Internal and External

Analysis on Bentley
Group:
Tutor:
 POPULAR
BENTLEY MODELS

Bentley Mulsanne
Bentley Continental GT

Bentley Flying Spur Bentley Turbo R

 INTRODUCTION
 Bentley motors Limited, based in Crewe, England is a British
Manufacturer and supplier of luxury cars and SUVs which is a
subsidiary of Volkswagen group. According their official website the
company was founded by W. O. Bentley in the year 1919 in
Cricklewood, North London. The company became vastly known for
wining the 24 Hours of Le Mans in 1924, 1927,1928,1929 and 1930.

 Bentley is one of the UK’s most exquisite, fascinating and comfortable

car manufacturers which has generated over £1548m in revenue in 2018
by dominating 36% of the automobile industry in the UK.
 Most of the Bentley models are now assembled at the company’s Crewe
factory, and a small number is assembled at Volkswagen’s Dresden factory in
Germany.

 The company is now at its 100 years of designing, building and purveying
finest cars, wants to bridge an unprecedented relationship by allying the
creators and users of the cars through launching an enthralling concept car
“Bentley EXP 100GT” which has now been regarded as next level
technological elevation in the automobile industry.

 Bentley now has over 4000 experts who worked strenuously to produce over
10,494 vehicles until 2018 and looking forward to its sheer technological forte
by introducing “The Bentyaga Hybrid’s 75g/km CO 2 emission”.
 INTERNAL AND
EXTERNAL
ANALYSIS( CONCEPT)
 Internal Analysis: Internal Analysis determines the organisation’s internal
environment in order to evaluate its resources, competencies and competitive
advantages. Carrying out an internal analysis allows us to recognise the strength
and weaknesses of an organisation. This will then help the management to take
strategic decision while carrying out strategy formulation and execution process.
Example: GAP analysis, VRIN analysis

 External Analysis: Followed by an internal analysis there will always be an

external analysis which examine the external environment on an organisation.
On an macro scale, external analysis includes macroeconomic, global, political,
social, demographic and technological analysis. The primary purpose tends to be
determining the threats and opportunities in an ogranisation which will generate
profitability, growth and volatility. Example: PESTEL, Porter’s 5 forces.

In this presentation we will implement VRIN for internal Analysis and

PESTEL & Porter’s 5 forces for external analysis.
 INTERNAL ANALYSIS ( VRIN)

Following VRIN ( Value, Rare, Imperfectly Imitable, Non-sustainable) have made

Bentley exceed and stay untouched from its competitors(Brown, 2019) are discussed as
follows:
 Valuable: Bentley has engaged £795b in its research and development program so
that it can meet changing customer needs and purvey the best luxury wining the
market. The company has also deployed a specialist team by investing £250m, to keep
track of the latest offering of competitors to uphold its supremacy in the target
segment. (Bentley Motors, 2020)
 Rare: Bentley employs sophisticated technology to develop layers of qurtize stone
which is only 0.1mm thick and provides stunning and almost natural finishing(Slack et
al., 2019). It even uses a special carbon fibre which adds sporting feel. Due Bentley’s
unique features and using rare technology in making cars since 1919, the company has
the competitive advantage over the market.
 Imperfectly imitable: Bentley has been offering cars which are not even closely
imitable by any other company. This superiority is highly attributable to its value
chain management. (Slack et al., 2019).
 Non-substitutable: Bentley cars are the symbol of luxury and the company targets
the upper class of the UK society (Kerzner, 2018). A survey was carried on the
Bentley car users revealed that 85% of the users choose to buying again rather than
 EXTERNAL ANALYSIS
( PESTEL)

