Business Strategy: Analysis of Macro and Internal Environment, Capabilities and Frameworks

This article discusses the impact of macro environment on an organization and analyzes its internal environment and capabilities using appropriate frameworks such as PESTLE analysis, Ansoff Matrix, Resource-based view analysis, Value chain analysis, and McKinsey 7 S Framework. It also covers the strategies to improve market position and devise strategic planning for a given organization. The subject is Business Strategy, Course Code is Unit 32, and College/University is not mentioned.

Unit 32
Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies..........................................................3
M1. Critical analysis of the external environment.................................................................6
TASK 2............................................................................................................................................7
P2. Analyse the internal environment and capabilities of a given organisation using
appropriate frameworks..........................................................................................................7
M2. Critically evaluate the internal business environment..................................................13
TASK 3..........................................................................................................................................13
P3. Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation.....................................................................................................13
M3. Strategies to improve market position..........................................................................15
TASK 4..........................................................................................................................................15
P4. Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organization........................................................................................................15
M4. Strategic management plan...........................................................................................17
D1. Critique and interpret prominent information to develop strategies..............................18
REFERENCES..............................................................................................................................20

INTRODUCTION
Management strategy is a component which supports a firm in developing a strategy in order
to maximise the utilisation of its resources and generate higher wealth creation (Carroll and
Goponenko, 2019). In addition to achieve a good company performance in a competitive market
a firm must develop an acceptable tactical strategy. One delivery is chosen for this investigation
since it is a UK-based restaurant purchasing service which conducts online meals providing
services in 90 various locations across the UK. Craig Pollack founded the company in 2013. This
research would look at the various ways for assessing internal business environment.
TASK 1
P1. Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies
Business environment is basically related to effective sum of collection and make
appropriate growth in internal and external environment. All of these factors affect the growth of
the business which are related to make employees success, customer need, and expectation for
the growth of the employee. While working on macro environment of the company, the company
needed to do pestle and analyse their basic characteristic. This may be related to achieve
effective growth and start with major changes and evaluation. Major challenge for the company
while doing pestle is that, factors are influencing and changes as per the nature of external
environment and this seem difficult for monitoring those factors. One delivery is the company
that needed to be analyse and make effective growth in the organisational aspect of the company.
For the use of internal environment the company use resources analysis for considering the effect
and make changes as per the growth of the company.
PESTLE Analysis-
Evaluation of the technique for studying the impact of the overall economy on a business ’
performance such that management can create the correct judgements feasible in terms of tactics
to stay in conformity with the actual requirements. Amongst the conclusions of this study are the
following-

← Political factors: These are the major elements that influence political turbulence,
global corporate strategies, commercial obstacles, taxation system, and commercial
regulations. In order for One Delivery to run its nation effectively, all of the laws and
regulations issued by the government must be followed. That's the highest key worry in
order for the company to cope with the present political environment in the European
Union and stay relevant for an extended period of time.
← Economic factors: Inflation expectations, price levels, real wages, and other
factors all have a substantial consequence on the financial success. One delivery is
sending its goods to a number of many other nations throughout the world in order for the
company to leads to financial prosperity.
← Social factors: All of these factors affect the purchasing culture facet, the
consumer's monetary base, the recipient's purchasing patterns, and a variety of many
other factors which have a major effect on the company's operations. One delivery is
always stressing these traits, and also paying attention of any potential customers, in
attempt to create a positive impact on overall strategies by supplying high standard things
in the neighbourhood (Cozer, 2019).
← Technological factors: Every one of these reasons contributes to the
corporation's acceptance of technical breakthroughs and advancements in technology in
order to thrive in a very dynamic industry. In order to meet the changing needs of its
potential customers, one delivery is implementing smart and new methods in its health
operation.
← Legal factors: It is vital for any companies to implement all of the rules and
practises imposed by the UK government. In addition to operate business lawfully, one
delivery must abide by several rules like employment law, privacy laws, economic
efficiency, and information safety legislative changes.
← Environmental factors: These would be the elements which are truly engaged in
ecological climatic factors like climate change, overcrowding, and contaminants. One
delivery is required to apply ecological ownership interests and to start others via which
ecological awareness may be raised.
Ansoff Matrix-

