Strategic Management Report: Bentley Motors - Approaches & Innovation

This report provides a detailed analysis of strategic management practices at Bentley Motors, a UK-based automobile manufacturer. It begins by exploring the company's long-term strategic directions through the application of 'prescriptive' and 'emergent' approaches, comparing and contrasting these methods with examples from relevant literature. The report then delves into the role of 'core competence' in developing a sustainable competitive advantage (SCA) for Bentley Motors, examining how the company distinguishes its products, creates customer value, and leverages skills and pricing strategies. Finally, the evaluation encompasses the benefits, costs, and risks associated with using 'innovation' as a strategic tool for business development, focusing on improving productivity and managing business activities to achieve organizational goals. The analysis highlights the importance of strategic planning, resource optimization, and adapting to changing market conditions to maintain a competitive edge and drive business growth for Bentley Motors.

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INTRODUCTION
Strategic management is the process of deciding goals, procedures, and attaining goals for
the purpose of attaining competitive advantages. This is important for each organization to for
understand goals of organization and allocate the work between group of people who get ready
to work continuously. Strategic management is the regular procedure of understanding goals and
managing work between team members which helps to develop business productivity. If there is
no proper strategy and planning, then it will be challenging situation for business to grow it and
manage activities (Ali and Anwar, 2021). To understand about strategic management Bentley
Motors has been selected that is automobile manufacturer in UK, provide different model of cars
to their customers. This was founded in 1919 by H.M, Bentley, W.O. Bentley for the purpose of
providing new model of cars. The management of such organization formulates effective
planning and strategies for getting work done and accomplishing business goals. The report is
divided in two sections. The section one covers long term directions by applying ‘prescriptive’
and ‘emergent’ approaches. The section two covers role of core competence, benefits, costs, and
risk of using innovation.
MAIN BODY
SECTION 1
1. Strategy is the comprehensive action plan that identifies the long-term direction
Strategy is the act of planning, and directing formulated by an individual to achieve
organizational goals and maintaining higher performance. The aim of each business industry is to
increase its sales and profitability so that formulation of strategy is important that used by
business concern for the purpose of managing activities. In other words, strategic management is
the process of building capabilities that permits an organization to create value for customers,
shareholders, and society while operating a business in competitive environment. Strategies are
used to run long term directions by arranging resources and capital that can help to accomplish
business goals. In relation to Bentley Motors, management plays an important role as it identifies
the requirement of organization and decide goals that could help to manage the workings
(Barney, 2020).
The aims & objectives of Bentley Motors is “To become a leading organization in
automobile sector by using new technology and innovation”.
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To accomplish the aims and long term goals, different strategies has been formulated by
Bentley’s management that is defined below:
Conducting market research: This is major strategy which used by organization to
analysis what is running in market and how people will be satisfied that can help to manage the
work accordingly. This stage is used by Bentley Motors to conducting analysis and developing
knowledge about market that can help to introduce products.
Brining new technology – For running a business successfully there is need to introduce
new technology as well as innovation that used to increase number of customers and increasing
sales. In relation to Bentley Motors, managers introduce new technology and innovation that
could be used to producing new products and services that can help to increase organizational
sales (Bokareva and Yudina, 2020).
Using resources optimally – For organization it is important to use available resources
optimally that could help to manage work and increase productivity. If all resources are being
used optimally then it will be opportunity to grow business and attain profitability. In relation to
Bentley Motors, management uses different resources and capital in optimum ways that can help
to increase the business activities and performance.
Achieving the goals – By introducing new technology, and using resources optimally
then organization reaches to nearby goals and develop organizational productivity. In relation to
Bentley Motors, management applied all above discussed strategies that supports to accomplish
business goals and maintain higher productivity.
Critically compare and contrast the application of ‘prescriptive’ and ‘emergent’ approaches to
strategy and outline their role in the delivery of this aim. Where possible use examples
drawn from the literature to support points you put forward.
Strategy refers to long term direction of an industry as it attempts to accomplish
competitive advantages by managing all functions and activities effectively. This is important for
each organization to understand what is happening in environment and how products is going to
be launch to increase organizational sales. Bentley Motors has been used Prescriptive and
emergent approach by defining roles that supports to develop business productivity.
Comparison
Prescriptive approach to strategic planning Emergent Approach to Strategic Planning
This approach involves mission, vision, and This approach is related with strategies where
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core values that needs to implement while
running a business and helps to increase
productivity. This approach is follows a top-
down hierarchical structure and authoritative
management style. According to this approach,
management should formulate the planning
after deciding goals and allocate the work
between employees that supports to develop
business functions. Bentley Motors used this
approach to clear their vision, mission, and
objectives by formulating effective plans that
supports to bring changes and accomplishing
business goals (Bryson and George, 2020).
management is responsible to make right
decisions and develop business productivity.
