Strategic Analysis of Aston Martin Lagonda Global Holdings PLC

This project provides a detailed analysis of Aston Martin Lagonda Global Holdings PLC, addressing key strategic issues, challenges, and potential solutions. The analysis covers critical aspects such as manufacturing plants, sustainability approaches, and financial debt, supported by evidence from financial reports and news articles. The project identifies challenges like cash flow management, product deficiencies, and reduced shareholders, and proposes solutions including changes in orientation, outsourcing, and product diversity. A project plan is also included, outlining specific objectives, approaches, actions, and evaluation methods to improve sales and financial stability. The project uses various models and theories, including SWOT analysis, Porter's Five Forces, and outsourcing theory, to provide a comprehensive understanding of the organization's situation and potential pathways for improvement.

Running head: ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC
ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC
Name of the Student:
Name of the University:
Author Note:

1ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC
Student Number: Organisation or service:
ASTON MARTIN LAGONDA GLOBAL
HOLDINGS PLC.
Strategic issues of the Organization:
Poin
t
Strategic Issues Evidence (financial, reports,
news etc.)
Model(s)/Theory(ies)
1 Manufacturing Plants. The
organization is aiming at
developing certain core
models. The organization
had always focused more
onto the structural strength
of the models of the cars.
Therefore it not only aim at
developing luxury cars but
sports cars as well.
Therefore, to develop strong
cars, it is more likely the
manufacturing aspects of the
cars cannot maintain the
sustainable grounds. The
making of the manufacturing
hub will cost the
Craddock, J., Bourgeois, L.J.,
Allayannis, G.Y., Hernandez,
M. and Cian, L., Aston
Martin: The Crossover
Conundrum.
McAllister, A. and Coe, D.,
2014, November. Open
source automotive
aeroacoustic simulation at
Aston Martin Lagonda.
In The International Vehicle
Aerodynamics Conference (p.
251). Woodhead Publishing.
SWOT Analysis.
Capitalism.

2ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC
organization quite a lot and
this manufacturing plant
cannot be designed in a
sustainable way. At the same
time, the manufacturing
processes can cause health
issues to the surrounding
individuals and
2 Sustainability approach.
There are that certain issues
with the linkages between
technological innovation and
environmental development.
The innovation in the
industry of technology, and
the increasing level of
fundamental competition is
potentially affecting the
environment and are
increasing the environmental
risks and the levels of
globalization. More
importantly, since this is the
Krishnan, V.V., Lakhani,
K.R. and Migdal, A., 2017.
Aston Martin: A Second
Century of Performance and
Luxury.
Baldoncini, A., 2019. The
Aston Martin Lagonda IPO
and the correlation with
Ferrari NV shares trend: will
the market disinvest in
RACE?.
SWOT Analysis.
The Sustainability
Assessment Model
(SAM).
Socialism.

3ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC
age of the globalization, the
organization is aiming at
diverging itself and get
spread across the world, and
in order to that the
organization must
understand and remember
the environmental risks that
the country or the region is
facing. The increasing
competition and the
increasing rate of innovation
in the industry is also
creating certain issues with
the sustainability aspect.
3 Financial Debt. The country
has been going through an
extremely rough patch.
There is a rapid drop in the
sakes in the most two years
and the organization is now
facing $100 million debt in
the market. In the last year,
Loveys, R., 2015. Aston
Martin. Bloomsbury
Publishing.
FAME Framework.
Merger Model.
Leveraged Buyout.
Capitalism.

4ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC
the organization had
managed to pay back 20% of
the debt. However, there is a
still a huge debt on the
company which, the
organization is aiming to
solve through the
incorporation of the modern,
innovative cars which the
organization has only
planned to develop.
However, such a decision
can potentially harm and
affect the organization even
more.
Identify and Analyze the Challenges:
Poin
t
Challenges Evidence (financial, reports, news etc.) Model(s)/
Theory(ies)
1 Severe challenge in
managing the cash flow
system. The organization
Hopkins, J. (2020). Aston Martin Lagonda
shares reverse as it warns on profits amid
continuing challenging trading conditions.
Porter’s 5 Forces
SWOT

5ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC
is facing a reduced cash
flow system.
A recent report has shown
that the organization has
dropped till 22% in the
sports car section. The
stock has been falling
since the past one week.
The stocks at first saw an
18% drop, and then it
observed a 26% drop in
the stock market. This
situation has led the
organization to borrow
from the market. The
organization therefore had
spent a $23.1 million as
investment in intellectual
property. All these have
led the organization to
face huge financial
challenges.
[online] Proactiveinvestors UK. Available
at:
https://www.proactiveinvestors.co.uk/comp
anies/news/910085/aston-martin-lagonda-
shares-reverse-as-it-warns-on-profits-amid-
continuing-challenging-trading-conditions-
910085.html [Accessed 29 Feb. 2020].
2 The reporters and the Hughes, C. (2020). Bloomberg - Are you a SWOT

6ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC
market analysts have
claimed that the products
produced by the
organization are
extremely accident prone.
Especially the sports cars
are facing a huge
technological deficit and
technological glitches.
The considered
organization is essentially
known for its ports cars
and its luxury car editions.
Therefore, according to
the marketers and the
organizational analysts,
the organization must look
more into the aspects of
technological
development. The prices
have been dropped by the
organization in order to
increase the marketability
robot?. [online] Bloomberg.com. Available
at:
https://www.bloomberg.com/opinion/articl
es/2019-07-31/aston-martin-manufacturer-
is-struggling-to-stay-on-the-road [Accessed
29 Feb. 2020].
7S Criticisms

7ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC
of the organization.
According to the
marketers, the
organization is facing a
huge technological
problems and in order to
incorporate more
innovations in the
structure, the organization
is being unable to
integrate innovation and
technology.
3 Reduced shareholders.
The current situation if the
company is affecting the
position and the brand
identity of the
organization. Since the
organization is being
unable to sell enough cars,
and since the organization
is not being able to sell
enough cars, and because
astonmartinlagonda.com. (2020). Tax
Strategy | Aston Martin Lagonda. [online]
Available at:
https://www.astonmartinlagonda.com/inves
tors/corporate-governance/tax-strategy
[Accessed 29 Feb. 2020].
Capitalism /
Socialism
PEST
Nudge theory

8ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC
of the technological
glitches perceived in the
car making process, there
are very few shareholders
showing interest in the
organization. This has
also made the
organization to cut off its
employees. Also, since the
organizational
shareholders were more
interested in the sports car
section, therefore the
technological issues have
reduced the numbers of
shareholders of the
organization, potentially.
Identify and analyze the solutions for the challenges:

9ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC
Poin
t
Solutions Evidence (financial, reports, news, best practice
guidance, etc)
Model(s)/Theory(ies)
1 Changes in the
orientation. Since the
organization is
observing potential
amount of
technological issues
in the car making,
therefore, the
organization must
provide more
attention in including
only one of the
technological aspect
and using it properly.
The organization
must not focus on the
competitive aspects,
rather it must focus
more on the aspects
of technological
Zou, Y., Chan, S.K. and Zhang, M., 2017.
Creativity: Missing Element in Brand
Heritage. LBMG Strategic Brand Management-
Masters Paper Series.
Essamri, A., McKechnie, S. and Winklhofer, H.,
2019. Co-creating corporate brand identity with
online brand communities: A managerial
perspective. Journal of Business Research, 96,
pp.366-375.
Porter’s Value Chain
Porter’s Five Forces

10ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC
development.
2 The organization can
also include the
aspects of
outsourcing. This can
prove extremely
beneficial for the
organization. The
organisation can
outsource the
manufacturing
process of its sports
section only. It is an
effective strategy,
since it can attract the
interests of both the
shareholders as well
as the interests of the
customers. More
importantly the
inclusion of the
outsourcing aspects
will cut down the
Knabe, A., & Koebel, B. (2006). The economic
rationale and labour market effects of
outsourcing: a survey. Global Outsourcing
Strategies: An International Reference on
Effective Outsourcing Relationships, Gower
Publishing: Aldershot, 167-182.
Balogun & Hailey
Ansoff Matrix

11ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC
manufacturing costs
of the cars. Thus the
organization can
profit more which
will be helpful for
the organization to
pay off their debt,
and eventually the
prices of the products
will automatically
get reduced.
3 The organization can
at the same time
focus more upon
product diversity.
The organization
essentially makes
cars for the elite
section of the society
and are involved in
the manufacturing of
the sports cars.
Therefore, the
Frohnen, A., 2015. Diversity in action:
Multinationalität in globalen Unternehmen am
Beispiel Ford. transcript Verlag.
Berger, R., 2016. Philipp Grosse Kleimann| Car
manufacturers| Automotive| Industrial know-how|
Expertise| Roland Berger.
Kolb Learning Cycle
TOWS