Strategy, Operations, and Partnerships: Morgan Motors Report Analysis

This report critically evaluates the operations of Morgan Motors, a British sports car manufacturer, focusing on its strategic operations, supply chain, and stakeholder management. The analysis examines Morgan's operational strengths, such as flexibility, specialization, and quality, while also ident...Read More

MORGAN MOTORS OPERATIONS 1
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Strategy Operations and
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MORGAN MOTORS OPERATIONS 2
Morgan Motors Operations
Morgan motor company is a British sports car manufacturer with a vision to become
the leading provider of the superior and classic feel of ideal sports cars to the customers.
(Morgan Motor Company, n.d.). This report evaluates the operations at Morgan Motors and
the associated logistics to expose areas of potential improvement. Morgan Motors prides
itself on being a fitting antidote to mass-produced automotive manufacturing.
A Review of Operations
Strategic operations are built upon the principles of speed, dependability, quality,
flexibility, and cost. Morgan is positioned positively as far as most of these principles are
concerned, but there is still room for improvement.
Morgan motors are very flexible. It can produce products with both minor and
significant variations in design and appearance without much of a struggle. Considering that
Morgan Motors majorly produces customized cars, the use of human skill and labor makes a
wise strategy. This would be very expensive if it were done using power equipment more so
because every new model would demand an entire overhaul of the production process and
inclusion of new jigs and fixtures.
Operations at Morgan motors run very smoothly and very fast. This is enabled by the
actualization of specialization and parallel production. Each team can be producing its part of
the model without having to wait for another team to finish fabricating its part. In the end, the
pieces are brought together and easily fixed on the overall framework. This is a very efficient
operational strategy since no department can be stopped or hindered from working by
another; hence speedy production is realized.
Morgan is producing cars of outstanding quality. The company has found a way to
combine the functional aspects of modern technology with its ancient craftsmanship. For
example, the combination of metalwork and woodwork in the building of vehicle frameworks

MORGAN MOTORS OPERATIONS 3
gives a strong body for the vehicles. The use of modern metal machining tools in conjunction
with ancient forming methods helps produce accurate parts with an excellent surface finish.
This quality can be much better if Morgan could adopt the use of carbon fiber composites.
Its customers and stakeholders trust the firm. By producing quality customized
vehicles in limited time, the company has built a reputation of faithfulness and class. For the
upper class, Morgan's products are easily affordable; this is not true for the rest of the world.
Morgan's cars are considered a high-end luxury; as a result of this, the vehicles are not very
common on the roads. Despite the company's refusal to fully adopt modern technology, the
firm still produces some of the best sporty cars; the firm is dependable but expensive.
Morgan Motors’ Supply Chain
To achieve its objectives, Morgan Motors employs approximately 200 technicians.
With this workforce, Morgan can produce roughly 850 cars per year, all assembled by hand
(IFS, 2014).
Morgan partners with the AMCO group to handle its logistics. AMCO is responsible
for picking up raw materials from the suppliers and delivering them to Morgan Motors for
processing. AMCO also supplies plastic injection mold tools to the Morgan Motor Company
in Malvern (Walker, 2019). AMCO also ships and distributes finished vehicles to their
respective markets on behalf of Morgan.
Morgan partners with BMW, a German-based engine manufacturer, to supply the
engines and other sub-assemblies used Morgan’s Models. Morgan then uses locally sourced
wood to make the framework of the Morgan coaches. Morgan Motor Company first builds
the chassis of the sports vehicles using industrial grade aluminum sheets that are joined using
a combination of industrial-grade adhesive and rivets (Viprts, 2014). Morgan motors also
import other parts such as drive axles and use hydraulic hoists to lift shafts and other heavy
parts into place (The Drive, 2013).