Market penetration: It is a strategy that entails boosting overall selling in current areas.
It is an advertising strategy employed by businesses aiming to extend their business. One
delivery company is using this strategy to gain market domination and focus on servicing
a large number of customers. Furthermore, the company expands its marketing processes
and manufacturing networks (Evins, 2016).
← Product Development: It is a method of introducing novel items and services into
a pre-existing industry. The corporate strategy is founded on a deep understanding of the
present industrial situation, and this understanding supports us in delivering unique
service to meet the requirements of the contemporary market. One delivery service also
employs this strategy, limiting research and innovative development but enabling it to
increase their product portfolio.
← Market Development: It is a method which focuses on developing a newer
business with present commodities and it has shown to be extremely successful because it
has allowed the business to understand how to use modern software in a booming area.
← Diversification: The Company’s strategy focuses on entering additional
industries with new product development. Because both the commodities and the
business are new, the system is especially risky. It is estimated that the organization
perform extensive research in order to increase its revenues in a worldwide industry.
Evaluation:
As per above Ansoff Matrix it is explained to analyses the restaurant perspective market
and product assessment, in which Product development strategy would plays an important role
to assess new product in restaurant base in food and beverages. As the company need to make
their product customized with new specification added and promote in existing market for gain
more competitive advantages.
There are some of challenges which reflect about Holistic Environment that creates challenges
within Restaurant Company:
 New customer taste and preference can be considered as well as accept the culture to
specify innovation along with values matters
 Environmental factors are also creates major role if the climatic condition is preditiable it
will create more challenges to the restaurant business.

 To arranging funds for expansion which would create challenge in competitive
advantages.
Stakeholders Analysis
According to this strategy review the organization’s stakeholders and develop prominent
groups based on the company’s participation, interests, power, and related activities and other
important characteristics. Some of the steps mentioned are as follows -
Step 1 - At this stage, One delivery inspects the company’s stakeholders, considering the
government, shareholders, customers, etc.
Step 2 - Stakeholders are classified as follows:
 High power and high interest - These people mainly participate in the appropriate
activities of the company and are also satisfied with the appropriate activities of the
company, including shareholders.
 High power, low interest - These people have little interest and tend to influence
important activities of organizations such as the government.
 Low Power, High Interest - You have high interest, but you can't influence the excellent
activities of the company and customers.
 Low interest, high power - These people are not interested, nor do they want to show any
interest in affecting suitable activities such as suppliers.
Step 3 - This stage mainly communicates with the appropriate development of stakeholders,
taking into account the goals and objectives being achieved.
M1. Critical analysis of the external environment
External environment components are those that cannot be changed and significantly
controlled, but they also tend to influence the business strategy that should be changed in order
to get the most benefit from the possible factors. As on the other side there will be gaining
significant in the market Competitive advantage is achievable. One delivery must change its
possible business strategy to adapt to dynamic environmental conditions, which helps to achieve
long- term sustainable development in the market area as effectively.

TASK 2
P2. Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks
It is necessary for an organisation that they should analyse their internal strengths and
weaknesses as that they will take decision in order to improve their weak areas. For that purpose,
SWOT analysis is an important tool which can be used by an organisation for analysing their
internal strengths and weaknesses.
 STRENGTHS One delivery is one of the largest fast food fast food and restaurant in
UK.
 WEAKNESSES They have a good brand image in national and international market.
This company is lacking in marketing so that's why they are lacking in promoting goods
and services.
 OPPORTUNITY It is the organisation which needs to use technology in their business
practice so that they can promote their business.
 THREATS Competition is the biggest threat as it creates difficulties for One delivery.
They may be face problem of stay competitive in the market.
Each company must have the correct approach for analysing the apprenticeship
environment and the institution's success. One stage is to identify a particular strategy for
examining the internal ecology and assessing its potential for the country's continuing growth.
The One Delivery highlights the following architecture and engineering processes that are used-
Resource based Review- A better strategy is produced to assist informal messages of the
firm consultant's specific expertise in order to gain a relative advantage on the international
economy. It is the theory proposed by B Wernerfelt and Hamel during the 1980s and the 1990s.
Importance of resource-based view- It is vital that practically all companies use the
assets roadmap strategy to gain a foundational layer and a distinct competitive advantage. This
research describes resources and assigns these into different organizations so that the resources
that are appropriate can be employed. One Delivery can adopt this strategy because it improves
awareness of important and effective financial planning. In the globalized economy, the entire
arrangement has a positive corporate image, helping the companies to grow competition (Jiang
and Sun, 2020).

