Managing Strategy, Operation and Partnerships

This document discusses the strategies, operations, and partnerships in the automotive industry, focusing on Morgan Motor as a successful company. It covers topics such as vision and mission, PESTLE analysis, Porter's Five Force analysis, and more.

Managing Strategy,
Operation and
Partnerships

Table of Contents
Executive Summary.........................................................................................................................1
Vision and Mission..........................................................................................................................2
PESTLE Analysis............................................................................................................................2
Porter's Five Force Analysis............................................................................................................6
VRIO Framework............................................................................................................................8
Conclusion.......................................................................................................................................9
Appendix – Pestle .........................................................................................................................10
REFERENCES..............................................................................................................................14

Executive Summary
Within the strategic partnership, partners remain independent and also share their significant
benefits, risk and also control over the joint activities in terms of making ongoing contributions
within the strategic areas. Besides from this, the more complicate the business environment
become, the new technologies will require and emerge as an innovation for the better future. The
report is based on Morgan motor which is running as one of the successful automotive company
in business environment. Moreover, in automotive market no car company develop traditional
values design with full efficiency in comparison to other company vehicles. In regard of this,
organisation develop significant strategies in terms of executing their mission and vision
considering the trends and also include several reasons for stakeholders for effective solution and
supply chain issues.
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Vision and Mission
The significant vision of company is to offer a fitting antidote to the collective produced
automotive production and also tends to bring with the exceptional mix of traditional craft and
consider modern technology in production. Within the automotive market, no other company can
produce hand craft design vehicles in terms of challenging the global market. For this, the
significant vision is based on the requirements of customer as per the survey which showed that
maximum number of people like to drive traditional and vintage vehicles and it is one of the best
vision of company to develop their vehicles for the classical values. Moreover, this is one of the
significant concept for Morgan motor in terms of identifying the traditional value vehicles which
is based on current trends.
PESTLE Analysis
It is considered as the important tool and framework which is useful in terms of
identifying any kind of risk factor which is based on current issues that are faced by company
(Warner and Sullivan, 2017). Along with this, it is important to conduct this analysis which is
useful in terms of overcoming the risk factor and also develop prominent strategies in order to
overcome this factors by monitoring their activities that are based on the environmental analysis.
Political:
This factor tends to include various factors such as government laws, norms, regulations,
imposed duties and so on. It tends to represent that driving motor can be quite dangerous and it is
identified that car or motorcycles are most likely to have accidents instead of plane. For this,
government enforces safety norms and regulations that are quite strict within the automotive
industry. For this, not only the prominent rules govern production of vehicles but it also consider
particular requirements like seatbelts in terms of making sure regarding the safety of passengers
that leads to impact the purchasing behaviour of people (Ross, 2016). It leads to make more
difficult to introduce new business in market considering the automotive industry that tends to
help current brand in terms of maintaining the prominent place in market. Besides from safety
aspects within the automotive industry, government also take more interest towards the
environmental consequences for the motor vehicles. Despite from this, the major concern for
Morgan motors is the carbon emissions which include prominent amount of carbon dioxide that
is developed by the driving the vehicle. Government policies also have more interest towards the
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statistics of carbon emission for the vehicles and undertake another regulatory hoop for the
automotive manufacturer.
A recent policies is brought by the government of UK that is focused and wanting
discouragement of wet painting which is used by Morgan cars. Thus, this recent strategy of
government is leading a negative impact and hampering the performance of Morgan Cars by
leading pressure to shift from wet painting to powder coating of vehicles which is more
expensive and complex process (MORGAN: A BRITISH MOTORING ICON, 2020).
