BUSINESS STRATEGY

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 Table of Contents

1.0 Introduction..........................................................................................................................3

2.0 Effect of macro environment................................................................................................3

2.1 Pestle analysis...................................................................................................................3

2.2 Porter Five Forces.............................................................................................................6

3.0 Internal environment and capabilities..................................................................................7

4.0 Outcome of an analysis......................................................................................................10

5.0 Strategic management plan................................................................................................11

6.0 Conclusion..........................................................................................................................12

Reference list............................................................................................................................13

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1.0 Introduction

The premium brand automobile manufacturer Allaband Cars Limited, which is based in the
UK, is examined in this research. Allaband recognises the necessity for strong managerial
skills for competing with other top brands and aspires to supply custom "top of the range"
automobiles to the global market. The company's production site is well situated in the East
of England, close to regional airports, ferries to Europe and London. Internally, Allaband
utilises a group of key analysts to create strategic strategies, including a compliance and risk
administrator and a marketing staff. Even though the company's internal skills are limited, it
has invested heavily in the development of electric vehicles and gained a competitive edge by
hiring competent Germans with experience in software development and electric vehicles.
The impact of the macro environment on the organisation will be examined in the report. It
will also evaluate Allaband's internal settings and capabilities, employ strategic leadership
techniques in the market sector for car manufacturing, and ultimately develop an
organisational strategy to gain an advantage in the sector.

2.0 Effect of macro environment

2.1 Pestle analysis

To understand the impact of macro environment factors on the organisation Allaband Cars
and its business strategies, the use of the Pestle analysis can be done as follows:

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Political Through laws and incentives, the UK government has been
aggressively encouraging the use of electric cars (EVs). The sale of
new petrol and diesel vehicles will be prohibited starting in 2030,
which is anticipated to increase demand for electric vehicles (Gov.uk,
2021). The government's commitment to tackling climate change and
decreasing carbon emissions creates a political environment that is
favourable for the expansion of the electric vehicle sector. From the
same, Allaband Cars is likely to benefit as it has invested heavily in
2019 for the development of electric cars and charging facilities.

Economic The adoption of electric vehicles is significantly influenced by the

economic environment. Electric vehicles are now more reasonably
priced as a result of falling battery technology costs and improved
manufacturing efficiency. Additionally, government grants and
subsidies have increased the financial appeal of electric vehicle sales
for customers. The financial advantages of owning an electric vehicle,
such as decreased fuel and maintenance expenses, also support the
expansion of the market (Wards, 2023). The sales unit of electric
vehicles has been 20000 units (50% of the production capability) for
the company Allaband Cars which can show the rise of preference
towards electric vehicles despite higher costs.

Social The desire for electric automobiles is being fueled by a rising societal
awareness of the environmental effects of conventional vehicles.
Consumers are becoming more and more interested in choosing
sustainable mobility solutions and lowering their carbon impact. The
adoption of electric vehicles is aided by the UK population's growing
concern for environmental sustainability and demand for better urban
air. Besides, after the pandemic of Covid 19, the increase in the
development of technology and electric cars pushed by the companies
and raised awareness of the customers regarding environmental
factors has been another tailwind for the company (SMMT 2023).

Technological The automotive industry is undergoing a revolution thanks to

technological advances in data and software. With capabilities like
cutting-edge driver assistance systems, connectivity, and over-the-air
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2.2 Porter Five Forces

