Impact and Influence of Macro Environment on Business Strategy

BUSINESS STRATEGY

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO 1.................................................................................................................................................3
Impact and influence of macro environment in an organization.................................................3
LO 2.................................................................................................................................................5
Assess the internal environment..................................................................................................5
LO 3.................................................................................................................................................7
Porter’s five forces.......................................................................................................................7
LO 4.................................................................................................................................................8
Models, theories and concepts.....................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy are decisions which the organization has to take so that there is a better
functioning and operations of the organization so that the objectives and goals can be met. This
helps the company to get a competitive advantage and a sense of direction in which the
organization must work so that the reputation and standards of the organization can be met.
Nissan is a Japanese company which is having its headquarters in Nishi-Ku and belongs to the
automobile industry. There are over 138,910 employees working in the organization and was
originated in 1933. There are a lot of factors like the internal and external which impact the
functioning of an organization which is going to be discussed in the report. Measures to analyse
the competition in the market so that the right decisions can be taken for the benefit of the
organization.
MAIN BODY
LO 1
Impact and influence of macro environment in an organization
The organization has to analyse the external factors before making any decisions so that
there is a better functioning. The pressure on the management and the stakeholders is a lot which
is why they have to make sure that the company has taken the right decision for the better
competitive advantage in the market (Kitsios and Kamariotou, 2019). Nissan has been in this
industry from 86 years which is a lot of experience for any automobile in the market. This factor
has made the organization take the right measures and for a better future in this market. The
further report consists of the external analysis of the factors which are affecting the organization
and those can be controlled for the better functioning.
 Political Factors
There is a stability which is visible in the government of the country because of which there
are no major changes which have to be done by the organization. To expand them globally with a
strong portfolio in the market Nissan has been using an effective strategy for themselves which is
helping the organization to have a better functioning. There is a transparency which is present in
the organization between the employees and the customers so that the organization can maintain
their standards and understand the customer’s expectations. There is one drawback for the

organization which is that the company is not having a control on the corruption level in the
country.
 Economic Factors
The unemployment rates in the country have fallen and that is a great help for the employees
and he population of the country. The lifestyles are improving in the country which is making the
population shift to this product which is making the prices of the products according to the
demand. There is a requirement of a lot of experience and skills in improving a product which is
a great advantage for Nissan because the employees have been trained in that aspect. The team
work in the organization is high which is why the productivity of the company is also good and
is making the organization have better operations.
 Social Factors
The satisfaction of the customers has to increase so that there is a better functioning of the
organization and also there is going to be higher profit margins. There is no discrimination of
any sort which is taking place in the organization so that the productivity and operations are
matching the standards of the organization (Bentley-Goode, Omer and Twedt, 2019). The trends
and expectations of the customers are changing which has to be matched by the organization so
that the organization can have a better functioning. There is a fair treatment in Nissan for the
employees and the customer which is making the company has a successful functioning.
 Technological Factors
There is a requirement of a lot of changes which have to take place which can affect the
productivity of the organization and that has to be well maintained in the organization. The
quality has to match the expectations of the customers which are possible when the organization
makes sure that they are matching the standards of the customers by getting in the right
technology which is required. The technology requires a lot of investment which Nissan does so
that they can get loyal customers in the organization. Technological changes also remove the
pressure from the employees so that there is a better functioning and the value of the brand
increases.
 Legal Factors
There are a lot of laws which have come in the industry for the employees and the customers
rights so that there is a well balanced functioning of the businesses in the market. Nissan has
been following all the laws and regulations which have been implemented by the organization so