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Business Strategy - P1 Impact and Influence of Macro Environment

   

Added on  2020-11-12

7 Pages1748 Words446 Views
Leadership ManagementPolitical Science
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BUSINESS STRATEGY
Business Strategy - P1 Impact and Influence of Macro Environment_1

Table of ContentsINTRODUCTION ..........................................................................................................................1TASK 1............................................................................................................................................1P1 Impact and influence of macro environment on Marks and Spencer and its businessstrategies.................................................................................................................................1TASK 2............................................................................................................................................2P2 Analysis of internal environment and capabilities of M&S..............................................2CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................5
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INTRODUCTION Business strategy can be defined as working plan made by a company's manager toachieve vision and objectives in set period of time. Through this plan, strategy builders canprovide proper guidance to employees in what manner they have to perform (Scarborough,2016). But, there are so many factors present in internal and external environment businesswhich impact on formulated strategies of business. In this regard, present assignment is going toreveal a critical explanation on how macro environment influence and impact business strategiesof a firm. For this purpose, Marks and Spencer has been taken which deals in retail sector andoffers home products, food and clothes. An analysis of micro environment and capabilities ofthis company is also done in further parts of assignment. TASK 1P1 Impact and influence of macro environment on Marks and Spencer and its business strategiesFormulating a business strategy is an important aspect of running a business withoutwhich it becomes difficult for a company to set appropriate goals and objectives. In context withM&S, it is an international company of UK and has expanded business in almost all countries ofthe world. Its managers mainly concern on to gain largest market share from other retailers andbuild strategies accordingly (Eaton and Kilby, 2015). But there are various factors of macroenvironment which influence strategies of M&S in following manner:- Political: It includes two main aspects which affect business activities of a company thatare- Political stability and taxation policies. If government increases taxes like VAT on certaincommodities then M&S has to increase price of products. This could impact on retention of loyalcustomers as purchasing behaviour of people changes with fluctuation of price. Therefore, anychanges in taxation and political obligation, assist M&S to develop business strategiesaccordingly. Economic: Business strategy of every organization depends on economic factors likeprice level, money supply, per capita income, employment generation and more. In context withretail sector, business of M&S falls down in recessions period. During recessions period, thiscompany needs to make strategies which help in get back on feet again (De Massis and Kotlar,2014). As, UK is also known as hub of e-commerce so, it reflects that people are not limited to1
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