Strategy, Enterprise and Innovation - Analysis of Aston Martin's Internal and External Environment

Strategy, Enterprise
and Innovation

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Analysis of internal environment................................................................................................3
Analysis of external environment...............................................................................................4
Analysis of competitive forces within industry..........................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Strategy refers to action which are designed for purpose of attainment of long term goals of
company. An organisation prepare various strategy which helps them to overcome of problems
arise in their organisation. Innovation refers to introduction of new ideas, thoughts, technology,
products and service in market (Guangrui and Chun, 2021). It provide benefits of differentiation
and allow company attract more and more customers towards their business. This project report
analyse Aston Martin which is a UK based organisation providing luxury sports car as well as
grands tourers. It is introduced by Lionel Martin as well as Robert Bamford in the year 1913.
This project report aims at analysation of internal environment which evaluate internal resources
as well as capability which provide competitive advantage to an organisation. It analyse external
environment which identify factors present outside business environment and create impact over
operation of company. Moreover, it consist analysation of competitive forces present in industry
which create impact over profit and market share of company.
TASK
Analysis of internal environment
VRIO analysis:
VRIO analysis refers to analytical techniques which helps to evaluate resources of company and
provide competitive advantage to them. It consist different dimensions like values, rare,
imitability and organisation (Jin-sheng and Tian-qi, 2021). This model is introduced by Jay B
Barnet which helps to evaluate different resources of company like financial, human resource,
material resources, non material resources. This model is focuses on strategic tool of company
and helps them to get competitive advantage with better understanding of resources in
organisation. There are different resources to be posses by a company like human resource,
financial resources, patent rights and distribution networks. This resources provide competitive
advantage to company and allow them to get success in market.
Resources Value Rare Imitation Organisation
Human resources Yes Yes Yes Yes
Financial
Resources
Yes Yes Yes -

Distribution Yes Yes - -
Patents Yes - - -
Valuable: Aston Martin is an organisation which has valuable resources in their organisation
which create competitive advantage for company. They has valuable financial resources as it is a
company with high reputation in market as they can easily get investment from different
investors (Juhong, Ruijun and Yaqi, 2020). They also has valuable human resource with diverse
skills and knowledge. It allow managers of company to get competitive advantage in
organisation and also provide them opportunity to satisfy needs of customers. This organisation
also has strong distribution system which increase reach of their products to consumers.
Managers of company also has patent for their new designs and technologies.
Rare: Rare resources are those which does not posses by others and has limited reach to other
organisation. Aston Martin is an organisation which has some resources which does not available
to other organisation. This organisation has rate distribution network as it can easily reach to
their customers for offering their products and service. It also has strong human and financial
resources which provide them competitive advantage and rare in market.
Costly to imitate: Imitate of resources are those which cannot be easily copied by another
organisation (LI and LI, 2021). Aston Martin is an organisation which has some resources which
are costly to imitate like strong human and financial resources which cannot be available to other
organisation and can be costlier for company to imitate.
Organisation capability and competence: It consist resources which is getting support from
existing arrangement and cane be used in organisation properly. Aston Marting has values, rare
as well as imitate human resources which helps company to operate effectively for success of
their organisation.
Analysis of external environment
PESTEL analysis
PESTEL analysis refers to a external environment analysis which helps business to identify
factors present outside business (Santos‐Jaén, Madrid‐Guijarro and García‐Pérez‐de‐Lema,
2021). These factors helps business to overcome of problems and also allow them to develop