Morgan Motor Company - The Car Maker's Journey into the 21st Century


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:
Case Code : BSTR201 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

Family-Owned Business | Business Environment
Case Length : 17 Pages
Period : 1910-2005
Organization : Morgan Motor Company
Pub Date : 2006
Teaching Note : Not Available
Countries : United Kingdom
Industry : Auto and Ancillaries

Abstract:

Morgan was probably the only car company in the early 2000s that still made cars the way they were made in the early 1900s - by building them on a wooden frame and crafting them mainly by hand. The company had an annual production of just over 500 cars and a waiting list that sometimes extended over several years. This made Morgan an oddity in the modern auto industry that thrived on volumes. However, in the late 1990s, Morgan began making tentative moves towards modernization. Most of the changes were apparent in its new car the Morgan Aero 8, which was launched in 2000. This case explores the traditional Morgan way of working and the reasons for Morgan's success despite its divergence from standard business principles.

It also studies Morgan's moves towards modernity in the late 1990s, and the making of the Aero 8 which embodied changes in production and design techniques that were brought about within the company. The case concludes with an analysis of whether Morgan's moves towards modernity are likely to pay off, considering that the cars' nostalgic appeal and aura has been their main draw.

Issues:

» The strategy and working of a rare company known to adhere to traditional production methods in the face of all the change around it
» The role and importance of change in the business environment and how certain companies can survive and succeed without bowing to change
» A traditional company's moves towards adopting a modern production system
» The production processes adopted in the making of a new car

Contents:

  Page No.
Morgan Announces 'Eco Car' Project 1
Background 2
Making Cars The Morgan Way 4
Concessions to Modernity - The Making of the Aero 8 8
Will Change Pay Off for Morgan? 11
Exhibits 13

Keywords:

Morgan Motor Company, Aero 8 sports car, BMW V8 engine, LIFEcar, Charles Morgan, Peter Morgan, On-the-job training, Troubleshooter, Computer Aided Design, BMW, V8 drivetrain, General Motors, Morgan 4/4, Standard Motor Company, Sir John Harvey Jones

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