Economical:
It leads to include various economical components such as interest rates, custom duty and
other tariffs and for this, individuals across the world tends to earn more profit. Along with this,
organisations comes up with more money for their survival and also have more money to spend
on the luxury items including electronics and other features in car. It also tends to include the
effective development of various regions by offering tier cars and made it possible for the poor
households in terms of affording the organisation to effective development of Morgan motors
and considering prominent area as well (Wang and et. al., 2018). Furthermore, the growing
demand for the motor vehicles undertake more cars that will be sold within the automotive
industry which is more beneficial for the participants. Along with this, the UK market is
beneficial for the Morgan life considering the two of the economic potential within the market
which is high. For this, current stats estimated around 80% of the people live in urban areas and
their per capita income is also quite average. As these are the positive features of the economy
and its aim include high purchasing power considering various units of Morgan life car.
Apart from these positive aspects some negative influence are also faced by Morgan cars
which are mainly associated with the consequences of Brexit Issues which has made it difficult
to have proper imports and export of products and raw material from the other European
countries which is leading a negative impact on productions capability of Morgan Car. Apart
from this, a major issues associated with the delays and long waiting customers line is also faced
by Morgan car due to a low production channels which has lead to bad reputation of this
organisation in markets which is hampering their performance over last year.
Social:
By considering the data of previous years, UK seems to grasp effective car ownership as
per the social necessity and it is fact as with the use of cars that has been perceived with the
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essential factors for the daily duties. As undertaking the current stats that include English
household which also confirm the common viewpoint and benefits of owning car and its
demerits (Bustinza and et. al., 2019). Moreover, the positive aspect for the car ownership include
enhanced living standards of UK, prominently among the poor who tends to use their car
effectively. Furthermore, enhanced economic conditions leads to estimate for the car ownership
that is increased more than around 30% in the past few years. Moreover, these figures implies on
the clear understanding for the increase in sales for Morgan life car because of the transition in
eco-friendly cars.
It has been also seen the society and markets of UK that people in Wales are not so
attracted towards status symbol cars that is leading a negative impact on purchases and
productivity of Morgan Cars. Beside this, the recent Brexit issues has lead to a situation of
economic crisis in UK that is affecting the purchasing power of customers which is also a threat
and negative implication on the performance and productivity of Morgan car.
Technological:
In UK, technology lead towards the powerhouse and effective realization for the green
energy which include prominent concern to have enough government support for the green
energy and effective development of cars. Moreover, the Morgan motors also set two basic
example for the existent technological drive for low carbon technologies in UK considering its
basic purpose that offer environment-friendly transport for their potential customers. Because of
the high investment that made in low carbon technologies which seems as the enough public and
private participation for the realization of low carbon goods (Bower, 2018). As this approach is
also supported by various sectors in UK and concerning the sales and manufacturing of cars in
Morgan motors is supported by the increased investments in low carbon technologies.
UK is having a one of the most dynamic and fast changing form of technology which
keeps on upgrading that has lead to many issues and consequences for Morgan Cars as its
customers expects better use of recent technology and more innovative features and creativity in
its design that is difficult and not seen in cars of Morgan. Thus, it can be evaluated that the
dynamic nature of technology and enhanced expectation of customers is a major drawback that
hampers and set back the performance of Morgan Cars in recent years. Beside this, the media has
also picked up a fact that Morgan cars are facing a issues of brakes wear when they are left idle
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for a longer period of time that is again contributing for the bad repatriation of Morgan cars in
eyes of customers (Morgan Motor company an analysis on internal and external analysis, 2020).
Legal:
Considering the increased issue of copyright also tends to influence the automobile
industry and its certain features of car as well from the branding and also tends to shape for the
effectively protecting the trademark, patent and copyright. Furthermore, it is more common to
hear regarding the legal factors for the automotive industry as in current time, issues will
increase from the Chinese automotive manufacturer that steal the designs for the western
counterparts (Adner, 2017). Along with this, Chinese brand also create various same copies that
tends to develop conflict. Therefore, the manager of Morgan Motor need to undertake that they
should not consider Chinese manufacturer in terms of getting prominent parts.
The UK government is making more strict laws and acts for protection and betterment of
employees which lead pressures on Morgan company to provide a safe and positive environment
to its employees along with paying higher incentives and perks that is reducing its profitability
and performance level.
