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This report template relates to the tasks described in 323MAE 2021SEPJAN RESIT Coursework 2 Brief.

Please complete your responses for each of the tasks within the blank boxes provided. The size of the boxes can be extended to fit your responses to the tasks.

Analysis of the commercial and economic context using appropriate management techniques:

  1. Analysis of the external environment using the PESTLE framework to establish the current and future factors that might impact this market. Comment on your key findings and the potential impacts. (10 marks)

Political factors

These factors determine the effects of government intervention on a business within a fiscal year. The mountain bike manufacturers have to consider the taxation and import duties imposed by the government. A significant change in taxation policies, import levies, quotas, labor laws, and environmental regulations could adversely affect the company’s performance and future profitability

Economic Factors

These factors depict the economic performance of a company. The mountain bike manufacturers have to consider economic factors such as exchange rates, inflation rates, and a change in consumers’ disposable income (Christodoulou, and Cullinane 2019). A change in these factors could directly affect the company or affect the company indirectly by reducing consumers’ purchasing power and thereby reducing demand for the automated bicycles.


Social factors

These factors represent demographic characteristics such as values, norms, and customs in the UK (Pan et al. 2019). The mountain bike manufacturers should pay close attention to factors such as age distribution, growth rate, and trends. A change in these factors could immensely affect the company by affecting the demand for the bikes

Technological factors

The mountain bike manufacturer perceives an opportunity in the market emanating from the automation of the mountain bikes. The company aiming to cease it intends to import batteries and motors. Advancement of the mountain bikes could greatly benefit the

Legal factors

The manufacturing company has to focus on the legal requirement set by the UK government. Failure to consider these legal laws could attract hefty penalties for the company. The company has to adhere to customer protection laws and employment laws.

Environmental factors

These entail factors that govern the environment. The company is a manufacturer in the UK that has to consider environmental factors such as pollution and climatic conditions (Islam and Mamun 2017). The company should undertake a corporate social responsibility to protect the environment by reducing pollution.


Islam, F.R. and Mamun, K.A., 2017. Possibilities and challenges of implementing renewable energy in the light of PESTLE & SWOT analyses for island countries. In Smart Energy Grid Design for Island Countries (pp. 1-19). Springer, Cham.

Pan, W., Chen, L. and Zhan, W., 2019. PESTEL analysis of construction productivity enhancement strategies: A case study of three economies. Journal of Management in Engineering35(1), p.05018013.

Christodoulou, A. and Cullinane, K., 2019. Identifying the main opportunities and challenges from the implementation of a port energy management system: A SWOT/PESTLE analysis. Sustainability, 11(21), p.6046.

  1. A review of the key competitor companies that are already competing in the electric mountain bike market (e.g. company size, product range, capabilities, locations, etc. (5 marks)

Brompton manufacturers are among the greatest competitors in the electric mountain bike market. The company is located in Greenford London and has enjoyed a huge market success and dominance having been established in 1945. The recent e-bikes are exceptional being motor-assisted and with the weight of only 17kgs. The electric bikes are quite convenient to use since one can fold them and ride in trains and other available public transports. The Brompton Electric folding bike is quite superior as compared to other bikes since it is designed with the most modern technology which attracts exorbitant prices to access one (Zhou et al. 2018).

Pinnacle company is another key competitor in the UK industry that poses a great threat to the Specialism manufacturing company (Laroche et al. 2017). The company is located in Belleville and specializes in manufacturing all kinds of bikes. The company has enjoyed huge success in the market having been established in 2006 by a retail company known as Evans Cycles. The company has enjoyed a significant market share producing quality premium bikes. The Pinnacle Lithium-Ion e-bikes are classified among the best electric bikes being lightweight and having been built with the sufficient ability to conquer hills.


Laroche, F., Sys, C., Vanelslander, T. and Van de Voorde, E., 2017. Imperfect competition in a network industry: The case of the European rail freight market. Transport Policy58, pp.53-61.

Zhou, J., Li, P., Zhou, Y., Wang, B., Zang, J. and Meng, L., 2018. Toward new-generation intelligent manufacturing. Engineering, 4(1), pp.11-20.

