Analysis of Morgan Motors Company: Strategies and Challenges

This report provides a comprehensive analysis of Morgan Motors, examining its business operations within the automobile industry. It begins with an executive summary and introduction, followed by a detailed examination of critical issues through PESTLE analysis, evaluating political, economic, social, technological, legal, and environmental factors. The report assesses the strength of Porter's Five Forces in the automotive market and provides an overview of the industry environment. A critical evaluation of Morgan Motors' strategies is conducted, assessing its resources and capabilities using the VRIN model (valuable, rare, inimitable, non-substitutable). The report concludes with a summary of findings and references relevant sources, offering insights into the company's challenges and strategic positioning within a competitive market.

individual report

Table of Contents
Executive Summary ........................................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Critical issues addressed by PESTLE analysis ...........................................................................4
Strength of Porter Five Forces ....................................................................................................5
Industry Environment..................................................................................................................5
Critical evaluation on strategies of Morgan Motors Company....................................................6
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

Executive Summary
This report will project about the challenges involved in automobile industry for the
company's. Industry environment will be analysed in automobile sector. Importance of Porter
Five Forces model will also be analysed. Resources and capabilities of the Morgan Motors
company will be evaluated. VRIN model will be channelised to assess the company's resources
and capabilities.

INTRODUCTION
Business environment is a sum of internal and external factors associated with the
business organisation. It is more specifically specifies as all the external as well as internal
factors impact over the business operations of company. This report is based on the case study of
Morgan Motors. Company operates its business operations in automobile sector. Company
initiated its business operations in 1910. This report will emphasis some critical issues reflected
through PESTLE analysis tool. Strengths of Porter Five Force will also ascertain in this report. A
brief summary about the automobile industry will also provide. Furthermore, this report will
make a critical assessment over the corporate organisation.
MAIN BODY
Critical issues addressed by PESTLE analysis
PESTLE Analysis
PESTLE analysis is a sum of external business environment factor impact over the
business operations of Morgan Motors company.
Political Factor  Aggressive taxation policy of governments.
 Political instability
Economical Factor  Rising market competition.
 Inflation
Social Factor  Non favourable social changes.
 Eco friendly approach of society and rising market
competition.
 Increasing trend of public transports.
 PESTLE analysis tool witnessed many challenges attached
with the automobile industry. Among all other challenges the
major challenges face by automobile industry is the increasing
trend of using public transports vehicles, legislative
regulations.
Technological Factor  Technological advancement has risen the prices.

 Improves alternatives.
Legal Factor  Legislative regulations
 In order to expand the business company's also needs to cope
up with legislative requirements attached with different
automobile market across the globe.
 Licensing system
Environmental Factor  Eco friendly approach of society.
 Utilisation of public transports vehicles due to environment
friendly approach has reduced the sales of company's dealing
in automobile market (Guy, 2017)
 Decreasing trend of utilising fuel vehicle.
All the four leading challenges mentioned directly restricting the sales turnover of
automobile industry
Strength of Porter Five Forces
Porter Five Forces is a strategical tool use to assess the competitiveness of the market.
Auto-mobile sector is considered as among the major competitive market sector due to increased
economical stability across the globe the sales has increased of all company's belongs to
automobile sector. All the above aspects has identified with the use of Porter Five Forces model.
Advantages associated with this strategical tool can be summarised in the following ways.
Support in framing business strategies: Porter five forces guides company management to
assess different factors put impact over the sales turnover of company (.Haque and Ntim, 2018).
By analysing different factors like market competition, power of suppliers and other associated
factors company management get proper brief about involvement of different factors in the
sustainability and growth of corporate organisation.
Stakeholder Analysis: Porter Five Forces is a strategical tool used to assess about the
involvement of different stakeholders in operations of company. Porter five forces involves
stakeholders like customers, suppliers and other stakeholder involve in different functional role
of company. Stakeholder analysis enables company management to make suitable strategies

based on the involvement of different stakeholders of the company in company's sustainability
and growth opportunities.
Industry Environment
Auto-mobile industry is considered as the major growing industry across the globe.
Sector has witnessed immense growth in developing economies in recent past years that has also
provided major growth opportunities to companies dealing in automobile sector. Strengthen
economic stability has played a crucial and can be considered as the success factor behind the
improved sales turnover of automobile industry across the globe (Leonidou and et.al., 2017). As
the world is witnessing the changing trend major changes has also associated with the
automobile sector. Due to social and environmental changes increasing trend of electronic cars
has noticed in automobile industry. Electronic cars are also considering as the future of
automobile sector.
Critical evaluation on strategies of Morgan Motors Company
Evaluation of strategically formation of Morgan Motors Company can be summarised in
the following manner. Strategically analysis can be evaluated on the basis of the resources pf
company, credibility of company in auto-mobile market, business strategies and with the support
of other associated factors.
Resources of Morgan Motors Company
Morgan Motors Company was established in the year 1910. Company is considered as
the longest established British car manufacturing company (Li and et.al., 2017). Due to huge
presence of company in automobile market company management sustain wide range of
resources like employees, financial resources, supplier chain, distribution networks and other
associated resources that enables company management to conduct all operational activities
effectively.
Credibility’s of Organisation
Morgan Motors company is considered as the largest British manufacturing organisation.
The tag of longest British car manufacturing company justifies specifically about the credibility
and authenticity of company in automobile sector. As per the recent states have shown that
company is witnessing the sales turnover of more than £26 million. Sales turnover of company
indicates about the brand value of company in target market and also the authenticity of brand in

