Business Strategy & Entrepreneurship Report: Aston Martin Analysis

This report offers a comprehensive analysis of Aston Martin's business strategy and entrepreneurial practices. It begins by examining the role of organizational values, mission, vision, goals, and competencies in strategy formulation, emphasizing their importance in achieving long-term objectives. The report then delves into strategic planning, considering factors like stakeholder analysis and external environment scanning using the PESTEL technique. It explores brainstorming techniques for product innovation and assesses the strengths and weaknesses of Aston Martin's products. Furthermore, it examines market research for new markets, segmentation, and the application of Porter's five forces model. The report also covers business proposal development, effective communication in business pitches, and the evaluation of pitch success. It concludes by analyzing the organization's strategic position, conducting an environmental audit, and assessing stakeholder analysis to formulate new strategies. The implementation of the strategy, including the roles of managers and employees, is also evaluated, along with SMART objectives for monitoring progress, providing a holistic view of Aston Martin's strategic approach.

Business Strategy &
Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Role of organisational values in strategy formulation..........................................................1
1.2 Factors to be considered in strategic planning and monitoring.............................................2
TASK 2............................................................................................................................................3
1.1 Brainstorming technique.......................................................................................................3
1.2 Strength and weakness of product.........................................................................................4
1.3 Market research for proposed new market............................................................................5
TASK 3...........................................................................................................................................5
2.1&2.2 Analyse environment and select target market using segmentation.............................5
2.3 Porter's five force model of Aston Martin.............................................................................6
2.4 Business proposal document.................................................................................................7
3.1 Business Pitch for products and services..............................................................................8
3.2 Communicate effectively......................................................................................................9
3.3 Evaluate success of Pitch in meeting business objectives..................................................10
TASK 4..........................................................................................................................................10
2.1 Organisation strategic position............................................................................................10
2.2 Environmental audit............................................................................................................12
2.3 Stakeholder analysis............................................................................................................13
2.4 New strategy for an business entity....................................................................................14
TASK 5..........................................................................................................................................14
3.1 Roles of managers and employees in implementing new strategy.....................................14
3.2 Evaluate and SMART objectives to monitor progress........................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business strategy refers to management or administration of art as well as science which
assist in formulating, implementing as well as analysing decision which are made by higher
authorities so that employers can attain their long term goals and objectives. When staff
members using appropriate strategy then this will help in improving consumer experience so that
they can find true value and also expand overall experience of buyers (Ackermann and
Audretsch, 2013). For promoting products and services they can use digital marketing along with
the different promotional channel so that proper fragmentation can be done in a proper manner.
Entrepreneur refers to person who run small business and for improving success in market they
have to take more risk and reward so that they can generate more revenue. Entrepreneur is an
individual who uses innovative ideas and business processes so that they can do developments or
improvements in a business which will aid in attaining targets which are decided by higher
authorities. Present report is based on Aston martin which is a British manufacturer of luxury
sports cars and company having a good revenue that is £593.5 million (Business Strategy &
Consulting, 2017). In below mentioned assignment, discussion on role of organisational values,
mission, vision, goals as well as competencies in strategy formulation. Further, different
brainstorming techniques has to be discussed which assist them in generating more and more
products and according to that business entity can increase sales and generate or earn more
revenue. Along with this proper analysis of market should be done by using different techniques.
TASK 1
1.1 Role of organisational values in strategy formulation
Organisation values are those basic principles on which the cited company works on.
Whatever happens they do not get deviated from their belief and work towards achieving the
goals by maintaining the same values. It is being analysed from various experiences that
company that has a significant statement of mission or vision are successful in achieving the
objective. Mission or purpose can be use as a synonym for each other and for every enterprise
the ultimate goal is to achieve the same with the given resources (Acquaah, 2013). Mission
statement of Aston Martin is to simply be the best in every area of our business. It will helps in
accomplishing the most exceptional consumer experience so that they can provide strong support
our community. It is because through this system it becomes clear for all the employees that
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what they are expected to do and how they have to perform their duty with the given resources.
