Learning outcomes. Upon successful completion of this module, it is expected that the student would demonstrate: Knowledge K1. Understanding of the complexity of organisation’s current and future...

STRATEGIC MANAGEMENT
Executive Summary
This report, which has been produced as a senior business consultant working for Armani Business Solutions (ABS) Limited, has provided a detailed business plan for ABS limited in the UK market as an automobile company that can use a strategic partnership for entering into the foreign market. The environmental factors that can affect the business such as the Brexit movement or green trade policy of the prime minister have been discussed by addressing the potential threats in the environment and the strength of the market has even been analysed.
There are generic differentiation strategies that have been recommended for the company for availing the competitive advantage over other types of strategies that can be beneficial. Porter's generic strategies have been also listed along with choosing a particular strategy that will be most suitable for the chosen business in the chosen country. The regular indicator for business success measurement with areas of improvement has been discussed as a part of the business plan.
Table of Contents
Executive Summary    2
Introduction    5
1.    5
PESTLE Analysis    5
Political    5
Economic    5
Social    6
Technological    6
Environmental    7
Legal    7
SWOT Analysis    7
Strengths    7
Weaknesses    7
Opportunities    7
Threats    7
2.    8
Option 1: Exporting    8
Option 2: Joint Venture    8
Option 3: Foreign Direct Investment    8
Suitability of Option 2: Joint Venture    9
3.    10
Standardisation    10
Adaptation    10
4.    10
Porter's Generic Strategy    10
Cost Leadership    11
Differentiation Strategy    11
Focus Strategy    12
Most Suitable for the Company: Differentiation Strategy    12
5.    12
Customer Satisfaction    13
New Customer Addition    13
Performance Reviews    13
Conclusion    14
References    15
Introduction
This Report has been produced as a senior business consultant working for Armani Business Solutions (ABS) Limited, which is planning to open a new business in the UK market as an automobile company manufacturing cars for their customers. A detailed analysis of the external environment of the UK has been done through PESTLE analysis that has provided an overview of the potential threats and opportunities to be considered in the SWOT analysis part.
The modes of market entry that would be suitable for the company along with other types of market entry methods have been mentioned through critical analysis. Porter's generic strategies have been also listed along with choosing a particular strategy that will be most suitable for the chosen business in the chosen country. The regular indicator for business success measurement with areas of improvement has been discussed as a part of the business plan.
1.
PESTLE Analysis
    Elements
    Factors
    Influence
    Political
    The carbon emission limit by the government for the maintenance of the environment by the provision of subsidy has helped the companies to produce low emission cars (Government of UK, 2020).
The Brexit movement has challenged the automobile industry by creating uncertainty about the goods in the future (The New York Times, 2021).
    A high rate of carbon remission in car production will harm the environment and this will be not aligned with the government rules and regulations.
A great fall in the demand for products in the EU can be threatening for the company that is going to launch its business in the UK.
    Economic
    The interest rate has increased in the UK by 0.1% and the inflation rate has even been higher than usual (The Guardian, 2021).
The demand for cars and automobile goods has enhanced due to the use of renewable energies for its production.
    As the interest rate and inflation rate have increased, the purchasing capacity of people has decreased and there are fewer opportunities for the industry in the coming days.
Renewable energy utilisation is great for the planet, which can be an added advantage if the company uses that source for energy production.
    Social
    The UK is a developed country where owning a personal car by every individual is not a big deal.
The shift, in the demand for luxury items, due to the economic crisis in the UK, has caused a shift in the demand for such items in the market. The purchasing power of people has gone down by 0.7 LCU (Knoema, 2020).
    Automobile products such as cars are greatly demanded usually by the UK population and that can be a great market for product sales of the company.
The daily essential items are the primary needs of people amidst the financial loss that is present worldwide. That is why it will be tough for the company initially to gain profits and reach the break-even point.
    Technological
    Advanced safety and self-driving cars are in high demand that is a great innovation in the marketplace, which is being preferred by high-end customers.
If the safety measures are not taken properly in producing the cars that can be detrimental for the industry.
    The advancement of the technical department and research and development of innovative measures can make the company stand out in the UK market.
The reduction of the chances of collision by the cars can be helpful and advantageous for the company.
    Environmental
    The prime minister has set out the green trade goal for the maintenance of environmental sustainability in the UK.
    Production of cars with less or no carbon emission for achieving the green trade goal can be an added benefit for the company as well as being eco-friendly.
    Legal
    Copyright issues are a great challenge in the automobile industry where a slight violation can lead to facing great barriers in the future.
    Stealing any designs or logos from others can hurt the company so before coming up with any logo design they should research the market for the existing ones to avoid the chances of a conflict.
Table 1: PESTLE Analysis for Car Business in UK Automobile Industry
SWOT Analysis
    Strengths
· The advancement of technology in the automobile industry with high-speed car attracts new customers
· Abiding by the carbon emission rules and green trade agenda can be helpful in sustainable environmental goals attainment as well as business expansion
    Weaknesses
· The purchasing power of individuals has lowered down and focus has been shifted to essential goods right now in the UK
· Brexit movement has already caused restrictions of business in the UK
    Opportunities
· The political stability of the UK can be a great scope for companies to flourish in the environment
· Strategic planning with companies, with the potential technological background, can act as an opportunity for the business expansion
    Threats
· The current pandemic situation acts as a threat itself for any business that wants to extend
· The upcoming new entrants such as NKLA and BYD constantly working on innovation can be potential competition
Table 2: SWOT Analysis for Car Business in UK Automobile Industry
2.
Option 1: Exporting
The direct selling of goods and services in a foreign country for entering a new market at low risk is called exporting (Masso and Vahter, 2015). This can be cost-efficient as no investment is there in the production of the goods. The items are being generated in the home country and on-demand these are supplied in the foreign country. There are transportation costs if the market that has been in the foreign is not a niche market then the demand for the goods will not be high and therefore the bulk transportation and cost reduction will not be possible.
The cost for exportation comes from marketing expenses where your parties will be involved whether they are a business or the company itself, the transport provider, the importer and government of the foreign country/ the permission and regulation regarding the overseas transportation must even be considered. The law regarding the goods and the liabilities can also be checked before taking part in such a type of business strategy.
Option 2: Joint Venture
Two...