Business Strategy for Desklib - Online Library for Study Material

BUSINESS
STRATEGY
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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Applying distinct framework in order to analyse the influence of macro environment upon
business as well as on their strategies.....................................................................................3
TASK 2............................................................................................................................................6
Evaluating the capabilities as well as internal environment of a business through utilizing
proper frameworks..................................................................................................................6
TASK 3............................................................................................................................................9
Implementing porter's five force model to evaluate the competitive forces within market for a
business...................................................................................................................................9
TASK 4..........................................................................................................................................10
P4 Apply different models, theories and concepts to interpret strategic planning for a
company...............................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
The term business strategy denotes to the various decisions as well as tactics which
provides various advantages to the company in achieving their objectives or goals. It is
mentioned as a key plan that is being executed by a person within a business in order to have
huge competitive stand in market. The present report includes Marks and Spencer company that
is being situated in UK and sells retail items such as home products, food, clothing and other fast
moving consumer products. The report discusses about the macro environmental impact upon the
company's strategy of business, different logical frameworks are applied so to identify the macro
environment (Amri-Asrami and Aghaei, 2021). Organizational culture as well as various internal
competences are mentioned with a combination of evaluating through implementation of porter's
five force and other models. Further, differentiated concepts, models or theories are used within
the report in order to understand the strategic directions of a company.
TASK 1
Applying distinct framework in order to analyse the influence of macro environment upon
business as well as on their strategies
The various macro environmental factors are mentioned below:
PESTLE Analysis
The framework refers to a strategic tool that is being utilized by companies in order to
acknowledge the macro environmental aspects within effective manner at marketplace. The
analysis of macro environment factors with context to Marks and Spencer is done below: Political: This factor is related with various aspects such as regulation of tax,
governmental stability or instability, tariff rates and other related components. The
country UK is experienced with high governmental stability along with comfortable tax
rates for companies which is lesser. This encourages businesses to run their operations
and generate high profits for the firm (Herciu, 2020). Through this it is easy for Marks
and Spencer to develop its policies by keeping government stability in mind and earn
greater revenues. Economical: This involves discussion about GDP, inflation or deflection rate, monetary
or purchasing power, economic growth rate and other concerned aspects of the nation as
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a whole. UK experiences huge growth rate which is highly beneficial for the businesses
along with a combination of high disposable income assistance of which the audience
becomes competent to purchase more and more items for their regular consumption due
to which the organisation Marks and Spencer enjoys high profitability. On the other hand,
the moment economy is experiencing the presence of high inflation as happened in year
2018, the company seems to face hardships in its sales and revenues part.
 Social: Various societal components such as people's beliefs, opinions, ethics,
perceptions, morals, etc. are concerned within which the human beings as well as the
business exists. The society of UK is experienced to be the open minded where the
society people are always open to new things and adapt the changes with a twist in latest
items. Through this, the company Marks and Spencer is able to offer better quality of its
items created with latest form of technology to the market where customers are ready to
pay even high prices for the quality products. Technological: Most of the businesses within UK are operating with latest technology as
the country is always updated with the newest technology in market such as high internet
bandwidth or digital media in order to make their daily operations with ease and comfort.
With the going trend the organisation Marks and Spencer is needed to get updated with
advanced form of technologies or methodologies such as could be done in its supply
chain or in production process that could rise the company's profit margin. Legal: This force talks about the legal norms and regulations which are required by the
businesses to follow upon with full concentration as prescribed the UK government or
permitted authority. This is done with a purpose of safeguarding the customers interest as
well as employees benefit. Marks and Spencer is required to comply with all the
necessary policies or norms in order to run effectively with no harm upon its brand
image, violation of any could be extremely hazardous for the brand (Hongpisuttikul and
Sookcharoen, 2021). Environmental: This force is interconnected with the ecology and nature that safeguards
the environment form hazardous actions that are done by business companies. Abiding by
the laws of environment is always beneficial for the business as this assists companies in
developing positive brand image in the eyes of customers. With context to Marks and
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