Strategic Management: Excel Auto's Sustainability and Competitive Edge

This report provides a comprehensive analysis of Excel Auto's strategic management approach, emphasizing its focus on sustainability and competitive advantage within the automotive industry. The report explores the company's adoption of the triple bottom line approach, considering social, economic, and environmental factors in its decision-making processes. It examines Excel Auto's efforts to develop a sustainable business model, including its commitment to environmental sustainability through hybrid car technology and its emphasis on economic sustainability. Furthermore, the report delves into the company's corporate governance practices, outlining the framework and mechanisms in place to ensure stakeholder balance and ethical operations. The report also draws comparisons with the Volkswagen Group's approach to corporate social responsibility and sustainability, highlighting the importance of transparent and responsible corporate governance. Overall, the report concludes that the adoption of sustainability measures is crucial for Excel Auto's long-term success, underscoring the significance of integrating environmental, social, and economic considerations into its strategic management framework.

Strategic Management for Competitive
Advantage: Part C

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Sustainability in business operations is defined to as an approach which emphasizes on
three major aspects of environment such as Social, economic and environment (Chang, 2011).
The sustainable business are those which can be carried out in the market for longer duration
along with identifying a level of profitability while considering benefits to society. The
assignment takes into consideration the efforts of Excel which is focused to create a sustainable
business model.
MAIN BODY
Excel Auto is an organisation catering the automotive segment with their quality and
performance driven cars. This organisation is able to form a place for itself in the highly
competitive auto-mobile segment. To enter into new market this automotive supplier is opting
for a hybrid segment of cars to achieve a distinct place for themselves. This strategy is adopted
by organisation is to achieve a superior position in the market. The decision-making practices in
such organisation plays a major role. It ensures steps taken in process of decision making which
ensures that actions and judgement of organisation promotes health and safety of people and
communities surrounding business. It promotes a business to act as a responsible adults and
make sure welfare of people and business.
A business can opt for Triple Bottom Approach while formulating decisions. This
approach persuades a business to consider social and environmental responsibilities of business
along with financial perspectives of business. It is a essential feature in which is incorporated
into decision making as in traditional business organisations solely emphasized on the net
income and earning of the company. Triple Bottom line approach is introduced so that business
operations are directed towards sustainability in its operations (David, 2011). This approach
defines a business about the level of sustainability and profitability of business operations.
Social Sustainability
The position of the company in terms of social context is measured. The profitability of
the company measured in human capital of an organisation. The adoption of fair labour practices
determine sustainability of a company. An organisation should conform with rules and
regulations constituted by the government of a nation so that benefits of human capital can be
availed by them and are treated in an fair and ethical manner. The welfare practices by an
organisation for welfare of human resources and communities around assists a business into
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measuring their efforts in corporate social responsibilities. In context of organisation, business
aims to develop an environment where human resources are comfortable to work for a longer
duration. Sustainability of a business operations measured in terms of human capital of a
company.
(Source: Triple Bottom Approach, 2017)
Environmental Sustainability
This factor makes sure that business operations carry minimal impact on the environment
in which operations are carried out. The amount of resources consumed should be lower and
must be replenished. The scale of resources consumed by the business determine how long a
business can operate in the market. It is necessary for a business operator to manage and monitor
the consumption of resources so that wastes are reported and addressed (Helfat and Winter,
2011). This reporting will assist a business into adoption of a business model which help in
developing a green business models with minimal wastages of resources. Excel Auto can
establish a committee to looks after minimizing wastages and development of a sustainable
business model so that business operations can be sustained in the market for longer durations.
Excel Auto have adopted this approach and while opting for policies and practices social
and environmental grounds are considered. The social and environmental issues prevailing
around business are paid special attention and efforts are made to overcome the same. This
automotive manufacturer have decided to enter into market with hybrid strategy. A hybrid car
carries a combination of petrol or diesel motor with an electric one. This is one major step of the
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I
llustration 1: Triple Bottom Approach

