Impact of Macro-Environmental Factors on Business Strategy

Unit – 32
Business
Strategy

Table of Contents
INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
P1. Examine appropriate theory that analyse the impact of macro-environmental factor upon
business.............................................................................................................................................3
M1. Identify external factors to inform in strategic management decisions.......................................5
D1. Interpret data for producing planned directions..........................................................................5
TASK 2.................................................................................................................................................6
P2. Assess internal environment with application of various models................................................6
M2.Analyse the strength and weakness of interior capabilities.........................................................8
TASK 3.................................................................................................................................................8
P3. Apply Porter’s Five Forces model...............................................................................................8
M3. Devise strategy to improve market position.............................................................................10
TASK 4...............................................................................................................................................11
P4. Implement various model for strategic planning........................................................................11
M4. Design strategic management plan...........................................................................................13
CONCLUSION...................................................................................................................................14
REFERENCES....................................................................................................................................16

INTRODUCTION
Business strategy is developed by managers of an organisation for taking necessary steps to
maintain the position of enterprise in global market. It is most important for company to compete with
rivalries through manufacturing products at with high quality that are capable to satisfy needs of
customers. This project is based upon Nissan automobile industry that sells its cars in various
divisions such as Nissan, Infiniti, Nismo and Datsun (Akyelken, Banister and Givoni, 2018). This
project examines appropriate theory for analysing the impact of macro-environmental factors. It
further assess internal environment with application of various models and apply Porter’s Five Force
strategy to increase their competitive strategies. Additionally, it implements various theories and
concepts for designing strategic management plan.
TASK 1
P1. Examine appropriate theory that analyse the impact of macro-environmental factor
upon business
The business strategy refers as ability of managers to analyse their interior and exterior
environment for developing strategies that generates the power for business reliability in global
market. Managers of Nissan emphasize on this strategy for identifying their fault that has to be
rectified easily to develop it cut-throat competition with rivalries.
Nissan:- The Nissan automobile industry sells its cars in various divisions such as Nissan,
Infiniti, Nismo and Datsun. It was established on 28th December as being Japanese multinational auto-
merchant headquartered in Yokohama, Kanagawa, Japan. The Nissan have consolidates with 138, 983
and non-consolidated with 22,791 numbers of employees in company (Biemans, 2018).
 Vision:- The vision of Nissan is to be committed by delivering unique and innovative model
of their vehicles that provides high value to its customers.
 Mission:- The main operation performed by managers of Nissan is to develop new
automotive product and services for supplying superior and measurable values to
stakeholders and buyers.
 Objectives:- The purpose or motive for managers of Nissan is to design car and truck model
that is able to reduce environment pollution with its vehicles.
 Values:- The value of Nissan describes the worthiness for its vehicle towards its customers
after accomplishment of loan term duration.
PESTLE Analysis for Nissan:- There are six elements available in this framework which
includes political, economical, social, technological, environmental and legal factors. It is a

framework which is used by company for identifying its external macro-environmental elements that
affect the stability of business. The Nissan managers implement this for determining exterior factors
that leads company to change their strategy for carrying on their business in future period.
 Political factor:- The political factor includes government stability and likely changes,
bureaucracy, tax policy, corruption policy, freedom of press, labour and environmental law,
etc. Managers of Nissan are negatively impacted by trade restrictions between United States
and Japan. The company is positively impacted with stable government policy that leads to
impose similar rules and regulations of political leaders.
 Economic factor:- The economic element consists of population growth, foreign exchange
rates, unemployment trends, labour costs, level of consumer’s disposable income, price
fluctuations, etc. Nissan is favourable as being the automobile industry which gives its
contribution in increasing Gross Domestic Product rate (Cong and He, 2019).
 Social factor:- The social factor emphasize on health consciousness, education level, religion
and beliefs, lifestyles, age and income distribution, etc. Managers of Nissan are
unfavourably affected as high price of oil impact the buying behaviour of customers at price
fluctuation for saving their disposable income.
 Technological factor:- The technological factor majorly focuses on infrastructure level,
technology incentives, automation, innovative ideas, etc. The Nissan company is positively
impacted as vehicle industry shows continuous growth in technological advancements by
designing their specialised structure and shape of car model.
 Legal factor:- Legal factor refers as the legal legislations regulated by government that
includes anti-trust law, intellectual property law, consumer protection rights, employment
law, etc. The Nissan managers are unfavourably affected as they are bound to pay minimum
wages to unproductive and inactive labours for motivating them to perform actions
effectively.
 Environmental factor:- The environmental factor consists of weather, farming, agriculture,
law regarding environment pollution, waste management, recycling, etc. Managers of Nissan
are positively impacted as they manufacture environment-friendly vehicles which restrict
pollution that might cause the lifestyle of population (Cooke and et.al., 2019).
Stakeholder Matrix:- This analysis is used by managers of Nissan as being the necessary
tool for an organisation to achieve its organisational ambition and intention in future period. It is
essential for business to identify their key stakeholders and win their support and power for being
stable in competitive marketplace (Stakeholder Matrix.2020).
 High power and high interested people:- It is the process through which managers of
Nissan encourage workers to complete their task with perfection for meeting the needs and