Strategic Agility Assignment Sample

Introduction

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Car shop UK was established in 1999 with a strong family support. The car shop started in the south of England with a small number of outlets. In the year 2017, the car shop was acquired by Synter group but they continue their trade as a separate entity (CAR SHOP UK, 2023). The Synter group is a car dealership company founded in 1968 by Alan and Frank Synter. It is a UK based company group that holds dealership which located in England and Scotland. The car shop has expanded their portfolios of shops and operates them across UK with 1001-5000 employees. It is an automotive retail company that offer various automotive brands by retailing, includes Audi, Porsche and Bentley. The mission of car shop is to change the car market for the better use, they think that if they get right for their colleagues, they are also get right for their customers (Xing, et. al. 2020). The company always believes in doing hard work to provide better and comfortable products and services to their customers. The report will discuss about to identify the sustainable development goals of Car shop UK and their strategic capabilities to deal with operations. The report will focus on analyze the internal factors of car shop to gain a competitive advantage in market and to increase their performance.

Critically analyze the current Sustainable Development Goal for Car Shop UK

The sustainability is an important factor in automobile industry that helps in ensuring safety of earth by its good practices. In the automobile industry, sustainability improves the manufacturing process of product making, source of green energy in producing and conducting supplier evaluation. There are total 17 Sustainability development goals but the goals that Car Shop UK follows are use of affordable and clean energy, industry innovation & infrastructure, sustainable cities as well as communities, responsible consumption and production, taking immediate action for climate change, life below water and partnerships for the goals (Ahammad, et. al, 2020). By following affordable techniques and energy resources they can promote the sale of electric vehicles and promote the EV installation charging infrastructure and it also contributes in reducing the greenhouse gas emissions and trust on fossil fuels. The electric vehicle helps in decreasing the pollution level and balance the environmental sustainability (SEVENTEEN SUSTAINABILITY GOALS, 2023). It also reduces the accidents that are happening because of the use of petrol vehicles.

. The use of green energy and fuel-efficient vehicles in semi-urban and urban areas helps in decreasing the air pollution level and make more sustainable cities (Halkos, et. al, 2021). By providing information on fuel efficiency, vehicle lifecycle costs and emissions power to enable customers to choose more sustainable choices. The promotion and advancement of low emission vehicles and zero- emission vehicles like electric & hydrogen powered gas vehicles are very crucial for decreasing the carbon emissions (Dantas, et. al. 2021). The Car Shop UK uses strategic capabilities to gain competitive advantage for achieving the desired objective. Strategic capabilities are the abilities of an organization to utilize its resources and competencies perfectly.

VRIO analysis

The VRIO model helps in finding value, rarity, imitability and organization of organization.

Value

Car Shop UK uses electric and fuel efficient cars to give a contribution in sustainable development and economy by decreasing pollution and removing harmful substances from environment. It undertakes eco-friendly practices in their manufacturing process for product development and in operations such as recycling of material, disposing of waste materials, reducing the energy consumption as well as supporting sustainable supply & local chains.

Rarity

Car shop UK focuses on following sustainable practices to attract more potential and environment conscious customers, that is rare. Promoting innovative ideas and automotive technologies that are efficient such as electric vehicles & hybrid vehicle support the sustainable industry and technological advancement.

Imitability

 The concepts of making cars with technology elements and use sustainability practices in them make car shop unique with other car dealerships companies. The great move of Car shop UK in reducing the impact of marine ecosystems in automotive industry by using sustainable practices in manufacturing process and promoting the fuel-efficient vehicles that uses less oil drilling.

Organization

Car Shop UK promotes its fuel efficient cars and low emission vehicles in market with effective marketing strategies and expand their sales with good brand reputation and advertising (Montshiwa, 2018). Company thinks to collaborate with manufacturers or producers, government companies and environmental entities to promote sustainable transportation and aware about environmental friendly things.

To evaluate the internal analysis of company, Car shop UK need to identify the internal factors that impact the car shop operations.

SWOT analysis

Provide a competitor overview for Car Shop UK and a macro-environmental analysis.

The competitor overview of Car shop UK is complex, and has many competitors in their list. The other car dealers are also a seller of car in UK. The car shop UK competitors are Evan Halshaw, it is a well-known company of car dealership in United Kingdom that offers a huge range of new and used cars. Arnold Clark has the largest car dealerships in UK, have a broad network of shop branches and high stock of vehicles. Lookers is also a car dealership company which famous for its extensive presence in United Kingdom and offers a diverse collection of cars to customers (Vinuesa, et. al, 2020). Besides this, there are many independent dealers in UK market that are focusing on niche markets and specific brands for maintain their place in this high competition in market.