When the working staff is aware about their organisation goals they stay focused and work
towards the same. Once when the vision is set workers get the knowledge of what to follow from
the various options available as the reason behind the existence is defined through this system
(Alsudiri, Al-Karaghouli and Eldabi, 2013). Management may also recognise the different
worker who are not working with the flow of business as through the process of setting
organisation vision company can evaluate easily that who all do not wish to follow the provided
guidelines. Another benefit of this practice is it helps in translating the desired goals into action
as organisation than follows a set structure which is tested to give the wanted outcomes. Lastly,
the working staff gets the philosophy of their presence which is very important because as
human beings, everyone needs meaning from their work done and the vision and mission
statements gives them a sense and meaningful reason to work with an organisation.
1.2 Factors to be considered in strategic planning and monitoring
In Aston Martin, there are different factors which are to be considered in the strategic
planning as well as monitoring. There are distinctive factors which provide proper guidance so
that they can improve profitability and productivity. Factors are:
 They have to make proper vision and mission statement for a long term and according to
that they have to make their objectives (Armstrong and et. al., 2015).
 They should identify and analyse stakeholders which having a influence their business.
Stakeholders include management. Shareholders, employees, suppliers and so on.
 They have to do scanning on their external environment which assist in identifying and
analysing strength and weakness.
 They have to analyse their external environment by using PESTEL techniques which
helps in identifying the impact on business (Barberá and et.al., 2012).
 After that they have to define their competitive advantage so that they can assess their
forms to their business goals and should be in a specific time. This will helps in
maintaining their unique position in the competitive market.
 They have to prepare their SMART objectives so that they can assess their business goals
and then they have to do formulation in a specific time period (Bentley, Omer and Sharp,
2013).
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 Manager and employees of Aston Martin have to maintain their account for personal as
well as business goals. Personal goals represent individual objectives which is related to
management as well as other members who are involved in the business. There are
different goals which includes earning money, contributing to community. Along with
the development of professional skills. They have to set their business goals which assist
their business in attaining their personal goals (Bharadwaj and et. al., 2013).
 Last step is to determine their action steps and for that they have to make their strategies
in achieving their goals and objectives as well as have to fulfil their business purpose as
well as they have to satisfy long term aspirations.
TASK 2
1.1 Brainstorming technique
These can be viable conceptualizing apparatuses for a few reasons:
 The general distributions contain articles around a few businesses, which is useful for
conceptualizing new thoughts that can apply to your own industry.
 Advertising methods and methodologies examined in the diaries can enable you to
conceptualize new showcasing thoughts of your own (Blackburn, Hart and Wainwright,
2013).
 In distributions, for example, the Wall Street Journal, the editors incorporate a blend of
short articles (useful for conceptualizing thoughts in view of what others are doing) and
inside and out reports (useful for conceptualizing new item advancement techniques that
develop from patterns).
 By skimming an assortment of business related articles (news articles, highlights, human
intrigue, and investigative pieces) you widen your thought base, which brings about more
new item thoughts (Dey and Sircar, 2012).
There are different steps which helps in generating or innovating new products and
services:
Each association need to dispatch crisp products in general interim of time since taste and
inclination of clients are evolving quickly. The vast majority of the organizations receive
conceptualizing procedures so they can present new merchandise in market. The following is the
way toward conceptualizing:
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Thought screening – An undertaking can request that their representatives share their
considerations around a thought. They have better comprehension about the assignment which
they are doing on regular schedule so their recommendation will give incredible help with
advancement of new item (Galpin and Lee Whittington, 2012). They can likewise take offer
assistance of a few specialists, this will include some cost however toward the end organization
may get smart thoughts. In procedure of screening, firm needs to check whether new
considerations will bolster in accomplishing hierarchical destinations. On the off chance that idea
can not be changed over into reality than they ought to kill it in the initial step. Organization
should take perspectives of outside sources like clients, providers and so on in light of the fact
that they have better learning of market what's more, potential clients. Aston Martin will dispatch
new icy drink in their natural nourishment area. Before presenting it in marketing, they ought to
counsel with their representatives and other individuals who are identified with this item either
straightforwardly or in a roundabout way (Grover and Kohli, 2013).
Improvement of idea and its testing – They need to build up a equation with a specific
end goal to make it top notch and sound. They need to do different sort of inquiries so they can
convey better product in showcase. After development of right equation, they should move their
emphasis on testing. Subsequent to getting endorsement from specialists they a begin its large
scale manufacturing.
