FDM Report B
FDM Report B
FDM Report B
BENTLEY MOTORS
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Submitted By:
Sanidhya Ranpara
92100425064 Div-B
Submitted To:
Prof. Bhavyarajsingh Jhala
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ACKNOWLEGMENT
I would like to express my special thank of gratitude to Prof. Alpesh Ganatra for their able
guidance and support in completing this project. Who gave this opportunity which help us to
know something which has complete new and valuable things. Secondly, I would like to
thank my parents and friends who helped me a lot in finishing this project within a limited
time.
I am making this project not only for marks but to also increase my knowledge, Thanks again
to all who helped me in this project.
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INDEX
1 INTRODUCTION 4
2 HISTORY 7
3 CASE STUDY 31
4 FACTS 38
5 SWOT ANALYSIS 41
6 CONCLUSION 43
7 REFERENCES 44
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INTRODUCTION
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Today most Bentley models are assembled at the company's Crewe factory, with a small
number assembled at Volkswagen's Dresden factory, Germany,[17] and with bodies for the
Continental manufactured in Zwickau and for the Bentayga manufactured at the Volkswagen
Bratislava Plant.
The joining and eventual separation of Bentley and Rolls-Royce followed a series of mergers
and acquisitions, beginning with the 1931 purchase by Rolls-Royce of Bentley, then in
receivership. In 1971, Rolls-Royce itself was forced into receivership and the UK
government nationalised the company—splitting into two companies the aerospace division
(Rolls-Royce Plc) and automotive (Rolls-Royce Motors Limited) divisions—the latter
retaining the Bentley subdivision. Rolls-Royce Motors was subsequently sold to engineering
conglomerate, Vickers and in 1998, Vickers sold Rolls-Royce to Volkswagen AG.
Intellectual property rights to both the name Rolls-Royce as well as the company's logo had
been retained not by Rolls-Royce Motors, but by aerospace company Rolls-Royce Plc, which
had continued to license both to the automotive division. Thus the sale of "Rolls-Royce" to
VW included the Bentley name and logos, vehicle designs, model nameplates, production,
and administrative facilities, the Spirit of Ecstasy and Rolls-Royce grille shape trademarks
(subsequently sold to BMW by VW)—but not the rights to the Rolls-Royce name or logo.
The aerospace company, Rolls-Royce Plc, ultimately sold both to BMW AG.
Type Subsidiary
Industry Automotive
H. M. Bentley
Founders
W. O. Bentley
Fate 1931: acquired by Rolls-Royce
Limited
1980: acquired by Vickers
1998: acquired by Volkswagen
Group[1]
Headquarters Crewe
,
England[2]
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Key people Adrian Hallmark
Chairman, CEO[3]
John Paul Gregory
(Head of Exterior Design)[4]
Darren Day
(Head of Interior Design)[5]
Parent Audi
Website bentleymotors.com
History
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Cricklewood (1919–1931)
Before World War I, Walter Owen Bentley and his brother, Horace Millner Bentley, sold
French DFP cars in Cricklewood, North London, but W.O, as Walter was known, always
wanted to design and build his own cars. At the DFP factory, in 1913, he noticed
an aluminium paperweight and thought that aluminium might be a suitable replacement for
cast iron to fabricate lighter pistons. The first Bentley aluminium pistons were fitted
to Sopwith Camel aero engines during the First World War.
The same day that the Paris Peace Conference to end World War I started, Walter Owen
("W.O.") Bentley founded Bentley Motors Limited, on January 18, 1919 and registered
Bentley Motors Ltd. in August 1919. In October he exhibited a car chassis (with a dummy
engine) at the London Motor Show. Ex–Royal Flying Corps officer Clive Gallop designed an
innovative four-valves-per-cylinder engine for the chassis. By December the engine was built
and running. Delivery of the first cars was scheduled for June 1920, but development took
longer than estimated so the date was extended to September 1921. The durability of the first
Bentley cars earned widespread acclaim, and they competed in hill climbs and raced
at Brooklands.
Bentley's first major event was the 1922 Indianapolis 500, a race dominated by specialized
cars with Duesenberg racing chassis. They entered a modified road car driven by works
driver Douglas Hawkes, accompanied by riding mechanic H. S. "Bertie" Browning. Hawkes
completed the full 500 miles (800 km) and finished 13th with an average speed of 74.95
miles per hour (120.62 km/h) after starting in 19th position. The team was then rushed back
to England to compete in the 1922 RAC Tourist Trophy.
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1929 Blower Bentley
The Bentley Boys were a group of British motoring enthusiasts that included Barnato, Sir
Henry "Tim" Birkin, steeple chaser George Duller, aviator Glen Kidston, automotive
journalist S.C.H. "Sammy" Davis, and Dudley Benjafield. The Bentley Boys favoured
Bentley cars. Many were independently wealthy and many had a military background. They
kept the marque's reputation for high performance alive; Bentley was noted for its four
consecutive victories at the 24 Hours of Le Mans, from 1927 to 1930.