PESTLE analysis of Car shop UK is enumerated below:

Formulate two potential strategies that will enable the firm to achieve more responsible business in line with the SDGs

The two potential strategies to achieve more responsible business in line with sustainable development goals are

Opportunities

The use of sustainability strategy practices in implementing supply chain management provide a great opportunity and helps Car Shop in decreasing pollution level and environmental impact on people, animals & other living beings. This opportunity helps firm in working closely with producers, manufacturers, new suppliers & distributors to check the process of transportation and ensure products safety. The use of sustainable supply chain network for transporting products assists in enhancing goodwill. Further, green packaging helps in safety of environment and protects it from carbon emissions and carbon footprints. Firm also has opportunity to promote the strategy of reuse, reduce and recycle of car products. The focus on local supplier for transportation sometimes reduces the harmful emissions and supports the local economy of rural area (Sanguesa, et. al. 2021). By developing sustainable supply chain practices in their company they can address the present challenges that are related to environmental issues while focusing on sustainability adoption for facing future challenges.

Threats

The use of electric vehicles and fuel efficient vehicles ensures car shop’s profitability, sales and decreases the pollution level and environmental burnout by its efficient use but it has high costs for implementation in business.. Car shop have to offer a wide range of car products with excellent features in electric and hybrid both modes to customers that is a challenge for them to manage their position in market. For this, they need to promote the charging stations in local community and highly invest in charting infrastructure for easy availability of resource to customers. They have to spend money and efforts in educating clients or customers for buying an electric vehicle rather than high emission vehicles that is dangerous for environment (Mokhtar, et. al. 2022). Electric vehicle is safe for environment and it reduces the carbon emissions and contains many benefits, but it takes new processes and innovation in organization for successful implementation. Car shop have to hire experts for maintenance of electric vehicles and its services and train their workers to deal with vehicles with their specific knowledge, it waste their most of time and need a proper strategic plan to implement this. The promotion of electric vehicles takes large time to make their place in market. The current issues of greenhouse gases and air quality, while focusing on sustainable transportation or green logistics aspects, need experts and artificial intelligence technology to mitigate the problem. It takes high cost on incentives providing to customers on purchase of an electric vehicle.

Critically evaluating the two potential strategies to make one preferred strategic recommendation to the business of the best strategy

SAFe model

The SAFe is scale agile framework model of area that promotes scaling agile practices in organization.

Sustainable transport- the sustainable move of car shop towards its growth is important; they focus on offering fuel efficient and electric cars to market and invest their money in implementing charging stations. This strategy creates value in market but it is complex because of certain investments in technology. It is comes in the customer centric approach of SAFe principle.

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Transformation to digital platform- Firm wants to expand its operations and manage their all operations like inventory management, sales, and finance management on online platforms to provide easy access to their customers. The digital transformation provides value to customers and makes their experience better (Hewing, et. al, 2020). The implementation cost of implementing this strategy is hard to earn profitability. It is come with the principle of agility.

By considering these two strategy, the best strategy that car Shop Company chooses is digital transformation. Both are complex in nature and hard to adapt but the sustainable approach contain strong value proposition and challenges and a risk of maintaining too much vehicles. The digital transformation strategy helps in improves the streamline operations and functions of management and helps in decision making process of car shop and they think that the adaption of digital transformation is easy in order to accept new changes related with customer trends.

To find the one best preferred strategy from the above mentioned two strategies of car shop that are align with sustainable development goals (SDG) , need to figure out some factors for adoption of strategy to succeed in sustainable and responsible business

1. Sustainable practices for supply chain management

• Pros: Helps in reducing harmful environmental impacts like carbon footprints, carbon emissions and pollution by its effective implementation. Decrease the risk of supplier disorderliness and damage of products.
• Cons: To acquire a sustainable process for transportation need high efforts and resources for implementation. It needs high cost and time for developing green energy practices in business.

2. Electric vehicles and fuel efficient vehicles

• Pros: By using electric vehicle and low emission vehicles it reduce the air pollution, level of air quality and environmental burnout. It provides benefits of low service costs, extended warranties and eco-friendly features.
• Cons: Company needs high investments for establishing charging stations in every desired location and for training of workers to provide excellent services to customers. The output of implementing this strategy is depending on such factors like the purchasing ability of customers and customer interests or choices.

