweakness in order to make best utilisationof 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 minimumtimeframe.Customersrequirementskeeponchangingastherearenumerous 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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