Business Contexts and Management: Aston Martin Analysis Report

This report provides a detailed analysis of Aston Martin's business context, encompassing both internal and external environmental factors. It begins with an introduction highlighting the impact of the COVID-19 pandemic on the automotive industry and focuses specifically on Aston Martin's challenges and opportunities. The report utilizes tools such as PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors influencing the company. It also examines market size, business cycle analysis, and the application of the Blue Ocean Strategy. An internal analysis is conducted using the VRIO framework to evaluate the company's resources and competitive advantages. Furthermore, the report includes a competitor analysis using Porter's Five Forces, a discussion on operation management techniques like Total Quality Management, Kaizen, and Six Sigma, and an examination of change management models such as Lewin’s model. Stakeholder analysis is also performed using a power & influence grid matrix. Finally, the report concludes with recommendations for future enhancement and strategic improvements for Aston Martin.

Business Contexts and
its Management

Table of Contents
INTRODUCTION.......................................................................................................................................3
PART 1.......................................................................................................................................................3
External environment..................................................................................................................................3
Market size:.............................................................................................................................................5
Business cycle analysis............................................................................................................................5
Internal analysis...........................................................................................................................................6
VRIO Analysis........................................................................................................................................6
Competition.................................................................................................................................................7
Operation management................................................................................................................................8
Managing Changes......................................................................................................................................8
Stakeholder Analysis.................................................................................................................................10
PART 2......................................................................................................................................................10
RECOOMENDATIONS...........................................................................................................................10
CONCLUSION.........................................................................................................................................12
REFRENCES............................................................................................................................................13

INTRODUCTION
Business organizations play a great role in economic growth and success. These are also
helpful in generating employment which further improves in economic condition of country. It is
stated that current pandemic has put a devastating impact over companies belong from different
industries. Due to this, companies are facing enormous decrement in their sales and profit
margin. However, there are some industries which earn profit during pandemic such as online
learning, ecommerce, online fitness and more (Sah, 2016). In the current report Aston Martin is
taken into consideration which is a renowned company of automotive industry. It was founded in
the year of 1913 in London and currently has been expanded business at global level. It is
analyzed that company is facing huge adverse impact due to ongoing crisis of COVID 19. The
present report comprises internal and external analysis of organization by applying appropriate
tools such as Blue ocean strategy, PESTLE analysis, VRIO analysis and more. In addition to
this, competitor’s analysis has also been included in the report along with the appropriate
techniques of operation management. Apart from this, it included change management model
such as lewin’s model and more for implementing changes in business in an efficient manner.
Lastly, stakeholder analysis has also been carried out in report by applying power & influence
grid matrix efficiently along with the appropriate recommendations for further enhancement.
PART 1
External environment
There are a lot of elements present in external environment which significantly affect the
business. Thus, it is imperative for managers to undertake analysis of external environment so
that they can take necessary actions accordingly. In this regards, PESTLE analysis of Aston
Martin is given below:
Political factors: It is related with prevailing political environment of country. It is stated
that change in current government brings changes in existing business policies. In context of
Aston martin, their future will be highly affected with the financial aid assistance received by
government authorities in terms of subsidiary (van Vuuren, 2020).

Economical factors: It comprises elements such as economic condition, demand, supply,
cost, employment opportunities and more. Due to ongoing pandemic, automotive industry is
adversely affected. In market demands of cars is decreasing drastically due to decrement in
purchasing power of customers. In context of Aston Martin, the company recorded £118.9 loss
due to impact of COVID 19. In addition to this, they also lay off plenty of staff due to lack of
work which negatively affects the economy of country.
Social factors: It includes different factors which are related with personality, buying
behavior, of customers. In present time, with economic down turn, people are not likely to invest
in luxury goods. Now, Aston Martin is requires to invest significant amount in CSR activities in
order to formulate positive image of brand in market place.
Technological factors: In present time, technology is crucial part of business. In addition
to this, UK is the twelfth largest manufacturer of vehicles so it is essential for companies to focus
over design, and technical innovation in vehicle (Schumacher and Mayer, 2018). In context of
respective company, they also need to put adequate amount in research and development for
producing advance vehicles.
Legal factors: Under this, a lot of legalities, rules, regulation are included which need to
follow by an organization. In automotive industry, there are two major regulations which are
related with imports and exports of vehicles. Here, taxation and rules are relatively lenient in UK
in comparison of other countries. Therefore, it is easy for Aston Martin to operate business in
UK in an efficient manner.
Environmental factors: In current time, customers are more concern about environment
thus demand for less fuel consumable vehicle which are good from environmental prospective
also. In reference of respective organization, they need to produce fuel efficient vehicles in order
to deal with the recession in market place.
Trends in the external environment
 It is stated that in upcoming years use of artificial intelligence will significantly increase
in automotive industry. For dealing with post pandemic impacts Aston Martin needs to
invest significant amount in artificial intelligence and other such technical advancements.