Birkin developed the 4½-litre, lightweight Blower Bentley at Welwyn Garden City in 1929
and produced five racing specials, starting with Bentley Blower No.1 which was optimised
for the Brooklands racing circuit. Birkin overruled Bentley and put the model on the market
before it was fully developed. As a result, it was unreliable.
During the March 1930 Blue Train Races, Barnato raised the stakes on Rover and its Rover
Light Six, having raced and beaten Le Train Bleu for the first time, to better that record with
his 6½-litre Bentley Speed Six on a bet of £100. He drove against the train
from Cannes to Calais, then by ferry to Dover, and finally London, travelling on public
highways, and won.
Barnato drove his H.J. Mulliner–bodied formal saloon in the race against the Blue Train. Two
months later, on 21 May 1930, he took delivery of a Speed Six with streamlined fastback
"sportsman coupé" by Gurney Nutting. Both cars became known as the "Blue Train
Bentleys"; the latter is regularly mistaken for, or erroneously referred to as being, the car that
raced the Blue Train, while in fact Barnato named it in memory of his race. A painting
by Terence Cuneo depicts the Gurney Nutting coupé racing along a road parallel to the Blue
Train, which scenario never occurred as the road and railway did not follow the same route.
Cricklewood Bentleys
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Bentley 8 Litre 4-door sports saloon
1921–1929 3-litre
1926–1930 4½-litre & "Blower Bentley"
1926–1930 6½-litre
1928–1930 6½-litre Speed Six
1930–1931 8-litre
1931 4-litre
The original model was the three-litre, but as customers put heavier bodies on the chassis, a
larger 4½-litre model followed. Perhaps the most iconic model of the period is the 4½-litre
"Blower Bentley", with its distinctive supercharger projecting forward from the bottom of the
grille. Uncharacteristically fragile for a Bentley it was not the racing workhorse the 6½-litre
was, though in 1930 Birkin remarkably finished second in the French Grand Prix at Pau in a
stripped-down racing version of the Blower Bentley, behind Philippe Etancelin in a Bugatti
Type 35.
The 4½-litre model later became famous in popular media as the vehicle of choice of James
Bond in the original novels, but this has been seen only briefly in the films. John Steed in the
television series The Avengers also drove a Bentley.
The new eight-litre was such a success that when Barnato's money seemed to run out in 1931
and Napier was planning to buy Bentley's business, Rolls-Royce purchased Bentley Motors
to prevent it from competing with their most expensive model, the Phantom II.
Performance at Le Mans
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Bentley Speed Six
Liquidation
The Wall Street Crash of 1929 and the resulting Great Depression throttled the demand for
Bentley's expensive motor cars. In July 1931 two mortgage payments were due which neither
the company nor Barnato, the guarantor, were able to meet. On 10 July 1931 a receiver was
appointed.
Napier offered to buy Bentley with the purchase to be final in November 1931. Instead,
British Central Equitable Trust made a winning sealed bid of £125,000. British Central
Equitable Trust later proved to be a front for Rolls-Royce Limited. Not even Bentley himself
knew the identity of the purchaser until the deal was completed.
Barnato received £42,000 for his shares in Bentley Motors. In 1934 he was appointed to the
board of the new Bentley Motors (1931) Ltd. In the same year Bentley confirmed that it
would continue racing.
Rolls-Royce (1931–1970)
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Derby
1933–1937 3½-litre
o 1936–1939 4¼-litre
1939–1941 Mark V
o 1939 Mark V
Crewe
In preparation for war, Rolls-Royce and the British Government searched for a location for
a shadow factory to ensure production of aero-engines. Crewe, with its excellent road and rail
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links, as well as being located in the northwest away from the aerial bombing starting in
mainland Europe, was a logical choice. Crewe also had extensive open farming land.
Construction of the factory started on a 60-acre area on the potato fields of Merrill's Farm in
July 1938, with the first Rolls-Royce Merlin aero-engine rolling off the production line five
months later. 25,000 Merlin engines were produced and at its peak, in 1943 during World
War II, the factory employed 10,000 people. With the war in Europe over and the general
move towards the then new jet engines, Rolls-Royce concentrated its aero-engine operations
at Derby and moved motor car operations to Crewe.
Standard Steel saloons
Bentley Mark VI standard steel saloon, the first Bentley supplied by Rolls-Royce with a
standard all-steel body
Until some time after World War II, most high-end motorcar manufacturers like Bentley and
Rolls-Royce did not supply complete cars. They sold rolling chassis, near-complete from the
instrument panel forward. Each chassis was delivered to the coachbuilder of the buyer's
choice. The biggest specialist car dealerships had coachbuilders build standard designs for
them which were held in stock awaiting potential buyers.