Resource based view analysis- This study is crucial to the company because it brings
attention of the institution's economic performance as well as that of its competitors in the
difficult field. Private emails have been utilized to illustrate how a certain company is helpful in
analysing a company's advantages and shortcomings and also monitor would determine its
people contents. To gain a better understanding of this method, the firm analysed a variety of
financial commodities perspectives that are as follows-
← Tangible Assets: These products are centred on the company's visible, measurable
capabilities. It includes innovation, luxury products, new tech, and other resources that
rivals can easily access and offer a diminished tactical advantage in a globalized
economy. These are the resources that a corporation will collect in attempt to obtain a
competitive advantage in a specialized environment.
← Intangible assets: These are the types of resource-based assessments which might
or might not have a physical appearance and are complex. Patents, confidential data, and
brand strategy are instances of items that are unaffected by competition in a large
industry.

Value chain analysis
Every organisation wants to create some value from each of the products to their
customers so that they are able to achieve their goals and objectives effectively and efficiently.
Value chain analysis is the model which needs to be used by One Delivery in which they need to
identify their primary and support activities that add values to finished products. This will helps
in reduction of cost.
McKinsey 7 S Framework
← Strategy- This is the initial stage of this method, which may help to the
development of methods to accomplish as many outcomes as possible. This stage is
helpful in addition to gain a competitive margin over rivals which could also ultimately
increase the organisational effectiveness. One delivery is from a well-known services

supplier who can actually stick to a schedule in attempt to offer the business a
competitive edge over its rivals. A shared characteristic which might lead to favourable
consequences and increased economic domination. This strategy was primarily seen as
one of the design's difficult aspects (Juhász, Samiee and Engelbrecht, 2019).
← Structure- It is critical to develop a logical structure which will assist in the
preservation of corporate coherence. The organisational individual's duties throughout
this procedure are to create a theoretical structure which allows it to offer appropriate
guidance to its employees as well as other colleagues. One delivery uses a planned
strategy that provides staff with a thorough understanding of its duties.
← System- It is vital for every organization to pay regard to its processes while also
effectively managing all duties and operations in an appropriate manner in order to attain
greatness. One delivery keeps a statistical basis and develops a strategy method that such
personnel should undertake in addition to meet a present goal in an equitable way. With
the assistance of a logical programme, all personnel can complete their tasks
appropriately.
← Shared value- This element is helpful for building an influential aspect which
will assist in the operating process of the business In addition to achieve excellent value
and maintain the institution's productivity and effectiveness, one delivery should
disseminate material within the scope of the business culture and maintain ethical
principles on the task (Khan, Sharma and Pemmasani, 2016).
← Style- With the help of such aspects, businesses may create a unique style which
distinguishes them besides the competitors. To preserve the institution's brand value, one
delivery should manage all operations and also have an appropriate operational

