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Magtec: Pioneering Electric Drive Systems for Diverse Vehicles

Part 1 Introduction

The concerned organization, Magtec, is a UK based company which is involved in the manufacturing and selling of electric drive systems and components for a wide range of vehicle types ( 2021). The organization also designs drives and components for off-road multi-wheeled and tracked military vehicles ( 2021). It has been observed that the organization was founded in the year 1992 and is considered as the UK's largest manufacturer of drive systems for commercial vehicles. All the operations of the business are conducted through the facilities in Sheffield ( 2021). It has been observed that the organization is one of the most innovative UK based businesses in the 2021 list with a turnover and earning of around £ 6 million.


The organization operates though a hierarchical structure where the CEO and the Board of directors and executives takes all crucial decisions that are carried forward by the workforce and the staff members in the respective departments ( 2021). The hierarchical structure in the business has supported the maintenance of transparency of communication and development of efficient practices in order to ensure growth. It has been observed that the major competitors of the chosen organization are Gravitron, ASI Technologies, AC Propulsion and Canadian Electric Vehicles. The competitive vantage of the concerned organization is based on the frequent innovation based practices that are undertaken by the same with the purpose of ensuring their sustenance in the intensely competitive markets. The continuous innovation in the business is in line with the expectations of the clients and the customers which again supported the continuous growth of the business (Yuan et al. 2020).

Part 2 Analysis
SWOT Analysis of business
SWOT Analysis of business

From the assessment of the organization’s SWOT assessment it has been observed that although the organization has been empowering continuous innovation in their operations, the business encounters an increased cost of operations and raw materials. The increase in the cost of operations and the insufficiency of technological innovations has been limiting the scope of profitability of the venture while restricting its growth in the international markets. Moreover the uncertainties related to Brexit in UK markets have been restricting the growth potentials of the venture in the EU markets. However, the SWOT assessment of the organization also identified certain opportunities like the implementation of latest tech in the manufacturing units or the expansion in the emerging economies. Therefore, the utilization of the SWOT assessment has been effective towards identifying the different aspects of the organization while developing insight on the diverse changes that might be considered by the venture.

Use of Corporate social responsibility by the business

The chosen organization has been following the aspects of the triple bottom line with the purpose of ensuring the fulfillment of their social responsibility. It has been observed that the organization has taken the initiative of reducing the carbon emissions from their activities and proclaimed to develop zero carbon activity by the year 2025 ( 2021). The initiatives that are being devised by the business in order to control the carbon emissions are evident through the use of renewable sources of energy for fueling their manufacturing activities. The organization is also planning to rely more on electronic vehicles in their logistics and supply chain operations with the purpose of reducing the carbon emissions. The activities of the organization towards the reduction of carbon emissions through the utilization of Smart technologies and apparatus have been identified as their intent towards reducing the impact of their activities on the environment.

Khan et al. (2018) opined that businesses develop efficient processes in order to reduce the impact of their operations on the environment. In this connection, the chosen organization has taken every initiative of developing efficient processes towards reducing their operational impact on the environment. Moreover, it has been observed that the organization has been operating towards creating recruitment in the regional areas which has supported in improving the operations of the organization towards fulfilling the needs of a social cause. Castriotta, Di Guardo and Marku (2020) stated that creating employments for the regional areas of an organization where it operates supports in improving the overall social wellbeing and lifestyle of the people. The organization has been considering the development of efficient processes in order to improve the lifestyle of the people which has been supporting the growth and development of the organization in UK markets with maximized involvement of the stakeholders in the operations.

However, it has been observed that the organization has been encountering concerns related to their economic stability (Castriotta, Di Guardo and Marku 2020). The increase in the cost of raw materials and the operations has been limiting the profit earnings which has been identified as a threat towards the sustenance and growth of the business in the highly competitive international markets. Halkos and Skouloudis (2018) opined that the economic sustenance of an organization contributes towards the long term sustenance and operational success in the global competitive markets. Therefore, the concerned organization has been encountering an increased threat towards its sustenance and growth in the markets through the lower economic sustenance.

