Business Strategy of Bentley Motors: A Comprehensive Analysis

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Business Strategy

TABLE OF CONTENTS
Introduction......................................................................................................................................1
LO1..................................................................................................................................................2
P1 Apply appropriate framework to analyse the macro environment for a given organisation. 2
M1 Critically analyse the macro environment to determine and inform strategic management
decisions......................................................................................................................................5
LO2..................................................................................................................................................6
P2 Analyze the internal environment and capabilities of a given organization using appropriate
frameworks..................................................................................................................................6
M2 Critically analyse the internal environment to assess the strength and weaknesses of an
organisation’s internal capabilities structure and skill set...........................................................9
LO3................................................................................................................................................10
P3, M3: Applying Porters Five Forces model evaluate the competitive forces of a given
market sector for an organization..............................................................................................10
LO4................................................................................................................................................16
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation.............................................................................................................16
M4 Produce strategic management plan that has tangible and tactical strategic priorities and
objectives...................................................................................................................................18
D1 Critique and interpret information and data, applying environmental and competitive
analysis to produce a set of valid strategic directions objectives and tactical actions...............19
Conclusion.....................................................................................................................................21
References......................................................................................................................................22

LIST OF FIGURES
Figure 1: VRIO Framework.............................................................................................................6
Figure 2: Porters-five-forces..........................................................................................................10
Figure 3: Strategies in Bowman Clock Model..............................................................................16

LIST OF TABLES
Table 1: VRIO Framework of Benetley..........................................................................................7
Table 2: Stakeholder Analysis.......................................................................................................12
Table 3: Balance Scorecard...........................................................................................................13