environment. The company have to provide an effective evaluation programme so all
workers can use any strategy to complete their everyday activities.
← Staff- This strategy allows businesses, especially its directors and executives, to
give their employees more analysis in order for them to do their jobs more effectively.
One corporation focused on its employees and pushed employees to complete their
responsibilities without worry by providing prizes and cash incentives.
← Skills- This strategy is extremely beneficial to each and every employee in the
company because, given the current financial situation; it may help workers develop new
skills and competencies. One delivery must provide appropriate education to its
employees in order to effectively improve their expertise and performance.
The McKinsey 7-S Strategy is a methodical strategy for increasing a company's effectiveness
while still guaranteeing that each laborer's assignment is completed. The primary purpose of this
method is to improve the well-being of a particular purchase business even while assisting in the
improvement of products and services. This method is effective for determining the impact of
individual factors on the productivity and profitability of an organization (Ozcanhan, Unluturk
and Dalkilic, 2016).
VRIO Model-
Valuable- It is the first aspect that really might affect the importance of specific abilities
which the company can generalize. The numerous components of opportunity that are plainly
visible from both inside and outside the business sector are housed in a single presentation.
Companies could use options to maintain their leading position and eradicate any threats. Each
of these abilities is helpful to business communications and also recognizing the numerous
factors which might significantly add to the institution's efficient implementation. One delivery
to look at both intrinsically and extrinsically possibilities which might help the company enhance

its value and gain a competitive advantage. The company has a good business position in the
industry which helps it to attract a large amount of new consumers and increase revenues.
Rare- The essential part of this factor is that goods are gained mainly by an organization.
Both costly and unusual resources provide a temporary tactical advantage that enables a firm to
keep operating in the industry. Businesses with comparable resources and skills keep the
economy in balance. Environmental elements are incorporated into the company's products and
activities in addition to meet the needs and expectations of potential customers (Parsa
Gharamaleki, 2017).
Inimitable- In considerations of this component, evaluating the gathered information to
ensure the challenges of duplicating and advantageous to provide more cash is unusual and
critical. If all resources are expensive for yet another business, some resources are exceedingly
difficult to replicate. As a result, commodities give the organisation a competitive advantage in
the industry.
Organized- When the business requires to support its employees, operations research are
suitably designed and beneficial in this element to gather the most substantial value in an
expensive situation. Companies should have well-organized procedures, attitudes, and
procedures that can affect the long-term effectiveness of the company.
The above discussion states that it is necessary for an organisation that they should ensure
about their resources and capabilities. It helps them to analyse their internal environment. For
that purpose there are some model which discussed are SWOT, VRIO, Value Chain analysis,
McKinsey's 7s framework, etc. These models are very helpful in order to analyse the internal
environment and capabilities. Organisation is able to know the weak areas so that they will take
an important corrective action.
VRIO Analysis:
It is mentioned as the strategic management technique that will help for an effective
functioning of the management by determining the innovative factors of the management that is
useful in terms of gaining competitive benefits in the field of the marketplace. As there are some
of the factors of VRIO analysis in terms of the One delivery that are as follows -
Capabilities Valuable Rare Inimitable Organised

Marketing
activities
YES NO NO NO
Profitability YES YES NO NO
Human resource YES YES YES NO
Brand image YES YES YES YES
M2. Critically evaluate the internal business environment
When the internal analysis considers the important skills and resources of the enterprise,
these skills and resources are effective and useful for achieving the appropriate goals within the
specified time frame, and are helpful to the enterprise. Both VRIO and McKinsey's framework
are useful for this in order to understand the company's excellent internal strengths and
capabilities. To this end, internal factors help to formulate effective guidelines and strategies to
enable the company to succeed in the market.
TASK 3
P3. Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation
← Threats of New Entrants: These would be the characteristics that are powerful in
meals delivery organisations since the arrival of a newcomer company into the
marketplace provides originality and growth, enabling organizations to grow their
products/services in ability to implement outstanding products to their potential clientele.
One delivery is creating specific monitoring standards in an effort to remedy the stresses
of contemporary and economic elements, so the company can get a competitive

