Analyzing the Effect of Macro Environment on Business Strategy

BUSINESS STRATEGY

Table of Contents
BUSINESS STRATEGY ................................................................................................................1
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Using different frameworks determine the effect of macro environment in relation with
organisation and its strategies.....................................................................................................1
TASK 2 ...........................................................................................................................................3
P2 Determine the capabilities as well as efficiency of organisation and internal environment..3
M1 Briefly analyse the macro environment to determine and inform decisions in relation
with strategic management..........................................................................................................5
M2 briefly determine the internal environment to analyse strength and weakness of firm
efficiency and capability.............................................................................................................5
TASK 3............................................................................................................................................5
P3 Porter's five forces model.......................................................................................................5
M3 Strategies to improve competitive edge................................................................................8
TASK 4............................................................................................................................................8
P4 Application and Interpretation of various strategic concepts................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy refers to set of alternative course of actions and decisions which helps
owners and marketers to achieve the organisational business objectives and goals (A Definition
of Business Strategy. 2018). In other terms, it is process of formulating and implementing game
plan that management uses to protect and sustain competitive position in market as well as
industry. It is combination of various decisions and activities that undertake by firm in order to
accomplish goals effectively and efficiently. It works as a blue print or map which direct efforts
of workforce towards common path goal (Vlachos, 2016).
Unilever is a British multinational company operates its business in consumer goods
industry. Corporation selling and marketing in diversified product line including foods,
beverages, cleaning agents and personal body care products. Firm has its co-headquarters in
London and in Netherlands. It delivers and serves its items around 2.5 billion consumer across
190 countries. Company have over 400+ brands worldwide which helps organisation to achieve
its mission and vision goals.
Further, this report describes different approaches for analysing internal and external
environment in which organisation operating its business functions. This assignment contains
detail information of models namely PESTEL, Porter's five Force, SWOT with the purpose of
examine intrinsic and extrinsic capabilities of company in different situations. In addition to this,
report exhibits numerous strategical models and theories which help in formulating new strategic
management plan that helps organisation to sustain and protect competitive position and
increases productivity and profitability.
TASK 1
P1 Using different frameworks determine the effect of macro environment in relation with
organisation and its strategies
It is a framework used by organisation/entities to track activities of market. This tool is
mostly used to analyse the external factors which are affecting the business (Pan, Chen and
Zhan, 2019). It act as support system for the firm to tackle from uncertainty situations. In relation
with PESTEL,Unilever has conducted analysis which is mentioned below-
Political- Political factors are those which comprise of laws, rules and regulations etc.
These factors are important for every organisation as they determine the productivity and
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stability of business in the market. Involvement of government in the economy can affect the
overall growth of organisation for example- tax policy, inflation and deflation rate etc. In context
to Unilever, there are strict rules and regulations which have been implemented by some of the
countries in trade policies like US is changing its trade and taxation policies which have direct
impact on Unilever products as it covers the mass area of US market.
Economic- Then comes economic factor, these factor are most crucial part of the
framework. These comprises of deflation rate,exchange rate, trade policies etc. Company should
have a proper market researcher to tackle these economic factors. Organisation like Unilever
which basically deals with FMCG sector should focus on economy factors of other countries in
which they are operating their business.
Social- Another important factor is social factor. These covers income, age, standard of
living, etc. Unilever should focus on their consumer buying behaviour and their standard of
living which directly have a impact on overall development of business. Hence, it should be
more socially active in order to create a brand awareness in the eyes of people (Dinçer and
Pınarbaşı, 2020).
Technology- Further comes the technology which reflects the effectiveness of
organisation operations. Technology factors includes updated automation, security, digital
platforms etc. Technology is important because it enhances the business operating efficiency
and resources and affects organisation production capacity and cost efficiency.. As Unilever is
fast growing consumable goods company it should develop its R&D which will be helpful in
producing and supplying of more products.
Environment- Another important factor is environmental factor, theses includes safety
of surroundings, eco friendly raw materials and products etc. A FMCG company can attain more
customers by contributing to this factor as it creates a goodwill and awareness in the eyes of
consumers like for example- Unilever is reusing waste plastics for the packaging process as
elimination of plastic will leads to a healthy environment.
Legal- Last but not the least; legal factor which include, employment law, antitrust law,
money laundering etc. Being dealing with wide range of products Unilever should also be active
in legal factors which can effect its goodwill as well as productivity. Many alternatives are
available in the market thus, there are chances of organisation product and design duplication,
irrelevant rumours by competitors etc. So, concluding these key words Unilever should be
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