Business Strategy Analysis: Morgan Motor Company Report, Unit 32

This report provides a comprehensive analysis of the business strategy of the Morgan Motor Company. It begins with an examination of the macro environment, utilizing PESTLE and stakeholder analyses to assess external factors influencing the company's strategic decisions. The report then delves into the internal environment, employing SWOT analysis to evaluate the company's strengths, weaknesses, opportunities, and threats, alongside an assessment of its internal capabilities and skill set. Furthermore, the report applies Porter's Five Forces model to evaluate competitive forces within the market and proposes strategies to enhance the company's competitive edge. Finally, the report explores various strategic planning theories, concepts, and models, culminating in a strategic management plan with tangible strategic priorities.

Unit 32 - Business
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Application of frameworks that influences macro environment..................................................3
Critically evaluation of influence macro environment ..............................................................7
LO 2.................................................................................................................................................7
Internal environment and capabilities.........................................................................................7
Critical evaluation of internal environment that states internal capabilities and skill set ........10
LO 3...............................................................................................................................................10
Application of porter's five forces in order to evaluate competitive forces in given market....10
Uses of appropriate strategies which helps to improve the competitive edge..........................13
LO 4...............................................................................................................................................13
Application of various theories, concepts and models in strategic planning............................13
Strategic management plan that has tangible and tactical strategic priorities...........................15
CONCLUSION..............................................................................................................................17
REFERENCE.................................................................................................................................18

INTRODUCTION
Business strategy is considered as competitive action or move which is taken by
management in order to run their business successfully. It is important for corporation to have
strategic plan so they can establish their business and make efforts to grow it continuously. In
simple term, this is a documented plan which states how a company is setting out to attain their
goals (Setiawan and et. al., 2019). This plan helps to deal with competitors by looking at needs
and wants of customers which provide long term growth and sustainability. To understand about
business strategy concept, this report has been prepared on the basis of Morgan Motor company
which is car manufacturing company in UK. This organisation was established in 1910 by Henry
Frederic Stanley Morgan. This report covers different topics such as macro environment that
determines and inform strategic management decisions, evaluation of internal environment that
consider internal capabilities, structure and skill set and appropriate strategies which helps to
improve competitive edge and market status in competitive market by using porter's five forces
model. Moreover, description of theories, concepts and models would cover in this report which
helps to attain the business goals.
LO 1
Application of frameworks that influences macro environment
Macro environment: The situations which arises in whole economy not in a particular
sector is described as macro environment. This is the condition which exists in whole economy
rather than specific region and sector. It involves major changes which cannot be controlled
because it is related to external environment. The corporate strategy manager of Morgan Motor
Company emphasises on using strategic planning frameworks for determining dimensions or
factors which impacts strategies and decision of entity. For this, two framework that are PESTLE
analysis and Stakeholders analysis are used for analysing impacts as well as influences on
strategies and company. Application of both frameworks is as follows:
PESTLE analysis
PESTLE analysis is a suitable framework for analysing and monitoring situations within
macro environment and its factors that may impact on business (Hammonds, 2018). In present
era, to analyse the impacts of external factors on strategies and business, all companies use the

framework. It includes few factors which are discussed in relevance with Morgan Motor
Company:
Political factor: International trade programmes, taxations, restrictions of trade,
government policies and stability or instability of political system in overseas market are part of
political factor. Within UK, it is seen that the country has stable and supportive political system
that provides huge opportunities to companies that have unique innovation in automotive or
another sector.
Positive impacts: In recent years, huge political integrations are happening across
nations which provides expansion aspects to business. In addition, government of UK provides
incentives and subsidies to motoring companies like Morgan Motor Company and with adoption
to them it can enhance its positions and improve image in the market that could impact positively
for strengthening financial performance and business strategies.
Negative impacts: However, occurrence of few situations can cause hurdles or issues for
the entity. For instance, Occurrence of Brexit causes issues for implementing activities related to
trade and working with other nations that impacts negatively on expansion strategies and
performance of designated business (Chakma, 2018).
Economic factor: Disposable consumer income, growth of economy, business cycle and
so on includes in economic factor. UK has globalised and highly developed economy that
influences entire performance with strategies of entity.
Positive impacts: Within UK, Morgan Motor Company implements operations by
carefully forecasting changing that can occur within business cycle in upcoming duration. This
impacts positively on the strategies as company frames suitable strategies in present and
implements them in the uncertain situations which strengthens its ways to operate and margins of
profits.
Negative impact: When Morgan Motor Company fails in maintaining prices of its cars
according to economic circumstances then situations such as reducing on volume of sales and
revenue can arise which could result in negative impacts on overall enterprise strategies.
Social factor: Population's shared beliefs, age distribution, attitudes and preferences have
linkage to social factors. In UK, it is seen that social conditions are in favour of company that
allows to make unique combinations of heritage, crafts and others in manufacturing cars.

