Impact of Macro Environmental Factors on Nissan: PESTEL and Four Corner Analysis

Business
Strategy

INTRODUCTION...............................................................................................................................3
TASK 1.................................................................................................................................................3
TASK 2.................................................................................................................................................6
TASK 3.................................................................................................................................................9
TASK 4...............................................................................................................................................10
CONCLUSION..................................................................................................................................13
REFERENCES..................................................................................................................................14

INTRODUCTION
Business strategy can be explained as combination of decision taken as well as actions
which an business firm perform for achieving goals and objectives for securing competitive
position within market area. In simple term it can be said that, business strategy is backbone
of company as it is roadmap which result in accomplishing desired goals (Canevari‐Luzardo,
Berkhout and Pelling, 2020). As any mistake within roadmap result in getting business lost
within crowd of overwhelming competitors. Thus, for an business firm it is important to
design their business strategy is better manner so that competitive advantages will be gained.
This report is based on given organisation i.e., Nissan which is part of automobile
manufacturing industry as it was founded in 1933. They are dealing at global level and
products offering by them are automobile, luxury vehicles, commercial vehicles, outboard
motors and forklift trucks.
This report will going to analyse impact of macro environmental factors on working
of Nissan through PESTEL and Four corner analysis. Along with this, it also analyse internal
capabilities of respective business firm by implementing VRIO and 7s McKinsey. Moreover,
for analysing competitive forces Nissan implement Porter’s five force model. In addition to
this, respective report will implement Ansoff matrix and Porter’s generic model for interpret
strategic planning of Nissan.
TASK 1
Macro environmental factor is related with the economic condition or of specific
region as well as sector. In addition to this, it includes tendencies in inflation, gross domestic
products, fiscal policies, spending and several other. Moreover, for Nissan it is crucial to
analyse macro factors within better manner because elements included within this have
positive as well as negative both impact on operations (Mussolino and et. al., 2019).
Explanation of these are as follows :-
PESTEL analysis – It is an framework which provide assistance to business firm in
determining environmental factors within effective manner. Here, PESTEL stands for
Political, Economic, Social, Technological, Environmental and Legal. Explanation of
respective framework in relation of PESTEL analysis are mention below :-
 Political – This involves several elements such as rules, regulation, policies, political
instability of nation and several other. For example, Brexit is political factor as it

result in adjusting within respective Company because Britain voted for moving out
EU within historic referendum in 2016. There are several terms related to the
economic as well as trade post Britain’s exit which are still not certain and result in
wide effect on Nissan (Rivera and Clement, 2019). In addition to this, overall 7000
staff of respective organisation are in their Sutherland plan if Nissan will not enjoy
same trading condition then they have to cut operations which directly impact on
losing job of several people at large level.
 Economic – In US, automotive sector is major contributor but at the time when
country deals with recession sale of Nissan reduce. Moreover, Brexit is one of the best
example because it have negative effect at wide level on the working of company
which result in reducing sales.
 Social – Now a days people are getting more aware about environment which means
that customers are preferring environmental friendly transportation through that
respective sector go with wide transformation (Lüdeke‐Freund, 2020). As people are
getting aware about negative impact of automotive industry and increasing cost of
fuel. So, for gaining competitive advantages in this Nissan started focusing on
developing electronic and hybrid vehicles which people want. for instance, Nissan
introduced Nissan Leaf in United State and Japan, along with this stand for benefits in
relation of growing electric vehicle adoption.
 Technological – In every country technology advancement is taking places which
help Nissan in bringing something innovative as well as attractive for customers in
proper way. As customer of Nissan is getting aware day by day which require
respective company to come with something eco-friendly. Thus, strategy of respective
business is influenced through government policies which is related to clear air as
well as problem of climatic changes. Moreover, it driven respective company to built-
in powerful battery, sleek aerodynamic along with latest technology that provide
assistance to Nissan in making customer satisfy. This strategy will result in reducing
carbon emission.
 Environmental – National bodies introduce various rules as well as regulation in
relation of environment that every business firm has to follow. Thus, Nissan has to
bring eco-friendly goods and services as strategy of respective is influenced through
policies of government which are building powerful battery, sleek aerodynamic
related to latest technology that result in making customer satisfy. It will give positive
impact on company by reducing carbo emission.