Business Environment Analysis and Strategy Report: Morgan Motors

This individual report analyzes Morgan Motors, a British car manufacturer, focusing on its business environment and strategies. The report begins with a PESTEL analysis, examining political, economic, social, technological, environmental, and legal factors impacting the automotive industry and Morgan Motors specifically. It then evaluates the macro-environment factors relevant to the company. Following this, a Porter's Five Forces analysis assesses the competitive landscape, including the threat of new entrants, substitutes, customer and supplier power, and rivalry. The report also explores the industry environment and the company's business strategy, including resource capabilities, SWOT analysis, and VRIN analysis to evaluate competitive advantages. The report concludes with a discussion on the effectiveness of the company's resources and its sustainability practices, referencing various academic sources. This report provides a comprehensive overview of Morgan Motors' position in the automotive market and its strategic considerations.

Assessment 1: Individual Report

Table of Contents
PESTEL Analysis........................................................................................................................1
Evaluation of Macro Environment Factor for Organization........................................................3
Porter Five Force For Morgan Motors.........................................................................................4
Industry Environment..................................................................................................................5
Business Strategy of Morgan Motors..........................................................................................5
REFERENCES................................................................................................................................7

PESTEL Analysis
This PESTEL Analysis is based on the automotive industry

Factor Trends References
Political
Factor
The taxation policies and market policies that are made by
the government of United Kingdom are very effective and
suitable for automotive sector in country. These taxation
policies and rules that are implemented by the government
are providing opportunities to the people in order to
improve their business by getting more profit from the
market place. The main benefit for the industry are related
to the easy tax rates that are effectively improving the
marginal profit of the automotive companies.
(Izzaty and Sastra,
2019)
Brexit is one of the biggest political condition for country
and it is also affecting the business of organization in the
target market. This is directly affecting the business of car
manufacturing companies in Europe. The uncertainty due to
Brexit is forcing the investors to look for other markets in
order to make their investment profitable for them. These
investors are not showing interest in UK market because of
future uncertainty in the United Kingdom market.
(Gordon, Rohrbeck
and
Schwarz,
2019)
The policies that are implemented by government which are
concerned with foreign policy of country can affect the
trade of company global platform. Brexit is one of the
example of these factor. Later this can affect the sales of the
company in the international market.
(Verma, Dey and
Meisheri,
2017)
Economic
Factor
Economic factors are directly related to economic condition
with in the country and international market. The decisions
of government that are taken by government are very
important for the business of particular industry. As United
Kingdom is a developed economy and there are a lot
opportunities for the automotive companies to improve and
for their business in the international market. Due to
(Phillips and
Moutinho,
2018)
2

developed economy there is more stability in the economy
in the cash flow with in country. This can maintain the
inflation rate low that can encourage the people to buy Cars.
3

The Brexit has great impact on the market place for all type
of industry. It has slow down the growth of united Market
on the international and local level. This condition in the
UK market is very critical for automotive industry.
(Sharma, 2016)
Social
Factor
This is very beneficial for car manufacture companies to
have more diverse customer base. This can provide them
opportunities to make more innovation in their products and
services to gain higher profit from the target market.
(Lalaounis, 2017)
High Literacy rate in United allows the companies to hire
better and capable talent in their organization to improve
their productivity in the target market. High customer
diversity help them to gain effective profit from the market
place.
(Hamilton and
Webster,
2018)
Technologic
al Factor
There are many advantages of technological development in
the country that can provide higher opportunities to the
automotive sector to make development in their business
processes and methods to gain high marginal profit by
reducing the operational cost. The technologies like
Artificial Intelligence and Automation are technologies that
can help the organization to make their operations more
accurate and precise. This is how new technology can
improve the performance of the organization in the target
(Sharma, 2016)
As per the current trends in the automotive industry people
want more secure and smart car that is based on artificial
intelligence. Along with this the trend of sustainable cars
that are based on electrical energy are also forcing the
people to look for sustainable vehicles which are good for
environment and economy of country.
(Lalaounis, 2017)
Environmen Sustainable practices of business organization are most
important for Automotive industry in current time. The
(Verma, Dey and
Meisheri,
4

tal Factors policies and regulations that are made by government are
more focused on the technologies that are based on low
carbon foot print. Government of United Kingdom is
encouraging the automotive companied to produce the
vehicles which are sustainable for environment, economy
and society. This is how these market trends are forcing the
automotive industry to develop and use effective pollution
controlled technology in their vehicles.
2017)
Less amount of natural resources are also causing the
shortage of metals and other raw material that are used in
cars and other vehicles are forcing the companies to
implement processes like recycling and reusing in the
operations and manufacturing process to avoid production
of waste in large quantity.
(Prajogo, 2016)
Legal Factor There are different legislations are preventing the
automotive organizations to implement new technologies in
their products to offer better services to customers. For
example some standards are set by authorities that are
compulsory to implement in the operations in order to
protect customers rights.
(Eling and Schaper,
2017)
The late patent approval are also barrier for business
organizations to launch their new products in the market
place. This is how legislations are affecting the performance
of the automotive companies in the target market.
(Sharma, 2016)
Evaluation of Macro Environment Factor for Organization
Morgan Motors Company is a British car manufacturing company which is owned by a
Italian Investndustrial since march of 2019. company was founded in year 1910 by Mr. Henry F.
Morgan. The headquarter of company is in Malvern, Worcestershire, United Kingdom. The main
function of company is car manufacturing.
Political Factor
5