Positive impact: It has been analysed that UK population demands innovation, antiques
and heritage within the cars. Morgan Motors Company addresses population needs and attitudes
and accordingly offers unique mixture of crafts, heritage together with pure driving experience
that helps it to maximise sales impacting positively on organisation and strategies.
Negative impact: At the time, when Morgan Motors Company ignores implementing
approaches and strategies for satisfying demands of targeted and potential population then it will
reduce its market share and customer base that will impact destructively on its existing strategies
and proficiency (Hyginus and Maria, 2018).
Technological factor: Innovation, technological up-gradation and automation are
technological factors. In UK, technology changes frequently which automotive companies have
to adopt as per requirements.
Positive impacts: As Morgan Motors Company brings appropriate modern technology in
its cars that helps in making recognised brand image in motoring sector which positively impacts
on adopting of latest techniques for creating unique car product and framing suitable strategies
for competing in market.
Negative impacts: However, it can be very challenging for the firm to research for
advancements as it is uneconomic for it to invest heavily on these aspects and ignoring them can
hampers establishment ability impacting negatively on competing strategies and position of
company.
Legal factor: Consumer protection laws, product safety acts, equal opportunity law and
advertising standards are legal factors that are set by government in UK (Gumilang, 2018).
Positive impacts: Morgan Motor Company makes all its operative attempts by
considering government legislations, regulations and rules in effective modes. This assist in
minimum involvement of government and maintaining leading position without any issues or
hindrances that impacts positively on all operations, strategies of the concerned organisation.
Negative impacts: When government makes modifications in current laws then, it causes
difficulties to execute workings as per new provisions that impacts negatively on managing
changes, devising new strategies and company's brand value.
Environmental factor: Various environmental aspects which influences business
operations are environmental factors. Charities, government bodies and local councils of UK
have initiated for creating programmes for improving environmental situations.

Positive impacts: The company do not use the components that are banned by
government and causes pollution in environment. It recycles its wastages and reduces carbon
footprints which impacts positively on its strategies to keep environment clean and hygiene.
Negative impacts: However, in various cases, Morgan Motor Company unable to initiate
action for controlling emission and using scare resources that causes negative impacts to make
impressive image in market of UK and its strategies related to limited wastage.
Stakeholders analysis
Another framework that helps in assessing the power and interest that stakeholders of the
company have and the ways they influence strategies of the business. In Morgan Motor
Company, stakeholders play crucial part in decision making procedures as well as devising
strategies. Stakeholder analysis matrix showing powers and interest in context to stakeholders of
selected business is underneath:
LEVEL OF
INTEREST
LEVEL OF
INTEREST
LEVEL OF POWER HIGH LOW
HIGH Management, Owners Government
LOW Staff members Customers
As per the above matrix, two factors through which the framework is understood helps in
understanding the frameworks are gained to assess stakeholders, that are level of interest as well
as level of power. The major stakeholders of Morgan Motor Company are as follows:
Management as well as owners: These stakeholders have belongings in high power and
high interest at chosen motor entity. They are the one who makes important decisions and carry
forwards workings as per roles that impacts in positive manner on implementing strategies and
attaining results of company. But when, they do not coordinate with other authorities and makes
decisions as per their wish then negative impacts on entire company and strategies are analysed.
Staff members: Another stakeholder that have low powers but are highly interested in
company. In relevance with Morgan Motors Company, staff members provide valuable guidance
and thoughts to enhance production and have important role in completion of operations that
impacts positively on properly implementing set strategies. At same time, when these