Here is the PESTEL analysis that reveals certain dimensions like inflation, taxes, unemployment
rates etc. of Bentley :
Political: Certain analysis of the future oil market of the UK reveals that oil prices will rice by
23% which represents £1505m increase in fuel expenditure by 2025 which is due to political
unhealthy relations with oil exporting countries (Gelders, 2020). Thus, sales of Bentley are
expected to decline by not less than 5%.
Economic: Foreign direct investment(FDI) influx and trading linkage will be reduced by 27%
due Brexit in the years ahead, which would result in unemployment of over 800,000 people.
Thus, people will be less prone to buy luxurious products. As a result, Bentley might lose high
percentage of its sales (Bentley Motors, 2020). In 2018, when the government took initiative to
reduce the interest rate to support manufacturing industries, Bentley directors decided to lower
the interest expense for the company by 21%.
 Social: Owning more than one vehicle has become a common trend in the UK ,
almost 46% of UK 2 or more than 2 motor cars(Kerzner, 2018). Bentley has fulfilled
the luxurious need of these target market as much as 28% either by offering Bentley
Mulliner Bacalar or New Continental GT cars (Gelders, 2020).
 Technological: Bentley has introduced its first self-driven concept car (EXP100GT),
on its centenary in the year 2019 on an intention of changing the technological
environment across the global automobile industry(Brown, 2019). A study by
“statista” shows 50% customers feel unsafe with this technology and almost 45%
want full control of the vehicle at all time.
 Environmental: In 2018, an environmentalist group named Green Alliance sued
Bentley for using CNC machines and welding machines which ejects 27% more carbon
than the standard machines emits (Kerzner, 2018). Bentley took immediate initiative by
limiting their carbon emission by 12%.

 Legal: In 2019, a government agency accused Bentley of copying its competitor’s

technology. The directors of the company appointed solicitors and arranged all the
shreds of evidence to void the unjust claim. During the trial Bentley expended £130m
but later it was refunded as the matter was resolved.
 PORTER’S FIVE
FORCES

Porter’s five forces is an external analysis method to identify and analyse five forces that
shape every industry and helps to identify an industry’s strengths and weaknesses. Porter’s
five forces can be applied to any segment of the economy to understand the competitiveness
within the industry and make sure a company’s long term profitability. The Five Forces model
was named after Harvard Business School professor, Michael E. Porter.
In this presentation we will use a table to critically analyse each of Porter’s five forces to
focus on the industrial position of Bentley.
PORTER’S FIVE FORCES ANALYSIS
FOR BENTLEY
Source: (Bentley
Motors, 2020)
 CONCLUSION

 Organisational strategy can not always be considered as a

Bible for the long term sustainability of an organisation
rather be a guideline to prevent and focus on any lacking
or discrepancies while functioning. Our analysis can be
contemplated as a detailed assessment of what a company
wants to achieve and how it would achieve by focusing
on its major stakeholders’ interest.

 Bentley has created their own organisational strategy

which includes macro-environmental threats, discovering
its industrial position, and have done detailed analysis to
maximise its stakeholders’ value.

 Bentley still has a chance to suffer from organisational

downfall if it focuses more on external design and
technology rather than the productivity of its value chain.
EXP 100 GT
 REFERENCES
 Bentleymotors.com. 2020. Bentley Motors Website: World Of Bentley: The Bentley Story: People And Expertise:
Extraordinary Materials. [online] Available at: <https://www.bentleymotors.com/en/world-of-bentley/the-bentley-
story/people-and-expertise/materials.html> [Accessed 18 April 2020].
 Richter, F., 2020. Infographic: Consumer Concerns About Self-Driving Cars. [online] Statista Infographics. Available at:
<https://www.statista.com/chart/5950/concerns-about-self-driving-cars/> [Accessed 18 April 2020].
 B2U - Business-to-you.com. 2020. PESTEL Analysis (PEST Analysis) EXPLAINED With EXAMPLES | B2U. [online]
Available at: <https://www.business-to-you.com/scanning-the-environment-pestel-analysis/> [Accessed 18 April 2020].
 The Project Management Blueprint.com. 2020. Analyzing And Classifying Project Stakeholders — The Project
Management Blueprint.Com. [online] Available at: <https://www.theprojectmanagementblueprint.com/stakeholder-
management/stakeholder-power-interest-grid> [Accessed 19 April 2020].
 Brown, A., 2019. Organisational Culture. London: Financial Times.
 Slack, N., Brandon-Jones, A. and Johnston, R., 2019. Operations Management. 14th ed. Harlow, England [et al.]:
Pearson.
 Kerzner, H., 2018. Project Management Best Practices. Hoboken: Wiley.
 Lewis, M., 2019. Operations Strategy. 12th ed. London: Pearson Education UK.
 Pidd, M., 2019. Management Science/operational research: Cases and readings. European Journal of Operational
Research, 13(3), p.327.
 Chopra, S., 2020. Supply Chain Management. New York: Pearson Education Limited.
 Gelders, P., 2020. Proven management models. European Journal of Operational Research, 110(2), p.407.