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Bentley Continental, fastback coupé body by H J Mulliner
The Continental fastback coupé was aimed at the UK market, most cars, 164 plus a prototype,
being right-hand drive. The chassis was produced at the Crewe factory and shared many
components with the standard R type. Other than the R-Type standard steel saloon, R-Type
Continentals were delivered as rolling chassis to the coachbuilder of choice. Coachwork for
most of these cars was completed by H. J. Mulliner & Co. who mainly built them in fastback
coupe form. Other coachwork came from Park Ward (London) who built six, later including a
drophead coupe version. Franay (Paris) built five, Graber (Wichtrach, Switzerland) built
three, one of them later altered by Köng (Basel, Switzerland), and Pininfarina made
one. James Young (London) built in 1954 a Sports Saloon for the owner of James Young's,
James Barclay.
The early R Type Continental has essentially the same engine as the standard R Type, but
with modified carburation, induction and exhaust manifolds along with higher gear ratios.
[37] After July 1954 the car was fitted with an engine, having now a larger bore of 94.62 mm
(3.7 in) with a total displacement of 4,887 cc (4.9 L; 298.2 cu in). The compression ratio was
raised to 7.25:1.
Crewe Rolls-Royce Bentleys
Standard-steel saloon
o 1946–1952 Mark VI
o 1952–1955 R Type
Continental
o 1952–1955 R Type Continental
S-series
o 1955–1959 S1 and Continental
o 1959–1962 S2 and Continental
o 1962–1965 S3 and Continental
T-series
o 1965–1977 T1
o 1977–1980 T2
1971–1984 Corniche
1975–1986 Camargue
Vickers (1970–1998)
The problems of Bentley's owner with Rolls-Royce aero engine development, the RB211,
brought about the financial collapse of its business in 1970.
The motorcar division was made a separate business, Rolls-Royce Motors Limited, which
remained independent until bought by Vickers plc in August 1980. By the 1970s and early
1980s Bentley sales had fallen badly; at one point less than 5% of combined production
carried the Bentley badge. Under Vickers, Bentley set about regaining its high-performance
heritage, typified by the 1980 Mulsanne. Bentley's restored sporting image created a renewed
interest in the name and Bentley sales as a proportion of output began to rise. By 1986 the
Bentley:Rolls-Royce ratio had reached 40:60; by 1991 it achieved parity.
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1984 Bentley Mulsanne Turbo
1997 Bentley Brooklands
1984–1995 Continental: convertible
o 1992–1995 Continental Turbo
1980–1992 Bentley Mulsanne
o 1984–1988 Mulsanne L: limousine
o 1982–1985 Mulsanne Turbo
o 1987–1992 Mulsanne S
1984–1992 Eight: basic model
1985–1995 Turbo R: turbocharged performance version
1991–2002 Continental R: turbocharged 2-door model
o 1994–1995 Continental S: intercooled
o 1996–2002 Continental T
o 1999–2003 Continental R Mulliner: performance model
1992–1998 Brooklands: improved Eight
o 1996–1998 Brooklands R: performance Brooklands
1994–1995 Turbo S: limited-edition sports model
1994–1995 Continental S: to order only version of Continental R with features of Turbo
S incorporated
1995–1997 New Turbo R: updated 96MY Turbo R with revised bumpers, single front
door glazing, new door mirrors, spare in trunk, engine cover, new seat design, auto lights,
auto wipers etc.
1995–2003 Azure: convertible Continental R
1996–2002 Continental T: short-wheelbase performance model
1997–1998 Turbo RL: "new" Turbo R LWB (Long Wheel Base)
1997–1998 Bentley Turbo RT: replacement for the Turbo RL
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o 1997–1998 RT Mulliner: Ultra exclusive performance model
Volkswagen (1998–present)
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continue to supply engines and components and would allow Volkswagen temporary use of
the Rolls-Royce name and logo. All BMW engine supply ended in 2003 with the end of
Silver Seraph production.
From 1 January 2003 forward, Volkswagen AG would be the sole provider of cars with the
"Bentley" marque. BMW established a new legal entity, Rolls-Royce Motor Cars Limited,
and built a new administrative headquarters and production facility for Rolls-Royce branded
vehicles in Goodwood, West Sussex, England.
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2017 Bentley Bentayga diesel
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suffered an operating loss of €194 million, compared with an operating profit of €10 million
in 2008. As a result of the slump in sales, production at Crewe was shut down during March
and April 2009.[citation needed] Though vehicle sales increased by 11% to 5,117 in 2010,
operating loss grew by 26% to €245 million. In Autumn 2010, workers at Crewe staged a
series of protests over proposal of compulsory work on Fridays and mandatory overtime
during the week.