company towards opting for sustainable measures in operating market as these cars carry low
emission and higher mileage when compared with standard cars. Company can measure and
report its consumption of natural resources to the concerned department along with recycled
material and NOx and SOx emissions.
Economic Sustainability
From company's point of view, economic sustainability is most crucial domain for a
company. This does not refer to the income or amount of revenue which is attained by a
business. It refers to the impact in the economic environment of a country due to the business
operations of an enterprise. As per the view point of Chamberlain, 2016, The positive impact on
the economic environment of the country ensure that business operations are succeeded in the
market. The business operations should make sure that along with profits it encourage economic
well-being of the society. The operations of Excel Auto promotes innovation and economic
growth by introducing their hybrid range of auto-mobiles to market.
It is necessary for a business to opt for Triple Bottom Line Method so that expansion of
Excel Auto promotes welfare to various fronts of this approach. This approach is suitable for an
organisation and it carry the potential to sustain business operations in the economy for a longer
duration.
Corporate governance is defined to be set of rules and practices which is directed and
controlled in an organisation (Li and Liu, 2014). It ensures that there is an balance between
various stakeholder of an organisation. The major stakeholder include employees, management,
shareholders, supplier and communities revolving around. The framework to attain goals and
objectives of the organisation are provided with corporate governance. The framework which are
included in corporate governance are as follows:
1. The first measure involves division of activities between stakeholder of the company
along with clear description of authority and responsibilities.
2. The procedures and tools are employed which results in conflict resolution and
maintenance of interest and relationship between stakeholders.
3. In this tool and tactics and supervision are employed so that information flow in an
organisation can be managed.
This responsibility is given to management of an organisation who ensures that
mechanisms, relations and process are exerted on the employees and make sure that they are
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abided by. This determines success and legitimation of a business corporation in the long run. In
order to execute a corporate governance system formulate and supported by shareholder's in a
meeting.
1. Company in order to execute a governance system forms a auditing and supervisory team
strongly focusing on the supervision of members of an organisation (Madsen, and
Walker, 2015). Excel Auto can take help from outside agencies who specialise in
providing auditing function.
2. The auditor appointed is responsible for submitting a report to board of directors so that
their function can be strengthened. The report ensures that accountability of directors can
be enhanced. The task of supervision of the company is handed over to them or an
outside directors can be employed in case of failure in achieving targets.
3. The board of directors appoint a chief operating officers so that important agenda
regarding implication of corporate governance can be addressed. He is provided with an
opportunity to instruct and supervise executive officers working under him. The adoption
of corporate officer system for Excel Auto makes sure that decisions are formulated at a
rapid pace in an organisation. They ensures that decisions by board of directors are
executed on the corporation.
4. There is an remuneration committee formed alongside board of directors which is
provided with a task to advise them on various grounds such as business ethics, CSR and
ideal remuneration to employees. To advise the same it is essential for them to possess
necessary data on the grounds such as company's motto, objectives, principles, laws and
regulation regarding ideal conduct by business.
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(Source: Corporate Governance system, 2017)
Excel Auto have formed this system so that laws and regulation are abided in the right
manner and to enhance capability to cope with different legislations in the operating nations. The
improvement in supervision and control measure will make sure that there is an ideal use of
resources and objectives of the company are fulfilled in a timely manner (Peppard and Ward,
2016).
The Volkswagen Group has shown commitment when it comes to corporate social
responsibility and sustainability. This mega car manufacturer have opted for a transparent and
responsible corporate governance. Volkswagen group encompasses 12 brands manufactured in
119 locations around the globe. Organisation have always emphasized on keeping the three
factors at an equal priority. This company wishes to create something of value which is
environment friendly and able to provide company with adequate finances. This institution faced
a rough time with emission scandal and are now more inclined to restore their original brand
image in the market. Supervisory committee have been looking for approaches to identify
measures through which sustainability of the company can be restored.
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Illustration 2: Corporate Governance system

It can be ascertained from the above financial statement of the company that debts equity
ratio which was 25% in 2011 decreased up to 23.10 which shows that company redeemed its
share capital and called up its share till 2015. as per administrative expenses there is a rate of
return get increased on assets from 21.5% to 23.1%. As per financial division the rate of fixed
assets and return of get decreased 13.9 from 22.5 it is due to decrease in tax rates equity share
capital ration increased from 10.1% to 11.9%.
CONCLUSION
It can be concluded from above report that it is essential for a business to opt for
sustainability measures if a business wishes to operate in the market for longer duration. The
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main factors which are to be considered in sustainability approach are environment, social and
economic measures. The cited organisation have opted for a strategy to deliver hybrid cars to the
market which have less emission and lower fuel consumption. The corporate governance defines
set of rules and practices adopted by the management so that its goal and objectives are fulfilled.
This is determined with financial performance of an organisation so that its influence on the
income statement of the company can be identified.
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REFERENCES
Books and Journal
Chang, C. H., 2011. The influence of corporate environmental ethics on competitive advantage:
the mediation role of green innovation. Journal of Business Ethics. 104(3), pp.361-370.
David, F. R., 2011. Strategic management: Concepts and cases. Peaeson/Prentice Hall.
Helfat, C. E. and Winter, S. G., 2011. Untangling dynamic and operational capabilities: Strategy
for the (N) ever‐changing world. Strategic management journal. 32(11), pp.1243-1250.
Li, D. Y. and Liu, J., 2014. Dynamic capabilities, environmental dynamism, and competitive
advantage: Evidence from China. Journal of Business Research. 67(1), pp.2793-2799.
Madsen, T. L. and Walker, G., 2015. Modern competitive strategy. McGraw Hill.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Peteraf, M. and et al., 2014. Essentials of strategic management: The quest for competitive
advantage. McGraw-Hill Education.
Online
Chamberlain,. A. 2016. Sustainability management system: The Triple Bottom Line. [Online].
Available through: <https://info.era-environmental.com/blog/bid/40788/sustainability-
management-system-the-triple-bottom-lines>.
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