Strategic Management Report: Analysis of UK Motorcycle Industry Trends

This report provides a comprehensive analysis of the strategic management within the UK motorcycle industry. It begins with an introduction highlighting the industry's economic contributions and market segmentation, followed by an examination of the competitive context and key external factors influencing performance. The report then delves into a PESTEL analysis, exploring the political, economic, social, technological, environmental, and legal factors impacting the industry. It identifies various business opportunities arising from these factors, such as market growth and employment. The report concludes by summarizing the key findings, emphasizing the importance of analyzing the external environment for sustainable success. The report also includes appendices with additional details and references to support the analysis.

RUNNING HEAD: STRATEGIC MANAGEMENT 0
Strategic Management

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Table of Contents
Introduction..........................................................................................................................................2
Task-1...................................................................................................................................................2
Task-2...................................................................................................................................................2
Task- 3.................................................................................................................................................4
Conclusions.........................................................................................................................................4
Bibliography.........................................................................................................................................5
Appendix..............................................................................................................................................6
Appendix 1.......................................................................................................................................6

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Introduction
In the United Kingdoms, the motorcycle industry offers big contributions to the
economy with the highest turnover in manufacturing. The market review analysis is
being divided into three sectors as motorcycles, scooters, and mopeds. They also
deal in making components of motorcycle from time to time, produce engines and
other parts with the accessories such as saddles. There is a high level of
concentration in manufacturing and that has occupied around half of the market with
super sport models. There is an experience of significant growth over the last 20
years and there is an increase in overall demand for motorcycles in the UK. The
profitability with the evolving industry has a competitive landscape with its marketing
strategies and certainty in the global market. The external market always influences
high performances and high-quality products with domestic as well as international
countries. Competitive context is a combination of all the external factors which
affects the internal structure of the manufacturing industry (The UK Motorcycle
Industry, 2019).
Task-1
The competitive context depends upon the vehicle produced in the UK in previous
year and industry contributes more than billion to the whole economy. The
production of more than seventy five million vehicles was produced in the UK and 80
per cent of that is exported in another country. Competitiveness is the aspect which
is the main ability of the business to earn profits and compete successfully to be in
non-price terms across international markets. There is impact on the country where
motorcycle industry increases the rate of growth of labour productivity. The
introduction of all external factors in business opportunities has a major role to play
in analysing recent trends in business environment at macro level.
Task-2
In UK, motorcycle manufacturing deals in all recent trends in their business
environment and with identification of various opportunities in upcoming years.
Pestel of UK motorcycle manufacturing company is based on the factors that affect
the internal and external environment. Pestel is a strategic tool that covers political,
economic, social, environmental, legal and technological factors in the UK
manufacturing industry Changes in the macro environment have a direct impact on
the motorcycle holdings in the UK. Porter five analyses help to shape the strategies
and competitive landscape of the company structures. This impact is on individual
and all the motorcycle manufacturing industry and their profitability levels of the
retailing industries. For example, the industry with high profits and strong growth of
motorcycle holdings limited if it is sustained in the relevant unsustainable political
environment (Motorcycle Holdings Limited PESTEL & Environment Analysis, 2019).
Political factors – It determines the factors that directly impact on manufacturing
industry as long term profits in the whole markets. The various factors that affect the

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manufacturing industry are risk of military invasion, interference of government
regulations, legal framework for enforcement of the contracts, intellectual property
protection, taxation system, wage legislation, changes in mandatory employee
benefits, product labelling and industry safety regulations. These are the political
factors which are present in macro environment. The changes in government
policies directly impact on whole motorcycle industry and they have to face many
internal changes in the company structure.
Economic Factors – This is in direct relation to all the variations in the economy
related to factors like inflation rates, foreign exchange rates, aggregate demand,
saving rates and few interferences of government in the manufacturing industry. The
business cycle stage which covers recovery, recession, prosperity, unemployment
rates and rates of inflations. In the motorcycle industry, they have to face such major
issues from the macro-economic environment as economic impact affects the whole
scenario of the manufacturing industry. The foreign exchange rate is the rate where
products are exchanged with the country currency and sometime company deals in
loses because of the current rates in the companies (Dutta, 2019).
Social Factors – Society culture is an important factor that has a direct impact on
manufacturing industries. Shared beliefs and main attitudes of whole population in
the industry plays a great role as to how marketers at the motorcycle manufacturing
industry. The society is a combination of demographics, class structure, social
conventions, competitive market, and leisure interests. The perception of the
consumers changes with prevailing time and market research on daily basis. Higher
demand of product will lead to change perception of consumers in buying behaviour
(Services, 2019)
Technological Factors – Technology is the upgraded form of disrupting and
increasing the aspects in a macro business environment. With the changes in the
competitive market of technology, the motorcycle industry also lacks behind if there
is no use of upgraded technology. The recent technological development in other
companies has a direct impact on motorcycle manufacturing industry. Rate of
technological diffusion may impact on cost structures and it is a biggest factor that
affects manufacturing industry. If there is use of less upgraded technologies, the
company will eventually fall for losses with their competitors in the market.
Environmental Factors - Motorcycle manufacturers are directly affected by climate
changes, bad weather, changes in law regulations and attitudes towards ecological
products. They have to fight with the surrounding environment and stand with their
choices to promote their products of motorcycle manufacturing.
Legal Factors - In the UK, the legal framework interaction with manufacturing
industries is not robust enough to protect the intellectual properties in any industries.
Discrimination law, copyrights, patents, employment law, health, and safety law are
all the legal factors that have an impact on motorcycle manufacturing industries.
There is lack of health and safety benefits to employees in the industry, this directly

