Business Strategy: Analysis of Nissan's Macro and Internal Environment

Business
Strategy

INTRODUCTION...............................................................................................................................3
TASK 1.................................................................................................................................................3
P1......................................................................................................................................................3
TASK 2.................................................................................................................................................6
P2......................................................................................................................................................6
TASK 3.................................................................................................................................................9
P3......................................................................................................................................................9
TASK 4...............................................................................................................................................10
P4....................................................................................................................................................10
CONCLUSION..................................................................................................................................12
REFERENCES..................................................................................................................................13

INTRODUCTION
Business strategy is defined as course of actions as well as judgement which assist an
industrialist in accomplishing their goals and objectives within effective manner (Alsudiri,
Al-Karaghouli and Eldabi, 2013). In other words, business strategy is nothing but a planning
that administration of company apply in their operations for gaining competitive advantages
within market area, attract customers to accomplish desired ends, carry on their operations
and many more. This report is based on Nissan which is Japanese multinational automobile
manufacturing company. It was founded in 1933 on 26th December ad products offering by
them at global level are automobile, luxury vehicles, commercial vehicles, outboard motors
and forklift trucks. Respective company is headquartered at Nishi-Ku, Yokohama, Japan.
Respective report will going to conduct macro environment analysis by using
PESTEL and some other frameworks. In addition to this, it will also highlight internal
capabilities of company through VRIO as well as 7s McKinsey model. Furthermore, for
analysing competitive environment Porter’s five force model will use by company as it will
help in analysing each and every factor within effective manner. As this report is related to
business strategy so in this strategic planning is important so for this purpose Ansoff matric
will be use by company.
TASK 1
P1
Macro environment is simply a condition which exist within economy as overall
instead a specific sector or region. Thus, it involves tendencies within gross domestic
product, employment, inflation, fiscal policy, spending as well as many more (Chang 2016).
It is essential for Nissan to conduct external analysis in effective manner because these
factors will result in positive and negative effect on operations of company. Explanation of
these are mention below :-
PESTEL analysis – Here, PESTEL stands for political. Economic, social.
Technological, environmental and legal. This framework help company in analysing macro
environmental factors in effective manner. Description of PESTEL for Nissan company are
as follows :-
 Political – It includes political instability of nation, new rules & regulation and many
more. For instance, Brexit result in adjustment within Nissan Business as Britain

voted for motiving out of EU in an historic referendum in 2016. Thus, terms related to
economic and trade post Britain’s exit are still uncertain as well as these have wide
impact on business of respective company. More than 7000 employees of Nissan are
it Sutherland plan and if company doesn’t enjoy similar trading condition after Brexit
then they will cut down their UK operations which result in job losses at wide level.
Although, it is important for Nissan to analyse political factors on timely basis which
have impact on working of company.
 Economic – In United states, automotive industry is major contributor but when
nation deal with recession sale of company get decrease automatically (Bharadwaj
and et. al., 2013). Apart from this, Brexit is best example because due to this there
was wide negative impact on working of company as their sales will also get reduce.
 Social – In relation of Nissan company preferences of customers is related to the
environmental friendly transportation by which automobile industry go through
transformation. As consumer awareness is increasing in relation of negative impact as
well as cost of fuel. Thus, within this situation for gaining competitive advantages
manufacturers are developing electronic as well as hybrid vehicles which are in
demand now days. As Nissan introduced Nissan Leaf in US and Japan as well as
stands for the benefits if growing electric vehicle adoption.
 Technological – As technology is getting update day by day which provide assistance
to Nissan in coming with something innovative in market area and attract large
number of customers in effective manner. As awareness related to environment is
increasing in customers which require Nissan to come with eco-friendly products so
strategy of Nissan is influenced by government policies related to clear air and issues
related to climate change. It driven Nissan to powerful built-in battery, sleek
aerodynamic with innovative technology which result in customer satisfaction. Along
with this, it also cut down on carbon emission.
 Environmental – Government has given several rules and regulation related to
environment which has to be followed by every company working within business
environment. Thus, Nissan to come with eco-friendly products so strategy of Nissan is
influenced by government policies related to clear air and issues related to climate
change. It driven Nissan to powerful built-in battery, sleek aerodynamic with
innovative technology which result in customer satisfaction. Along with this, it also
cut down on carbon emission.