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Macro Environment and Strategic Planning

   

Added on  2020-10-05

14 Pages4670 Words148 Views
Business DevelopmentLeadership Management
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Business strategy
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Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Evaluate the impact of macro environment on organisation and its strategies......................1TASK 2............................................................................................................................................3P2 Assess internal environment of organisation and its capabilities..........................................3TASK 3............................................................................................................................................6P3 Evaluation of retail sector by using Porter’s Five Forces model...........................................6TASK 4............................................................................................................................................8P4 Apply range of theories, concepts, models and interpret or devise a strategic planning.......8CONCLUSION..............................................................................................................................10REFERENCES .............................................................................................................................11
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INTRODUCTIONFormulation of business strategy is a well structured process which is envision to attainfuture goals and objectives of the company. Strategic planning supports to identify direction andscope of a firm long run in market, it also involves matching resources with changingenvironment in order to meet stakeholders expectations in an effective manner. Along with this,strategic business planning not only ensure long term success of the company but also liable formaking day to day business decisions (Woerner and Wixom, 2015). The present assignment isbased on Mark and Spencer; it is one of the largest dealer of home products, clothing and otherconsumer products. The main objective of the company is to deliver new and innovativeproducts to its customers by managing their quality which adds value for target audiences. Apartfrom this, the report is going to be defined impact of macro environmental analysis as well asassessment of internal environment of the company. In order to cope with internal and externalfactors, there will define Porters' five forces model which also provides strategic direction tocompany. TASK 1P1 Evaluate the impact of macro environment on organisation and its strategiesMacro environment refers to external factors which affects organisation and its growth.These factors are uncontrollable and influences business strategies, decision making process andperformance of organisation. In addition to this, macro environment also affects the businessoperations and activities which are performed by the employees in order to meet predeterminedgoals and objective. Marks and Spencer is multinational retailer which majorly offers clothing,luxury food products and home products world wide. Manager of this company have toformulate various strategies to increase customer satisfaction level for achieving their businessobjectives (Ackermann and Audretsch, 2013) . In this, PESTLE analysis is done by the topmanagement of this organisation to identify the impact of external factor on business and use itas the opportunity for achieving business objectives. PESTLE:It is termed as the analytical tool which helps the business in their strategicplanning. It supports the organisation in understanding its impact of external factor in positive ornegative manner. PESTLE analysis is based on various factors such as political, social,1
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technological, environmental, economic and legal which influence business growth and itsdecline. PESTLE of Marks and Spencer is evaluated as below: Political: Factors which are formulated and changed by the government of UK areconsidered as political factors. These factors includes tax policies, trade tariffs, political stability,In relation to Marks and Spencer, this organisation is providing its goods and services in severalcountries. Changing tax policies may increase or decrease their sales in different countries(Annabi and McGann, 2013). This influences its business strategies and creates barrier for theemployees in achieving their predetermined goals and objectives. Manager of Marks andSpencer should analyse the political environment of their trading countries to identify theobstacles and formulate strategies accordingly. It will help the organisation in preparing backplan for such situation and guide the employees in order to accomplish business objectives. Economic: These factors influences organisational future planning and its economicgrowth. Factors which affects the business environment are inflation rate, interest rate, economicgrowth patterns, recessions, foreign exchange rate etc. In context to Marks and Spencer, buyingand spending power of customer affects the organisational growth pattern. Recession in Unitedkingdom have impacted sales of this company in negatively as the lots of customers weresuffering from financial crisis. Due to this, purchasing power of customers have declined andaffected the sales of the Marks and Spencer. Manager of this organisation should formulatestrategy which majorly concentrate on fulfilling needs of customers rather than profit earningmotive. For this, organisation should introduce low cost food products in its store to avail variousinexpensive option to the customer which satisfy their needs and develop loyalty among thecustomers towards this organisation (Auzair, 2011). Social:In this, social surrounding influences organisation and its growth. Social factorsincluded in this are culture trends, changes in customers taste and preferences, size of populationetc. In relation to Marks and Spencer, changes in lifestyle of the customer, eating habits, cultureof different countries might affect the predetermined strategy of this organisation. Marks andSpencer deals in various country which have their own cultural trend. Manager of this companyshould analyse the social environment of trading country and introduce new and innovativeproducts according to their taste and preferences. This will provide more options to customerand attract to remain loyal towards this brand. 2
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