Project planning using appropriate management techniques:

  1. A Gantt chart showing the key activities necessary for the development of a new electric mountain bike design, showing the key phases and review points. (10 marks)

Task Start date End date Duration
market research and feasibility test 5/1/2021 5/10/2021 9
project kickoff 5/10/2021 5/10/2021 0
Develop a database 5/11/2021 5/20/2021 9
Importation of raw materials 5/10/2021 6/10/2021 31
Assembly and manufacturing 6/10/2021 11/1/2021 144
Importation of end product 11/1/2021 1/1/2022 61
Sale and distribution 1/2/2022 3/31/2022 88


  1. A risk matrix showing the potential risks that could impact the completion of the project and a review of possible contingency / mitigating actions. (5 marks)


Strategic risk – co-opetition, customer preference

Political risks – Political instability, legislation, compliance laws

Financial risk- exchange rates, interest rates,

Operational risk – Supply chain failure, natural disaster, compliance, operating capacity

Type of risk Specific risk Likelihood – consequences
Strategic risk Competition Likely Major
Change in customer preference Unlikely Major
Operational risk Supply chain failure Likely Major
Natural disaster Rare Catastrophic
Operating capacity Unlikely Minor
Political risk Political instability Unlikely Major
Legislation Unlikely Major
Compliance laws Unlikely Major
Financial risk Foreign exchange rate Moderate Catastrophic
Interest rates change Moderate Catastrophic
Likelihood Consequences
Insignificant Minor Moderate Major Catastrophic
Certain High High Extreme Extreme Extreme
Likely Moderate High High Extreme Extreme
Moderate Low Moderate High Extreme Extreme
Unlikely Low Low Moderate High Extreme
Rare Low Low Moderate High High

Mitigation of risk

The company faces numerous risks and the company needs to come up with necessary corrective measures to mitigate the risks (Stock, and Wentworth, 2020). The mitigation strategy should focus on the most catastrophic and likely certain events. The mitigation should occur based on certainty levels and also the level of damage these events are expected to have (Little 2019).

The electric bike manufacturing company should seek legal guidance to ensure it does not contravene; state laws and regulations which would be quite risky and would have adverse effects on the company. The company should consider contracting the manufacturing process to ensure it avoids numerous operational risks. The company should also invest in research to identify possible changes in the market that could lead to adverse effects for the company (Little 2019). The manufacturing company should conduct aggressive research on the exchange rates and interest rates expectations and thereby avoid suffering huge losses once unforeseen events occur.


Stock, M.J. and Wentworth, J., 2020. Evaluating UK natural hazards: the national risk assessment.

Little, R.A., 2019. Negotiated management strategies for bovine tuberculosis: Enhancing risk mitigation in Michigan and the UK. Frontiers in veterinary science, 6, p.81.

Appreciation of frameworks of relevant legal requirements and the need for high levels of professionalism and ethical conduct:

  1. A review of the project scope and the proposal to manufacture and assemble overseas for potential issues associated with;

o Sustainability o Health and safety

o Intellectual property o Personnel

(10 marks)

The bike manufacturing company intends to introduce a new product (electric Bikes) in the market since it is a new product which is highly demanded. The company has a capacity shortcoming and is thereby not able to manufacture the electric bikes since it is operating at full capacity. It, therefore, opts to outsource to an overseas company but aims at supplying the bikes in the UK. The company faces challenges based on its decision.

  1. Sustainability

A project is perceived to be sustainable when all its defects are corrected and it meets the required standards to cope with the changing environment (Khalifeh et al. 2020). Recent innovations have seen an increase in demand for electric bikes which act as a substitute to the traditional cycles. To ensure the company remains in the market, it has to adopt the new changes and develop its own electric bikes. Based on the current issue faced on maximum manufacturing capacity, it would be crucial for the electric bikes to be manufactured overseas to ensure the company ceases the market opportunity and obtains maximum profits soon.

  1. Health and safety

Every company has to ensure that they provide adequate safety and insurance in the working areas. They also have to provide a safe warranty of their products with a safety manual to ensure their customers are not affected adversely by the products. Through outsourcing the assembly of the electric bikes, the company gas greatly saved on health cover for the employees since the manufacturing safety will be conducted by the overseas company and the UK company will receive the final product ready for distribution.

  1. Intellectual property

The company should consider offering contracts to the outsourced overseas company. This will go a long way in ensuring it maintains its patent rights, trademarks, and copyrights (Miyashita et al 2020). The bike manufacturing company should ensure the agreement with the overseas company is through a formal contract; by so doing, the company will safeguard its intellectual property rights.

4. Personnel

Based on the decision to assemble and manufacture electric bikes overseas, there will be no change in the personnel required. This is because the company does not require additional labor and an increase in labor would have no direct effect on output (Supeková et al. n.d). The company thereby benefits immensely in saving on labor costs when most of its products are manufactured overseas.