stakeholders are not motivated then situations such as conflicts, hurdles and many more can arise
may negatively impact towards the company along with its determined strategies (Chirumalla,
Oghazi and Parida, 2018).
Customers: The stakeholder who have low interest with low power in company are
customers. They only focus on buying products, its pricing strategies and many more. When
customers of Morgan Motor company are satisfied with the motor products and time to time
makes purchases it results impacts on positive mode on strategies and company. However, when
customers do not make buying decision then entity will not get revenues for operations then it
negatively impacts sales volume of entity, causes negative impacts on entire business strategies
(Paley, 2019).
Critically evaluation of influence macro environment
To run the business in successful manner, it is important to consider external factors as
they influence company in positive and negative ways. Morgan Motor Company is one of motor
enterprise in UK whose strategic manager analyses factors such as political, technological,
social, environmental and many more in order to ascertain positive and negative impacts.
Political factor such as Brexit creates issues in trading that impacts negatively the organisational
strategies. In consideration to social factor, favourable population attitude for company improves
customer base and more sales volume impacts positively on strategies. At same time,
technological automation influences strategies positively. However, legislation changes show
negative impacts. Moreover, power and interest of distinct stakeholder impacts in different
manner (Akindayomi, and Amin, 2019). Unit 32 -1582149540209 (2)
LO 2
Internal environment and capabilities
Internal environment – This is main component of business environment, that covers
different element affects decision of business corporations. Internal environment analysis is a
tool which is used to analysis the internal capabilities of business organisation and states
efficiency to complete the goals. This is important for organisation to analyse their internal
environment by using different tools that can give positive outcomes. The management of
Morgan motor are evaluating internal capabilities by evaluating skill set as it has skilled
workforce which understand goals and give efforts to attain them effectively.

SWOT analysis – This is a framework which is used by business organisation to
evaluate the internal environment and get organisational strength as well as weakness. This states
how an organisation can change threat and weakness in opportunities of business and make
higher profits effectively.
The SWOT analysis of Morgan motor company is defined as:
Strength Weakness
 Morgan motors is operating business in
low cost facility where this produce
high value cars.
 Different design of cars which creates
high demand in marketplace.
 This organisation is possessing a high
attractive brand image and logo which
generates profits.
 This has 42 dealers who build network
across the nation.
 Morgan motor has strong survival
mentality in which it is operating
business.
 Slow production which is taking time
to produce cars.
 It is providing products at small market
and to only targeted customers.
 Using old equipment to produce cars.
 Labour has high bargaining power that
reduces profits.
 Outdated production process (About
SWOT analysis, 2020.).
Opportunities Threats
 This focus on reduce to waiting list by
taking limited order.
 Morgan can make another plant in
another location that helps to capture
more market.
 Employee in this organisation are
highly skilled.
 This has good customer relations as it
maintains very warm personal touch.
 Bargaining power of suppliers who
charges more.
 Cancellation of orders which is taken
from customers due to high demand of
products.

In context to Morgan motor, management are defining internal capabilities by using VRIO
analysis such as:
VRIO Framework – This is a strategic framework which is used to know the strategic
capabilities of organisation. This helps business corporation to gain the competitive advantages.
VRIO analysis in context to Morgan motor company is as defined:
Resources Valuable Rare Inimitable Organised
Skilled
employees
Yes No No No
Friendly
atmosphere
Yes Yes No No
Design of cars Yes Yes Yes No
Distribution
channel
Yes Yes Yes Yes
Valuable:
Skilled employees: This is valuable resource of Morgan motor company who helps to
perform business activities and accept the challenges in organisation. With the help of them
organisation is running its business effectively.
Friendly atmosphere: In Morgan motor company, there is friendly atmosphere where
employees share their ideas and thoughts to work collectively.
Design of cars: Morgan is producing different model of cars which is consider as
valuable because such design is prepared on customer's demand which attracts them and increase
profitability (Stander, 2018).
Distribution channel: Morgan has good distribution channel which is most valuable
strength to increase the sale of organisation and profitability.
Rarity:
Friendly atmosphere: Morgan motor is having good and friendly atmosphere, which is
rare having in other organisation that helps to acquire the competition and increase market
presence.

Design of cars: Company produce unique design of cars which is rarely available in
other organisation strength to get competitive advantages.
Distribution channel: Morgan motor is having good distribution channel which is
increasing the sale of manufacturing cars and capturing market share that is rare for another
organisation.
Inimitable:Unit 32 -1582149540209 (2)
Design of cars: Design of cars which are inimitable for other organisation and helps
Morgan motor to take competitive advantages and meet with objectives.
Distribution channel: This is technique of Morgan motor company which is inimitable
for other company and increasing market share of organisation (Kopnina and Blewitt, 2018).
Organised:
Distribution channel: This is organised and coordinated resources which is used by
Morgan motor company giving competitive advantages to organisation by increasing sales as
well as productivity effectively.
Critical evaluation of internal environment that states internal capabilities and skill set
From the above it has evaluated that by using SWOT analysis Morgan motor company
can get business opportunities and make efforts to remove the threats which they are facing.
Such as in UK the bargaining power of supplier is high for changing this into strength it needs to
conduct a contractual relationship with suppliers so it can get material at fixed prices. Moreover,
it has good distributional channel as employees are having set of skills which helped to attracts
customers and increases productivity. This increases organisational capabilities by using
strategies effectively.
LO 3
Application of porter's five forces in order to evaluate competitive forces in given market
Every business is facing many challenges in competitive market which has impacted on
their business activities and productivity. In competitive environment, businesses make plans and
strategies to grow and develop the business (Samad, 2018). In context to Morgan Motor
company, has many competitors who are creating competition and running its business
effectively. To analysis the competition, Porter's five forces model is used by management which
is discussed beneath:

Buyer's bargaining power – Buyers are the important factor in business market who
identify their needs and buy the products which are available in market. In auto mobile industry,
there are many existing multinational firms who are also providing cars at minimum prices
(Hickman and Silva, 2018). However, there is less industries who are providing hand made cars
with an ash body which become an opportunity for Morgan Motor company to sell their products
in increasing number. Therefore, in context to Morgan Motor less bargaining power of buyers
due to not providing same cars as it is providing. This organisation is providing different cars
which is demanding customers that helps to sustain in competitive market.
Supplier's bargaining power – This means person who are providing raw material and
other parts to manufacture the products. In context to Morgan motor, suppliers have moderate
power because there is limited production of hand made cars which are of ash body frame
panelled in aluminium and modern cars which is the taste of target customers (O'brien, 2019).
This is an advantage for Morgan motor to buy the raw material at reasonable prices because
suppliers use negotiation powers to sell their raw material and other products. This gives huge of
advantages in competitive market and sustain in competitive market.
Substitutes threat – This means when customers meets with homogeneous products in
different manner then organisation faces productivity as well as profitability issues. This factor
influences emerging market in competitive environment. But in context to, Morgan motors there
is threat of substitution because its substitution products are bus, cars and other vehicle which
can reduce the sale of business organisation. However, it may be threat for Morgan motor to
invest in product segment and compete from others that reduces business activities (Dobni and
Sand, 2018).
New entrants’ threat – To enter in any business there is need to follow many steps and
formalities which limits organisation to enter into new market. Apart from this, capital and
monetary resources are mainly factor which influences the entrance of new business in new
market (Foss and Saebi, 2018). In context to Morgan motor company, it is difficult for another
organisation to enter into new market because it needs high amount of money, resources and
human resources which is difficult for new organisation. Therefore, it tends to generate
opportunity for chosen company to run their business effectively and sell is different products in
order to make profits.

Competitive rivalry – In global market, rivalry of auto mobile is very intense which are
creating competition in different business organisation and running their business by facing
competition (Ateş, van Raaij and Wynstra, 2018). In context to Morgan motor company, there is
Bentley motors, BMW, Rolls Royce etc. are competitive who are providing products. But there
is less rivalry because this is one organisation who is providing unique and old-fashioned hand
made cars which helps to maintain good market image that states stability and growth of
business organisation.
Therefore, from Porter's model it has examined that Morgan motor is single one company
who has no competitors due to producing old fashioned and hand made cars as per customer
needs which helps to maintain the sustainability and reliability of products. As it is
manufacturing handmade and different cars which is difficult for other auto mobile industry to
produce such kind of products that is opportunities for organisation and increase profitability.
Competitor analysis in context to Noble cars
Bargaining power of suppliers: The bargaining power of suppliers in context to Noble
Cars is high because there are less suppliers in UK's market who are selling raw material at
different prices. So, this can be threat for Noble cars to buy raw material at less prices and
manufacture cars accordingly.
Bargaining power of buyers: In UK, there are many auto mobile industries are available
who are selling different products. This is threat for Noble cars because customers have various
option to buy cars if selected organisation is selling cars at high prices. Therefore, to sale its
products Noble cars has to reduce its cost which shows high bargaining power of buyers.
Competitive rivalry: In UK, many car manufacturing organisations are available such as
Bentley, Morgan motor, BMW etc. that are selling different design of cars. In context to Noble
cars, there are highly threat of competition due to having many organisations that can reduce the
sale and profits of organisation.
Threat of substitutes: This is another force of competition which states if there is
substitution of products then sale and productivity of organisation will be decrease. Such as
bicycle, motor, auto, rickshaw, aeroplane etc. are substitution which may impacts negatively on
organisation and can reduce sale of Noble cars which consider as threat.