A Critical Evaluation of Morgan Motors' Operations and Strategy Report

This report critically evaluates the strategy and operations of Morgan Motors within the automobile industry. It begins with an executive summary outlining the paper's objectives, which include analyzing the external environment using PESTLE and Porter's Five Forces, assessing resources and capabilities through the VRIN framework, and forecasting the company's business sustainability. The report provides a detailed examination of the industry environment, highlighting political, economic, social, technological, legal, and environmental factors, as well as competitive dynamics. It assesses Morgan Motors' resources, including tangible assets like capital and infrastructure, and intangible assets like brand image and customer loyalty. The capabilities of the organization are also evaluated. The analysis extends to a VRIN framework assessment, comparing resources and capabilities to industry success factors, and considering business sustainability. The report concludes by summarizing key findings, identifying areas for improvement, and emphasizing the need for continuous innovation in response to changing industry dynamics, particularly the shift towards EVs and hybrid vehicles and the impact of Brexit. The appendix includes the PESTLE analysis with references.

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Executive summary
The aim of this paper is to discuss the evaluation of the environment of the industry in which the
Morgan Motors operates. This paper has analyzed the external environment in terms of PESTLE
and porter’s five forces model. The automobile industry is facing dynamic innovations with the
advent of EVs and hybrid vehicles. The implementation of automated technologies in the
manufacturing processes would allow the businesses in the industry to adhere to the stringent
environmental legislations. Therefore effective changes can be seen in tej future. This is why, the
paper has analyzed Resources and capabilities through VRIN framework and forecasted business
sustainability of the company.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Critical evaluation of the environment of the industry in which the Morgan Motors operates...3
2.1 Critical issues emanating from the PESTLE.........................................................................3
2.2 Porter’s 5 forces.....................................................................................................................4
2.3 Summary of the industry environment..................................................................................6
2.4 Critical survival and success factors......................................................................................6
2.5 Change in the industry’s environment in the future..............................................................6
3. Critical evaluation of the strategy of Morgan Motors.................................................................7
3.1 The resources of the organization..........................................................................................7
3.2 Capabilities of the organization.............................................................................................7
3.3 Resources and capabilities (VRIN).......................................................................................8
3.4 Comparison of resources and capabilities in correspondence to the industry success factors
.....................................................................................................................................................8
3.5 Business sustainability...........................................................................................................9
4. Conclusion...................................................................................................................................9
References......................................................................................................................................11
Appendix: PESTLE analysis.........................................................................................................12

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1. Introduction
The dynamic competencies of an organization assists in identifying the different
strategies that might be initiated by the same with the purpose of improving the market holdings.
The environmental assessment and the evaluation of the capabilities of a venture plays a pivotal
role in improving the organizational status in the markets. The purpose of undertaking the
research is to identify the macro environment of the automobile industry and thereby assess the
valuable and rare resources of Morgan Motors.
2. Critical evaluation of the environment of the industry in which the Morgan Motors
operates
2.1 Critical issues emanating from the PESTLE
The political situation of UK is stable which enabled the growth the industry. However,
the legislation relating to abhorrence to the emission of Green House gases and pollutants along
with carbon might restrict the growth of the automobile industry while manufacturing diesel
vehicles. However, it has been found that the people in UK have a significant amount of
disposable income for affording the sustainable models and editions of vehicles that are
developed by the automobile industry. However, the uncertainty of Brexit have hindered the
confidence of the buyers in investing large amount of money towards leisure activities. The
changing preferences of the customers towards buying EVs and hybrid models are commendable
and would benefit the industry in establishing their growth and expansion in the UK markets.
However, it has been observed that significant amount of people are avoiding large investment in
the different fields due to the uncertainty of Brexit imposition which might affect he markets of
the automobile industry in UK.

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2.2 Porter’s 5 forces
Competitive rivalry
(Strong force)
The autonomous industry holds a large
number of businesses providing quality
services and propositions to the clients. The
major competing firms in the industry are
specifically Ariel Motor, Pagani, Rolls-
Royce, Jaguar, Ferrari and Zytek. The
intensification of competition in the markets
with improved technological innovativeness
might create a strong force of resistance for a
firm in gaining absolute competitive
advantage.
Bargaining power of the suppliers
(Weak force)
The bargaining power of the suppliers in the
automotive industry are specifically low due
to the existence of huge number of OEM
suppliers in the markets. The increased
availability of the suppliers have provided the
organizations in the industry with a lower
switching costs, subduing the bargaining
power of the suppliers.
The bargaining power of the customers are
relatively high due the presence of huge
number of competing firms in the automobile

