Impact and Influence of Macro Environment Factors on a Business Organisation

Business Strategy

Table of Contents
TASK 1............................................................................................................................................3
P1: Impact and influence of macro environment factors on a business organisation............3
M1: Critical analysis of of macro factors to determine the management decisions...............5
TASK 2............................................................................................................................................6
P2: Analysis of internal environment and capabilities of the organisation............................6
M2: Critical evaluation of internal environment and the capabilities....................................8
TASK 3..........................................................................................................................................10
P3: Analysing of competitive environment of a organization..............................................10
M3: Appropriate strategies to improve competitive edge and market position...................12
TASK 4..........................................................................................................................................13
P4: Theories, models and Concept helping in strategic planning of a organisation.............13
M4: Strategic marketing plan...............................................................................................13
D1: Critical interpretation and analysis of information.......................................................15
CONCLUSION....................................................................................................................17
REFERNCES.................................................................................................................................18

INTRODUCTION
Strategies are the action plans that are undertaken by various business organisation. It is a
set of actions that are used for fulfilment of various objectives of a business. It is very helpful for
organisations in improvement of employee performance and attainment of a competitive
advantage. It is a path that us used by organisation for regarding to their desired objectives for
future planning of organisational goals. These strategies are formulated for the purpose of
achievement of business targets in a more better manner. The present report is based on retail
organisation that is Tesco (Anderson, 2019). It is UK based retail organisation and it has its
headquarters present in UK. There are approximately 12 stores that are present across world.
There is a analysis of internal environment, macro environment and analysis of organisation's
capabilities with help of models and frameworks. In the present report there is analysis of
external environment, micro environment by use of PESTLE, SWOT analysis and further there
is development of strategic plan used for achievement of certain laid objectives.
TASK 1
P1: Impact and influence of macro environment factors on a business organisation
The business is functioning in a dynamic and complex environment that is completely
changing and is never constant (Anwar and Hasnu, 2016). There are certain organisational
factors that provided opportunities and threats for business organisation in case of Tesco this
company is also operating in a external business environment and there are many factors that are
possessing influence on their overall functioning of business. There is a analysis made of such
factors by use of PESTLE analysis as discussed below:
POLITICAL FACTORS : These are the factors that are used for identifying the overall impact
of various actions and plans of government.
Positive: Government of UK is taking initiates for promoting growth of retail sector for
which they are providing incentives. It is giving Tesco a opportunity for increasing demand of
their products.
Negative: There are certain political factors that cam posses a negative impact on
business such as BREXIT is a recent referendum that is posing a impact on overall demand of
products especially retail industry is getting negatively impacted because of this political issue.

ECONOMIC FACTORS : Economic factors are those that are use for determination of those
factors that are related with economy of a country and is posing a direct effect on functioning of
a company.
Positive: There has been reduction in the price of retail products that is leading to
reduction in the prices of products offered by TESCO such as ready to eat food etc.. Tesco can
benefit from this by having a pricing advantage in the external market (Belz and Binder, 2017).
Negative: There are many stability issues that report of economic environment such as
financial performance specially in countries such as Asia & Europe.
SOCIAL FACTORS : There are many social conditions that are related with social trends of
the market in which organisation is functioning. It is responsibility of management in a company
that they have to maximize overall benefits from such social factors.
Positive: There has been lot of social changes that are taking place in the external
environment. Such as customers in UK moving towards a trend of bulk shopping or one stop
shopping. Tesco has also been able to increase their non food items and offering them for sales to
support this trend.
Negative: on other hand there has also been a shift in the belief and attitude of customers
for ready made food they are moving their preference towards a healthy lifestyle for this it is a
requirement of Tesco to change their food products towards a healthy ingredients (Dahlberg,
Hokkanen. and Newman, 2016). Such changing attitude and belief of people is creating a
continuous change of policies and products on a continuous basis.
TECHNOLOGICAL FACTORS : Technological factors are those that are related with
advancement of technology as a opportunity to be adopted by retail organisations.
Positive: TESCO has introduced a RFID technology that is helping them in saving their
time and efforts of their labour which can be be further utilised in any other productive work.
Negative: There are many technologies that are disruptive for Tesco such as introduction
of e grocers has resulted into sales of offline stores getting impacted in a negative manner.
ENVIRONMENTAL FACTORS : There are certain factors that are posing a impact on global
warming and various consequences associated with the adoption of new technology.
Positive: Tesco is focussing on utilising various greenhouse gases and reducing overall
consumption of energy.