Influence and Impact of Macro Environment on Business Strategy

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Examine the influence and impact of macro environment.....................................................3
Stakeholder analysis...............................................................................................................4
TASK 2............................................................................................................................................8
Access internal environment of an organisation....................................................................8
McKinsey 7s model................................................................................................................8
Value Chain analysis..............................................................................................................9
VRIO MODEL:....................................................................................................................11
TASK 3..........................................................................................................................................13
Evaluate and apply porters five force model........................................................................13
Porter's Five Force Model:...................................................................................................13
TASK 4..........................................................................................................................................15
Application of theories and models......................................................................................15
Ansoff Matrix.......................................................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
Books and journals...............................................................................................................17

INTRODUCTION
Business strategy define as set of different activities and decisions which assist an
individual person to gain their organisational goals. Main focus of a business organisation is to
attract huge amount of consumers towards the business entity by creating various strategies and
policies (Johnson 2016). In the current project, M&S is the base organisation which was
founded in the year 1884. Founder of the company is Michael Marks & Thomas Spencer and its
headquarter is located in London, UK. In this report, influence of macro environment has been
examined for which PESTLE analysis is going to be discussed. Along with this for internal
capabilities & environment SWOT as well as VRIO analysis are examined in a detail manner so
that the strategies will be formulated in an appropriate way. In addition to this, Porter Five Force
model is also included in this report so that the overall analysis of the industry will be done in an
effective manner.
TASK 1
Examine the influence and impact of macro environment
For every organisation, for maintaining long term growth & success at the marketplace, it
is quite necessary to study the macro environmental elements. With the assistance of this,
executives of the business entity will identify the impact and influence of all the external factors
on the functioning of organisation (Akter and et. al., 2016). It is very vital for the directors to
examine their mission, objectives, vision, strategies and many other factors which leads towards
the success of an organisation.
Mission statement: Marks & Spencer mission is to make aspirational quality which can
easily be accessible to every person, through the extent and wide range of is goods and services.

Vision statement: In context of vision statement, they want to be the benchmark or
standard against which different organisations are going to be measures.
Objectives of Marks & Spencer: Organisational objective is to make sure to maintain the
sustainability of business entity at the marketplace:
 To be the biggest fashion industry across the whole wide world. To improve the growth rate by doing business expansion at different international
marketplace.
Define strategy: It has been said that strategy define as the course of activities which is
undertaken by the management team of an organisation for attaining long term organisational
objectives effectively. Furthermore, strategy refers to the path of individual towards
accomplishment of pre define task.
The role of strategy to achieve business objectives: Strategies play very essential role in
the improvement and evolution of corporate entity at the marketplace. With the aid of effective
strategies, managers can accomplish their objectives & goals within given time frame and in
effective manner (Aithal, 2016). Strategies help in attaining objectives in an effective manner as
employees have clear roles and objectives working within Marks & Spencer.
Stakeholder analysis
Stakeholders are considered as the most essential and very crucial element of an
organisation who have the right and power to contribute in every decision making activity of the
company. Apart from this, they have the ability to influence the overall operations of a business
entity. For this, a stakeholder analysis matrix is used which is a strategic framework categorised
stakeholders according to the power and interest taken by them in the business functionality. In
this context, external stakeholders as well as their influence on the working of Marks & Spencer
are going to be discussed as follows:
Stakeholder Influence on Marks & Spencer
Customers It is said that consumers are one of the most essential and element for any
business entities as the whole success of organisation mainly depend on
them. It is essential for the managers of Marks & Spencer to perform their
business functions in such a manner that they can satisfy the needs and