Environmental:
The carbon dioxide is undertaken as one of the most serious environment pollutant which
is generated by the automobile industry. Moreover, it plays an important role for the global
climate that changes because of greenhouse effective. Furthermore, since few years the problem
of carbon emissions tends to gain global achievement and also continue for drive vehicles on
daily basis (Oelze and et. al., 2016). For this, government should force to take huge actions in
terms of stopping global warming and in Morgan motors it tends to put the complete ban on the
production and use of motor vehicles that can switch towards the electric cars which is not much
harmful for the environment.
Many vital steps are taken by society and government of UK to preserve and conserve
environment which consists of use of more renewable form of energy like electric energy, solar
energy, etc. It has also lead higher pressure on Morgan cars to make use of these renewable
sources which are difficult for Morgan Cars as it require use of new and mores complex
technology that is costly and difficult for Morgan Cars to execute.
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Porter's Five Force Analysis
This analysis is useful in identifying the prominent forces that are present within the
business environment that can examine for the prominent attractiveness for customers within
industry. It identify the lack of managerial capabilities and poor strategies thinking that consider
as an opportunity (Kleymann and Seristö, 2017). It is useful in identifying the significant forces
that are present in market and also identify various forces that act in industry and it include
various determinants in the profitability of industry. Threat of new entrants: It undertake that the economies of scale for Morgan Motor and
automotive industry is very low as the organisations including Bentley, Rolls Royce and
so on tends to develop high entry barrier by the higher level of promotion that need huge
investment for the capital resources within the manufacturing facilities. Moreover, the
one production technique is used in the company in which employees are reluctant in
order to switch towards the alternative way as it require higher training prices. It also
undertake the ability in terms of distributing the product in market and also create
prominent demand (Albers, Wohlgezogen and Zajac, 2016). Away with this, government
also limit entry for industry by licensing the needs and restricting the access towards the
raw materials. Thus, it can be evaluated that the threat of new entrants is quite low for
Morgan Motors as a huge amount of investment is required by firms to enter automotive
sector and have a promotion strategy and customer base up to the level of Morgan Cars. Bargaining power of suppliers: Moreover, there are approximately 42 automotive
manufacturing companies in UK that tends to purchase raw materials for the production
of automotive organisations from the suppliers. In regard of manufacturing automotive
organisations should work with various suppliers and each of them offer single product
(Slack and Brandon-Jones, 2018). As maximum number of organisations provide their
commodities and availability of substitute that are present within the market of UK.
Despite from this, the significant threat for the integration in the automobile industry and
organisations also give order for the large amount of products in terms of purchasing
huge quantity. Morgan is having a limited network of suppliers that leads to high
bargaining power of supplier and makes Morgan ,more dependent on these limited
supplier. Thus, Morgan company needs to have better supplier reaction and a more
flexible network of supply chain to ensures easy availability of raw material and stock to
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improve its productivity efficiency and capacity (Morgan Motor company an analysis on
internal and external analysis, 2020). Bargaining power of customers: It depicts that there are around 42 companies exist
within the production of vehicles and compete in this industry. As in UK the every
manufacturer bring some sort of uniqueness with their product and also produce
economic cars that develop traditional and vintage cars. Furthermore, in UK the
availability of the substitute is quite high as there are around 42 organisation in which
they can select their car (Revilla and Saenz, 2017). Along with this, the buyers
automobile industry has the effective potential in terms of integrating the backward by
developing vehicles and also customers has wide range of organisations from which they
can select their product. Moreover, buyer and their purchasing power should be more
expressive in terms of purchasing a new product and for this, the premium customers are
more willing to pay more money on the effective quality of automobile but the basic
customers also want high quality in cheap prices. Thus, an evaluation can be made the
automotive industry of UK is comprising many organisation which has provided a high
bargaining power to the customers as they are in position to get shit to other brands which
offer them higher barging power. Therefore, some better strategies and more creative
features are required by Morgan to retain and attract larger number of customers. Threat of substitute: Within the automotive industry, the switching cost is low in the
market area of UK. As most of customers purchase products and do not switch from
brand more frequently. For this, price factor matter in the sector as the buyers tends to
shift from the product that leads to offer good quality products in low prices (Morden,
2016). Moreover, access within the automobile industry for the buyers tends to become
more easier which is in the beginning of automotive sector. As a large number of
organisation are dealing in automotive industry which comprises of many luxury brands
like Aston Martin, Rolls Royce, Bentley, which are offering stylish and luxury products
to customers which lead to high substitute threat for Morgan Cars. But the main product
portfolio of Morgan Cars is based on Vintage cars which provides an exclusive features
for car design of Morgan company to attract larger number of customers.
