Impact of Macro Environment and Internal Capabilities on Business Strategy

Business Strategy

Table of Contents
INTRODUCTION ...............................................................................................................................3
TASK 1 ................................................................................................................................................3
P1 Use appropriate frameworks and impacts of macro environment in given organisation
strategies..........................................................................................................................................3
TASK 2.................................................................................................................................................6
P2) Examine the internal capabilities and internal environment within the organisation. .............6
TASK 3.................................................................................................................................................9
P3) Explain the porter's five forces model in order to evaluating forces within the organisation. .9
TASK 4...............................................................................................................................................10
P4) Use a range of theories, concepts and models as well as interpret and devise strategic
planning.........................................................................................................................................10
CONCLUSION .................................................................................................................................13
REFERENCE.....................................................................................................................................14

INTRODUCTION
In business sector, strategy and tactics play important role in development and growth of
enterprise. Business strategy is defined as process of set of actions or tactics that are used to
achieve competitive benefits. It is important for business to implement strategies so that goals are
achieved in effective manner. Morrisons, a large supermarket chain headquartered in U.K. Firm
deals in groceries, daily consumable items etc (Kahre and et.al., 2017). It providing wide range of
products and services offered for customers in order to achieving organisation goal and objective of
company. It has wide range of competitors such as Tesco, Sainsbury, Walmart etc. This report
comprises of impact of macro environment, internal and environment capabilities, frameworks,
Porter Five Force model and theories & models for strategic planning.
TASK 1
P1) Use appropriate frameworks and impacts of macro environment in given organisation
strategies
Macro environment is defined as factors which occur outside enterprise and affects overall
organisational structure externally. Strategy is defined as set of actions or tactics to achieve
competitive advantage. In relevance of Morrisons, they to determine those external factors
PESTEL Analysis is being used and is further explained below-
Political factors-
It is first element in which it includes environmental law, labour law, policies, rules and
regulations etc. It also impact upon company's strategy as due to change in labour law they have to
revise their strategy again which leads to time consuming. In reference of selected firm, to
implement strategies company has to properly follow government legislations related to foods and
supply retailers.
Positive impact-:Main positive effect of this factor is that Morrisons following proper
procedures & analysing these impacts leads to increase of goodwill.
Negative impact-: The greater impact on political issue because they highly impact on trade
policies so affect the business operation and functions (Swaffield and et.al., 2019).
Economic factor-
It is another component in which it comprises of tariff and non tariff, foreign trade policies,
foreign exchange rates etc. In context of Morrisons, this factor impact upon organisational strategy
as due to Brexit there has been a fluctuations in currency which is affecting business operations of
company.
Positive impact-: Positive impact refers organisation easily expand their business operation

due to economic condition of United Kingdom is good.
Negative impact-: It includes ample numbers of competitors are present at marketplace so
accordingly they serves the customers so it affect the profitability and productivity of company.
Social factor-
In this element of PESTEL analysis, it includes habits, attitude, perception, of customers,
society, etc. It is essential to be aware about these factors so that marketing and activities are carried
out accordingly. In viewpoint of Morrisons, they distribute their products relying on taste of
customers & market sales ratio. It includes organisation know about the taste and preferences of
customers and accordingly served for customers (Haseeb and et.al., 2019). In context of
organisation, it involves conducting market research in order to know about the market trends,
customer taste and preference due to aware about the taste of customers.
Positive impact-: They conducting proper research so accordingly providing services and
product so easily achieving satisfaction level of customer.
Negative impact-: In present context, it includes technology are changes very first so
accordingly changes in trend so affect organisation services and business.
Technological factors-
This factors plays important role in order to providing innovative products and services to
customers. There are ample factors which affect the business operation and their policy is Morrison
utilised advanced technology which result as easily manufacturing products and services so serves
to customers. It involves they providing innovate products so according fulfil the needs and wants
of customers which helps to developing their brand image in the market.
Positive impact-: It includes utilising various technology which result as retail businesses
helps to achieving organisation goal and gaining competitive advantages at marketplace.
Negative impact-: It involves organisation not using advanced technology so affect the
business profitability and productivity of company.
Legal factor-
It is process which refers to various various laws, legislation such as employment contract
act and wages act so organisation adhered to follow such rules and regulation on that basis smoothly
run the business operations (Majid and et.al., 2020). In relevance of Morrison, it includes
organisation followed such rules and condition which help to easily operate the business.
Positive impact-: Organisation followed the rules and regulation so easily conducting
business functions.
Negative impact-: It includes various process which refers to changing that process so
impact the business models.
Environmental factor-