The impact of political factor is high for Morgan motors. Due to Brexit company have to
face many type of difficulties in sales in European market. The other policies of government are
effective for the business organization.
Economical Factor
Investment is one of the biggest trouble for company and Brexit has increased the issue
of gathering stake holders for organization.
Social Factor
The conditions in the UK market are too familiar for company. High customer diversity
can help the company to gain large customer base to gain higher profit. High literacy rate in
country can provide more talented and skilled staff to company.
Technological Factor
The technology that is used by organization is traditional and some new technologies are
also implemented in the company (Almalki, Al-fleit and Zafar, 2017). This traditional
technologies can slow down the company in the manufacturing rate. It can affect the profit of
organization in the target market.
Environmental Factor
Environmental factors can force the company to make more energy efficient vehicles that
are good for environmental and economic sustainability. This is also a challenge for
organization.
Legal Factor
As the company is working with more traditional technology this will be a challenge for
them to implement new technology in work place with all legal permissions.
Porter Five Force For Morgan Motors
Threat of New Entrant- This threat is very high for organization because there are many
companies are present in UK market
Threat of Substitute- This threat is high for company in UK because there are many companies
are emerging in market place.
Bargaining Power of Customer- Due to high range of choice are available in market this power
of customer is also high for Morgan Motors.
Bargaining Power of Supplier- There are different organizations are requiring raw material in
market place so the power of supplier is also high for company.
6

Rivalry Among Existing Competitors- In UK market there are many existing competitors are
performing effectively so rivalry in market place will be high.
Industry Environment
The critical survival and success factors in organizations will be- economic stability,
effective customer service, quality of company product and customer satisfaction. As per the
current situation there will be a lot change in future trends that can change complete scenario of
the market place (Fabuš, 2017). The Automotive industry is completely shifting towards the AI,
Automation and Sustainable products.
Business Strategy of Morgan Motors
Resource of Company- For the effective performance of organization in operations various
natural and synthetic materials are used by the organization for the effective car manufacturing
and production. For example- carbon fiber, aluminium, glass and other polymers and plastics are
used by company for production.
Capabilities of Organizations
SWOT Analysis
Strengths
1. Well known car producer
2. High experience.
3. Classical design vehicles.
Weaknesses
1. Failed to implement alternative fuel
technology.
2. Limited production capability.
3. Medium size organization.
Opportunities
1. New fuel efficient technology.
2. Modern car manufacturing.
Threats
1. Competitors in market place.
2. Economic crisis situations due to
Brexit.
VRIN Analysis
Resources Valuable Rare Imitable Non-
Substitutable
Technology Yes Yes Yes -
Raw Material Yes - Yes -
Customers Yes - Yes -
7

Logo Yes Yes - Yes
Machinery Yes Yes Yes -
Products Yes Yes Yes Yes
Business Strategy Yes - Yes -
As per the VRIN frame work Technology, Logo of company, machinery and Products are
most important for the Morgan Motors.
Effectiveness of Company with Success Factors
All the resources that are available to the organization are valuable for company and
important for their performance in the target market (Hamilton and Webster, 2018). The
available resources are strengths of company and their unique designs are also effective for their
performance in the target market.
Business Sustainability
As per the operations of organization their functions are some how less sustainable for
environment. The technology which is used by company is not effective to maintain
sustainability with in organization. They need to make certain implementation in the
organization to make their actions sustainable for company.
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REFERENCES
Books and Journals
Almalki, M., Al-fleit, S. and Zafar, A., 2017. Challenges in Implementation of Information
System Strategies in Saudi Business Environment: A Case Study of a Bank. International
Journal of Computer Trends and Technology. 43(1). p.60.
Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects
productivity and efficiency of European life insurance companies. European Journal of
Operational Research. 258(3). pp.1082-1094.
Fabuš, M., 2017. Current development of business environment in Slovakia and Czech Republic.
Gordon, A., Rohrbeck, R. and Schwarz, J.O., 2019. Escaping the" faster horses" trap: bridging
strategic foresight and design-based innovation.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Izzaty, N. and Sastra, H.Y., 2019, June. The implementation of graphene composites for
automotive: an industrial perspective. In IOP Conference Series: Materials Science and
Engineering (Vol. 536, No. 1, p. 012133). IOP Publishing.
Lalaounis, S.T., 2017. Design management: Organisation and marketing perspectives.
Routledge.
Phillips, P. and Moutinho, L., 2018. Contemporary issues in strategic management. Routledge.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International journal of production Economics. 171.
pp.241-249.
Sharma, S., 2016. The Tesla Phenomena A Business Strategy Report.
Verma, I., Dey, L. and Meisheri, H., 2017, August. Detecting, quantifying and accessing impact
of news events on Indian stock indices. In Proceedings of the International Conference
on Web Intelligence (pp. 550-557).
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