Strategic Analysis of Morgan Motors: PEST, Porter, and VRIO Frameworks

This report provides a comprehensive analysis of Morgan Motors, a prominent sports car manufacturer. The study begins with an introduction to the company and its historical context. The main body of the report utilizes the PEST and Porter Five Forces models to assess the external environment and competitive landscape, respectively. The PEST analysis examines political, economic, social, and technological factors impacting Morgan Motors, while the Porter analysis evaluates industry competition and potential threats. Furthermore, the report applies the VRIO framework to evaluate the company's internal resources and capabilities, identifying valuable, rare, imitable, and organized resources to determine its competitive advantages. The analysis highlights key success factors, such as technological advancements and effective marketing, and addresses potential issues like managing rare resources and adapting to environmental changes. The conclusion summarizes the findings, emphasizing the importance of strategic analysis for business success. The report includes a detailed references section with sources.

INDIVIDUAL
ASSESSMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PEST and Porter..........................................................................................................................3
VRIO analysis.............................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
In this highly competitive world it is very necessary for companies to analyse and study
the market very frequently. This is majorly because of the reason that there are many changes
taking place within the environment and this need to be managed by business in order to get
success. The current study will outline the PEST analysis of Morgan motors. This is a company
which was founded in the year 1910 by Henry Fredrick Stanley Morgan as a motor car company
(Morgan motors, 2020). Hence the report will discuss about the industry and the capability of the
company in the industry. Currently this is the most prestigious and popular company and is
having competitive advantage in manufacturing sports car.
MAIN BODY
PEST and Porter
PEST- this is a model which is helpful for the company in analysing and studying the
changes taking place in the external environment and analysing what will be the impact of these
changes over working of company.
Political- this factor includes the stability in the automotive sector as there is stability in
current political state of country. Thus, there are not much changes in policies and process of
company. Another political change is taxation which is low currently and this is an opportunity
for company (Ariyani and Daryanto, 2018). Also, this includes the legal regulations of the
government which needs to be followed by the country and this is very necessary to be complied
by Morgan motors.
Economical- this is a factors which includes changes in the whole economic conditions
of country and its impact over working of company. Currently the population is increasing and
this is advantageous as this will assist the company in increasing its business. Another trend in
economic factor is the increase in the per capita income of consumers as because of increase in
income the expectations and demand of consumers increases and this result in increase in
production of cars.
Social- in the current modern competitive world this factor is developing in positive
manner because the standard of living of people is increasing and this result in diversion of
people towards the use of cars and sports car (Perera, 2017). Also, there is a latest trend of social

norm and there is need of using luxurious products and this is an opportunity for Morgan motors
as this will increase the business of company.
Technological- this factor also has a positive change over the working of company as the
use of latest technology increases the efficiency of the cars and this provides a competitive
advantage to the company as consumer also like the technologically advance cars and vehicles
(Christodoulou and Cullinane, 2019).
Porter five forces
This is a model which help the company in analysing its position and competitiveness
within the whole industry. This model is used to understand the position at which currently
Morgan motors is operating. With the application of this model it was outlined that the
competition within the industry is very high and it is more difficult for company to work in
competition.
Also, with help of this model it was found that the entry to new companies is low and this
prevents more companies to enter in the automotive sector. This will reduce the entry of new
companies coming in the industry. Also, the threat of substitute goods is very low as the cost of
switching is very high. Hence, because of this once the consumer is attached with Morgan
motors then they can retain the consumers for long and they will not switch over to other
competitors.
Success factor
The success factor from both these model that is PEST and Porter five forces is illustrated
in following points connected below-
If Morgan motor will grab all the latest technological advancements, then they will be
successful. This is majorly because of the fact that these technologies will assist the company in
improving the efficiency of the production of automobile. Hence, this will increase the
operational capacity of company and will improve the working capacity of company.
Another major success factor is increase in market share of the company by marketing in
proper and effective manner. This is majorly because of the fact that with help of Porter it was
outlined that the competition within the business environment is very high and to have success
Morgan need to market in effective manner.

