Analyzing Impact of Macro Environment on Business Strategy

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................6
TASK 3............................................................................................................................................8
TASK 4..........................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
TASK 1
P1 Applying appropriate frameworks where analysis the impact along with influence of the
macro environment and its strategies
Macro environment is the one which is having its impact highly on the business. There
are different frameworks which are there in the market which are able to analyse the impact
along with influence the macro environment of the business. In relation to this there is PESTEL
analysis which is able to analyse such environment.
PESTLE ANALYSIS
Political factor- This is the one which is there can heave the ability to change the whole
scenario which is there in the business and able to get the high market share and vice versa. In
relation to strategy there is one of the main factor which is there in the business unit and which is
able to get the business run in the smooth manner or get dump. This is the one where there is
directly impact on the business where as the multinational company (Badubi and et. al., 2017).
Tesco is one of those who get highly affected by such factor due to having different political
effect in different countries where they are having the business. Brexit is one of the example
which has effected the multinational company highly in nature. There is need to have some
strategy which can help the Tesco to get minimum effect from it. There is need to make some
strategy which can help in getting over from political effect from each of the country.
Economical Factor- This is the one which is there have the high effect on the buinsess
where each and every country is having different economy and there is directly effect of the
economy on the business where higher economy country is able to get the higher business along
with higher profit where as low economy country is not able to do so. In this present COVID
time, there is need to have some strategy which can help in there to improve the economy
because due to this, there is highly change in the economy of the country and which is directly
affecting the Tesco business. Strategy which is there need to be implemented is the promotional
strategy in which there are many of the discount for different products which can attract the large
customer base. Attracting the large customer base can help in getting more sales resultant high
profit in less time (Becker and et. al., 2018).

Social factor- This is the one which is having its larger effect on the business which is
there can help the business to grow more. In this, Tesco is there involving in different social
work and there are many of them are able to create the good image of the business which is there
can help in getting high level of awareness which is there can help in growing the business and
give the productivity along with high profitability. Social work is the one which is able to give
the positive impact on the business and are there can help in attracting large number of customer
base which is there in the business. Higher authority of Tesco need to apply some strategy which
creates the business awareness along with give some benefits to the society. This can help in
getting better image of the brand along with high positive change in the sales of the products
(Daft and et. al., 2020).
Technological factor- This is one of the best factor which is there having its impact on
the business in the current time where everything is getting highly technical and people are
loving to adopt the technology which is there can help in to get better service. Along with this,
company is there can help in getting high business and is able to get high modification there in
the company. Development in the technology can help in getting development in the business
which is there can help in growing the business. Technology can help in attracting high level of
customer base which is due to use of innovative technology which is having better result there in
the business.
Legal factor- This is the one which is highly affecting the business which is there due to
having different legislation in different country. There is high effect of such legal factor there in
the business in that country. This is the one which is having its high effect on the strategy of the
business (Jiří and et. al., 2017).
Environmental factor- This is the one which is there having the effect on the
environment where the people and the government both are taking initiative which is there in
their own level where protection of the environment is necessary. In context to Tesco, company
is able to get such action which is there in the favour of the environment and having better
impact. In relation to this company has taken many initiatives like using very less plastic there in
the company which is in the process of packaging. Company need to have some of the initiative
business strategies which can help in getting high positive impact on the business and only can
be implement when there is development of better strategy there in the business.