Morgan Motor Company

Topics: Strategic management, Morgan Motor Company, Innovation Pages: 3 (958 words) Published: January 11, 2011
Morgan Motor Company (MMC) began as a family company and has remained that way over the years. Decisions were largely driven by steady demand for their luxury product. Traditionally, decision-making was premised on production quotas that kept supply slightly behind demand. While the company made a profit, it was not enough to sustain the company in the long term due increasing costs caused by inefficient methods of production. The key area for improvement was strategic planning based on detailed and accurate information. The implementation of the strategic plan would require a review of human resource management practices in order for MMC to develop into an organisation that valued continuous innovation. MMC could gain valuable information about its environment through SWOT analysis, which could be used to inform strategic planning decisions. The company survived difficult circumstances (e.g. World War II) and demonstrated its ability to diversify through the manufacture of munitions. Another key strength is the global demand for their differentiated product. Its domestic and international appeal creates an important opportunity to further expand its global customer base. However, the potential threat associated with this opportunity is uncertainty in a number of dimensions in MMC’s “general environment” (Samson & Daft, 2009). Economic and political and legal factors in other countries could potentially impact on MMC’s sales, as was the case in the late 1960s where strict emission control regulations caused their US market to collapse. In this instance, domestic demand absorbed its impact and highlighted the importance of maintaining a diverse client base that could absorb the impact of any environmental changes. A sales and marketing department that is production led is ineffective in improving revenue and achieving the aim of increased profits. Additionally, this production led sales creates an artificial view of demand for its product. Thorough research of...
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