According to this, operational and functional
activities needs to be done effectively by
managing all functions and activities. In
relation to Bentley Motors, planning is short
term, and new experiences that helps to adopt
new changes and technology. This could help
to learn new skills and abilities so that work
will be done in certain period of time and
maintain good performance. This also involves
learning school of strategy development and
supports to complete task.
From the above explanation it can be evaluated that Bentley Motors is applying
prescriptive and emergent approach that helps to decide the vision and following them
effectively. The management conduct market analysis and introduce new products & services
which can help to accomplish business goals. The management understand requirement and
provide better design of automobile vehicles that supported to develop organizational
performance and profitability. With the help of prescriptive approach, it would be easier task for
managers to reach goals and develop business productivity. Thus, strategic planning is used by
management to know how people would people influenced and give contribution to accomplish
business goals.
SECTION 2
2. Comment critically on the role of ‘Core Competence’ in developing Sustainable Competitive
Advantage (SCA) for an organisation
Core competence is defined as resources and capabilities that provide strategic advantages
of a business. This is important for each organization to understand the what is running in
environment and how an industry reaches to organizational goals. The aim of business industry
is to provide range of products and services in changing environment and develop sustainable
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competitive advantages. In relation to Bentley Motors, manager plays important role as it
conducts market analysis and bring changes in their automobiles that supports to influence
number of people and increase organizational sales (Chofreh and et.al., 2020).
Role of core competence in developing sustainable competitive advantages for Bentley Motors
Distinguish products from its rival – Core competence is playing major role for each
industry as it used to influence number of people by showing product different between their and
others. Bentley Motors is getting sustainable competitive advantages by introducing new design
and quality of cars to their customers that look very different from other brand and increase
competitive benefits.
This create customer value – If organization is able to provide better design and quality
of products as per customer demand that supports to create the customer values and develop
business productivity. In relation to Bentley Motors, major role is play by management where it
designs products as per customer demand that helps to run business in changing environment and
maintain higher performance (Elbanna, Al Katheeri and Colak, 2020).
Setting skills and competence – To increase the sustainable development I organization
there is need to have good skills and competence that used to accomplish business goals. In
relation to Bentley Motors, employees who is working having great communication, technical,
design development, and marketing skills that used to bring changes in their existing products
and developing performance. This also helps to develop organizational productivity and
performance by managing all functions and activities.
Selecting best pricing strategy – According to (Kasych, Suler and Rowland, 2020),
price is effective factor for business industry as well as customers that used to make right
decisions. It has seen that if prices of products and services are reasonable and affordable then it
will be good opportunity to grow their business by increasing number of buyers. In relation to
Bentley Motors, uses premium pricing strategy where price of cars is higher and it influence only
high profits of customers that helps to develop the sustainable competitive advantages.
Oppositely, River Island is focused over customer demand and their buying perception that can
help to decide the price of products accordingly. The organization issuing competitive pricing
strategy that helps to increase organizational sales by influencing number of customers and
maintain higher performance.
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According to (Dzwigol, 2020), Organizational competences are basically a result of
industry system, processes and control mechanisms that used by company to introduce
something new and managing all functions. These are intangible in nature that supports to
maintaining all functions and resources effectively. It's great if a company has unique and
important resources, but if it doesn't know how to use them effectively, it won't be able to
develop core competencies. Organizational strategies may need the development of new
resources and capabilities, or they may require the strengthening of existing resources and skills,
resulting in the development of the organization's core competencies. For example, another
organization is River Island that deals in fashion industry and offer different types of products in
changing environment. The marketing management of organization understand requirement and
provide products accordingly that influences number of customers and develop business
productivity. This can help to maintain higher performance and provide competitive advantages
at the workplace. Moreover, organization formulates strategies to reduce wastages that arises
while working and affected the organizational productivity. It has seen that to increase the
sustainable development there is need to have proper planning and strategies which could be
used to provide products and services effectively. Core competence is the activity of bringing
changes in existing products and maintaining higher productivity (Knight, Daymond and
Paroutis, 2020).
From the above explanation it can be evaluated that there are different strategies and
planning that used by employer to provide products and services effectively by managing all
functions and activities. The management is having major roles as environment analysis,
introducing products and bringing changes in their products which can help to maintain liquidity
at the workplace. Core competency also related to technical superiority that supports to bring
changes and accomplishing business goals (McCann and Schwab, 2020).