 Competitive rivalry: In most of the organisations car developers are engaged for the
fierce competition and for this their prices might get clash and for this, they develop
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prominent advertisement and develop product in terms of keeping them on the edge of
innovation and profitability. Moreover, in the market of UK manufacturers watch them
carefully and then tries to give tough competition to their rivals in terms of achieving
competitive advantage (Carr, 2016). Moreover, the automotive industry also grow its
sales approximately 30% in last 10 years which expect for around 5.5% for the growth.
Moreover, in automotive sector it should be unique in terms of designing the price factor
considering maximum amount of qualities that would be quite different from the
particular brand and its other competitors. Despite from this, the amount of fixed price
within this sector is high as Morgan Motors provide its salaries to their employees and
also pay for the prominent use and regardless for selling of significant product.
Moreover, in terms of increasing the capacity for automobile manufacturer then the
respective company tends to develop another manufacturing plant that will run with full
potential in terms of eliminating price. Thus, it can be evaluated that a tough competition
level is faced by Morgan Cars thus vital strategy and creative promotion is required by
Morgan cars. It has been analysed that Morgan car should focus on new and more
creative technology along with better digital promotion and marketing strategy for
effective advertising of its product to attract and cater larger number of customers in
order to overcome the threat of high competitive rivalry.
VRIO Framework
This framework is useful in terms of analysing the strategic factors and the primary
process for the main function of this framework is to get clarity for the aims and objectives and
also depicts that which factor is more important or not in terms of focusing towards
accomplishing prominent objectives (Meredith and Shafer, 2019). Moreover, the framework
estimate towards the effective value for an organisation and consider as the asset of company
considering the strategies. Moreover, within the automotive market it consider the huge struggle
in terms of finding the best method in terms of targeting their customers which is because of
limitability and demand for rarity for the organisational goals.
Resources Valuable Rare Imitable Organised
Human
resources/
Yes - - -
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Manpower
Structure and
Culture
Yes Yes - -
Organisational
strategies
Yes Yes Yes -
Finance and
capital
Yes Yes Yes Yes
By considering the above framework, it is identified that it is important for the Morgan
motors to make value of their human resources as these are the important asset of company
which is useful in terms of improving the overall performance and growth of company and helps
in developing competitive advantage within the dynamic business environment. Besides from
this, culture, strategies and capital are rare for the company and these must be properly organised
to face any king of uncertainty in future. Furthermore, funds and strategies are effective and well
developed as they does not get imitated by any other competitor otherwise it makes the survival
of Morgan motors more worse. Lastly, the finances and capital should be organised for the
longer period of survival in dynamic business environment.
Thus, it can be evaluated that providing regular training to enhance the skills of its
workforces to have more competent human resources is a viable strategy for Morgan Cars to
produce and deliver better quality product. Further, making use of more viable technology in its
car design and providing better features to customers are also suitable strategy to attract and cater
larger number of customers to improve performance and productivity level of Morgan cars in
order to strive in the market for longer period. Beside this improved organisational strategies and
effective marketing and promotion of product and services through use of digital and online
platform are also viable for Morgan Car to improve its market position and performance.
