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Macro environment of an organisation 5 TASK 47 P4 Porter's five force model to devise strategic planning for given company 7 CONCLUSION 10 REFERENCES 1 INTRODUCTION 1 TASK 11 P1

   

Added on  2020-10-22

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BUSINESSSTRATEGY

Table of ContentsINTRODUCTION ..........................................................................................................................1TASK 1 ...........................................................................................................................................1P1 Apply appropriate framework to identify macro environment of the given company..........1TASK 2............................................................................................................................................3P2 SWOT analysis to understand the internal capabilities and environment of an organisation.....................................................................................................................................................3TASK 3............................................................................................................................................5P3 Porter's five force model to evaluate competitive forces of given market sector fororganisation.................................................................................................................................5TASK 4............................................................................................................................................7P4 Range of concepts, theories and model to devise strategic planning for given company......7CONCLUSION.............................................................................................................................10REFERENCES................................................................................................................................1

INTRODUCTION Business strategy is defined as a set of competitive actions and moves which are used bya business organisation in order to attract clients, strengthening performance and achievement oforganisational goals. It helps in formulating a strategic plan that will benefits the company inreaching its desired objectives. Strategies related with a particular business are defined asbusiness level strategy (Akter, S. and et. al., 2016). This assignment is written in context withMarks & Spencer which is a Britain based multinational retailer dealing in clothes, home andfood products. Company is headquartered in Westminster, London. At present company isoperating more than 980 stores worldwide. This report covers appropriate framework to evaluatemacro environment for given company along with this an analysis will be carried out so thatinternal capabilities of an organisations can be acknowledged. Beside this, to acknowledgecompetitive edge, porter's five forces are implemented. At last, a strategic management plan isprepared which will benefits company in achieving their desired targets and objectives in aneffective manner. TASK 1 P1 Apply appropriate framework to identify macro environment of the given companyTo formulate a desired business strategy, it is very important for the company toacknowledge external business environment in which business activities are carried out. In thisrespect, PESTLE analysis is very beneficial for the company. PESTLE analysis is a frameworkwhich will helps an organisation in understanding political, economical, social, technological,environmental and legal factors associated with a particular market. In this respect, PESTLEanalysis for M&S is carried out below: Political factors: These factors are related with political stability, laws, tax rates,corporate rates etc. UK consists of Scotland, England, Northern Ireland and Wales. UK isone of the powerful nation around globe and politically stable due to which it isbeneficial for business organisations to operate there. There are some uncertainties andissues which have taken place due to Brexit but as UK is a famous destination for FDI,organisation prefer to invest there (Amran, A. and et. al., 2016). Corporation tax rate offirm is 19% which is a stable rate. If UK will not be political stable, then rules and laws1

will change on a regular basis and company can face loss of profitability and lessrevenues. Economical factors: These factors are related with GDP, interest rates, inflation rate,fluctuation of currency etc. UK is a economically stable nation and people residing theirhave disposable income. In terms of GDP, UK is fifth largest economy but due toeconomic recession that takes place in 2008, UK get severely impacted. Hence, it isbeneficial for M&S to operate business activities in UK. If inflation and interest rates willbe high or currency will fluctuate in UK on a regular basis, then it will became difficultfor company to manage their market share and revenues which will result in loss ofprofits. Social factor: These factors are related with the belief and attitude of people, as UKposses a big consumer market with a population of 65.6 million people. As per latestreports, around 21% of people are more than 65 years and half of the population consistsof young and teenagers. Due to which, M&S have a big opportunity to gain attention ofcustomers by offering them products according to their demand. If company will productproducts that are not needed by population in UK, then company will ace loss ofreputation & revenues and brand popularity will also reduce (Chang, 2016). Technological factor: As UK is a technologically advanced country and London is a hubfor technological & financial institutions, people prefer to use modern and advancedproducts. As present business market is largely based on digital and online media, M&Sneeds to update their technology and production machines such as Virtual or augmentedreality according to required advancements. This will help the company in expandingtheir customer base. If company will not invest in technology, then customer will shifttheir preference towards another company which will cater their needs in a better way. Legal factor: UK government have formulate several laws and legislations such asequality act, health and safety act, non-discrimination act etc. so that welfare ofemployees and company can not be avoided (Chen and Jermias, 2014). If any companywill not follow these laws then they have to pay heavy taxes and penalties which willresults in heavy loss of revenue. Following these laws will benefit the company insustaining a positive image within marketplace due to which sales and revenues willexpand in a desired manner. 2

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