 In present time, demand of electric vehicles is also on rise as people are highly concern
for environment. So, company need to focus of development of electric vehicles for
minimizing environmental pollution significantly (King and Brooks, 2016).
 In addition to this, application of big data and data analytics has also been increase within
automotive industry. It helps companies in maintaining data and information in an
efficient manner.
Market size:
 TAM: It refers to the total addressable market which is really higher in context of
respective company (Hermosilla and Wu, 2018).
 SAM: It shows the serviceable available market which depict the potential of company in
current situation. In context of Aston Martin, they are serving to the premium customers
across the globe (Cosenz, 2017).
 SOM: It stands for service obtainable market which shows the market which can be
acquired by company within industry. In context of Aston Martin, it acquires remarkable
market share in UK and other countries across the globe. It has been generated nearly 1.1
billion pounds through sales of vehicles (Li and et. al., 2020).
Business cycle analysis
 Expansion: In this economy encounters higher growth in which overall level of
production within industry increase in significant manner (King and Brooks, 2016).
 Peak: It occurs while growth reaches at maximum level. It shows the maximum growth
potential of a company (Pawlowska, 2016).
 Correction: It happens when growth rate slows down. In this, unemployment, inflation is
really high so there is requirement to prepare effective strategy (Duval and et. al., 2016).
 Trough: It is the lower point of economic down turn after which it might re enter in the
phase of expansion (Romano and Palmer, 2016).

Market or industry opportunity
Blue Ocean Strategy
Under this, companies tries to find out such a market in which lower level of competition
is present so it is easy to earn higher amount of profit margin. In this, company stays in market
place until there is lower competition and leaves the market as competition rise. When, there are
fewer opportunities of growth and success then organizations prepare efficient strategies in terms
of adding new feature in existing product and launch an entirely new product & service in market
place (Del Giudice and Al-Mashari, 2016). In reference of Aston Martin, they can also adopt
blue ocean strategy by producing innovative products and adding some advance features in their
existing vehicle. This strategy will assist them in meeting with post COVID affects in an
efficient manner.
Internal analysis
VRIO Analysis
It is a tool which is widely used by companies for internal analysis. It provides significant
information regarding resources which are available within organization and significantly
provide competitive edge in market place (Das, 2016). In context of respective company VRIO
analysis is mentioned below:
Resources Value Rare Imitation Organization
Brand
awareness
Yes Yes No Yes
Access of critical
raw material for
successful
execution
Yes Yes Yes Yes
Competent
employees
Yes No Yes Yes
Intellectual Yes Yes No Yes

property rights
With above analysis, it is stated that intellectual property rights is the core competency of
Aston Martin as these are valuable, rare and cannot be imitate by rival firms. So, company need
to use these resources for getting an edge over competitors in market place.
Competition
In present time each and every company needs to face extensive competition at market
place. For this purpose, Porter’s five forces have been applied to assess the level of competition
for Aston Martin.
Industry rivalry: It is stated that competition in automotive industry is extensive so
industry rivalry is also higher for Aston Martin. There are ample of companies which are
working in luxury segment of industry such as Jaguar, Ferrari and more.
Bargaining power of customers: It is analyzed that Aston Martin operates in luxury and
premium market where customers have already a lot of choices & options. Therefore, bargaining
power of customers is high due to extensive competition within industry Queiroz, Telles and
Bonilla, 2019).
Bargaining power of suppliers: For respective company, bargaining power of vendors is
really higher due to limited availability of components which are required for vehicle
manufacturing. It is stated that in UK, there is nearly 2600 component manufactures which
supplies necessary resources to all vehicle manufacturing companies within country.
Threat of substitute: In context of Aston Martin, it needs to face high end competition
due to presence of other competitors. Here, threat of substitute is really high as customers have a
lot of varieties in terms of luxury brands in market place.
Threat of new entrants: In context of Aston Martin, industry rivalry is moderate as it is
one of the renowned companies which has positive brand image in market place. It is considered
as one of the luxurious car brands across the globe.

Operation management
It is analyzed that in automotive industry operations management has a significant role in
terms of maintaining higher level of efficiency and productivity. Operations management is
helpful in managing daily operations of company in best possible way. In regards of Aston
Martin, some models of operation management are mentioned as under:
Total quality management: It is the widely used model which focuses over quality of
products and services. Here, main aim is to manage quality of production by reducing down
wastage and eliminating inappropriate activities (Alves, Fernandes and Raposo, 2016). In
reference of Aston Martin, they use this model with an aim to provide quality products to
customers. This technique is used is helpful in improving overall quality of products for
providing higher level of satisfaction to customers.
Kaizen: This technique of operations management focuses over continuous improvement.
In reference of Aston Martin, they need to use this model by analyzing the manufacturing
process on continuous basis so that they can make necessary improvements in timely manner.
Under this, manufacturing process is assessed persistently so that necessary improvement can be
undertaken in overall process of production. So, this technique is important in order to make
enhancement in product by continuing evaluation and analysis of production process.
Six Sigma: It is a technique of operations management which is applied for enhancing
quality of production in an efficient manner. In reference of Aston Martin, they need to adopt
this model so that they can produce quality products for attaining higher level of customer
satisfaction. It focuses over producing quality products for attaining higher level of customer
satisfaction in an efficient manner. With this technique, organization is able to produce higher
quality products for further growth and betterment.
Managing Changes
Impact of implementing changes
It is stated that changes are essential for each and every business entity. In this regards
Aston Martin is also bringing changes in current practices which can be understand by applying
Lewin’s model of change management.