Conclusion
By considering the above discussion, it is identified that for the effective development in
business environment, it is also important to develop prominent growth and strategies that are
useful in terms of achieving competitive advantage with the help of environmental analysis. In
terms of this, respective company face various problems and also make effective changes in its
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research factor undertaking the analytical manner at the same period of time. For this, it consider
various tools that are more relevant in terms of achieving their objectives. It also consider the
supply chain and regulations of company for their strategies considering the government level
which is owned and operated by corporate societies.
Appendix – Pestle
Political
This factor is important as it directly impact
the profitability in automotive sector. The
market area of European Union and UK tends
to offer government subsidy for the low
emission vehicles which tends to develop
environment friendly vehicles that develop
demand at the global level. Furthermore,
technology also tends to receive the support of
government regarding the low environmental
influence. Along with this, technology should
be fuel efficient and low on emission that can
easily pass the rules and regulations of
government. Moreover, the changing
environment authorities and the political
regulations of market can cause favourable and
unfavourable fluctuations.
(Wang and et. al., 2016)
Economical
It is important in terms of considering the
economic conditions that is impacted poorly by
the economic conditions undertaking the taxes
on the high prices vehicles in the various
market areas. Moreover, developed market see
higher sales for the purchasing power of
customers which is higher and considering the
(Hitt, Xu and Carnes, C.M., 2016)
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size of economy and its conditions that has
major impact on the profitability of the
automotive industry considering the several
market area. Away with this, there are various
angle used in terms of analysing the
significance of economic factors in the
industry. Along with this, the large number of
brands need to focus on bring the cost low
market as they can tap into the larger customer
segment through this way.
Social
Market area is significantly influenced by the
socio cultural factors and also dynamic in
nature in terms of opting prominnet forces. For
this, in few markets SUVs are in higher
demand and some of them prefer sedan cars
and the age distribution factor for the several
customers is also important considering the
vehicle developers and they need to keep their
targeted audience in their mind while
developing product and launching it in market.
For this, social trends also keep changing
prominently that affect the popularity of brands
and other models. In regard of this, changing
trends and various factors make prominent
models that are obsolete and go out of fashion.
(Tjemkes, Vos and Burgers, 2017)
Technological
Effective technology is depends on the
innovative technology which include high
market share and also plays an important role
(Bozarth and Handfield, 2016)
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for research and development. In terms of this,
various brands like Toyota, Hyundai and ford
tends to invest in low emission and eco-
friendly vehicles. Moreover, in recent years
major technological players are also trying to
take entry in the dynamic sector and also
consider innovation in terms of remaining for
the major basis of the differentiation for the
automotive makers. Therefore, it shows that
technology is one of the important factor that
leads to impact the sales and profitability for
this sector.
Legal
Law is important in terms of affecting for the
performance and profitability of vehicles and
other brands. For this, the vehicles also
exported for overseas and need to pass strictly
towards the emission controls. Moreover, it is
quite similar for the passengers and their safety
undertaking the environmental laws in terms of
dealing at the time of effective operations in
the international market.
(Kagermann and et. al., 2016)
Environmental
It is related with the environment friendly
products and production that tends to eliminate
carbon emission and grow stiffer in the world.
For this, it plays major role in the automobile
industry and also put emphasis on the low
emission vehicles. For this, vehicles are also
low on emissions and for the fuel consumption
(Power and et. al., 2016)
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that tends to receive tax subsidies and also
favoured by the government and legislations.
Along with this, pollution test also gown
stricter and vehicles also need to pass this test
that permit in the certain markets considering
European Union and UK.
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MORGAN: A BRITISH MOTORING ICON, 2020. [Online] Available Through:
<https://www.morgan-motor.com/about-morgan/>
Morgan Motor company an analysis on internal and external analysis, 2020. [Online] Available
Through: <https://www.coursehero.com/file/p77fi82e/Morgan-Motor-Company-an-
analysis-on-Internal-and-External-Environment-32/>
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