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impact health of the consumers. It leads to change perception of employee to switch
to other companies where they get more health and safety measures.
Task- 3
Business opportunities which are presented in a business environment play an
important role as this directly impacts on motorcycle industry. The first business
opportunity is growing with the motorcycle market in all over country and those
results in providing employment opportunities to many people in the UK. An
employment opportunity provides many substitutes to many people in the industry
and plays a vital role in providing employment to many people. The second business
opportunity which is presented in the macro business environment of the
manufacturing industry is entrances of other country products in the UK and their
increase in profits. Trends and all the emerging channels, existing distributions
channels, and channel power structures are also considered in business
opportunities of the environment in macro environment. Changes in the market are
important because they are the real source of opportunities in every business which
is established on large scale. So, these are the business opportunity which is
presented in macro business environments (Ivanova, 2019).
Conclusions
With this report we can conclude that motorcycle manufacturing industry has a
competitive context throughout its external macro business environment. The
consisting factors in external environment depend upon political, economic, social,
technological, environmental and legal factors. They all have different role to play in
providing business opportunities in macro business environment. In considering all
these business opportunities in the market, one must use to analyse external
environment for higher opportunities to sustain.

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Bibliography
Dealers optimistic that motorcycle market will perform well in 2019. (2019, June 27). Retrieved from
NMDA : https://www.rmif.co.uk/en/bulletins/364
Developing the motorcycle engineers of tomorrow. (2019, June 27). Retrieved from British
Motorcycle : http://www.britishmotorcycleacademy.co.uk/
MARKETING THEORIES – PESTEL ANALYSIS. (2019, June 20). Retrieved from Professional Academy :
https://www.professionalacademy.com/blogs-and-advice/marketing-theories---pestel-
analysis
Motorcycle Holdings Limited PESTEL & Environment Analysis. (2019, June 20). Retrieved from Fern
Fort University: http://fernfortuniversity.com/term-papers/pestel/nyse4/6101-motorcycle-
holdings-limited.php
Motorcycle Manufacturing - UK Market Research Report. (2019, June 27). Retrieved from IBIS
World : https://www.ibisworld.co.uk/industry-trends/market-research-reports/
manufacturing/manufacture-of-other-transport-equipment/motorcycle-manufacturing.html
The UK Motorcycle Industry. (2019, June 20). Retrieved from www.mcia.co.uk:
http://motorcycleguidelines.org.uk/wp-content/uploads/2013/08/Motorcycle-Industry-
Manufacturing-Public-Policy.pdf
Ivanova, K. (2019, June 20). Market Potential Analysis. Retrieved from Theseus:
https://www.theseus.fi/bitstream/handle/10024/96160/Ivanova_Kristina.pdf?
sequence=1&isAllowed=y
Schoenberg, R. (2019, June 27). Strategies for business turnaround and recovery: a review and
synthesis. Retrieved from Emerald Insight:
https://www.emeraldinsight.com/doi/abs/10.1108/09555341311314799
Services, I. C. (2019, June 20). Economic Benefits of the UK Motor Cycle. Retrieved from MCIA:
http://mcia.co.uk/admin/images/uploaded_images/[press-release-25]Economic-Benefits-of-
the-UK-Motor-Cycle-Industry-2014---Final-Report-2%20(10).pdf

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Appendix
Appendix 1
Political
 Interferences of government
regulations.
 Changes in Government Policies
and rules.
Economic
 Recovery and Recession Period.
 Foreign Exchange Rates
 Inflation Rates
Socio-culture
 Customer preferences change
with time and according to the
lifestyle of people.
 Industry believes in the charity
which leads the social benefits.
 Higher demand of benefitted
products to consumers.
Technological
 Rate of Technological Diffusions
 Advance technology used by the
industries for the marketing and
promotion purpose.
Legal
 Discrimination and Employment
law should have more priorities.
These laws need to be take care
by the industry.
 Safety measures for the health of
people in overall development.
Environmental
 In the manufacturing industry
waste management and water
should be taken care.
 The various measures for the
change in weather, ecological
products should be considered for
the better control.