Vehicle sales in 2011 rose 37% to 7,003 vehicles, with the new Continental GT accounting
for over one-third of total sales. The current workforce is about 4,000 people.
The business earned a profit in 2011 after two years of losses as a result of the following sales
results:
On 23 March 2020, Bentley announced to halt production due to COVID-19 pandemic.
[47] In June 2020, Bentley announced that it will cut around 1,000 (one quarter of 4,200) job
places in the UK as a result of the COVID-19 pandemic.
On 3 November 2020, Bentley announced that all new cars sold will be electric by 2030. This
announcement also follows after the United Kingdom Prime Minister Boris
Johnson announced in February 2020 that he approved legislation that will ban and phase out
fuel combustion vehicles (including Hybrid and Plug-in Hybrid vehicles) from the UK by
2030 with hybrids being banned by 2035.
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The Bentley Logo and Its History
Let’s explore the Bentley logo and some history behind the British carmaker.
“To build a good car, a fast car, the best in its class.”
Walter Owen Bentley made the quote above. It summarizes his inner desire and vision to
dominate the superhighways with a superb car that defines performance. He put his thought
and engineering skills into action, and Bentley was born in 1919. He was 31 years old then.
The flying brand, Bentley, is a British automaker that uses the finest materials to build
unusual cars for exceptional people. Bentley is not a car for everyone; it’s a superb product
for the elites. Its models include the continental range, the new bentayga, the flying spur, and
the Mulliner. The classic Bentley logo with the wings says a lot about the car and brand.
They rise above others.
Walter Bentley’s quest for a high–performance car led to the hunt for a cute mascot. He
needed a visual identity that would embody the charisma of his beautiful cars. Once again,
his thought came to fruition. He got one of the desirable and recognizable trademarks in the
world.
For over a hundred years, Bentley has kept a sleek mascot with a mystic style and taste. The
design took inspiration from an ancient old religious symbol. It comprises the letter—B, the
initial of the founder, and wings around it. These wings depict the three-pointer parts of a
bird.
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The Evolution of Bentley’s Logo
The emblem of the sky has kept its flying ability with no update. For slightly over a century,
its owners seem to be content with its overall outlook and emotions. Interestingly, this
century-old logo is awe-inspiring, practical, elegant, and modern.
1919 – Now:
The ancient look-alike emblem, Bentley, comes in the three-pointer parts of a bird. This
includes the left-wing, the right-wing, and the tail wing. These winged parts are neatly
featured on two oval frames, making the design style mirror the winged solar disc. To further
decorate the trademark, the letter—B on a circular frame assumed the central part of the
design. Bentley’s logo looks exquisite, majestic, and professional.
The design element that gives Bentley’s a luxurious and mysterious identity remains
unchanged for over ten decades. To keep its traditional attitude, the logo features a sans-serif
typeface that is very similar to ITC Blair Bold. Jim Spiece, a typographer, designed this clean
and readable font.
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Who Designed Bentley’s Logo?
From all angles, Bentley’s emblem is a masterpiece of art and a symbol of mystery. It shows
the touch of a professional graphic director. Interestingly, Frederick Gordon Crosby designed
the winged logo in flight. The logo suits the personality of the British automaker.
One essential part of a logo design is readability. It easily connects customers to the brand’s
personality. Bentley’s logo design is highly legible because it has a clean typeface that flies
with it. You can’t miss this bold sans–serif font on any marketing medium.
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2. The Emblem Is Unique:
Flying above the storm is a vital requirement you shouldn’t overlook with your logo design.
To make it easy for customers to identify your brand from rivals, your visual assets must
differ. With carefully selected graphic elements, Bentley’s logo is exceptional in the market.
Customers are widely scattered. But companies need to reach them with their goods and
services. To solve this challenge, a logo with a simple layout is the solution. With a modest
form, Bentley’s trademark is versatile. It can boldly fit any promotional channel with ease.
Bentley’s logo design is relatively modest. It has few graphic features, which makes it classic
and easy to understand. The icons, typeface, and colors are in the correct ratio. Customers are
more likely to pick a simple emblem over a detailed one because they have less time to
spend.
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Bentley’s logo is timeless. It has kept a unique identity for over a hundred years. This is not a
mere achievement. It’s the result of a conscious effort in its selection of elements. Consistent
builds trust and, with time, makes brands authoritative. This is a feature of all iconic logos.
