Impact and Influence of Macro Environment on Organization

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................4
P1) Impact and influence of the macro environment on the organization..................................4
M1) Analyze the macro environment.........................................................................................5
LO2..................................................................................................................................................5
P2) Analyses the internal environment and capabilities of the organization..............................5
M2) Evaluate the internal environment to access the strengths and the weaknesses of the
organization.................................................................................................................................6
LO3..................................................................................................................................................7
P3) Apply porters five and evaluate the competitive forces to the given market sector.............7
M3) appropriate strategies to improve the competitive edge and market position.....................8
LO4..................................................................................................................................................8
P4) range of the theories concepts and models and also devise the strategic planning for the
organization.................................................................................................................................8
M4) Strategic management plan with the tangible and tactical strategic priorities and
objectives...................................................................................................................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Kellogg is the American owned organization which is dealing in the providing the packed
food to the customers. Company is running the business in North America and Asia and Europe
and middle est as well. The report consist of the impact and the factors which are influencing the
macro environment of the company. It also includes the internal environment and also the
capabilities of the company as well. Report consist of the porters five forces which is doing the
industry analysis and also the report consist of the strategic management plan. The company is
focusing on promoting the products and also the need of the customers is specified and Known to
the company so the products are prepared according to the customers as well.
LO1
P1) Impact and influence of the macro environment on the organization
Macro environment consist of the political, sociological and technological factors which
are affecting the performance of the organization in the market. The Kellogg need to work on the
macro environment factors to improve the performance in the market. The pestle factors are
influencing the macro environment of the organization.
Political factors are influencing the Kellogg which will have the impact on the long term
growth of the organization. Kellogg is selling the packaged goods which is affecting the
customers and the quality of the food as well. Due to the increase in the level of the corruption in
the food sector the organization must look after the factors which will improve the product
quality and the customers reviews as well.
Economic environment of the country is affecting and it is having the impact on the
performance of the product in the market. Labor cost and the productivity of the economy and
also unemployment rates and inflation rates are influencing the decisions of the customers and
the organization as well (Giniuniene, and Jurksiene, 2015).
Social factors include the population and the culture of the country and the attitude like
the health and the environmental factors are having the impact on the organization as well. The
organization is trying to improve the performance of the products in the market and also innovate
the product according to the customers and their culture as well.
Technology is increasing in every sector, the organization would do the technological
analysis and also use the technology on improvising the product. The competitors are using their
latest technologies due to competition in the market the Kellogg have to use these latest

technologies as well which Will help the company to survive in the competition as well.
Technology would also have impact on the product and the performance of the product in the
market.
Legal factors include the rules and the regulation levied by the government on the
organization. These laws include the employment law consumer protection laws and also health
and the safety laws as well. The organization has to look after the quality of the packed goods
which would not affect the health of the customers as well. Packed good have to follow the
different laws and regulation which includes the anti trust laws in processed and packed goods.
The laws consist of the rules for packed goods which would not affect the quality of the products
(Pezzutto, Fazeli, De Felice and Sparber 2016).
Environmental factors are the factors of the environment which are having the impact
on the product. Weather, waste management and also air and water pollution while preparing the
products as well. The Kellogg have entered the market but has to follow the rules which are
made by the government for the environment protection as well. Organization has to look after
the laws made for the environment protection and also try to make the innovative products which
would also attract the customers (Kennedy 2019).
The organization Kellogg product and the sales is affected by the macro environment
factors. These factors are affecting the performance of the organization and also the performance
of the product in the market.
M1) Analyze the macro environment
The pestle analysis is affecting the long term objectives of the organization. Macro
environment of the organization would affect the sales of the company. The political factors and
the economic factors are influencing the strategic management decision of the organization.
Through the technological factors the company would use the mobile app for the sales of the
products and also the competitors are using the technology for promoting the products. In some
cases these factors are affecting the company but in the positive ways which includes the
decrease in the inflation rate will decrease the cost of the product and also decrease the cost of
the labor on the product as well.