Threat of New Entrants: There is a medium threat from new competitors entering the
market for premium automobiles and software and EV cars as the capital and technological
requirements are high. Although the sector demands a significant preliminary investment and
specialised skills, the possibility of new entrants is increased by the presence of technology
companies in the mobility market. As per the report of Tracxn (2023), there have been around
755 EV startups in the UK among which Volta Trucks, Tevva, and others are popular.
However, Allaband has an advantage over new competitors due to its well-established
reputation, skilled German workforce, and access to practical suppliers.
Bargaining Power of Suppliers: Suppliers' bargaining power is medium in the automobile
manufacturing sector. Because Allaband relies on outside vendors for vital parts like batteries
and software, that can result in price spikes or quality problems. However, Allaband may be
able to negotiate advantageous terms and keep a competitive edge thanks to their strategic
investments and ties with suppliers.
Bargaining Power of Buyers: In the market for luxury vehicles, customers have significant
bargaining power. As an example, the customers can choose cars from other suppliers like
Ford, BMW, Tesla, BYD over Allaband Cars although they have a reputation of making
premium cars (Fedotov, 2022). While making a purchase, consumers may compare costs,
features, and performance across a wide range of products from other leading companies. To
attract and keep clients, Allaband needs to stand out through special features, great quality,
and first-rate customer service and decrease in operational cost (by reducing fixed cost and
operational cost 5% and 7% Y-o-Y).
Threat of Substitute Products: substitutes to expensive premium cars have been low for
Allaband Cars. Although customers can consider alternatives like high-end public transport
options or luxury electric vehicles from other companies, the reputation of Allaband Cars for
making quality premium “top of the range” can reduce the threat. The strategy developed by
Allaband of creating premium customised cars with charging and software-driven facilities
might aid in maintaining the customers.
Competitive Rivalry: High scale of competition has been existent in the market for premium
cars where Allaband Car operates. Established companies with necessary financial resources,
technological know-how, and global market presence compete with Allaband. Allaband had

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made significant investment in software and EV technology after 2019 and devoted A
German team which has expertise over software and EVs which may help them to beat the
rivalry.

3.0 Internal environment and capabilities

A "VRIO analysis" can be carried out to assess the internal surroundings and capabilities of
Allaband Cars Limited (Madsen, 2022). The VRIO framework looks at an organisation's
resources and assesses their worth, rarity, imitable nature, and organisational support. This
research will highlight the positive and negative aspects of Allaband, revealing important
information about the firm's competitive edge in the market sector for the manufacture of
automobiles.
Value:
A key resource is Allaband's investment in the advancement of electric vehicles (EVs).
Allaband has a competitive advantage because of the hiring of a group of seasoned German
employees with expertise in EV technology as well as software development. This asset
enables the business to create cutting-edge EVs and maintain its lead in a changing industry.
Additionally, Allaband's value offers benefits from the team's connections with practical
suppliers across Europe.
Rarity:
The German team at Allaband has a high level of skill and understanding in the fields of
software development and electric vehicles (EVs). Since many automakers are still in the
midst of making the switch to electric mobility, Allaband has a unique advantage thanks to its
early investments and access to knowledgeable employees (Dau et al., 2023). This
uniqueness distinguishes Allaband from rivals who have not yet realised the full potential of
electric cars.
Inimitability:
Allaband has a degree of unmistakable due to the expertise of its German staff, its
connections with European suppliers, as well as its emphasis on the development of electric
vehicles. While other businesses could make investments in EVs, it would be difficult to
duplicate the knowledge, connections, and skills that Allaband has developed in the field.
Allaband's standing in the market is strengthened by its distinctiveness, making it challenging
for rivals to match or outperform its skills.
Organisational Support:

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By hiring important analysts, such as a compliance and risk officer and a group of marketers,
Allaband has shown its dedication to strategic management. These internal tools offer crucial
assistance for creating strategic strategies and maintaining knowledge of the UK's automotive
industry. An experienced strategist leads a specialised strategy department, which points to a
robust organisational support framework for Allaband's expansion and competitiveness.
The "internal capabilities" and "internal environment" that Allaband Cars Limited operates in
have an impact on its business strategy. On the heels of the information available, some of the
crucial points are:
Allaband made a huge investment in the development and manufacturing of electric vehicles
(EVs) and gathered a highly talented German workforce with competency in manufacturing
electric vehicles and software development (www.ETAuto.com, 2023).
This information provides the company with a tactical advantage in the swiftly growing EV
market. Furthermore, Allaband has a link to advantageous supplier networks due to the
German staff's connections with businesses across Europe, which facilitates the purchase of
high-quality components.
The organisation has a specialised marketing team in place that has offered insightful
statistics and information about the UK's automotive manufacturing industry sector. In order
to portray Allaband's automobiles as top-of-the-line, customised vehicles, this team is
essential for comprehending client preferences, spotting market trends, and creating
successful marketing tactics (kpmg, 2023).
It is noteworthy that the analysis indicates that Allaband's internal abilities are relatively
constrained. The organisation admits to having a limited amount of expertise in strategic
management, indicating the need to further enhance internal skills in this area. It's probable
that Allaband would gain by expanding its internal capabilities for strategic analysis and
planning, such as by recruiting more strategic analysts or funding training initiatives for
current staff.
The creation of electric vehicles is a strength for Allaband Cars Limited, which also has a
strong marketing division (Iea, 2023). To fully leverage its advantages and boost
competitiveness in the extremely competitive vehicle manufacturing sector, however,
improved strategic management skills are required.

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 Internal Factors Value Rarity Imitability Organization

Investment in EV development ✓

Skilled German staff ✓ ✓

Contacts with useful suppliers ✓ ✓

Risk and compliance officer ✓ ✓

Marketing team ✓ ✓

According to the study done, Allaband Cars Limited's internal capacities, structure, and skill
set have a number of strengths and drawbacks.
Strengths:
● Expertise in Electric Vehicles: A team of skilled German employees with
knowledge in the production of electric cars and software development has been
successfully hired by Allaband, which has made considerable investments in the
research and development of electric vehicles (BMWK - Federal Ministry for
Economics Affairs and Climate Action, 2023). As a result, the business has a
competitive edge in the expanding EV industry.
● Marketing Team: The committed marketing staff at Allaband has offered insightful
information and statistics about the UK automobile industry. Their insights assist the

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 business in understanding consumer preferences, spotting market trends, and creating
successful marketing plans.
Weaknesses:
● Limited Strategic Management Experience: The research emphasises Allaband's
lack of strategic management expertise. This points to a deficit in the organization's
capacity to create and carry out strategic plans successfully. Achieving long-term
competitiveness and achievement requires strengthening strategic management
competencies.
● Potential Skill Gap: Although the German team at Allaband is skilled in developing
electric vehicles, there may be a talent gap in the larger workforce (hbr, 2023).
Training programmes are required to enhance strategic thinking, making choices, and
other critical competencies pertinent to the evolving automotive sector in order to
solve this.
Allaband ought to address its deficiencies by investing in business strategy know-how,
supporting skill development programmes, and reevaluating resource allocation to promote
growth and innovation in order to maximise its potential and acquire a competitive edge.

4.0 Outcome of an analysis

The PESTLE framework's research of the macroenvironment yields various advantageous

findings for Allaband Cars. First off, the corporation benefits politically from the UK
government's overwhelming back for electric vehicles and the impending 2030 ban on petrol
and diesel vehicles. Additionally, economic reasons that favour Allaband Cars directly, such
as declining battery costs, government grants, and the financial benefits of owning electric
vehicles, help the electric vehicle market expand. Additionally, Allaband's emphasis on
electric cars is in line with the growing social awareness regarding environmental
repercussions and the growing need for sustainable transportation options.
The growing popularity of electric vehicles, which is being fueled by societal concerns, is
expected to be advantageous for the corporation. Moreover, the development of the electric
vehicle industry is being aided by technological developments in data, software, autonomous
driving, and charging infrastructure. The employment of German experts in software
development and electric car technology by Allaband puts them well to take advantage of
these technical breakthroughs. In conclusion, the macro environment analysis shows that

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Allaband Cars is operating in a favourable environment, with favourable political, economic,
social, and technological aspects that encourage the expansion of the electric car market.