To convey the brand’s unique feelings, Frederick Crosby opted for suitable graphic elements
that send the right messages to Bentley’s ideal audiences. To avoid complicating the design,
he went for fewer design elements. Let’s look at these graphic elements below:
The boldly written letter—B is one of the outstanding graphic features in the flying logo. It
stands for the brand’s identity, which was coined from the founder’s surname, Bentley. This
second letter of the English alphabet can also convey the energy of bravery, beauty,
benevolence, and the status of being a billionaire. These are the precise charisma of Bentley.
2. Wings:
Wings align with creative energy. Most people link them to the mystical world. Here, they
associate them with angels, demons, and spirits. In the physical world, wings can symbolize
mobility, speed, freedom, and power. As decorative elements around the initials—B, they
move the brand into flight and give it the ability to soar without help.
Oval frames adorn the emblem beautifully. They hold all the dazzling design elements in
perfect positions. This includes the letter—B and the wings. An oval represents rebirth,
fertility, and immortality. It can also convey community, unity, and love. An oval is gotten
from ovum, a Latin word for an egg.
Too much power isn’t always good. People will perceive you as an oppressor. Often, you
need to tone down this emotion to win the hearts of many. And white is the perfect color to
neutralize this powerful persona. White conveys the energy of purity, protection, and
humility.
The color black is a two-edged sword. It can convey both positive and negative feelings.
Bentley used it to evoke the sense of elegance, power, and mystery. The color can also speak
highly of fear, death, rebellion, and aggression. Black is a color of wealth and leadership.
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As a valuable metal, Silver symbolizes wealth. It’s one of the lively colors that beautifies
Bentley’s emblem. Silver color represents mystic vision, hope, and tenderness. It can also
evoke the power of unconditional love, kindness, and elegance.
Red color always finds itself in Bentley’s sophisticated models. It features on the circular
frame that houses the iconic letter—B. Red, an attention-grabbing and primary color is a fire–
oriented hue. Bentley used this lustful color to symbolize the energy of love, joy, willpower,
and strength.
In line with models, you’ll find the green color on Bentley’s racing cars. Unlike red, green is
a secondary color that results from the mixture of blue and yellow. It’s an earthly color that
symbolizes adventure, health, and harmony. Green is a color of renewal.
Known as W.O., Walter Owen Bentley was born in London in 1888. His parents were Emily
nee Waterhouse and Alfred Bentley, a renowned business person. Out of nine children, he
was the youngest sibling. From 1902 to 1905, W.O attended Clifton College in Bristol.
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To satisfy his love for engineering, he joined Great Northern Railway in Doncaster,
Yorkshire. It was a five–year apprenticeship training that cost him £75. He was nearly 17
years of age. He learned to design, cast, and construct complex railway machinery.
Walter Bentley completed his training in 1910. At King’s College London, he took lectures in
theoretical engineering. Upon successful completion, the National Motor Cab Company
employed him. One of his routine tasks was the maintenance of the fleets.
After spending about two years with the National Cab Company, W.O founded Bentley &
Bentley Limited with his brother, Horace Bentley. The new company focused on selling
French DFP cars. DFP is the initials for Doriot, Flandrin & Parant, a French car maker in
Seine.
Walter Owen Bentley had some adventures with racing. He got involved with Quadrant, Rex,
and Indian Motorcycles. While racing in the Indian’s Motorcycle, his rear tire burst on the
second lap. Because of this unexpected incident, W.O couldn’t complete this race in 1910.
Walter Owen made massive improvements in designing and creating several aircraft engines
as a captain in the Royal Naval Air. This effort was recognized. The Commission for Awards
for inventors awarded him an MBE, which came along with £8,000.
We can say that W.O had no luck with marriage. He married three times. In 1914, Leonie
Gore, who died in the Spanish flu epidemic, became his first wife. In 1920, he married
Audrey Poppy, who divorced him in 1931. Finally, in 1934, he married Margaret Roberts
Hutton.
Walter Owen Bentley died on the 13th August 1971 in England, United Kingdom. He had no
child. W.O was inducted into the Automotive Hall of Fame in 1995.
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Model
Introduced Discontinued hideClass
Name
Luxury car
Brooklands 1992 2011
Grand tourer
Continential 1952
Luxury car
Flying Spur 2005
Ultra-luxury car
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Model
Introduced Discontinued hideClass
Name
S2 1959 1962
Luxury car
State Limousine 2002 2002
Limousine Official state car
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Crewe Volkswagen Bentleys
2016–present: Bentayga
2018–present: Continental GT (Gen 3)
2019–present: Flying Spur (Gen 3)
1998–2009: Arnage
2003–2011: Continental GT
2005–2013: Continental Flying Spur (Gen 1)
2006–2009: Azure (Gen 2)
2008–2011: Bentley Brooklands (Gen 2)
2011–2018: Continental GT (Gen 2)
2013–2019: Flying Spur (Gen 2)
2010–2020: Mulsanne
1999: Hunaudières Concept
2002: State Limousine
Motorsport
A Bentley Continental GT3 entered by the M-Sport factory team won the Silverstone round
of the 2014 Blancpain Endurance Series. This was Bentley's first official entry in a British
race since the 1930 RAC Tourist Trophy.
