Analyzing Macro Environment and Internal Capabilities of Nissan

This report analyzes the macro environment and internal capabilities of Nissan, a Japanese automobile company. It discusses the impact of political, economic, social, technological, legal, and environmental factors on the company's business. It also examines the stakeholder analysis and the McKinsey 7S model used by Nissan to manage its internal environment and capabilities.

Business Strategy

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Appropriate framework for analysing and influences macro environment............................1
Task 2...............................................................................................................................................6
P2 Internal environment and capabilities of given organisation.................................................6
Task 3...............................................................................................................................................9
P3 Porter’s five forces for evaluating competitive forces...........................................................9
Task 4.............................................................................................................................................10
P4 Range of theories and models that interpret strategic planning...........................................10
CONCLUSION..............................................................................................................................13
REFERENCE................................................................................................................................14

INTRODUCTION
Business strategy is defined planning and strategies which is important to manage the
functions and increase the organisation productivity. The employees who are working in
company should follow all planning and tactics that can help to increase business performance
and maintain high profitability. To run the business managers should follow all rules and
regulations that are important and can help to manage the activities (Zucchella and Previtali,
2019). To increase insight and importance of strategy Nissan company has been selected that is
Japanese automobile organisation has founded in 1993 with its headquarter in city Nishiku
Yokohama. This can help to increase the organisational productivity by maintaining brand
image. This report is considering impact and influences which influences macro environment,
porter’s five forces for evaluating competitive advantages, internal environment and capabilities.
On the other side, theories, models and concepts that uses to make strategic planning.
Task 1
P1 Appropriate framework for analysing and influences macro environment
A brief introduction about organisation
Nissan Motor Co. Ltd, is a Japanese multinational company that is manufacturing motors,
cars , trucks and other vehicles. This is a larger size organisation which is attracting customers by
offering the different model of cars and motors. This was founded in 1933 by Masujiro
Hashimoto, Kenjiro Den for the purpose of providing automobile. This is consider as sixth
largest company in the world which helps to attracts customers and increase sales. The main
object behind establishing automobile company is to become largest organisation in all over the
world and increase the brand image. In this organisation 1,38,910 employees are working who
adopts new technology and bring innovation in their business effectively.
Vision – “Enriching people lives and building trust with customers, partners, dealers and
suppliers”.
Mission – “To provide innovative and creative products in automobile sector.”
Objectives –
 To increase the organisational profitability by 60% within 2022.
 To increase the sales turn over by 20%.
 High market share in challenging business environment.
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In business environment, it is important that to have enough resources and planning that
uses to run and increase organisation activities. The management is needed to analysis the
business environment and activities that can help to operate the business and manage the
activities. It is required for organisation to maintain the high performance by analysing
environment and that has impacted on business. In context to Nissan, is automobile company that
is selling different types of vehicles such as truck, motor cars and commercial vehicles that
attracts customers and has affected the business (Cao, Xu, Bian and Sun, 2019).
Macro environment – This refers as condition which exists in economy as whole in
relation to particular sector, region and areas which may affect the business. While running a
business and increasing activities an organisation should be analysis the environment that can
help to operate the business and increase performance. The management of Nissan, are analysing
environment and get a view which factor has impacted badly. For this, PESTLE analysis is uses
by company that states how a business can be managed or organised.
PESTLE analysis – This is a framework which uses by organisation to know the impacts of
some factors which has impacted on organisation and reduce the productivity. These are
uncontrollable factors that need to be focuses and can be reducing the negative impacts. The
PESTLE analysis in context to Nissan organisation are as defined:
Political factor – This is defined as aspects which are associated with government
stability, regulation, trade tariffs, instability etc. that are important to consider while running
business. After Brexit, all legislations and restriction to sale products and importing has been
reduced and eliminated that has impacted on organisation positively.
Positive impacts - Now Nissan is taking opportunity by importing raw material from
other country at low prices with better quality and manufacture cars with different models for the
purpose of selling that helped to increase the business performance (PESTLE analysis of Nissan
company, 2020).
Negative impacts - On the other side, Brexit has reduced the organisational sales and
productivity as many European suppliers has stopped to supply the raw material which may
affect the business.
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Economical factor: This factor is pertaining to economy by considering various factors
such as foreign exchange rate, gross domestic product, inflation rate, interest rate etc. that has
impacted on business.
Positive impacts - In context to Nissan, interest rates in UK are low that helps to run the
business by taking loan which helped to run business and increase organisational productivity.
The management of organisation are taking loans for running business activity and buying
material which helps to run business and increase productivity.
Negative impacts - On the other side, increasing inflation rate in UK and country may
impacts negatively as it reduced buying power of customers due to high inflation rate and reduce
the productivity which may impacts negatively (Council, 2019).
