Analyzing the Global Business Environment for Aston Martin

This report provides a comprehensive analysis of the global business environment as it pertains to Aston Martin, a British luxury car manufacturer. The report begins with an introduction to the concept of the global business environment and its impact on organizations. It then applies several management frameworks to analyze Aston Martin's position and competitive advantages in the market. These frameworks include SWOT analysis to assess the company's strengths, weaknesses, opportunities, and threats; PESTEL analysis to examine the political, economic, social, technological, environmental, and legal factors influencing the company; and Porter's Five Forces model to evaluate the competitive forces within the industry. The report also explores the product life cycle of Aston Martin and applies Porter's value chain analysis to understand its internal activities and processes. The analysis highlights the company's strengths, such as its brand history and quality, while also addressing weaknesses like a limited target market and product portfolio. The report concludes by summarizing the key findings and implications of the global business environment analysis for Aston Martin's strategic planning and future success.

Global business
environment

Table of Contents
INTRODUCTION...........................................................................................................................3
SWOT analysis.......................................................................................................................3
PESTEL analysis ...................................................................................................................5
Porter's five force model........................................................................................................7
Product life cycle of Aston martin:........................................................................................8
Porters value chain analysis of Aston martin:........................................................................9
CONCLUSION..............................................................................................................................10
.......................................................................................................................................................11
REFERENCE.................................................................................................................................12

INTRODUCTION
The segmentation of business and organization into the multiple country's. This create the
global business environment (Baines, P. 2017) which means the business environment of
different country's who's multiple factors effects the every single organization home
environment externally. Such as in the planing and decision making, in the selection and use of
resources , and the profitability of organisation. In this report, the effect of global business
environment on Aston Martin company is going to be consider. This is the British car
manufacturing company. They manufacture luxury cars, founded by Lionel Martin in 1913. This
report is going to be consider the different management framework for the analysis and
application of major environment forces in order to get position and competitive advantages in
the market. Such farmworker which are going to be use in this report are PESTEL, SWOT
analysis, porter's five force model, product life cycle and value.
SWOT analysis
This is the techniques which can be use by any one, for the smart planing of any thing
such as for live planing, carer planing, and for the business planing . This techniques helps to
find out the strength, weakness, opportunity and threat which highly influence the planing
strategies. This farmworker is for the every situation , such as for problem, solving, for project
development and for the analysis of personal capability. As in the business industry's there is the
different part of organization life, Establishment, processing, competition,achievements and
failure. All the prospect is manage by the help of SWOT analysis. This method use use for the
investigation of external and internal factors. Fro the last five year car manufacturing industry
are changing in the prospect of quality and manufacturing standard, variety ( Dani, S., 2019) .
Aston Martin as it is the popular brand of luxury car and grand tourer they conduct the SWOT
analysis for continues success of the company. One of the four sub unit of SOWT that is the
strength is the strong point of the Aston Martin and they run their business in continues way
towards the top of the car manufacturing company on the basis of their strength.

Strength: This term is about the present achievement and advantages, quality of the
organization. For organisation strength is the strong factors of their business such as their value
in the market, position, achievements and so on. If company is posing the strong point in the
variant factors of business or market then this will known as strength. Aston Martin Lagonda
Global Holding plc posses the higher strength in the market and in the consumers thinking as
popular brand of car with the higher facility's. Form the last five years its value and strength
continuously become more as it provide the new innovative cars with the attractive design from
the starting to till now (Engemann, K.J. ed., 2018). The brief explanation of Aston Martin
strength is given below.
Strong and good brand history- They gave the history of good brand as they are providing the
highly facilitated car from the starting of its business using by the richest man of the country.
Quality car and services, value in the higher class family's- they position their brand in higher