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CASE STUDY
1 Introduction
Before making an introduction to case study we will go through the case study material to
understand situation given in the case study to get a better understanding of this case study.
Finance Director: I am concerned about our recent financial performance and it seems to me
that we are in danger of being taken over at a bargain price. Our return on owner’s equity is
2% below the industry average and we have a large debt arising from the leverage purchase
of Security Services Inc. What we can do to improve our financial results as soon as possible
and, at the same time, convince the market that we have a long term viable future?
Marketing Manager: In my view we have an excellent portfolio and our problem are mainly
due to poor cost control. We progressed from our base in producing domestic alarm systems
into commercial systems and then acquired Security Services Inc – which provides guard and
watch services for commercial premises – that capitalized on our core skills at each stage. We
decided into diversify because the domestic market was saturated and there have been large
increases in the number of suppliers because it is now an easy business to get into as the
technology has become standardized. The commercial sector was growing due to the current
economic boom; but we have been stuck at 12% market share in the commercial systems
market and while Security Services Inc had over 300 service contracts when we acquired it,
we have not yet been able to attract any new customers.
Human Resource Manager: I should point out that I find it difficult dealing with security
personnel and this could be one reason for the fact that we don’t make much profit on the
security contracts.
CEO: If we address the short and long term issues mentioned by the finance director, then we
shall remove the incentive for anyone to take us over. But in the meantime, we should
investigate the possibility of undertaking a management buy-out (MBO).
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Bentley was successfully staying in the market since last 25 years till current times when it
started facing many problems from finance to human resources.
Its major product in past was domestic and commercial alarms later it jumped into new
business of providing door supervisors to its clients. This new acquisition did not brought
good fortune for the business and it started facing many problems most of those were related
to this new business of door supervisors. Finance position of Bentley is becoming poorer day
by day as its generating 2% less returns on investments. Its debt is increasing. It is facing new
rivals in the market. Its control over costs is becoming problematic. There are no new
customers demanding for door supervisors as its staff performance remained poor.
There can be some new targets that can help Bentley to go again into a growth and it can
meet its financial targets. As suggested by the CEO they are looking for incentives removal
that can give help to their competitors and they are also planning for going into a
management buyout.
2 Question One
Use strategic models to identify the actions the management team might take to deal
with Bentley’s short term and long term problems.
2 Answer
Bentley is a security company which was having alarm products since many years and later it
started its door supervisors business. After some time due to poor performance of its staff at
security jobs and advancement in technology its financial position started towards decline. To
make investigation of circumstances and finding some remedies for Bentley’s problems we
will make analysis using different tools.
Bentley is in a financial crisis as it is giving 2% less returns to its investors on their equity.
Therefore Bentley management should put attention towards some short term and long term
solutions for all financial matters.
They should look into their loans and try to cut those rapidly so they need to make less
payment on loans.
They should focus on human resource issue and solve it by recruiting competent staff for
their security business.
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2.2 Ansoff matrix
Ansoff’s Matrix is good tool to analyze the situation (Peter Cheverton 2005) of any company
like Bentley.
Penetration in Market
Bentley can reorganize its business in existing market by focusing on its core competencies
of alarm business. Further it can try innovative marketing strategy (Guy Masterman 2006) for
this purpose.
Development of Market
Bentley can try to capture new markets by utilization of its advantage in domestic and
commercial alarms. Further it needs to explore as many markets as it can. By going into new
markets Bentley can regain its position in the business as it was before the crises started.
Development of Product
Bentley can go and develop new alarms with better design and technology and can launch it
in its existing market. This way it can regain its customer’s confidence with use of new
technological advancement.
Diversification in Business
Bentley can also try a diversification that can be horizontal or vertical.
While in vertical diversification they can bring some changes in their sales strategies.
We can make a value chain analysis (Porter 1998) for Bentley business to see how it can
create maximum value for its products. Any company can create a better value of its product
by getting advantage over cost through cost control either in supply of raw materials, human
resource effectiveness, use of technology, or by using the economy of scale in alarms
production.
It can further reduce the cost and increase the quality by inducting efficient workforce in its
production units. Technology is another option that can bring advantage (Carr 2004) in its
value chain for its production and also in its security business. Bentley should adopt new
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advance technology to meet the challenges and competitions. That technology can be used in
both primary activities for business or in supporting activities. Further it can more focus on
effective marketing strategy and supply to markets on time.
Bentley can further try to redesign alarms with different shapes and qualities. Managers can
decide about outsourcing, they must know the firm’s strength and weakness.
