Business strategy

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Applying appropriate model examine the effect and cause of the external environment
within business organisation and its strategies....................................................................3
P2 Analyse the micro environment factors and ability of a presented business organisation
using appropriate frameworks...............................................................................................5
P3 Measure Porter's Five Forces model for assessing competitive analysis within market
place........................................................................................................................................8
P4 Different Strategic planning for the business organisation............................................10
CONCLUSION .............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Business strategy refers to the procedure that helps the organisation to accomplish
objective inside the company within a stipulated period of time. The organisation focuses on
building effective strategy in order to achieve favourable outcomes. This assists in boosting the
performance of company for achieve target within a given time period. This report is prepared
for the Mercedes company, the manager emphasised on making an appropriate plan, policies and
strategies that helps in enhancing future growth and development of the business organisation.
In current context, it includes PESTLE analysis for identifying the macro environment that
imposes direct impact on activities of the company. In addition to this, SWOT and VRIO assess
is used for analysing inner capabilities of the firm (Alstete and Beutell, 2016). It also involves
Porter's five force model for gaining competitive advantage at marketplace. Beside from this,
Ansoff matrix is used for analysing strategic option for the business organisation.
P1 Applying appropriate model examine the effect and cause of the external environment within
business organisation and its strategies
It is essential to assess external environmental factor for operating its business activities
and function in appropriate manner. In discourse of Mercedes, the management team used
PESTLE analyses for determining the cause of macro environment on company which is going
to be discussed below:
Political Factor: Political Factors involves rules, laws, restriction and many more. It
plays a very important function in every organisation to be stable within the market. In context of
Mercedes, the top management focuses on offering superior car facility at low cost for satisfying
the need and want of customer. In assistance of this, taxation policy is the important political
factor that directly effect on import of Mercedes company. The government structure and import
duty result in accelerate the price of car of the business organisation. The manager of Mercedes
company focuses on boosting sales for future growth and development of the business
organisation.(Cagnin, 2018)Change in taxation policy and export duty directly affect the
operations of its business in adverse manner. Crude oil is one of the beneficial factor for the
growth of the company.
Economic Factor: It plays important role in every company for accelerating productivity
and profitability level. It involves deflation as well as inflation rate that imposes direct impact on

future sales of the organisation. Beside from this, due to increase in inflation rate affect
negatively on the operation of business organisation. In order to accelerate inflation rate people
invest less money in buying a car. So Mercedes company face a difficulty in selling a car. The
manager of business organisation focuses on providing superior quality car to its customer at low
price for satisfying them. It helps in boosting the reputation and brand image of the business
organisation.
Social Factor: It includes different factors such as region, income, age and demographics
that imposes direct impact on productivity of the business organisation. Mercedes is one of the
well reputed company that focuses on assessing the customer need and preferences for boosting
future sales of company. The production of car based on needs of user for accelerating profit
level. Beside from this, the manager of Mercedes emphasised on change in consumer lifestyle
and preferences for achieving competitive advantage at marketplace. The R&D Department of
company identifying needs of user that helps in accelerating profitability of the company.
Therefore, the business organisation provide superior car to its customer in order to satisfying
them.
Technological Factor: Technology play an essential role in every company for boosting
productivity and profitability of the business organisation . It helps company in increasing its
online business through publicity, word of mouth and sponsorship. The latest technology helps
in doing paperless work and eliminate manpower that imposes direct impact on production of
company in pleasing manner. In reference of Mercedes, the high authority emphasised on
executing latest technology for future growth of the business organisation. Therefore, the primal
motive of business organisation is to implement latest technology for offering superior quality
products to its user (Gupta, 2016) It helps in accelerating future growth and development of the
company. The implementation of latest technology is important for future growth and
development of the business organisation.
Environmental factor: In today's context, the company that performs its functions and
operations towards best interest of social group. In reference of Mercedes, the manager focuses
on climatic condition which directly affect the timely deliver car. They also emphasised on
recycling and managing the waste product for preventing society from pollution. It assists the
company in enhancing the reputation and brand image of business organisation.