Business Strategy: Analysis of VAUXHALL's External and Internal Environment

BUSINESS STRATEGY
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Executive Summary
This report included business strategy which refers to business planning that contribute and
guide business activities towards achievement of business objectives, and the factors which are
required to be analysed before designing and developing business strategies. This report included
PESTLE analysis and Porters' five forces for analysis of external business environment. SWOT
analysis and VRIO and Value chain analysis for internal business environment analysis. Later
strategic planning have also been included in this report and for that Ansoff Metrix have been
included for deciding strategy of the market.
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Table of Contents
BUSINESS STRATEGY.................................................................................................................1
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
External Environment Analysis.......................................................................................................4
Internal Environment Analysis........................................................................................................7
Strategic Planning Process.............................................................................................................11
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
Business strategy refers to specific plans which are designed and developed by organisations
so that they can achieve their objectives in most efficient manner. For designing and developing
business strategy company needs to ensure its external and internal environment and their effect
on its operations and functions. This report includes internal and external analysis of
VAUXHALL. This is a British Car company headquartered in Chalton, Bedfordshire England.
This company was founded in 1837 and is subsidiary Group PAS. The area served by the
company is limited to England. The company manufactures automobile and commercial
vehicles. This company have been included in this report for external analysis through PESTLE
for Macro analysis and Porters' five forces model for micro environment analysis . Internal
Analysis of VAUXHALL will be analysed through VRIO model for resources and SWOT
analysis. Later this report also includes strategic direction available for VAUXHALL and which
are suitable and can be adopted by VAUXHALL.
External Environment Analysis
This refers to external factors which affect the operation of VAUXHALL. This environment is
divided in two parts one is Macro and other one is Micro.
Macro Factors are those which cannot be controlled by the company and affect the whole
industry at a time. On the other hand Micro factors are those which can be controlled by the
company but only partially (Perera, 2017). This includes that factors which are related with
company but are not part of the company's internal environment. Macro Environment can be
evaluated through PESTLE framework.
Political
This includes political factors of a company which affect operations of a firm. Political
ideologies their values which affect operations of firm are included in this factor. VAUXHALL
operates in UK and this is why political environment of the UK affects the operations of
VAUXHALL. The political factor which affect VAUXHALL are Promotion of Public Transport.
This is a factor as use of public transport will reduce demand of the cars of VAUXHALL. This is
not in favour of VAUXHALL.
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