Strategy Evaluation

Strategy Evaluation

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Critical evaluation of value of clear Purpose, Mission, Vision and Objectives in devising
strategic direction of company.....................................................................................................1
2. Assessing competitive advantage of the entity by using VRIO Framework...........................2
3. Analysing external business environment by using PESTLE Framework..............................4
4. Assessing competitiveness of the company through using Porter’s Five Forces Model.........6
5. On the basis of analysis, reviewing strategy of the company..................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategy is termed to a long term plan about what to do with the hope of achieving certain
goals. Purpose of strategy is to pursuit of competitive advantage in sustainable manner.
Likewise, strategy evaluation refers to a stage to of strategic management process wherein
managers undertakes attempt for assuring that strategic choices are properly executed to meet
business objectives (Zou and Hyland, 2020). It looks beyond short term state of company as well
as examine fundamental factors which governs success of establishments. It helps in assessing
health together with productivity of business and its future endeavors. For understanding concept
of strategy evaluation, Morgan Motors Company is considered. It is a motor car manufacturer
established by Henry Frederick Stanley Motors in 1910. Its headquarters are located at Malvern,
UK.
The report evaluates value of Objectives, Purpose, Vision and Mission in devising
strategic direction and assess competitive advantage of entity through VRIO Analysis and
analyse external environment of the company with PESTLE Analysis. It further appraises
attractiveness of a sector, industry or market and review organisational strategy.
MAIN BODY
1. Critical evaluation of value of clear Purpose, Mission, Vision and Objectives in devising
strategic direction of company
Strategic direction is said to a plan which require to be executed for company to progress
towards fulfilling goals (Azizi Shalbaf, Mian and Sohaib, 2021). Actions which organisation
requires to undertake for reaching at great heights are strategic direction. It ensures owners in
addition to management communicate prominence of employees work together with their
contribution to achieving business objectives. It ultimately supports business to achieve its vision
as well as assist in fulfilling goals of its strategy. Furthermore, strategic direction unites
company's strategies and provides for greater stability into the future.
In case with Morgan Motors Company, value of Mission, Vision, Purpose and objectives
in establishing strategic direction are as critically evaluated:
Purpose: It is motivating force that moves, guides together with deliver organisation to
perceived goals. Purpose of Morgan Motors Company is to provide fitting antidote to mass
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produces automotive manufacturing and bringing with it an exceptional mix of appropriate
modern technology addition to traditional craftsmanship (Morgan Motors Company, 2021).
Mission: Mission statement is delineated to a concise explanation of reason of existence of
an establishment. Mission of Morgan Motors Company is to provide unique blend of heritage,
vehicle craftsmanship along with pure driving experience through leveraging modern technology
so to innovate for future generation.
Vision: Vision statement is said to desired future position of business (Keshavarz Turk and
Nikooye, 2017). Vision of Morgan Motors Company is to deliver unforgettable driving
experiences with great standards of craftsmanship that lasts and innovating for benefits of future
customers.
Objectives: Objectives are described to short and medium term goals which business seeks
to attain. Objective of Morgan Motors Company is to design cars that are rich in craftsmanship
and modern technology with elegance. Organisational objectives are values for devising strategic
choices as they assist in planning all companywide practices to one single direction.
2. Assessing competitive advantage of the entity by using VRIO Framework
VRIO framework is an analytical model to assess competitive advantage. It is an acronym
of Value, Rareness, Imitability along with Organisation (Knápková, Pavelková and Friedel,
2020). Using VRIO Framework, business managers uncover as well as protect resources and
capabilities which provides long term benefits in competitive environment. It is particularly
designed for assisting companies to uncover and protect resources and capabilities that stretches
long-term competitive advantage. In case with Morgan Motors Company, VRIO Framework is
used for assessing internal situations that are resources, competitive implications together with
possible potential to make improvements within a resource to assess competitive benefits.
Evaluation of attributes of VRIO Analysis of Morgan Motors Company is as follows:
Resources and
capabilities
Valuable Rare Imitable Organised Competitive
implications
Service quality Yes No No No Partly
competitive
advantage
Human resources Yes Yes No No Sustainable
competitive
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