Social factor: This is another factor which is related to lifestyle, changing demand and
needs of people, tradition and culture that affects the business and activities which are important
to focus and run.
Positive impacts –In context to Nissan, management are understanding demands of their
customers and providing cars and commercial vehicles accordingly that helps to operate a
business and increase the brand image. It can maintain the business transactions and selling
activities at the top by considering changing needs and wants.
Negative impacts - On the contrary, if management are not focusing on changing needs
and lifestyle then to maintain the activities and operations become difficult and it cannot manage
the activities. Moreover, having many competitors in market such as Bentley , Volks wagon,
Aston Martin etc. are creating challenges by offering best features that may affect the business
negatively by reducing customers.
Technological factor – In changing environment, this become important for organisation
to adopt a new technology and innovation that can help to maintain the business and increase the
production by considering such factors.
Positive impacts – For Nissan, it is important to use the new technology and innovation
which helps to bring new technology and services in their automobile company. This can help to
increase the business performance and maintain a brand image by managing all activities. Nissan
organisation can capture high market share by using digital technology which helps to provide
the information and attain the business goals.
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Negative impacts - On the other side, the cost of Nissan can be increases because it
adopts new technology and innovation in their organisation that reduces the organisational
productivity and profitability (Burgelman, 2020).
Legal factor – This factor is considering various rules and regulation which are
following by company in order to run the business and increase the performance. For
organisation it is important to follow all laws and legislation that can supports to run and increase
the brand image.
Positive impacts - Nissan is larger size automobile company that is following all laws such as
employment legislation, equal wages, health and safety law etc. that has impacted on business
positively (Alkan, 2020).
Negative impacts - Many companies are fraudlent and doing unauthorised transaction
that reduces the confidence level of customers and reduce organisation productivity. Nissan’s
business can be reduced in case of not following the equal wages, health and safety, data
protection etc.
Environmental factor – This factor states as environment related factors that may affect
the business positively by focusing on greenry, reducing wastages, plantation, renewal energy
etc. that can help to operate the business.
Positive impacts - Nissan is focusing on such factor which are important to run and
maintaining good environment by reducing wastages which helps to operate the business
successfully.
Negative impacts – Not following the all environmental rules and increasing wastages
can be affect the business negatively.
Therefore, by using PESTLE analysis, Nissan company can analysis which factor many
create opportunity and which one is threat for organisation. There is need to focus on all factors
which are important to run and affected the business because they are external factors that may
arise any time and need to consider while running activities.
Stakeholder analysis
The dependability of business is connected to shareholders who are investing in
organisation and make right decision to invest. These people are checking the financial
information, customers expectation and checking the market demand which is required to
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manage the activities and perform the functions. Stakeholder analysis is a tool which uses by
management kin order to bring changes and states their interest and power in business activities.
The description of stakeholder matrix in relation to Nissan company are as defined:
LEVEL OF
INTEREST
HIGH LOW
HIGH Managers Suppliers
LEVEL OF POWER LOW Employees Communities
High power and high interest – This matrix is defining and describing about those
people who have wider interest and power in business activities that has affected the business
negatively. This is important for organisation to focuses on those people who invests more in
organisation (Weng, 2020) (Ekolle, 2019). In Nissan organisation, managers are defined as
important shareholders who have interest and they invest high amounts on business activities in
the consideration of getting high returns that helps to make right decision and operate the
business. The managers of such organisation are playing important r5ole who make plans,
organise activities and control the functions so goals can be attained in relation to Nissan in
certain time.
High power but low interest – Some people who are main part of organisation are
involved in stakeholder matrix that helps to manage the activities. Such as suppliers of Nissan
company are having high power who sales their raw material at different prices as they wants
that may affects the business. The suppliers are selling the raw material to Nissan company at
fixed prices and contracts that helps to increase the production and profitability. These people
have low interest who does not participate in any activities and selling the products at different
prices (Wang, 2019).
Low power and high interest – This is important for organisation to increase their
insights and getting the work done in certain time. In context to Nissan, employees with low
power and high interest are those people who participate in business activities and getting the
work done effectively which helps to improve the organisational productivity. The management
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of organisation should understand needs and give the chances to participate in activities which
helps to increase the organisational productivity (Demirel and Kesidou, 2019). The employees of
Nissan are not having authority to make decision, they only eligible to follow managers and
getting the work done.
Low power and low interest – This means ending aspects in relation to stakeholder
analysis that has low power and interest to maintain the business. In context to Nissan,
communities are considered as stakeholders who have low interest and low power as they only
identifying their needs and make decision to buy (Gans, Stern and Wu, 2019).