advantage in a large industry. It may accept a cheaper and stable price for each piece
whilst simultaneously engaging in retraining programmes and technology and
development to create a product which meets the needs and aspirations of prospective
customers (Reed, 2017).
← Bargaining power of suppliers: So because food delivery business has several
providers, operator bargaining power is restricted. One delivery also works with a variety
of suppliers to guarantee that raw ingredients and other resources are obtained on
schedule, allowing potential customers demands to be met as soon as possible. Full
accessibility uses contracts to cut prices, but the power is extremely small because the
organisation has much more options to switch to a local supplier. It is crucial for an
organisation that bargaining power of supplier should be low as if it will be high then
companies have to purchase raw material at high cost. This results in increasing the
prices of products which are not affordable by customers.
← Bargaining power of Buyer: Consumers possess great bargaining power because
the food delivery sector is so fragmented that they might switch to some other provider.
One delivery establishes cheap price for the products and offers so that they may retain
clients for a much prolonged period of time. It is found that in fast food restaurants the
bargaining power of buyers are high as they have many options in the market. Due to
this, the profit margin or organisation is declining which creates problem for
organisation.
← Threats of Substitutes: The danger of replacement for One Delivery is minimal
since it is the leading company in a large industry that performs high-quality services and
has a good customer loyalty. Nevertheless, anytime a company promotes novel products
and procedures the customer transfers to the next, diminishing income in a large market.
As a consequence, in addition to sustain its enterprise in a particular marketplace, a
company must adopt an appropriate pricing. In a vast market, this contributes to the
creation of a favourable marketing strategy.
← Competition of existing competitors in the industry: As there are several
competitors in the industry, there's really actually a lot more rivalry for one delivery,
which may impair corporate performance (Snyder, 2017). There are many competitors
that exist in the market are Burger King, McDonald's etc. due to this, a company is

unable to enjoying and maximising profits. This becomes a threat for organisation that
how they are staying competitive in the market.
M3. Strategies to improve market position
In order to improve the overall market position, the company must analyse the
appropriate number of competitors represented in the market area, while taking into account the
appropriate level of competition in the market. For this reason, considering the competitive
pressure of the market area, determining effective positions, and tending to calculate, this can be
achieved with the help of Porter’s five- force strategy to achieve an effective market position. By
opening up excellent market opportunities, it can often be effectively dealt with. As on the other
side it will termed to the major threat in the field of the business of management as effectively
and efficiently. The above discussion of Porter's five forces model, it is found that organisation
should analyse the competitive environment. So that they are able to know what they have to be
improve in the organisation. Porter's model is consists of five forces that are discussed and their
impact on organisation. This is necessary for company that they should formulate their strategy
accordingly that helps them to overcome with challenges and stay competitive in the market.
TASK 4
P4. Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organization
To adhere to goals and facilitators, and to analyse the corporate structure for the business
activities the manufacturer employed a bunch of concepts and methodologies. One delivery
makes use of a corporation's development model, which would help organisations with proper
monitoring. The key parameters and notions used in one delivery are as follows-
Generic Strategies-
← Cost Leadership- It is an advertising strategy that is put in place with the purpose
of sustaining a profitable business paradigm. The primary purpose of the business is to
produce a low-cost solution by eliminating unnecessary production expenditures and
expenditures which create higher the firm's expenditures. One delivery concentrates on

avoiding unnecessary expenditures and stressing the effective utilization of capital in
order to produce a good product which may be marketed in a competitive environment.
← Differentiation- It is a method for distinguishing goods and services from rivals
in attempt to get an economic advantage in a massive business. This approach
incorporates components such as product qualities, accessibility, and how the thing can
be promoted to attract to a broad range of individuals and build a strong standing in the
business. The inclusion of technology raises production expenses, displaying the maker's
high quality and pricing and therefore increasing its value. In addition to meet the goals
and aspirations of potential customers, one delivery should concentrate on supplying
higher-quality tools and technologies via effective market research and development.
← Cost focus- It is the method in organisational aims in which the firm focuses on
the price of the asset and programmes in attempt to acquire a competitive advantage. This
strategy is useful for small industrial sectors to develop a low-cost supremacy, and they
are focusing on producing an entire alternative form that can be easily provided by the
company. This strategy takes into account assigned food as well as many other household
goods and tiny businesses may have higher sales rates on such items (Ventroux and
Sassolas, 2016).
← Differentiation focus- It is a strategy that concentrates on delivering a distinct
edge as a supplier of products in particular to meet the changing requirements of
consumers. In this strategy, the target is to develop a unique object with additional
features, but only for a limited market difference, in terms of meeting the wants and
wishes of its customers. The strategy for providing unit products / services in accordance
to customer demands is by far the most significant issue to consider herein. As a
consequence, businesses may be able to establish a strong company performance in the
sector, leading in repeat consumers and the institution's capacity to remain in the market
for a prolonged period of time.
Bowman's Strategies-
← Low price and low value added: It is a condition where a company has a lesser standing
since its products are not original, and consumer gets a low value for purchased products since
expenses were reduced.

