In the highly competitive European automotive market, staying ahead of the competition is an important requirement for business survival. However, from a project management perspective, the changing and unpredictable nature of the business environment has made it difficult for managers to make effective decisions regarding the fulfilment of their market development plans (PavlĂnek, 2016). In this context, the goal of project management has been to deliver a company’s objectives within the specified cost, time and scope criterion (Nijhuis, Vrijhoef & Kessels, 2018). Unpredictable market dynamics have made it difficult to achieve these objectives. Furthermore, limited research is available to explain how business analytical tools can be used to understand the impact and effectiveness of strategic management decisions made by key players in the car industry. Particularly, this is true for the European automotive market, which is affected by uncertainties regarding the legal status of trade among European nations, in the wake of the “Brexit” aftermath, and growing uncertainties regarding the state of the global economy (Kalverkamp & Raabe, 2018). Consequently, there is a gap in literature that has made it difficult to accurately understand the effectiveness of strategic decisions made in this environment.
This paper is a research proposal to explain how business analysis methods can be used to understand strategic decisions in the European automobile market. The impact of business analysis tools on strategic development will be discussed within the context of risk analysis, quality control, communication effectiveness and project outcome assessments. Additionally, the proposed research will be designed to expose how project management can be used to navigate the aforementioned market uncertainties affecting the automotive industry to meet organisational goals. Therefore, the final assessment will outline the linkage between project management plans and the accomplishment of organisational goals.
Background
Business analysis is geared towards improving the effectiveness of a company’s use of its resources to accomplish core goals. Therefore, associated tools can be used to develop appropriate plans that will be instrumental in developing solutions for daily problems affecting a business’s operations. Prior to the use of technology-based business analytical tools, companies were confined to the use of generic models of environmental assessment, such as the SWOT analysis, which assesses an organisation’s internal environment by identifying its strengths, weaknesses, opportunities and threats. Companies have also used the PESTLE model to analyse their external business environment by evaluating the political, environmental, social, technological, legal and economic factors impacting a business’s strategies (Perera, 2017). Based on the past use of these techniques in project management, it could be argued that project management and business analysis are two interrelated concepts. By merging the two, a business can benefit from the realisation of project goals and an increase in business value.
In the proposed project, a team of four people will simulate ideas regarding the market development strategy using a business game tool. Team members will discuss and evaluate the merits and demerits of new ideas with the view to improve the quality of collective decisions regarding the project plan. Each team member will play a distinct role that will be geared towards the overall attainment of organisational plans and goals. The four roles assumed by each team member will be based on tasks assigned to project, finance, marketing and production departments. Each team member will assume the role of the head of a management branch. Table 1 below highlights key roles and responsibilities assigned to each team member
Table 1. Team members’ roles and tasks (Source: Developed by Author)
The business game tool will be instrumental in evaluating the effectiveness of team decisions. The data inputted in the game will be sourced from the European automotive market with a keen emphasis on highlighted key information relating to sales strategies and market changes that have happened recently. The analysis will be based on the use of business analysis techniques to determine the company’s product orientation, strategy, cost determination, market segmentation, and managerial decision-making processes. The analysis will be from multiple angles.
Project Objectives
The overall aim of the proposed study is to use business analytical methods to understand strategic decisions in the European automobile market. The following objectives are expected to be achieved:
- To identify risks that may affect sales strategies used in the European automotive market
- To find out factors that influence market decisions adopted in the European automotive market
- To estimate the impact of the changing European automotive market environment on project management and business performance
Limitations and Mitigation Plans
Although the proposed study will be geared towards the achievement of the aforementioned objectives, the research process may be affected by several limitations that stem from the nature of the investigation. For example, it will be difficult to guarantee the authenticity of the report findings generated from the business game analysis because the data obtained will have no grounded basis for implementation. Consequently, it will be important to review related literature from reputable peer-review journals and books to authenticate the game report and integrate their findings in the overall project management analysis. Therefore, the final analysis will not only be based on the game report, as it will contain information from other sources as well. Additionally, it may not be physically possible to have all team members meet in one location. Therefore, video conferencing tools, such as zoom and skype, will be used to facilitate virtual discussions.
Lastly, the quality of findings generated from the report may be impacted by differing opinions among team members because it is naturally expected that individuals will have varied views regarding the strategic directions to be followed in implementing marketing plans. Consequently, one team leader will be selected to guide discussions. Impasses can be resolved through voting. Overall, the findings of the proposed study would be instrumental in helping managers to make better decisions regarding market entry and expansion in lieu of the uncertainties in the European automotive market. The findings of the proposed study would be pivotal in serving the needs of “other” stakeholders, such as community members, whose interests are typically ignored in major business discussions. Lastly, by making better decisions, companies would better improve their profitability and set up new controls that improve accuracy and accountability across different levels of management.
References
Kalverkamp, M., & Raabe, T. (2018). Automotive remanufacturing in the circular economy in Europe: Marketing system challenges. Journal of Macromarketing, 38(1), 112-130.
Nijhuis, S., Vrijhoef, R., & Kessels, J. (2018). Tackling project management competence research. Project Management Journal, 49(3), 62-81.
PavlĂnek, P. (2016). Whose success? The state–foreign capital nexus and the development of the automotive industry in Slovakia. European Urban and Regional Studies, 23(4), 571-593.
Perera, R. (2017). The PESTLE analysis. New York, NY: Nerdynaut.