3 Question Two
Is the CEO correct to conclude that these actions will remove all incentive for another
company to take over Bentley?
3 Answer
3.1 Porter Five Analysis of Company
Harvard professor Michael Porter gave the analytical tools of five forces (Porter, 2008) that
affect the companies in their businesses. These five forces, give any company’s position and
future threats profitability for its business.
Threat of Rivalry
Bentley’s rivals are companies with new technology and which have efficient work force in
security business. Competitor rivalry in this industry is very high for Bentley.
Threat of Substitute
As in security business companies are adopting new and innovative approaches. Bentley is
facing high threat from substitutes. It should put extra efforts and innovation in the business
to compete the market.
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Bargain power of Supplier
Bentley depend less on number of items as raw materials so it can face easily the bargain
power of the suppliers. For Bentley its low.
4 Question Three
If the team decides on MBO, how much should they be prepared to pay?
4 Answer
4.1 Bentley’s Management Buyouts
A management buyout is rare phenomena in businesses that mean purchase of a business or
its share by the people in management team (Rick Rickertsen 2001).
When companies are facing problems they decide to sell their business or assets some time
they feel happy to sell these shares to their own management. These managers can be good
and keen buyers as they are aware with the all details of business its strength and weakness.
When they are getting shares then main investor which is current owner can expect an extra
input from those new share holders.
Bentley can also make management buy out for its security Inc that is not performing well.
For a successful management buyout, Bentley team may require sitting and discus their future
plans. They should take their management into full confidence so they can arrange a
successful arrangement. They not must look just to secure their investment; they should keep
the vision and proper skills to modify their business and to bring improved results. Further
necessity is their keenness and assurance to encourage the management which will become
future shareholders in Bentley business, to work more passionately. There will be following
actions that necessary to be followed for successful management buyout.
Decision of proceeding
Managers of the Bentley as new investors will be enthusiastic to put their money in Bentley
with targets for gaining profits. Their likely profits in future can be high than present profits
since managers in new setup will effort more for themselves. By understanding these factors
which will be moving Bentley forward they can lay foundations for better future.
Business plans
Bentley requires being able to create money and growth in its business for short term before
they go into this kind of buyout. They need to adopt tactics that are useful in the long run;
definitely it will be a tricky business to guarantee your own management team which will
come forward for buyout about the growth.
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Arranging for the funds
Assessing the value of any business like Bentley Company is difficult affair and there are no
defined rules for going for assessment. Investors vision will be relate to different aspects of
the company. These can be some balance sheets and current profit records. It will also require
to initially putting some money into current assets of the company either to raise its capital or
to boost its performance by using different strategies that surely need some extra funding.
This funding can be arranged by existing investors or by try some loan for short terms.
Deal arrangement
We can’t set well defined rules for the management buyout. Bentley needs to ensure the
management team that at end they will be get benefits in this deal. They must mutually
arrange all financial and legal terms for finalization of the deal.
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An interactive application for Bentley Motors using a cloud-based interface
that can be constantly updated with new vehicles and info.
With an unparalleled heritage, Bentley Motors has been creating powerful, handcrafted
luxury cars at its factory in Crewe, England for 100 years.
The Problem
Bentley wanted to provide a solution for their current and prospective customers to indulge in
the brand through an interactive tablet experience.
The Solution
The Distance designed an interactive application using a cloud-based interface that can be
constantly updated with new vehicles and info. Users should be able to both embrace Bentley
Motor’s brand values and educate themselves about the products available.
The Result
The Distance developed an indulgent app that fully immersed the user in the world of Bentley
and its cars. Holding its brand values with the highest regard the app delivered an interactive
experience for iPad and Android tablet users around the world.
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Interesting Facts About Bemtley
1) Bentley Motors was founded in 1919 by famous British constructor and an
engineer ,Walter Owen Bentley. His mission statement is as true today as it was then “To
build a good car, a fast car, the best in its class”
2) The 1920 Bentley EXP 1 was the first Bentley car ever made while the 1920 Bentley EXP
is the oldest surviving Bentley, the second ever made and the first to win a race.
See: Who Owns Who? World’s Largest Automakers And Car Brands They Currently Control
4) In 1994, six Dominators SUV with different colors were specially built for Sultan of
Brunei (the former world’s richest man ,who also boasts of over hundreds of Rolls
Royces cars) at cost ₦1.4b ( £3m) per car .The 4-wheel drive luxury Sport Utility Vehicle
was built on a Range Rover chassis.
5) The Bentley Bentayga is Bentley’s first mass-production SUV. The all-wheel drive, 5-door
ultra-luxury SUV starts at ₦71m ($195k), if you love to get one for yourself .
It is powered by a 600 horsepower W12 engine,has a top speed of 187 mph and will move
from standstill to 60 mph in 4.0 seconds .
