Business Strategy

Business strategy

INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analyse the impact and influence of macro environment in a organisation..........................1
M1 Critically analyse the macro environment to determine and inform strategic management
decisions......................................................................................................................................2
TASK 2............................................................................................................................................3
P2 Evaluation of internal environment in organisation capabilities............................................3
M2 Critically evaluate the internal environment to assess strength and weaknesses..................5
TASK 3............................................................................................................................................5
P3 Porters five forces model........................................................................................................5
M3................................................................................................................................................7
TASK 4............................................................................................................................................8
P4 Strategic management planning.............................................................................................8
M4 Produce a strategic management plan that gives tactical and tangible strategies objectives 9
D1 Critique and interpret information and data applying environmental and competitive
analysis......................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy refers to a set of competitive actions and behaviours that an
organisation uses to attract many peoples, strengthening the performance of workforce,
compete successfully to achieve to goals of an organisation. It is an internal part of the
organisation so that they strategically plan the task and formulate and implements the
tactics for accomplishing the task effectively and efficiently. Marks and Spencer is one
of the British retail multinational company, headquartered in Westminster, Londen. It is
specialises for selling food products, home products and premium quality clothing. This
project includes the analysis of macro micro environment and its strategy and their
capabilities, structure and skills of an employees and the particular company. Further it
evaluate the porter's five forces model for competitive advantage in the current market
place. And at last it focusing on theories, concepts and model to understand the strategic
directions so that they will earn more profits and revenue(Akter and et. al., 2016).
.
TASK 1
P1 Analyse the impact and influence of macro environment in a organisation
Macro- environment
It refers to that condition that helps in analysing the external environment and the
economy as a whole. It includes the various factor like inflation, gross domestic
product, employment, spending and monetary policy. In context of Marks & Spencer
manager use to analyse the macro environment so they identify the opportunities and
reducing the threats after analysing all the facts and figures related to that. It includes
PESTLE analysis for examine the extrinsic environment that are explained
below(Higgins, Omer and Phillips, 2015).
.
PESTLE Analysis
It refers to that tool that is very helpful in analysing and identifying the macro-
environment factor that affect the overall performance of the organisation. It is especially used to
those company which is expand and grow their business in international level or earn more
profits and revenues. This factor can be examined below.
 Political – The political factor of a country can be affecting the business of a Marks and
Spencer in two ways i.e. positive and negative form. The free trade policy that has been
followed in the country to do a business on global level affects very massively and gives
more benefits to the Marks & Spencer. But due to Brexit occur in the nation UK; affect
their sales in other European countries. And it also affect the role of high tax rate this will
affect the cost of production of an organisation(Woerner and Wixom, 2015).
 Environmental - This factor related to that where a people live and the business operates.
In this every firm need to take precaution in using the resources. They use those
resources that do not harm the environment and the people who live in the society. In
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context of Marks & Spenser, manager must focus on the resources they used because it is
the retail sector where lots of raw materials are used to make a good. For this they need
to be very careful about the natural habits and the effects of an environment. Using
environmental friendly resources helps in earning more profit and growth(Leonidou and
et. al., 2015).
 Social – In today’s environment every customers need, wants, taste and preferences are
different and on the basis of this every company need to be make their products so that
they ensures more sales and market growth. In context of Marks & Spenser, they
manufacture the product offering according to the needs and demand of the today’s
customers and the changing trends in the UK. This helps in grabbing the more new
opportunities in the new market.
 Technical - Using advanced technology helps in earning more revenues with large
market share. In current market trend use of online marketing is very fashionable. In
context of Marks & Spenser, manager use various promotional techniques i.e. social
media, online website and their official company portal to promote their product in front
of large audience.
 Legal – In context of Marks & Spencer, they use health and safety act and equality act to
protect the right of every customer as well as every working employee so that they
achieve their targets on time with productive results and ensure and manage the customer
loyalty by using health and safety act.
 Economical – This type of factor affect the overall economy and the business in a
particular country. Marks & Spenser is one of the best retail sector in UK, and the
changes and any fluctuation done in the tax rate and interest rate affect the overall
business activities. For this they purchase their raw material from another country to buy
it on low cast and by this their cost of production are also lower. This helps in earning
more and more profits and increasing the sales of the organisation(Martinez-Simarro,
Devece and Llopis-Albert, 2015).
M1 Critically analyse the macro environment to determine and inform strategic management
decisions
From the above mentioned criteria of external in which Marks and Spenser use PESTLE
Analysis to know and determine the facts and figures on the basis of which they do their
business activities. From this they examine the opportunities and finds the solution to
reducing the threats from using this six factors. It also assists in generating more sales and
revenues in the current market place.
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