Both strategies are valuable for adopting in car shop but company can consider some factors to choose the better one (Numfor, et. al. 2021). The factors include direct impact on revenue, environmental impact, competitive advantage and future challenging

Conclusion

In summary, Car Shop UK’s goal is to increase their productivity by following sustainable development goals in organization. Company does not have so many competitors in UK market which are powerful in their niche and providing best services to their customers. Besides this, it can be inferred from the evaluation that company educates their workers; provide trainings to them to show good interaction to clients. By identifying the effective strategies for sustainable development practices Car Shop can build and sustain competitive position. The strategic abilities of car shop helps in reaching more potential customers and increase their sales & operations through practicing the best efforts.

Recommendations:

• Car Shop UK Company needs to undertake competent strategic & policy framework to increase their productivity and profitability in market.
• Firm is required to invest in sustainable practices to reduce the carbon emissions and carbon footprints.
• Organization can use effective supply chain management for the delivery of electric vehicles that reduce the cost of logistics and increase productivity of workers.
• Business unit is advised to make significant investment in digital technology and artificial intelligence tools to expand their services and growth in market.
• They can adopt new changes according to the changing market preferences and trends of customers to grab more potentiality dealing of cars.

References

Books and Journals

• Ahammad, M.F., Glaister, K.W. and Gomes, E., 2020. Strategic agility and human resource management. Human Resource Management Review, 30(1), p.100700.
• Dantas, T.E.T., de-Souza, E.D., Destro, I.R., Hammes, G., Rodriguez, C.M.T. and Soares, S.R., 2021. How the combination of Circular Economy and Industry 4.0 can contribute towards achieving the Sustainable Development Goals. Sustainable Production and Consumption, 26, pp.213-227.
• Feng, S., Zhang, R. and Li, G., 2022. Environmental decentralization, digital finance and green technology innovation. Structural Change and Economic Dynamics, 61, pp.70-83.
• Goralski, M.A. and Tan, T.K., 2020. Artificial intelligence and sustainable development. The International Journal of Management Education, 18(1), p.100330.
• Halkos, G. and Gkampoura, E.C., 2021. Where do we stand on the 17 Sustainable Development Goals? An overview on progress. Economic Analysis and Policy, 70, pp.94-122.
• Hewing, L., Wabersich, K.P., Menner, M. and Zeilinger, M.N., 2020. Learning-based model predictive control: Toward safe learning in control. Annual Review of Control, Robotics, and Autonomous Systems, 3, pp.269-296.
• Mokhtar, M.M., Zuri, W.W.M., Rasid, N.M., Asmadi, A.A. and Manaf, N.A., 2022, October. Decision Making on the Renewable Energy Penetration in Malaysia via SWOT-PESTLE Analysis: Hydrogen Fuel Cell and Solar Photovoltaic Thermal Technology. In IOP Conference Series: Materials Science and Engineering (Vol. 1257, No. 1, p. 012009). IOP Publishing.
• Montshiwa, A.L., 2018. Regional automobile parts makers' competitive advantages analysis. International Journal of Applied Management Science, 10(2), pp.87-104.
• Numfor, S.A., Omosa, G.B., Zhang, Z. and Matsubae, K., 2021. A review of challenges and opportunities for end-of-life vehicle recycling in developing countries and emerging economies: A SWOT analysis. Sustainability, 13(9), p.4918
• Sanguesa, J.A., Torres-Sanz, V., Garrido, P., Martinez, F.J. and Marquez-Barja, J.M., 2021. A review on electric vehicles: Technologies and challenges. Smart Cities, 4(1), pp.372-404.
• Vinuesa, R., Azizpour, H., Leite, I., Balaam, M., Dignum, V., Domisch, S., Felländer, A., Langhans, S.D., Tegmark, M. and Fuso Nerini, F., 2020. The role of artificial intelligence in achieving the Sustainable Development Goals. Nature communications, 11(1), pp.1-10.
• Xing, Y., Liu, Y., Boojihawon, D.K. and Tarba, S., 2020. Entrepreneurial team and strategic agility: A conceptual framework and research agenda. Human Resource Management Review, 30(1), p.100696.
• Yu, Z., Khan, S.A.R. and Umar, M., 2022. Circular economy practices and industry 4.0 technologies: A strategic move of automobile industry. Business Strategy and the Environment, 31(3), pp.796-809.

Online

• CAR SHOP UK, 2023. Online. Available Through. : <https://www.carshop.co.uk>
• SEVENTEEN SUSTAINABILITY GOALS, 2023. Online. Available Through. : < https://sdgs.un.org/goals>