VRIO analysis
In this competitive world here the resources of production are very low it is very
necessary for the companies to have effective and optimum utilisation of resources (Walsh,
Bhagavatheeswaran and Roma, 2019). This is done by Morgan Motors in order to gain a
competitive advantage over others by optimally using the resources and to identify the issues and
then identifying ways of resolving the problem. This is done with help of VRIO analysis and this
model help Morgan motors in analysing the internal capabilities and analysis of resources which
increases the efficiency of company (Varelas and Georgopoulos, 2017).
Valuable- these are the resources which are of high value to the company and is very
good at the effective working of the company. This also include the fact that whether the
company is able to provide for the value of the consumers or not because if they will be able to
provide value to the consumers then they will have competitive advantage. The valuable
resources of Morgan motors are employees, cost structure and financial resources of company.
Rarity- this is referred to the resources which are rare for the use by the company and
these are rare because of the fact that the competition is very high and all the companies dealing
in same industry requires same level of resources. The resources which are rare for Morgan
motors are employees, patent, distribution network and financial resources.
Imitable- these are the resources which can be copied in the same manner as are being
used by Morgan motors. This is majorly because of the fact that Morgan motors is successful and
the other competitors try to copy them so that they can also become successful. The imitable
resources of Morgan motors are financial resources, employees, cost structure and patents.
Organization- this is defined as the ability of company to effectively organize for the
resources that is arrange all the resources on time and with good quality and quantity. This is
necessary because if the resources will be organized in proper manner then it will be optimally
utilised and will result in success of company (Min, Liangwen and Yue, 2018). The fully
organized resources of Morgan motors are research and development, financial resources, cost
structure and employees.
Competitive advantage
Resources Value Rarity Imitability Organization
Financial
resources
   

Employees    
Distribution
network

Cost structure    
Patent  
Research and
development

In the end it can be said that the resources which provides for competitive advantage to
Morgan motors are employees, cost structure and financial resources (Hernández and Garcia,
2018). This is majorly because of the reason that these three resources are applicable to all the
four criterion of VRIO model and this is advantageous for the company as this increases the
capability of company. This increase in the capability results in increase in the overall capacity
and productivity and profitability of the company.
Potential issue and problems
With the help of this model it was outlined that the potential issues faced by Morgan
motors is the management of the rare resources. This is a problem because of the fact that all the
rare resources are already less in number and the user of these resources are very high. Hence,
this is a major issue for the company as they have to make a plan for the optimum utilisation of
these limited resources in effective and optimal manner.
Also, another major issue faced by Morgan motors is that there are many changes and
advancement going on in the business environment and this needs to be adapted by Morgan
motors. This is necessary because of the reason that if the company will not adapt to the latest
changes then the consumers will not like the goods and services (Vargas-Hernández and Garcia,
2019). Hence, this will create a problem to the company as this will reduce the number of
consumers for the company.
CONCLUSION
From the above study it can be summarised that it is very important for the company to
analyse all the factors of external environment and to assess the competitive position within the
industry. This is necessary because of the fact that all the changes impact the working of the
company to a great extent and these need to be studied for success. Thus, the current report

stated about the trends in PEST environment and the competitiveness with help of Porter five
forces. With the help of both PEST and porter the success criteria were found that is adapting to
all the technological changes and reducing the competition by increasing the marketing
strategies. Further it discussed the capabilities and resources which increases the competitive
advantage. These resources were like cost structure, financial resources and employees.

REFERENCES
Books and Journals
Ariyani, W. and Daryanto, A., 2018. Operationalization of Internal Analysis Using the VRIO
Framework: Development of Scale for Resource and Capabilities Organization (Case
Study: XYZ Company Animal Feed Business Unit). Asian Business Research
Journal. 3. pp.9-14.
Christodoulou, A. and Cullinane, K., 2019. Identifying the Main Opportunities and Challenges
from the Implementation of a Port Energy Management System: A SWOT/PESTLE
Analysis. Sustainability. 11(21). p.6046.
Hernández, J.G.V. and Garcia, F.C., 2018. The link between a firm´ s internal characteristics and
performance: GPTW & VRIO dimension analysis. Revista de Administração
IMED. 8(2). pp.222-235.
Min, C., Liangwen, L. and Yue, X.G., 2018. New Thoughts on Porter. IETI Transactions on
Social Sciences and Humanities. 1. pp.105-113.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Varelas, S. and Georgopoulos, N., 2017. Porter’s competitive forces in the modern globalized
hospitality sector–the case of a Greek tourism destination. J Tour Res. 18. pp.121-131.
Vargas-Hernández, J.G. and Garcia, F.C., 2019. The Link between a Firm´ s Internal
Characteristics and Performance: GPTW & VRIO Dimension
Analysis. REBRAE. 12(1). pp.19-30.
Walsh, K., Bhagavatheeswaran, L. and Roma, E., 2019. E-learning in healthcare professional
education: an analysis of political, economic, social, technological, legal and
environmental (PESTLE) factors. MedEdPublish. 8.
Online
Morgan motors. 2020. [Online]. Available through: < https://www.morgan-motor.com/ >