Impact of Macro Environment on Business Strategy

BUSINESS STRATEGY

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO 1.................................................................................................................................................3
Impact of macro environment on an organization.......................................................................3
LO 2.................................................................................................................................................6
Assess the internal environment..................................................................................................6
LO 3.................................................................................................................................................8
Porter’s five forces.......................................................................................................................8
LO 4.................................................................................................................................................9
Models, theories and concepts.....................................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy is the set of actions and decisions which can organization takes so that
they can gain huge profit in the market and the objectives of the organization can be met. This is
good for a long run of the company in the market and also gives an organization a sense of
direction which can make the organization compete and get huge competitive advantage. Nissan
is an organization which is from automobile industry and is having its headquarters in Nishi- Ku,
Japan. The organization was established in 1933 and has over 138,910 employees working in the
company. Currently this automobile company has very large customer base in all around the
world. The main mission of Nissan is to gain large market share, vision of company is to
positively influence different customers by providing quality products and services, run its
business operations progressively is main objective, and finally run each business activity in
ethical manner main moral value of Nissan. The report mainly discusses the internal and external
factors which are highly effects to different operations the organization which needs to be done.
The competition is continuously increasing which, that’s why the company is required to take the
right decisions after analysing the market. This report has involved some productive business
strategies which will definitely support Nissan for gaining large customer base.
MAIN BODY
LO 1
Impact of macro environment on an organization
There is a lot of influence of the external factors in the company which is not even in the
control of the organization but it is too necessary for the organizations to make decisions in the
company according to them (Orazalin and Baydauletov, 2020). The pressure is on the
management and the stakeholders of the company to take the right decisions so that the
organization can continue for having the strong market share for them. This will be supported to
this company to understand the market better and the further decision in the market of Nissan can
be taken by the company so that it can be achieved an excellent base for themselves.
Political Factors
The political power in the country is stable which is why the company can be capable to
function effectively. This is good for Nissan because the organization will be able to follow the
can strategy and gain more profit in the market which can be used by Nissan to globalize

themselves in the market (Centobelli and et.al., 2020). The employees and the customers have to
have a transparency in the Nissan so that they can have a sense of direction in the organization.
The corruption level is increasing which is a great drawback of this company which creates a
threat on the revenue of the company.
Economic Factors
This is going to make the unemployment in the country fall which is a very important factor
for the country because the lifestyle of the population will get better which means the prices of
the products can also increase of Nissan. There are many of experience, that’s why the products
and the organization are not having many problems in productivity and operations in the
organization (Shollo and Galliers, 2016). The quality is maintained and the satisfaction level as
well of the different customers. There is a good team of workforce in the company which is why
the economic condition of the organization is good.
Social Factors
There are lots of factors which have to be considered by Nissan, in which this company can
achieve very positive results, like; the customers and employees’ satisfaction in the company.
The company has to be made sure about that, the employees are not having any discrimination in
the organization and the organization is being fair to them so that the productivity in the
organization does not get affected (Gumusluoglu and Acur, 2016). The trends or demands of
different customers are changing as well which has to be maintained by the organization which is
good for the company’s sales.
Technological Factors
The organization will have to get in a lot of technological changes if they want their
organization to have a good and effective base in the market. The technological aspect can get a
higher profit margins and the Nissan can be capable for having a higher productivity. The R&D
(research and development) department can also make the organization have higher product
quality and services of Nissan can be improved (Hamilton, Cruz and Jack, 2017). The pressure
on the employees is also going to be removed which can make the huge satisfaction level of the
employees increase in the organization so that there is higher brand value in the market.
Company will be required to invest huge fund for implement hi-fi technology, so it is negative
impact aspect of this factor. By implementing new technology, Nissan can easily improve its
productivity and performance, so it is positive aspect of technological factors.