class by targeting the richest customers. strong fan following every one throughout the world
love this car and dream to have it.
strong ethical branding- they don't need to do marketing for their brand because have already
made their value in the environment, an d only the richest man, celebrity are using their cars.
presence in the large market, they have their branches throughout the world.
Weakness: Is can be some soft and weak corner of the business where, and it need to be
manage and improve. Aston Martin weakness is that they have the signal target market. It means
they only target the higher class peoples so they (Esfahbodi A. 2017) Cant reach the different
costumer to increase their profit. The other weakness is that they have the small product portfolio
it means they have some selected types of car models and do not offer the huge variety.
Opportunity: The opportunity in the market which can helps the organisation to take the
other target market under it is mid range cars and services, which can be budget friendly so that
the middle class people can by their product. Their is the opportunity to extend their market.
Their technological model can help to garb the other opportunity such the production of normal
use cars.
Threats: This involve the identification of future problems. As the price of the car fuel is
increasing Aston Martin should focus on the development of electrical car. The other threat is
completion in the market such as Rolls-royce, BMW group so that they need to change modify
their strategy's and plan.
PESTEL analysis
AS in the above SWOT analysis, the strategical planing tool involves the analysis of
macro and micro environment and for the investigation of macro environment SWOT analysis
involves the use of PESTEL analysis. Macro environment (external environment ) are the
external factors influence the planing as well as the success of organization. Changes in the
macro environment highly effects the business strategy, it posses both negative and positive
effects on the life cycle of business. So the PESTEL analysis is the specific framework for the
analysis of macro environment. It consider political, economical, social,
technological ,environmental, and legal elements (Ganamotse, G.N. 2017). From the last five
year the developing technology has change the car manufacturing industry in the processing and
operational term. Such as in the Aston Martin technological factors change their operational

techniques and models design. Environmental and legal factor causes the change in their car
technological design in prospect of carbon emission standards. The brief explanation of Aston
Martin PESTEL analysis is given below.
Political factors: This term involves the multinational political agendas related to the
pollution, tax, wages, and so on (Hasan, M.M., 2018). Political factors effects the Aston Martin
such as tax rate, pollution emission standers. As Aston Martin is an multinational reputed
company so that they never ignore their tax, pay it on time, and to follow the pollution emission
standers they do the modification in their models.
Economical factors: Supply and demand, employment, productivity these are the some
of economical factor which highly effects the business. Aston Martin profit and supply demand

is depends on the customer financial conditions. So they need to plan for the production of lower
cost product.
Social factors: It involve need customer, belief's of customer, population. Aston Martin
has high social value but they cant satisfy the needs of every customer. So they need to develop
their product in-order to satisfy the higher number of customer.
Technological factors: This external factor helps in the implementation of new
techniques in the organisation. And as per the higher competition Aston Martin need to grab the
opportunity of new technology. Currently they are using the robot's to conduct the different
construction work.
Environmental factors: It is related to the different elements of environment such as
atmosphere, season, fuel production from the mines and so on. For car manufacturing industry
atmosphere and fuel price are the more effective element. Aston Martin need to focus on the
development of lower fuel consumption cars and electronic cars.
Legal factors factors: It evolves lows and rules related to the subject. As in the car
manufacturing industry they need to take the permission for their business plan. And follow all
the rules, Aston Martin is following every legal rules.
Porter's five force model
This is the model use for the identification of organization competitive environmental
forces. It provide the frame work to analyse five force of competition such as competition in the
market place, threats of new entrants ( Keivanpour, S. 2017), Bargaining power of suppliers,
bargaining power of customer, threats of substitution products.

Market competition: This is the force of the model which involves the analysis of same
competitors in the market. This factor highly force the company to shape their business plans and
strategy's in the more attractive and competitive way. Aston Martin is facing the higher
competition force because of the presence of other popular brand of car such as BMW. So
company need to involve more competitive terms by providing the more varsity of product in
mid range.
Threats of new entrants: This term involve that how the new entrant force, effects the
organisation growth (Koc, T. and Bozdag, E., 2017). Aston Martin is have to concerns about the
new entry in some prospect only because new entrant cant copy the model of company but they
can introduce new product in the competitive way with low price strategies.
power of suppliers: Supplier bargaining power force the organisation to mange their
plan according to it. Aston Martin suppliers posses the higher bargaining power. So they need
to remove some of the suppliers from their list to improve their price sensitivity.
power of customers: Power of customer bargaining is higher but in the case of Aston
Martin. they don't focus on the customers requirement because they just target the richest person
who can buy the car without any bargaining (Lee, I. ed., 2017). But now it is important to change
some plan to increase the profit. Their is no doubt about the quality but there is the force of
middle class people for some lower price car.