Unfreezing: This is the first step of change under which company introduces changes
within work place so faces resistance of employees. In this, business managers of respective
company need to maintain proper communication with work force so that they get to know the
significance of change practices. In this, employees need to inform that how they will get
benefits with change working practices.
Changing: It is the most vital stage under which organizations apply change practices in
real context. In this, employees really start to work with transformation. Here, managers of
respective organization are required to stimulate employees on regular basis by providing them
necessary benefits.
Refreezing: This is last but crucial stage under which company needs to ensure that
changes sustain at work place. Sustain change management is more burdensome then introducing
changes within organization. In this, managers of Aston Martin needs to make sure that staff
members get comfortable with change practices and do not return back over traditional work
approaches (Barnes, 2018).
Influence of culture on management decision making
There is a model called Handy’s culture model has been designed to assess the impact of
culture over management decision making practice. According to this model, there are four types
of culture followed by organizations which are mentioned below:
Power culture: In this, power lies in the hand of few persons who belongs to the higher
level of management. These people are authorized to take all essential decisions of company
(Bannered and Mishra, 2017).
Task Culture: Under this, teams are formulated for accomplishment of task within
stipulated period of time.
Person culture: In this, individuals are highly concerned about self rather organization .
Here, each and every person gives importance to self rather company.

Role culture: Here, roles and responsibilities are assigned to each and every employee as
per their qualification, specialization and interest in order to make full utilization of their
potential for benefit of company.
Stakeholder Analysis
Stakeholders are crucial part of business who posses great interest in business. Major
stakeholder of business are customers, suppliers, investors and more. In context of Aston Martin,
process of stakeholder mapping is mentioned as under:
Identify: Under this, stakeholders are identified in an efficient manner (Cosenz, 2017). In
context of respective company, customers are identified as their major and most important stake
holder.
Analyze: Here, managers of Aston Martin, analyze key stakeholders and their activities
for preparing efficient strategies for future growth and success.
Prioritize: After understand stakeholders the next step is to prioritize their requirements
in an efficient manner.
Engage: It is the last and crucial stage under which stakeholders are engaged with the
activities of company in significant manner.
PART 2
RECOOMENDATIONS
 In context of selected company it is recommended that company needs to adopt PDAC
approach for effective planning and continuous improvement of organisation. PDAC
refers to a continuous loop of planning, checking, doing and acting. It will provide a
simple and effective approach for solving problems & effectively managing change.
Selected business use this model for testing improvement measurement on a small scale

before updating procedures and working practices. Selected company will require to
effectively analysis the market condition and then prepare an effective plan.
 From the above discussion it is recommended to selected company that they need to
make effective strategies related to the fuel consumption. For success of organisation it’s
very important that they fulfill their CSR activity effectively and for that they need to
make effective strategies which make their product more sustainable. This will not only
fulfill the CSR activity of organisation but also create a positive image of company which
assist in enhancing the sales of their product.
 Another important recommendation for selected company is that they need to adopt
digital marketing technique for attracting their customers towards their product and also
needs to provide online facility to their customers. As because due to COVID-19 their
customers are not able to buy products from their stores or showroom (Zhu and
Zolkiewski, 2016). For increase the sales in the time of COVID-19 they will require to
adopt online method for selling their products and also for enhancing the engagement
with customers so that they can create a better reputation of company.
 It is analysis that there are various factors which influence the growth of selected
company, so it is recommended to selected company that they will effectively analysis
their external environmental factors and also analysis their competitive factors so that
they will better understand various opportunities and challenges and timely take action
for it (Panagiotakopoulos, 2020). By analyzing competitive factors they will identify the
factor which helps them to achieve competitive advantage in market and by investing in
that Factor Company will achieve higher growth.
 Another important recommendation for selected company is that they need to more invest
in the research and development departments so that they will innovate new technology
with advanced features and look. Which help company to achieve long term competitive
advantage in market and long term growth in the market.

CONCLUSION
From the above discussion on this report it is concluded that an organisation will play an
important role in the growth and development of an organisation. It is analyzed that management
of an organization will help in effectively managing the various function of business. This report
will help in analyzing the various external factors such as economic, political and social etc.
which impact the growth of business. VIRO model is included in this report which assist an
organization in better analyzing the competitive factor of an organisation and achieve higher
profit through it. Other than this porter five model will also assist an organisation to analysis the
effect of competitors on their business.

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