1.2 Strength and weakness of product
Aston Martin having a segments in the different sectors which includes luxury cars or
sports cars. They are having a targeted group towards the elite class of affluent consumers. They
have to to proper positioning as a company which delivers or offer the value to the consumers for
different years by the unmatchable performance as well as exclusive luxury (Haley and Haley,
2013).
The main strength of Aston martin is that they are having a high brand equity as well as
strong legacy. Company having a strong designing team which prepare best designs. They
provide ultimate luxury as well as comfort to their consumers. Company having a rich historical
heritage along with the values which leads to strong consumer connect so that targets can be
attained. Business entity having a cutting edge as well as innovative technological features. They
are having a strong presence in the racing as well as motor sports events. Aston martin having a
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strong marketing team as well as branding through advertising so that they can attain their goals
and objectives (Helms and Whitesell, 2013).
The main weakness of Aston martin is that they are having a less market penetration.
Along with this business entity having a limited product portfolio in the emerging economies.
(Source: SWOT analysis of Aston Martin, 2017)
In Aston Martin, they are make new design for launching new product and for that they
have to make proper plans so that they cannot face any issue in generating more profits. Manager
of the firm have to use appropriate procedure as well as strategies so that targets can be attained
(Hoejmose, Brammer and Millington, 2013). They have to do market research which will help in
identifying and analysing needs and wants of consumer so that they can fulfil their demands and
also provide proper satisfaction to their consumers which will assist in attaining their goals and
objectives. Along with this it helps in improving their brand image in the competitive market.
1.3 Market research for proposed new market
The research of product provide information of the desired features of a product or
services. The product research helps companies to evaluate the customers actual wants, and fulfil
them with their expectation (Jocovic and et. al., 2014).
SWOT Analysis of Aston martin:
 Strength(S)- The company have high brand equity and strong legacy. It has strong
market presence. They done strong marketing and branding through promotions and
advertisement.
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Illustration 1: SWOT analysis of Aston Martin

 Weakness(W)- The industry cover less market which decreases their income. In
emerging economic, they have limited product portfolio. They have old technology,
which is weak in evaluation and computation.
 Opportunities(O)- The company can expand their business in other areas. They attract
more consumers by lower price rate and enhance the availability of product and services.
The market penetration are increase by extensive distribution and more promotions
(Johnson and et. al., 2013).
 Threat(T)- The competitors are those who sale same brands product in lesser rate and
they are the main threat for the industry. The company increases fuel cost which reduce
the number of customers.
Growth of Aston Martin
The revenue and profit of Aston martin rise in this year. The income climbed to 593.5 million in
2016 as compare to the last year. In the three months to 31 December 2016, its market share are
90%. They can evaluate their profit by the checking of balance sheet and financial position of the
business. In this year, the company invested 192 million in development of product which
increase their profit.
Competitors of Aston martin
1. Bentley Continental GT
2. Mercedes -AMG SL63/65
3. Porsche Panamera
4. Lexus LC500
5. Jaguar F-Type SVR
6. Ferrari California T
7. Maserati Gran Turismo
TASK 3
2.1&2.2 Analyse environment and select target market using segmentation
The market segmentation is process in which company divide the market into different
category such as age, standard of living, gender and class. The company create segmentation of
composed consumers who respond similar marketing strategy and who share traits such as
similar need, location and interest. The market can be segmented into types:
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 Geographic segmentation- This is one of the important basis of segmentation of auto
mobile industry. The company would segmenting the market on the basis of
concentration of industries in different areas (Khalili Shavarini and et. al., 2013).
 Demographic segmentation- The demographic segmentation provides a base marketing
for the products such as income, status and age etc. The company should focus on
enhancing their income and gives especial features.
 Psychological segmentation- The company provide different products to the different
customers. This segment helps company to analyse the customer demand and need.
 Behavioural segmentation- This segment analyse the behaviour of the customers and
make decision what likes and dislikes of the customer (Klettner, Clarke and Boersma,
2014).