New product substitute: This is the last force of porter's five force model which state
that product substitution can force the organisation to modify their strategy's.
Product life cycle of Aston martin:
Product life cycle is regarded as the length at which a product is introduced for customers
in the market (Mullens, W., Auricchio, A. 2020). This life cycle is generally broken in four
respective stages that are staring from introduction, growth, maturity and the last stage is decline.
It is a concept that is used for the process of strategy formulation to support and maintain the
product life cycle. In context of Aston Martin, the life cycle that is used by company throughout
the project mentioned as under:
Introduction stage: It is the stage where there the products or the brand is actually
introduced in the market, there is substantial investment that is made in the marketing and
adverting campaign that has to be focussed on enhancing the awareness of customers. This is the
very first step thus need to perform in an efficient manner so that people get to know what is
offering by company. For this, managers of Aston prepare effective marketing and promotional
strategies in order to aware customers about their offerings. In this stage, managers need to
adopt market penetration strategy by providing quality goods at lower price in order to buyers
and establish the brand at market place.
Growth: It is second step in which company measures higher growth and profitability. In
this, prepare effective strategies in order to maintain its current growth rate and explore business
to earn higher profit margin. Here, customers are already satisfied with products and services that
are being offered by company thus managers required to add some extra features in existing
products to attract more number of buyers. In context of Aston Martin, it uses appropriate
promotional and advertisement tools to get competitive edge and maintain current image of
brand in market. Here, in order to meet with higher demand arise at market place managers adopt
effective distribution system.
Maturity stage: At this stage the sale is on saturation point thus there is a requirement to
adopt appropriate strategies in order to stay in competition. Here, some different features are
included in products to create difference. In reference of Aston Martin, managers need to lower
down their current pricing strategy to sustain in market place for a longer period of time.

Decline: In this, sales and profit margin of company start to decline. Here, entity starts to
incurred huge losses thus it is wise to wind up rather operating business. At this stage, most of
the companies and take back their investment. Managers of Aston Martin are required to divest
and wing up businesses operations at this stage ( Tallman, S. Luo Y. 2018). They can also add
some new and extra features in existing products to remain in market for longer run.
From above discussion, it is analysed that current Aston Martin is working is on growth
stage and need to formulate effective strategies in order to maintain current market position.
Porters value chain analysis of Aston martin:
Primary Activities: Primary Activities of a company include activities which are
straight-way responsible for the fished product or service. These activities exist in evry
organisation to some extent and are responsible for its success. Primary activities of luxury
British sports car manufacturer are given below:
Inbound Logistics: This part of the value chain holds operations which are responsible
for acquiring and management of the raw material used to form the product. This stage involves
dealing raw material supplier. Aston Martin has many warehouses across Britain where they
keep their raw material.
Operations: This stage deals with conversion of raw materials into finished goods. Since
Aston Martin is known for its hand crafted vehicle this stage is of a special significance to the
company. Six hundred workers of the company make one model in approximately 220 hours.
Mechanics expert in making such car use some automated equipments to construct the
extravagant auto mobile.
Outbound logistics: This is the phase of the production where the finished products is
sent to places from where its easily accessible to the customers (Weidema, B.P. G., 2018). After
creation of the car its shipped from the firm's headquarters to its showrooms all around the
globes. The product can be delivered personally to the customer if they place custom orders.
Marketing and Sales: Aston Martin markets its product to its affluent customer base by
participating or sponsoring in motor sports events around the globe. They also use social media
application to inform everyone of any new development or new releases by the company.
Services: Customer services provided to the customer by a company help it in building
good reputation among its customers (Zainal-Abidin 2020).The organisation indulges in

providing excellent customer services to its customers. They are easily available online in case of
any complaints.
Support activities: These activities support the primary activities in completing the
product. They are addressed below:
Technological Development: The organisation invests in improving its
technology across the stages of production and is working on entering the electric vehicle sector
by 2025.
Human resource management: The company invests in HRM as it's workers and
mechanics are backbone of the company.
CONCLUSION
From the above discussion, it is analysed that global environment put a great impact on
overall business functions. It consist several macro factors that are related to external
environment and put significantly affect business performance. Here, PESTLE framework has
been carried out to prepare appropriate strategies to meet with the future uncertainties and grab
the opportunities of success and grow. In addition, there is a complete life cycle that comprises
various stages such as introduction, growth, maturity and decline. Each product and service has
to go through with these steps in order to survive at market place. Moreover, Porter value chain
is used to manage whole production process of company in an appropriate way.

REFERENCE
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