front of the target customers in auto-mobile market. Based on the financial performance of
Morgan Motors company is addressing the profitability of £ 3.4 million as compare to earlier £
1.73 million (Sánchez-Medina and Díaz-Pichardo, 2017). Increased profitability and sales
turnover strongly projecting about the goodwill and brand value of company's products in the
target market.
Evaluation of resources and capabilities
Resources are considered as the means of conducting business operations of company in
order to achieve the goals and objectives of company. In order to evaluate about the company
resources and capabilities VRIN model can be channelised. VRIN model is an effective
analytical tool enables company management to assess about company's resources and
capabilities in order to achieve the company's objectives. Application of this model is based on
elements like valuable, rare, inimitable and non substitutable.
Valuable: Resources of company play huge role in sustainability and growth process of
company. Resources of Morgan Motors Company supported to operate all functional activities
like manufacturing, supply, business development and other associated functions of company.
Product range of Morgan Motors company are comprises with hand made cars that gives
company a unique image in market. Company also offer premium brand image to serve
satisfactory services to upper class community across the globe. Company follow the approach
of customized design that gives a different shape to company’s brand image in market. Designs
are also the valuable part of the Morgan Motors company.
Rare: Brand image of Morgan Motors Company is also rare due to company's presence in
market. Company management could effectively cater all customer segments related to
automobile market. Company management deals in sports car, luxury car and other car segments
in automobile sector. All the products of company has supported company management to make
a unique image in the target market. Due to rare market image of company and its products
company management has addressed the sales turnover of more than £26 million. Company also
put efforts with the support of employees and suppliers and dealers of company to create a
unique market image that can also improve the sales of company in market. Designs used by
production team are also unique and rare that provides different experience to all target
customers of company. Company is well known for its unique cars in market due to designs,
crafts and skills of company’s efficient work force.

Inimitable: Inimitable is also an effective aspects to assess the resources of company and its
associated capabilities in achieving higher sales turnover in the target market. Resources of
company must be based on the potential of company rather than focused more towards the
market competition. Auto-mobile is a huge sector comprises with various product options. In
order to builds all car segments like sports car, luxury carts and other car segment company
management require huge number of resources financial as well as human resources. HRM of
Morgan Motors Company has implemented internal as well as external recruitment strategies
that support company management to meet up its needs related to human resources. Company’s
workforce is well skilled and efficient enough to meet up the expectations of target customers
across the borders.
Non substitutable: Non substitutable is also effective aspects used in VRIN analysis. This
aspects focuses over different aspects of company that enable company management to build a
unique brand image in target market (Li and et.al., 2017). Morgan Motors company deals in
auto-mobile market with different car segments such as sports car, vintage cars, luxury cars and
other car segment that supports company management to build a unique image in target market.
All the segments enables company management to build an image of non substitutable products
as company management cater all kinds of target customers in the automobile market. Company
also provide effective services like dealing with customer grievances with the support of its
efficient human resources. All the designs, crafts and creative approaches made the products of
Morgan Motors Company non substitutable under target market.
Comparing resources and capabilities with industry source factors
Automobile sector is considered as the vast sector in business environment. Management
of Morgan Motors emphasis over expanding the human as well as financial resources. Company
has a wide range of human resources and dealer in all the dealing markets. Company also offers
different car segments as well such as vintage cares, sports car, luxury car and other segments
like SUV that enables company management to cater all needs of target customers of company.
Evaluation of Business Strategies
Strategical implementation of Morgan Motors company is also specific as the marketing
department of the company focuses over prime customers who can afford the pricing structure of
company. Company also use effective marketing channels like social media and other branding
techniques to mark the presence in target market.

CONCLUSION
The report has concluded different challenges face by company based on the PESTLE
analysis like aggressive taxation policies, instability of governance, competition and other factors
that improve the challenges of company in conducting business operations. Porter analysis
advantages like support strategical formation and stakeholder analysis has also projected that
involve in business operations. Huge competitiveness of automobile sector has also projected
due to increasing demands across the globe. Brand presence of Morgan Motors company has
also projected with the supports company's resources like human resources, financial resources
and other associated resources of company.
REFERENCES
Books and Journals

Guy, S., 2017. Framing environmental choices: Mediating the environment in the property
business. In The business of greening (pp. 54-77). Routledge.
Haque, F. and Ntim, C.G., 2018. Environmental policy, sustainable development, governance
mechanisms and environmental performance. Business Strategy and the
Environment.27(3). pp.415-435.
Leonidou, L.C. and et.al., 2017. Internal drivers and performance consequences of small firm
green business strategy: The moderating role of external forces. Journal of business
ethics.140(3). pp.585-606.
Li, J. and et.al., 2017. Gender diversity on boards and firms’ environmental policy. Business
Strategy and the Environment.26(3). pp.306-315.
Sánchez-Medina, P. S. and Díaz-Pichardo, R., 2017. Environmental pressure and quality
practices in artisanal family businesses: The mediator role of environmental
values. Journal of Cleaner Production.143. pp.145-158.