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Bargaining power of the buyers
(Moderate Force)
industry. However, the switching costs from
one brand to another are relatively higher
which has reduced the bargaining power of
the customers. therefore, in this connection, it
might be noted that the customers have a
moderate bargaining power in the automobile
industries
Threat of substitutes
(Strong force)
The threat of substitutes in the automobile
industry are significantly high with the
indulgence of large number of axillary firms
which might affect the capabilities of the
large organizations in the industry in
maintaining a steady consumer base. The
proposition of substitute auto-parts in lower
prices by the non-OEMs might affect the
strategic capability of the OEMs in retaining
the commitment of the customers.
Threat of new entrants
(Weak force)
The threat of the new entrants in the
automobile industry is considerably low as it
requires huge capital investments which
incapacitates a new venture to develop
individual markets

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2.3 Summary of the industry environment
The automobile industry is facing dynamic innovations with the advent of EVs and
hybrid vehicles. It has been observed that most of the customers of the automobile industry are
inclined towards the utilization of the energy efficient vehicles which would allow the
organization in gaining a competitive edge over the existing players in the markets. Moreover, it
has been observed that the competition in the automobile industry has intensified thereby
requiring increased innovativeness of the organizations for adhering to the changing customer
preferences.
2.4 Critical survival and success factors
The critical survival factors in the automobile industry will be reliant on the continuous
innovation. The continuous innovation in the processes and the propositions would allow the
businesses in the automobile industry to adhere to the changing preferences of the customers. On
the other hand, the implementation of automated technologies in the manufacturing processes
would allow the businesses in the industry to adhere to the stringent environmental legislations.
Therefore, the critical survival or success factors in the industry would be based on the
continuous innovations in the business operations for improved growth.
2.5 Change in the industry’s environment in the future
The environmental concerns, like carbon emission and gases causing global warming,
have specifically mandated changes in the automobile industry. It has been observed that most
of the automobile manufacturing organizations in the industry have turned towards
manufacturing EVs which would reduce the rate of energy dependency and minimize emission
of pollutants in the atmosphere. The dynamic innovativeness of the industry has brought about
significant modifications in the business model of the companies inherent in the sector.

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3. Critical evaluation of the strategy of Morgan Motors
3.1 The resources of the organization
The most sorted resources of the organization might be divided into tangible and
intangible classifications. The section will enumerate the tangible and intangible resources of the
organization
Tangible resource:
 Capital for investment
 R&D operations
 Skilled workforce
 Infrastructure
 Plant and machinery
Intangible resource:
 Brand image
 Loyalty and commitment of the customers
 Customer list
3.2 Capabilities of the organization
The concerned organization, Morgan Motors, have an exquisite capability of skilled
workforce who are well experienced in crafting models. The different propositions and models
that are manufactured by the organization aims at improving the rate of operations of the same
while operating as per the common goals of the venture. However, it has been observed that the
organization encounters an issue with the increasing operational costs which might reduce the
annual turnover rates.

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3.3 Resources and capabilities (VRIN).
Factors Valuable Rare Imperfectly
Imitable
Non-
substitutable
Brand image Yes Yes No No
Loyalty and
commitment of
the customers
Yes Yes No Yes
Customer list Yes Yes Yes Yes
Skilled Human
resource
Yes Yes No Yes
Capital for
investment
Yes No No No
R&D
operations
Yes Yes No Yes
Infrastructure Yes Yes No No
Plant and
machinery
Yes Yes Yes No
3.4 Comparison of resources and capabilities in correspondence to the industry success
factors
The infrastructure of the organization and the R&D measures play an important role in
maintaining the effectiveness of the business operations while operating as per the common
objectives of the venture. The industry success factors are chiefly based on the innovativeness of

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the companies while adapting to the new semi automation technologies in manufacturing fr
minimizing resource use and wastage. Moreover, the automobile industry is moving towards a
sustainable future with minimized emissions. Therefore, the organization has the capability of
developing innovative operations through large capital investments and effective funding. On the
other hand, the organization also undertook the initiative of recruiting skilled workforce for
planj8ing and developing the different activities. The skilled workforce would allow the
organization in empowering the innovativeness of the business. However, it has been observed
that the increased cost of operations might affect the capability of the concerned organization in
accruing the actual value of the propositions and developing offerings on the basis of different
changes in the business model.
3.5 Business sustainability
The business sustainability of the organization is specifically reliant on the
implementation of semi-automated manufacturing processes while minimizing the cost of
operations. The minimization of the costs incurred for operations would allow the organization in
improving their annual margins while adhering to the sustainable proposition based needs of the
customers. The financial capability of the organization and the huge funding would allow the
organization in empowering the sustainable measures but minimization of operational expenses
would permit the business in accruing greater value of return on their invested value.
4. Conclusion
Therefore, from the above assessment it might be stated that there are subtle changes in
the automobile industry due to the imposition of stringent legislative frameworks and
regulations. Moreover, the change in the buying patterns of the customers have significantly
changed the business operations. The technological innovations in the automobile industry and

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the need for emission free vehicles have greatly increased the need for businesses to modify their
operational processes. The report focused on identifying the changes in the industry standards
and compared the resource and capabilities of Morgan Motors for delineating the sustainable
practices.

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