MORGAN MOTORS OPERATIONS 4
Morgan's products are sold in countries such as the USA, UK, Europe, Japan,
Australia, and many more, yet the company is located in Malvern, UK. AMCO is responsible
for shipping the vehicles to all these destinations.
Morgan motors have had a lasting partnership with Avon tires. Avon is a renowned
tire dealer that has had the pleasure of supplying Morgan with tires since the year 1964. The
long-term relationship has built trust and reliability between the two companies. Avon has
learned to accommodate Morgan's tire needs, and this has resulted in smooth operations
(Avon Tyres, 2020).
Morgan is also in a partnership with British technology specialists running the
Morgan+ E program to conduct research and develop new technologies for application in
motor vehicle production. The partnership aims to take advantage of new technologies
incorporating lower carbon vehicles in modern vehicles in demand within the market (SMMT
NEWS, 2011).
Morgan motors is associated with six significant stakeholders, namely, creditors,
shareholders, Greenpeace, Federal Government, customers, and local communities. Creditors
are interested in the financial status of the firm; Morgan manufactures and sells over 800 cars
a year, creating a generous profit margin to satisfy the creditors completely. The shareholders
at Morgan get compensated as is scheduled. This is made possible by a loyal clientele that
ensures a constant flow of cash into the company. The Greenpeace movement demands
reduced carbon emission from cars. For a long time, Morgan’s cars have been using
petroleum-based fuels; hence the Greenpeace ahs been dissatisfied to an extent. Morgan has
formed a new partnership aimed at producing an electric vehicle that will entirely satisfy the
Greenpeace agenda. Morgan is tax compliant and has been since its establishment, the firm
exists lawfully in the legal framework and conforms with all federal requirements. Morgan’s
customers always get the products that they order to the specifications they prefer. Morgan

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considers that satisfying the customers enables them to meet all other stakeholders and hence
ensures this is achieved at every sale. The company offers employment to technicians from
the local community, sources some of the raw materials like wood from the community, and
is keen to manage its waste effectively to avoid negative implications on the local
community.
Conclusion
Morgan makes all its efforts towards being a fitting antidote to mass-produced
automotive manufacturing. To do this the firm makes sure that all stakeholders are satisfied
and ensures that the best from the past and the best from the present work together towards a
common goal.

MORGAN MOTORS OPERATIONS 6
References
Avon Tyres, 2020. Morgan Motor Company. [Online]
Available at: https://www.avontyres.com/en-gb/about-avon/oe-fitments/morgan-motor-
company/[Accessed 14 February, 2020].
IFS, 2014. MORGAN MOTOR COMPANY SHIFTS UP A GEAR WITH IFS APPLICATIONS.
[Online]
Available at: https://www.ifs.com/uk/news-and-events/newsroom/2014/11/19/11/28/2014-09-
02-morgan-motor-company/[Accessed 14 February, 2020].
Morgan Motor Company, n.d. About Morgan. [Online]
Available at: https://www.morgan-motor.com/about-morgan/[Accessed 14 February, 2020].
O'Grady, S., 2019. Morgan Motor Company sold: One of last British carmakers bought by an
Italian firm. [Online]
Available at: https://www.independent.co.uk/life-style/motoring/morgan-motor-company-sold-
italian-firm-bought-a8810156.html[Accessed 14 February, 2020].
SMMT NEWS, 2011. Morgan teams up with technology partners to build a high-performance
electric sports car concept. [Online]
Available at: https://www.smmt.co.uk/2011/08/morgan-teams-up-with-technology-partners-to-
build-high-performance-electric-sports-car-concept/[Accessed 14 February, 2020].
The Drive, 2013. Morgan Motor Company: The Most Honest Car Factory in the World -
/DRIVEN. [Online]
Available at: https://www.youtube.com/watch?v=OJLcoGMPQ94[Accessed 14 February,
2020].
Viprts, 2014. How Its Made Dream Cars s01e01 Morgan Aero Coupe. [Online]
Available at: https://www.youtube.com/watch?v=kDeHlWEBUQ8[Accessed 14 February,
2020].

MORGAN MOTORS OPERATIONS 7
Walker, T., 2019. Amco Group awarded end to end tooling contract for the supply to Morgan
Motor Company. [Online]
Available at: https://www.britishplastics.co.uk/News/amco-group-awarded-end-to-end-tooling-
contract-for-supply-to/[Accessed 14 February, 2020].