Business Strategy: Impact of Macro Environment and Internal Analysis

Business Strategy

INTRODUCTION
Business strategy indicates to an organisation working strategies and plan of action for
accomplishing its vision, objectives and optimising fiscal performance with its business concern
model. It can be those plan of actions that can be used by the organisation for the effective
running of business actions and operations (Akter and et. al., 2016). Effective business strategies
are beneficial for the maturation and improvement of the company because they make
contribution in growth and success of it in term of maximising profit and productivity. This
written document is supported to Tesco plc which is a British transnational groceries
merchandise retailer and operate its business globally with the help of its number of products like
supermarket, hypermarket and others. This written document will discuss about effect and
determinant of macro environment and analysis of internal environment or capability of the firm.
Further, will explain about porter's five forces model and different conceptions to devise
strategic planning.
TASK 1
P1.Impact and influence of the macro environment on a company and its business strategy
Stakeholder matrix
It is an activity of collecting and monitoring qualitative data to find out whose interests
should be taken into account when improving and organising a policy program.
High power low interest- It indicates to those individuals who have high power and low
interest in organisation. In Tesco, stakeholder refers to customers, sponsor, regulator etc. but the
main stakeholders are customer because they have the power of devising the modifications in
plan of actions of firm. They have low interest because in the situation of not getting product as
per their requirement, they can switch to other company.
High power, high interest- It refer to those individuals who have high power and interest
in company. In context of Tesco, these people can be Board of directors, CEO, SME, BA,
investors etc. who have high power to make change in plan of actions and responsible to take
decisions. They have high interest because they formulate strategies for growth and development
of organisation.
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Low power, low interest- It refers to that people who have low interest and low power
because they have not make much contribution and involvement in the business of the firm. In
Tesco, these people are admins, suppliers, help desk and others because they are not involve in
business of company highly and play and crucial role in success of the firm.
Low power, high interest- It refers to those stakeholder who are highly involved in the
business of the firm but have low power. In Tesco, employees, developer, internal users, trainee
etc. are stakeholders of the company. Employees are important because these people are
accountable to perform business activities but do not have the power of taking decision.
These all factor of stakeholder matrix analysis affect the company and its business
strategies in different manners. For example, investors are the important stakeholder of company
and they have high power and interest or also affect organisation when they have not get
expected return on their investment (Amran and et. al., 2016). Customers are another essential
external or macro environment factor that influence business and business strategy of a firm.
When consumer do not get products as per their need and requirement then they can switch to
the brand which affect organisation's sales and profit.
Stakeholder analysis- It is a process of finding out these individuals before the project begins,
grouping them according to their extents of participation, interest and influence in the project and
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