Introduction
The present report has outlined the significance of business strategy in the context of Bentley
motors which a British Car and SUV manufacturing organisation in the UK and operating its
business in different parts of the world. Business strategy is a concept that helps the organisation
in developing the procedures and actions to attain the competitive edge by influencing the
customer mindset towards the product. In the present report the mission, vision and objectives of
the organisation are identified along with the analysis of internal and external business
environment of Bentley motors to develop an appropriate strategy to position its product in the
market efficiently.
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LO1
P1 Apply appropriate framework to analyse the macro environment for a given organisation
The strategic context
Bentley Motors Limited is a British manufacturing organisation and a subsidiary of Volkswagen
Group that deals in luxury cars and SUVs with headquarter in Crewe, England. The mission of
Bentley is to ensure luxury performance in delivering exclusive and luxury cars. The
organisational vision is to become one of the luxury car makers across the world. The objective
of the organisation, as specified by the Bentley management, is to improve the sales of a number
of vehicles per year to attain the objective of 20,000 units by 2020. The core values of the
organisation are its brand associated with tradition and heritage that people took to their hearts.
In addition, the strong and creative craftsmanship support the organisation in adding value to
their final products with continuous improvement in the product design and process (BENTLEY
MOTORS, 2019). The organisation is striving to innovation and fascinating exterior of products,
quality engineering, and hand built cars with the help of 4000 employees around the globe.
The organisation concentrates on different strategies in relation to product development, design,
marketing, etc. to enhance brand recognition across the world. However, it has to consider the
volatile external business environment factors that may impact its strategic decisions and
planning activities. Following are the strategic frameworks of the external business environment,
consideration of which help the Bentley organisation to make appropriate strategic decisions.
Stakeholder analysis and mapping
It refers to a strategic planning process of collecting and analysing the qualitative information
about the stakeholders in relation to their interests in the development of a project. For example,
when Bentley is developing a project in relation to the business policy, then it is required to
identify the stakeholder characteristics in relation to the interests of its stakeholders in the policy,
potential alliances with them and the ability of the stakeholders to affect the policy process
(Kammi Schmeer, 2019). The policymakers and management of Bentley utilise the stakeholder
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analysis to identify the interest position of stakeholders so that efficient interaction with them can
be established to support the project. In addition, the analysis helps the organisation in
preventing the potential misunderstanding with the stakeholders and develops key tools to
implement the policy more successfully.
On the other hand, stakeholder mapping is an important element of stakeholder engagement that
helps the management of Bentley in identifying who are their key stakeholders, and what they
are expecting from the business relationship with the organisation (Stakeholder mapping, 2011).
The process of mapping can be bifurcated into four phases: identifying, analysing, mapping, and
prioritising that result in enhancing the interaction and engagement of the stakeholders in the
project.
PESTLE analysis
The PESTEL analysis provides a better understanding of the Bentley Motors Limited of
operational challenges that it will face in prevalent to the external business environment.
Following are the factors of PESTEL analysis:
Political factors: Factors of political environment prevail in different countries play a crucial
role in affecting the long term sustainability and profitability of Bentley. The organisation
exposes with different political risks and political environment due to the establishment of
different business units in different countries. Hence, Bentley is required to consider following
factors before entering into new markets: level of corruption, Intellectual property protection
Rights, in the automobile sectors, trade regulations, Taxation policies, Wage legislation,
Mandatory employee benefits, Industrial safety regulations, etc (Cadle et al., 2014).
Economical factors: Bentley organisation can utilise the environmental, economic factors of the
host country to forecast its growth and development in the automobile sector. For example, with
the analysis of consumer spending, and automobile industrial growth rate in the host country,
Bentley can develop its policies and products accordingly to cater to the needs of its customers.
Different economic factors include the level of government intervention, prevailing stability in
the Exchange rates, Infrastructure quality, level of workforce skills, Business cycle stage, growth
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and inflation rate, interest rate, etc. are the major factors that Bentley is required to consider
before investing into any project.
Social factors: social media and traditional media both are rapidly growing across the world, and
hence, to Bentley can take advantage by leveraging this trend to improve its market position and
profitability (Ho, 2014). Different social factors impact the strategic decisions of Bentley, for
example, if the demographic situation in the host country includes young, growing and educated
people then Bentley can provide its sports and luxury cars to cater their needs. In addition,
Bentley is required to focus on the gender roles, and leisure interests of the society so that
luxurious products can be provided accordingly.
Technological factors: The strength of Bentley in the competitive business environment can be
enhanced with the help of innovation and technologies. Innovation supports the organisation in
adopting continuous improvement strategy and stay ahead of the competition. Hence, Bentley
organisation is required to technologically improve its business process and strategies so that it
can take the associated advantages. For example, the introduction of advanced technology in the
supply chain process helps the organisation in delivering the best value to the customers with a
lower cost of production (Bansal et al., 2016). In addition, Bentley is known for its extraordinary
features and innovation in the luxurious car productions, and hence, considering technological
factors in the investment process support the organisation inefficient research and development
process.
Environmental factors: Environmental issues are one of the challenging tasks for the automobile
organisation as it is an increasing threat to the world’s environment. Hence, Bentley is required
to continuously invest in the securitisation process of environment that adds the cost of
operations. In addition, customers are getting aware of the environmental issues, and therefore,
they expect that their preferred brand must adhere to environmental standards with efficient
waste management strategy, recycling and renewable technology.
Legal factors: There are various legal and regulatory frameworks in relation to the automobile
industry which Bentley organisation is required to adhere to ensure smooth and uninterrupted
operational performance across different business units of the organisation across the globe.
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Various regulatory frameworks include health and safety norms, business laws, employment
laws, intellectual protection laws, data protection laws, etc. that must be analysed pertaining to
the host countries to identify the business scope and operations (Paul et al., 2014).
M1 Critically analyse the macro environment to determine and inform strategic management
decisions
The factors prevail in the macro environment of Bentley organisation highly impacts its
operational and strategic decisions, and therefore, its analysis and understanding is essential with
the help of PESTEL and strategic analysis for effective strategic management decisions. The
political factors prevail in the developed countries in which Bentley operates somehow provides
flexibility and ease of operations; however, the political challenges in the developing countries
affect the business operations adversely (Cadle et al., 2014). The Bentley organisation has an
economic advantage for its business units in urban areas where people have high spending
power. However, the instability in the economic conditions may impact the profitability of the
organisation. The constantly changing needs of the society also affect the management decisions
of Bentley in both a positive and negative manner.
Technological advancement provides huge benefits to the Bentley as the integration of which
support the innovative featuring of luxurious cars and SUVs. However, constant improvement in
the technologies pressurises the organisation to adopt the changing latest technology to stay
ahead in the competitive environment. Bentley organisation manufactures the automobile
products and therefore strictly adhering with the management decision the mandatory
environmental and legal provisions associated with the automobile industry. It helps the
organisation to avoid strict disciplinary actions against the organisation.
In addition, the stakeholder analysis and mapping are also fruitful for the Bentley in identifying
the needs and interests of the stakeholders in the projects (Kammi Schmeer, 2019). However, the
process of stakeholder analysis is complex and lengthy, which requires appropriate tools,
techniques and proficient personnel to deal with the stakeholders.
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LO2
P2 Analyze the internal environment and capabilities of a given organization using appropriate
frameworks
VRIO analysis is a resource oriented analysis that will support Bentley to develop sustainable
competitive advantage against its competitors in the market. This will further help the business
organization to gain distinct level of profitability and can effectively overcome the competitive
pressure.
Figure 1: VRIO Framework
(Source: VRIO Framework, 2019)
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Table 1: VRIO Framework of Benetley
Resources Value Rare Imitation Organization Competitive
advantage
Implementation
of digital
marketing
strategy
Yes, it is
crucial to
become
leader in the
market
No, it has
been
implemented
by several
other
businesses
Yes, Can be
copied or
imitated by
other
competitors
Leading
players in the
market
It is important
however it is
not only
responsible
for sustainable
competitive
position
Flexibility in
terms of supply
chain network
Yes Yes Utilized in the
most effective
manner
Support
smooth
running of
business
Customer
loyalty and
customer base
Yes.
Consumers
contribute
largely to
improve
sales and
revenue
Yes It has shown
positive signs
in terms of
customer
loyalty
Provides
partial
competitive
position
Sales force
management
Yes No Lot of
improvements
are needed
Supports
providing
sustainable
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competitive
advantage
Financial
resources
Yes No Sustainable
financial
position
Temporary
competitive
advantage
Legal obligation
management
Yes No Yes Not of great
importance
Brand extension
opportunities
Yes,
because
niche
market are
intensively
emerging in
the market
No There is need
of improved
marketing
budget
Temporary
competitive
advantage
From the above framework it has been identified that most valuable resources for the overall
success of Bentley includes operations management, marketing experts, financial resources as
well human resources. Therefore the organization must formulate strategies for continuous
development and enhancement of such resources (VRIO Framework, 2019). For an example,
training must be provided to human resources so that their skills can be further utilized for
implementing innovative ideas while manufacturing luxury cars. In addition to this, if the
resources are not rare then it is a threat for Bentley from both new entrants as well as existing
competitors in the market. For an example, the organization must develop strategies for brand
extension that are unique and distinct so that organization can lead the market against its
rivalries.
Automobile industries are in continuous threat of disruption. It has been identified that
duplication of existing products along with existence of substitute products will duplicate the
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