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6) The Bentley’s flying “B” ornaments was first used on 6½ Litre Bentleys in the late
1920’s.The modern types are designed to enter the bonnet in the event of an accident. The
letter “B” stands for Bentley while the silver wings around it signifies speed.
See Why The Rolls-Royce “Spirit of Ecstasy” Bonnet Ornament Can Never Be Stolen
7) The armored Bentley State Limousine is the official statecar created by Bentley for Queen
Elizabeth II on the occasion of her Golden Jubilee in 2002.
She has two of it that are valued at ₦4.6billion ( 10m GBP) each. They are powered by a
Rolls-Royce – Bentley twin-turbocharged, 6.75-litre V8 engine .
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9) It takes around 110 hours to build a Continental GT, 130 to build a Continental Flying
Spur sedan, 130 to build a Bentayga and around 400 to build a Mulsanne from start to finish
11) It takes 30 engineers about 13 and a half hours to build one W12 engine and about 136
hours or over 5 days to complete the interior trim on a Mulsanne.
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SWOT Analysis of Bentley
For Bentley, SWOT analysis can help the brand focus on building upon its strengths and
opportunities while addressing its weaknesses as well as threats to improve its market
position.
Bentley Strengths
The strengths of Bentley looks at the key aspects of its business which gives it competitive
advantage in the market. Some important factors in a brand's strengths include its financial
position, experienced workforce, product uniqueness & intangible assets like brand value.
Below are the Strengths in the SWOT Analysis of Bentley :
1. Bentley models have sporty-ness & luxury together which is not seen in any other products
2. Support of the German Engineering through the parent company
3. Strong brand equity and market position of Bentley globally
4. Being expensive and limited availability, it adds to the brand uniqueness and brand value
as it is percieved as a status symbol
5. Strong backing of automobile giant Volkswagen
6. Possession of Bentleys by exclusive clientle like the royal family, international celebrities
etc add brand value
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Bentley Weaknesses
The weaknesses of a brand are certain aspects of its business which are it can improve to
increase its position further. Certain weaknesses can be defined as attributes which the
company is lacking or in which the competitors are better. Here are the weaknesses in the
Bentley SWOT Analysis:
1. Bentley has limited presence in emerging economies which has a growing number of rich
2. Limited production means misses out on probable clients
Bentley Opportunities
The opportunities for any brand can include areas of improvement to increase its business. A
brand's opportunities can lie in geographic expansion, product improvements, better
communication etc. Following are the opportunities in Bentley SWOT Analysis:
1. Bentley may look to carry the heritage & design to more environmentally friendly cars
with hybrid or electric transmission
2. Have a strategy to target the affluent class from emerging economies
3. Sponsorships of premium events to increase brand visibility
Bentley Threats
The threats for any business can be factors which can negatively impact its business. Some
factors like increased competitor activity, changing government policies, alternate products or
services etc. can be threats. The threats in the SWOT Analysis of Bentley are as mentioned:
1. People preference for environmentally friendly vehicles increasing, as Bentley motorcars
are famous for their large displacement engines
2. Increasing fuel prices and strict govt regulations
3. More awareness and penetration of competing premium brands
Bentley Competitors
There are several brands in the market which are competing for the same set of customers.
Below are the top 8 competitors of Bentley:
1. Mercedes Benz
2. BMW
3. Rolls Royce Motors
4. Aston Martin
5. Ferrari
6. Jaguar
7. Porsche
8. Maybach
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Conclusion
Bentley has good record in alarm business unfortunately they were unable to manage the new
acquisition of security personals business. Secondly they were not good at adaptation of new
technology as they had less budget reserved for research and development. Headquarter had
extra spending on staffing comparing to over all human resource costs. Now it is the time for
Bentley to take important steps for its future business. It’s good if they are going into
management buyout for security inc. further they need to focus more on their staff
performance which in past showing poor results. Bentley have core competency in alarm
business they can do more growth and earnings in that business. For any future decision they
need to look the current environment of the industry which is safe in many ways from new
rivals. But still they need to be innovative and updated in their approach.
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REFERENCES
https://www.bentleymotors.com/en/world-of-bentley/the-bentley-story.html
https://careers.bentleymotors.com/content/About-Bentley/?locale=en_GB
https://futurestudios.com/bentley-case-study/
https://en.wikipedia.org/wiki/Bentley
https://www.mbaskool.com/brandguide/automobiles/4219-bentley.html
https://www.ukessays.com/essays/marketing/a-case-study-of-bentley-security-company-
marketing-essay.php
https://blog.logomyway.com/bentley-logo/
https://www.salesforce.com/resources/guides/bentley-reimagining-customer-experience/
https://logolook.net/bentley-logo/
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