← Low price: In this situation, by cutting its price, the single shipment may position itself
as the low-cost service. Because of the increasing sales volume, the monetary gain margins
would've been reduced, but density functional may be enhanced
← Hybrid: It includes a number of variables, like lower costs and product originality that
help One Delivery place its company.
← Differentiation: As component of the corporate strategy, One Delivery is required to
develop in its products in attempt to increase profits and profitability.
← Focused differentiation: In this situation, the corporation raises the price of its products
to obtain the target recognised value. This contributes to the establishment of a favourable global
business image.
Risky high margins: As a consequence of such strategy organisations might face a
serious risk, which could lead to the company's failure. Although getting the seeming value in
this scenario, a single delivery may increases the price.
← Monopoly pricing: Only companies can give the product and services in this case
because they are indifferent about the other corporation's price or innovative characteristics.
Irrespective of revenues, the firm can set a greater price for its products.
← Loss of market shares: According to this theoretical definition only a company
might have to establish a medium-level least price for its commodities in order to
generate considerable income.
After reviewing the two strategic changes, the firm might develop a distinct strategy for
executing a differentiated product that will increase earnings and revenue. With the help of the
strategy, modern tech works to draw the interest of potential customers. It also allows the
company to create revenues and profitability, enabling it to increase its consumer base (Zimmer,
Marisetty and Rothman, 2017). It is recommended to the organisation that they should use
Porter's generic strategy in their business practices so that they are able to understand what they
have to be do in future. It is the most appropriate strategy for this organisation as they can
achieve their goals and objectives with the help of this strategy.
M4. Strategic management plan
The strategic management plan helps to determine the key factors that affect the way
business is carried out, so as to formulate an effective mission and vision for the company. The
One delivery strategic plan is as follows:

 Vision - The main vision is to ensure the customer's market position in the long-term
sustainability of development by providing quality services, thereby providing an
effective customer experience. Mission - Mission is to provide finest quality and valuable facilities and also tends to take
sustenance of important community. Strategies - In context to the One Delivery, market growth plan of actions is cooperative
as in such present set of the goods that are offered by the management in the new field of
the market area that will involve less risk factors in comparison to others. Objectives - The basic objective is to maximise the market share by 30% in the next 5
months.
 Tactics - In terms of improving the prominent utilisation of the technology that is helpful
to provide suitable terms of the facilities in more effective and efficient way.
D1. Critique and interpret prominent information to develop strategies
By analysing the effective internal and external environmental factors that will get affect
the company's operations and functions. As it is essential for an organization to develop an
excellent business strategy that will further help them. It will also supports in formulating an
effective policies that help the organization achieve key business goals and objectives. To this
end, by considering the external business environment there are different types of detailed
information and information are provided and will get collected with the help of PESTLE and
VRIO analysis. As also it will help to understand the company's outstanding advantages and
capabilities. It is also important to consider the best class strategic guidelines that are chosen by
the company to improve the sustainability of the market as effectively and efficiently.
CONCLUSION
According to the findings of the proposed amendment, a correct organizational strategy
helps in the attainment of a corporation's intended objective and success. Pestle and consumer
analysis, SWOT analysis, and ansoff matrix assist the business in comprehending the external
business conditions so that corrective action may be taken at the proper time. The corporation's
competencies may be assessed with the help of VRIO, enabling the organisation to utilize the
most of its current resources while also achieving massive income and advancement. Companies

can understand the usage of competition in a large sector by adopting Porter's five force model,
and they can utilise the right technique and innovation to remain in the competitive sector for an
extended time. Moreover, the Bowman strategy and Porter's general approaches help the
company in adopting an appropriate design methodology so that they may make the best use of
their current resources while also achieving improved success and innovation within the
organisation.

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