Khalifeh, A., Farrell, P. and Al-edenat, M., 2019. The impact of project sustainability management (PSM) on project success: A systematic literature review. Journal of Management Development.


Miyashita, S., Katoh, S., Anzai, T. and Sengoku, S., 2020. Intellectual Property Management in Publicly Funded R&D Program and Projects: Optimizing Principal-Agent Relationship through Transdisciplinary Approach. Sustainability, 12(23), p.9923.

  1. An explanation of the ethical principles expected of a professional engineer and a discussion of how these principles might be demonstrated in this type of project (with examples). (10 marks)

A professional engineer is supposed to abide by a set of ethical principles. Contravening such principles would be against the code of ethics and would be punishable as per the set guidelines. Based on the NSPE Code of ethics; engineers shall hold paramount the welfare, health, and safety of the public in the execution of their duties (Tang, and Nieusma, 2017). In 2005, the Royal Academy created a set of ethical laws governing engineers in the execution of their duties, a revisit was later conducted in 2017 (Fuentes,2017). These guidelines include;

  • Honesty and high levels of integrity

Engineers must uphold the highest ethical standards in terms of transparency, fairness, honesty, and integrity (Tang, and Nieusma, 2017). Engineers are supposed to; act with courage and confidence; warn individuals of the possible effects caused by their work; respect for all parties and individuals’ dignity, privileges, and reputations; confidentiality enforcement, report interest conflicts; avoid disappointments and take action to deter or expose wrongdoing or misbehavior, reject bribery, coercion, and misrepresentation.

The manager must ensure that all dealings are in accordance to set ethical guidelines (Fuentes,2017). The manager should ensure that the engineers exhibit high standards of honesty and integrity. To achieve this, the manager should alert the general public of the manufacture of the new electric bikes. They should also communicate o the pricing and additional features including horsepower and weight which is a major concern nowadays.

  • Respect for the law, life, the environment, and public good.

Engineers have a responsibility to follow all applicable laws and regulations, as well as to give due consideration to published information and guidelines and the general public interest (Pozdeeva et al 2020). In respecting public interests, engineers should; keep other people’s health and safety in mind, and point out potential hazards; check to see if their work is valid and justified; recognize the importance of data security, as well as physical and cybersecurity; preserve and improve nature to the greatest extent possible; take into account the limited availability of natural resources.

The bike manufacturing company should respect the UK laws and additional environmental laws which contribute to the citizen’s welfare. The bike manufacturing company should engage in corporate social responsibility and avoid polluting the environment. The bike company should also seek legal guidance from a professional to ensure it does not contravene set laws and regulations. The company should implement policies to improve the health of the employees and the security of the premises and the data (Tang, and Nieusma, 2017).

  • Accuracy and tenacity

Professionals in the field of engineering are obliged to gain the knowledge, skills, and understanding needed to perform their role and use these skills wisely to execute their duties accurately (Jing, and Doorn,2020). Engineers are expected to exercise care when performing duties in areas they are competent in. Engineers are also expected to keep their skills updated as they assist in their personal development and the development of others.

The bike manufacturing company should use its skills and knowledge to develop a quality e-bike and conduct a follow-up through insurance to ensure that they provide accurate information to its customers based on quality.

  • Exhibit proper communication and leadership.

Engineering practitioners are expected to exhibit high standards of leadership and communication. In their dealings, engineers are expected to listen to issues raised by the public, promote equality and inclusion; promote public awareness of various engineering activities and their significance.

The bike manufacturing company falls under the engineering department and is thereby expected to ensure engineers follow the set ethical standards including in their communication and leadership. Engineers in the e-bike manufacturing company are expected to communicate well with the general public and take into account arising issues about the new product they intend to launch.


Jing, S. and Doorn, N., 2020. Engineers’ moral responsibility: A Confucian perspective. Science and engineering ethics, 26(1), pp.233-253.

Pozdeeva, E.G., Shipunova, O.D. and Evseeva, L.I., 2019, November. Social assessment of innovations and professional responsibility of future engineers. In IOP Conference Series: Earth and Environmental Science (Vol. 337, No. 1, p. 012049). IOP Publishing.

Fuentes, D.S., 2017. Investigating engineering students’ understandings of social and ethical responsibility: coding framework and initial findings.

Tang, X. and Nieusma, D., 2017. Contextualizing the code: Ethical support and professional interests in the creation and institutionalization of the 1974 IEEE code of ethics. Engineering Studies, 9(3), pp.166-194.

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