Market positioning – The market positioning is the process which influence consumer point of
view of brand or product relative to the competitors brands. The Aston martin focus on position
of their brands in the market. Their objective is to occupy a clear, unique and advantageous
position in the consumers mind. They establish image or identity of a brands or product for the
satisfaction of their consumers (Köseoglu and et. al., 2013). The major goal of the company is to
create a unique impression in the mind of the consumers. The company annual production of
23.37 million vehicles in FY 2015-16, a growth of 8.68 percent over the last year. The portion of
auto mobile market is 80% of shares. The industry is growing day by day in last five year. They
produce 19.84 million vehicles in April-January 2015 and the domestic sale of passenger vehicle
grew by 8.15% in April-January.
2.3 Porter's five force model of Aston Martin
The porters fives force analyse a structure for analysis the level of competition within an
industry and business strategy. This is important tool to analyse the environment and
competition.
1. Threats of new entrance- There are many barriers to entry in the industry which make
threat of new entrants. It require high capital investment to make manufacturing facilities
difficult. The company can ignore threat and eliminate it in effective manner. The
company face many problem and challenge the competition for enhance the reputation.
They generate income and play significant role during entrance time period.
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2. Competition from Substitutes- Every company faces the problem of substitution of
product or services. They should enhance in the quality of product items and make
perfect for the customers (Li and Tan, 2013). The company has give their best service to
attract more consumers. They should increase their promotion and marketing to sale more
vehicles.
3. Bargaining power of suppliers- The supplier reduces the risk of loss in an industry and
increase competition within an industry. They provide best product which are suitable for
the customers expectation and demand. The company should satisfy the supplier,
especially if they are exploring other products.
4. Bargaining power of Buyers- This refers to the ability of single customer to bargain the
price rate that extract profit from seller. The power have the power to walk away from
purchase of an item if he/she don't like the product. The company can not force the buyer
to purchase an item. The power of buyer is high (Mithas, Tafti and Mitchell, 2013).
5. Rivalry among competitors- The competitors are made same and similar type of
products. The company provides different incentives to attract more customers to buy
their own vehicle. They should adopt new technology for facing the competitors. The
vehicle industry manufacture new model for eliminate the competition. The Aston martin
seem attractive because it has been an existing company for a long time. It is used to
determine the intensity of competition in the company (Oyedijo, 2012).
2.4 Business proposal document
A business plan is a document which is presented in a written form so that they can attain
success for the future of business which denotes that how they have to make the plan and all the
information related to products and services which they are launching (Pagani, 2013). In the
business plan, they have to use appropriate resources along with the capabilities so that they
become successful in increasing profitability as well as increasing assets.
Business Idea: To launch pollution free cars as it is helpful for consumers as it is help in
reducing pollution and issues related to health will be decreased.
Business name: Aston Martin Cars
Target market and demographics: The company having a main target will be youth as it is
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beneficial for them. They are providing to their consumers towards elite class of the affluent
consumers. It is helpful in attracting large number of consumers so that targets can be attained.
Marketing: Managers and employees have to do proper marketing by using different techniques
which includes online as well as television advertisement which includes majority of
population. It also includes various kind of events so that they can provide awareness about the
features of merchandise.
Pricing: The price of business entity will be low but if demand of merchandise increases then
this will helps in fulfilling the expectations and it also expanding price of the products which
they are providing to the consumer.
Profit: Aston Martin will target 30% revenue on total sales.
3.1 Business Pitch for products and services
A business pitch delivers the business plan verbally which is a form used by entrepreneur
for describing ideas to the prospective investors. When employees of Aston martin doing work in
a team then they have to make a presentation for demonstrating their business pitch for a new
products and services. Presentation for business pitch includes cover page and in this logo or tag-
line should be includes (Scholes and et. al., 2014). Then they have write summary which
involves all info related products. There are some steps which are included in launching the new
products and services of Aston Martin includes:
 Start early: They have to do proper conversation among employees about the product.
 Make product and services which are available for important influencers: It is a another
step which the employers have to keep in mind. Influencers can be friendly to consumers
as it helps in encouraging products and services so that targets can be attained.
 Brief industry analysis: They have to proper research as well as analysis by using
different tools and techniques so that targets can be attained. They have to invest more
time so that they can compel briefing requests.
 Provide proper space with leaks: They have to target their people so that they can
purchase more cars and it helps in increasing their sales (Acemoglu, Gancia and Zilibotti,
2012).
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