Innovation and creativity in business

The organization is focused towards customer oriented operations for which the venture strengthened their R&D operations. It has been observed that the organization holds an open culture in the workplace in order to encourages the active participation of the staffs and employees in the innovation based processes. Anser, Zhang and Kanwal (2018) stated that continuous innovation related culture and change readiness among the employees of an organization supports in empowering the growth and long term sustenance. In this connection, the organization developed an innovation based culture in the workplace and empowered the employees on change readiness through efficient training and development programs.

The activities of the organization largely contributed towards ensuring the continuity of innovativeness among the workplace while addressing the diverse needs of the customers. Sroka and Szántó (2018) stated that adherence to the shifting needs of the customers through continuous innovation and learning with an efficient R&D team supports a business in ensuring growth in their sales volume. Anser, Zhang and Kanwal (2018) opined that strengthening the R&D operations of a venture supports a business in gaining a competitive edge over the existing market players. Therefore, the development of the innovation based culture in the organization ensured the continuous growth and development while operating as per the shifting needs and priorities of the customers.

Part 3 Conclusion and Recommendations
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Therefore, from the above assessment it might be stated that Magtec is an innovative UK based business which has significantly grown through the continuous developments in their range of offerings while addressing the needs of the customers. However, it has been observed that the organization has been encountering significant concerns with the rising cost of operations and raw materials that has been restricting their profitability and growth. Moreover, it has been observed from the research that the organization failed to administer efficient technology implementation in their manufacturing units which limited the scope of growth for the business. The insufficiency of technological innovation in the manufacturing units restricted the growth and development of the business. Therefore, the research identified the innovative properties of the organization and the challenges that are being faced by the same which restricted its growth.


Implementation of automated tech in manufacturing units: The organization must implement efficient automated technologies in the manufacturing units with the purpose of reducing the dependency of the organization on human resources. The strategy would support the business in reducing the costs of operations while influencing a growth in their profitability.

Contacting with wider range of suppliers: Contacting and maintaining relations with a diverse range of suppliers which would allow the organization in improving their bargaining power and reduce the cost of the raw materials and resources. The reduction in the cost of the raw materials would contribute towards the sustenance and profitability of the business.

Expansion in emerging economies through joint venture: The organization must undertake joint ventures in different other companies in the emerging economies with the purpose of ensuring their growth in the global markets.

Part 4 References

Anser, M.K., Zhang, Z. and Kanwal, L., 2018. Moderating effect of innovation on corporate social responsibility and firm performance in realm of sustainable development. Corporate Social Responsibility and Environmental Management, 25(5), pp.799-806.

Castriotta, M., Di Guardo, M.C. and Marku, E., 2020. Mapping Research on Corporate Social Responsibility and Innovation.

Halkos, G. and Skouloudis, A., 2018. Corporate social responsibility and innovative capacity: Intersection in a macro-level perspective. Journal of cleaner production, 182, pp.291-300.

Khan, H.U.R., Ali, M., Olya, H.G., Zulqarnain, M. and Khan, Z.R., 2018. Transformational leadership, corporate social responsibility, organizational innovation, and organizational performance: Symmetrical and asymmetrical analytical approaches. Corporate Social Responsibility and Environmental Management, 25(6), pp.1270-1283., 2021. Magtec - Home. [online] Available at: [Accessed 3 May 2021].

Sroka, W. and Szántó, R., 2018. Corporate social responsibility and business ethics in controversial sectors: Analysis of research results. Journal of Entrepreneurship, Management and Innovation, 14(3), pp.111-126.

Yuan, Y., Lu, L.Y., Tian, G. and Yu, Y., 2020. Business strategy and corporate social responsibility. Journal of Business Ethics, 162(2), pp.359-377.

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