5.0 Strategic management plan

● Leverage Political Support and Regulations: Allaband Cars should align its
business strategy to take advantage of the UK government's strong support for electric
vehicles (EVs) and the impending ban on petrol and diesel automobiles. This entails
actively taking part in governmental activities, advocating for beneficial regulations,
and utilising incentives and grants offered to EV makers. Allaband can establish itself
as a significant participant in the EV industry by displaying a strong commitment to
sustainable transportation and coordinating with governmental objectives.
● Seize Economic Opportunities: Allaband Cars should keep benefiting from the
conductive economic climate for EVs. Electric vehicles are now more reasonably
priced because of improved production efficiency and declining battery technology
costs. By streamlining its production procedures, looking for ways to cut costs, and
investigating joint ventures with battery producers, Allaband may take advantage of
this trend and secure favourable pricing and dependable supply. Additionally, the
business needs to actively promote the financial benefits of owning an electric car,
highlighting the long-term cost savings linked to lower fuel and maintenance costs.
● Focus on Consumer Preferences and Sustainable Mobility: Allaband Cars needs to
establish itself as a pioneer in sustainable transport if it wants to capitalise on the
rising social awareness of and demand for sustainable mobility solutions. The
business may do this by emphasising the EVs' good effects on air quality and noise
pollution, stressing its dedication to lowering carbon emissions, and funding
marketing initiatives that inform consumers of these benefits. Priority should also be
given to customization options and features that satisfy consumer demands for
technologically advanced and environmentally friendly automobiles.
● Embrace technical Advancements: Allaband Cars should continue to be at the
forefront of technical developments as electric vehicles become more software-driven
and technology-focused. In order to improve the capabilities of EVs, such as
advanced driver assistance systems, connection features, and over-the-air software
upgrades, this calls for ongoing investment in research and development. In order to
promote innovation in the charging process, address range anxiety, and enhance user

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 convenience, Allaband ought to additionally engage in the development of charging
infrastructure and work with technological businesses. Allaband can preserve its
competitive edge in the quickly changing technological landscape by utilising its
highly qualified German workforce and their knowledge of EV technology and
software development.
● Ensure Legal Compliance: Allaband Cars needs to keep a close eye on and adjust to
the changing legal environment surrounding electric vehicles. It is essential to adhere
to laws governing charging infrastructure, network compatibility, safety standards,
and certifications. The business should keep up with changes in laws and regulations,
interact with regulatory agencies actively, and make sure its operations and goods
comply with applicable laws. As a result, Allaband will be better able to uphold its
excellent track record for dependability, compliance, and quality.

6.0 Conclusion

As a result of the examination of its internal resources and macroenvironment, Allaband Cars
Limited has both strengths and limitations. Allaband Cars should think about strengthening
its strategic leadership skills by investing in training programmes and hiring strategic analysts
in order to take advantage of its strengths and fix flaws. By doing this, the business may
realise its full potential, promote growth, and keep a competitive edge in the quickly
changing automotive sector. In conclusion, Allaband Cars Limited is in a good position to
take advantage of the rosy macroeconomic climate and build on its own advantages. But for
long-term success in the cutthroat luxury auto industry, correcting flaws and continuing to
engage in strategic management and personnel development will be essential.

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Reference list

BMWK - Federal Ministry for Economics Affairs and Climate Action (2023) Regulatory
environment and incentives for using electric vehicles and developing a charging
infrastructure, BMWK. Available at:
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incentives-for-using-electric-vehicles.html (Accessed: 15 June 2023).
Dau, N. et al. (2023) New EV entrants disrupt Europe’s automotive market, McKinsey
& Company. Available at: https://www.mckinsey.com/industries/automotive-and-
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June 2023).
Fedotov, P., 2022. Critical Analysis of the Electric Vehicle Industry: Five forces and strategic
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Madsen, D.Ø., 2022. Value, Rarity, Imitability, Organization (VRIO) Analysis. In
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