5. Evaluate the benefits, costs and risks of using ‘innovation’
Strategic development is the continuous process of identification, direction, formulation and
controlling business activities that used to develop business process. For each organization it is
important to use innovation concept that relates to introducing something new and bringing
changes in their existing products and services. The management requires to understand needs of
their customers and managing all functions that can help to accomplish business goals.
Innovation is the practical implementation of ideas and thoughts which used to introducing new
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goods and services by improving that could help to accomplish business goals. For instance,
Bentley Motors wants to introduce electric car with greater speed that could help to increase
number of customers and increase sales. To bring new technology and manufacturing new model
of car there is need to focus over cost and available resources that helps to use innovation and
manufacture new cars. This can help to increase the customers by creating good value and
satisfying their customers (Fuchs and et.al., 2020). To develop the organization by using
innovation benefits, cost and risk is defined below:
Benefits of innovation
Improves productivity – Innovation is used to reduce the unit cost and bringing
something new in existing market that can help to influence number of people and manage each
function appropriately. This improve production capacity of business industry by managing all
functions and activities. In relation to Bentley Motors, managers use innovation in their existing
cars and its features that influence number of people and increase organizational sales. The
management analysis market and launch new cars that helps to increase business performance.
Increase competitiveness – An innovation confers competitive advantages by offering
better design and quality of products in changing environment that supports to develop the
competition. In relation to Bentley Motors, management use innovation for the purpose of
increasing competitive benefits by making initial investment and bring changes in their services
(Dalisova, Sharopatova and Karaseva, 2020).
Improving brand recognition and value – The aim of organization is to improve brand
recognition and value by using innovative products and services. In relation to Bentley Motors,
marketing management and technical manager plays important role where it introduces new car
model that leads to develop brand recognition and value in changing environment. This also
helps to develop the business productivity by managing all functions and activities.
Increase turnover and improve profitability – Innovation is beneficial for organization as
demand of customer is changing according to changing environment where it became important
to provide products for increasing organizational turnover and maintain higher performance. In
relation to Bentley Motors, by launching new model of cars turnover and profitability can be
improving that supports to accomplish business goals and profits (Mongkol, 2021).
Risk of innovation
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Strategy of investing money in research and development can provide significant
rewards and sometime it creates risk for organization that directly affects business industry such
as:
Competition - If competitors are unable to replace or adapt their goods or services in a
dynamic world, innovation provides a competitive advantage. While patents offer some legal
protection, many new items and techniques are difficult to protect. The most significant danger
in innovation is that one research-driven, innovative company makes the first investment and
assumes all of the risk, only to find itself competing with a slew of imitators riding on the
innovation's coattails. In relation to Bentley Motors, use innovation by conducting market
research that create challenge of competition as having many automobile competitors in market
who is providing different model of cars that might be create challenge for running business.
Thus, chosen organization faced the risk of competition.
Uncertain commercial returns – The organization is having number of resources which
used to arranging work and managing the business activities. If a researcher is conducting more
research, then it creates the risk of increasing cost and lower management of resources. Much
research is speculative and there is no guarantee of future revenues and profits. The longer the
development timescale the greater the risk that research is overtaken by competitors too. In
relation to Bentley Motors, faced this risk while manufacturing the different model of cars and
selling in other location that directly affects business productivity (Ongaro and et.al., 2021).
Availability of finance – to start any work and bringing innovation in their industry there
is need to arrange finance or fund which can be used to develop the business performance. It has
seen that finance is important factor that create the challenge for organization how to use finance
according to activities. In relation to Bentley Motors faced the challenge of low availability of
finance while using new technology and innovation that directly impacts on business industry
and affected the profitability.
Changing in government regulation – This is another risk which might be faced by
organization while introducing new innovation and technology at their workplace that directly
affects business performance. In relation to Bentley Motors, faced the challenge of changing
government regulations that directly affects business industry and reduce sales (Pavlak and Písař,
2020).
Cost in Innovation
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Cost is important factor for each organization that consider to analysis the cost and
develop products accordingly. Bentley Motors uses cost while bringing innovation that can help
to set the price of their products accordingly and charge from customers. This can help to
influence the number of customers and develop business performance by providing competitive
edge (Tumidei, Alexiou and Bourne, 2021).
CONCLUSION
From the report it can be concluded that strategic management is the process of
identifying, influencing and managing business activities. This is important for industry to
conduct market analysis and make efforts to provide products and services accordingly.
Innovation is the process of bringing something new and attractive that could help to accomplish
business goals and provide competitive advantages effectively.
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