Task 2
P2 Internal environment and capabilities of given organisation
Internal environment and capabilities are similar term that are analysis by management in
order to operate their business and increase the performance. This is important for all
organisation to conduct research and maintain the business by taking right decisions. Nissan
organisation is selling the different type of cars model that help to improve the business. For this
McKinsey model is uses by chosen organisation that are as defined:
McKinsey 7S model – It is defined as powerful expository framework that uses by
company to face the challenges and bring changes in internal situation which helps to identify
the problems and maintain the good activities. Nissan is using McKinsey model that can help to
improve the business performance by researching and managing performance that stated:
Shared value: This refers as values and beliefs sets that are uses by company in order to
attain the business goals. The importance for organisation is to maintain the high productivity
and profitability with the help of managing customer services and supply chain. The
management of Nissan are focusing on customers service and supply chain as customer are
demanding which helps to operate a business.
Strategy: In Nissan, management make plans and strategy to operate and increase
business objectives. This also helps to increase sale and financial position by conducting research
which maintain good performance (Shao, 2019). Management of such organisation are making
effective plans and strategy by deciding goals that helps to states what need to do further and
how goals can be achieved.
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Structure: This describes a way of formal relationship that is maintaining between
employer and employees by sharing the information and increasing production. In Japan and
other country, Nissan is following the matric organisational structure which help to share the
information and ideas in relation to business and increase effectiveness. In this structure reports
are given to more than one manager which help to find out the difficulties and getting the task
complete.
System: This refers as regulation, procedure and rules that are important to make further
activities and attain the business goals. The management of Nissan company are following the
MIS system which help to keep records of all transaction and products for operating business and
increasing productivity. By using this, managers can keep records and store the data which help
to select the best decision and maintaining good performance.
Skills: The employees who are working in Nissan, having communication, technical,
problem solving, learning and customer service providing skills that attracts customers and make
buying decisions (Alkan, 2020). These skills helps to accept the challenges and changes in
organisati0on so all working can be done at right time.
Staff: In chosen organisation, employees are performing their roles and responsibilities
by contributing in activities and attaining the business goals at right time. Staff are working by
performing their roles and responsibilities so all task can be accomplished.
Style: The management and leaders of Nissan organisation are following the participative
leadership style that helps to involves employees in business activities and attain the business
goals by completing task (Wang, 2019)..
Justification
Mckinsey model is useful model which helps to analyse the internal capabilities of
organisation and improve the performance by performing all task effectively. Such as Nissan
organisation is running business by analysing internal capabilities which helps to states what
activities are needed to improve and how it can perform all activities effectively.
VRIO Analysis:
This analysis is related to defining aspects of business resources which are available in
organisation helps to perform the activities by running activities. For organisations, it is
important to have proper analysis and maintain the value, rarity, inimitability and organising
activities that are important to run and increase the competitive advantages.
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The VRIO analysis in context to Nissan organisation is defined as:
Resources Valuable Rare Inimitable Organised
Technology Yes No No No
Organisation
reputation
Yes Yes No No
Skilled
employees
Yes Yes Yes No
Supply chain Yes Yes Yes Yes
Valuable: This means resources which are required to perform the activities and
maintain the good performance. Technology, skilled employees, organisation reputation and
sup[ply chain are required resources which can help to operate the business and increase the
performance. Technology is valuable as it attracts the customers by bringing new technology and
services. Skilled and technical employees ready to accept the challenges and changes, reputation
of organisation helps to increase the brand image and effective supply chain is valuable to
increase the number of customers by selling the products and services which are important.
Rare: This involves reputation of organisation which is important to create the
confidence and trust level of their customers so they get ready o buy the products and services. In
context to Nissan organisation, reputation of organisation is rare because it is not compulsory to
have all organisations same image and effectiveness which make different from others. This
organisation is taking the competitive benefits by maintaining brand image (Weng, 2020).
Inimitable: Employees who are working in organisation are playing important role as
they analysis the performance and managing the activities. In Nissan, employees who are
working are highly skilled and technical employees which can help to operate the business and
create a brand expansion by increasing customers (Wang, 2019).
Organised: This refers as resources which are important and needed to organise properly
so all task can be completed and maintain the high performance. In context to Nissan, the selling
activities of cars and commercial vehicles by organising and controlling the supply chain that
help to operate the business and increase profitability (Ekolle, 2019).
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Task 3
P3 Porter’s five forces for evaluating competitive forces
In business environment there are different activities which are important and managing the
activities in competition that helps to maintain the good performance. The management are
focusing on activities that are delivering variety of products and services. The aim of
organisation is to perform all actions and maintain the productivity. In context to Nissan,
management are using porter’s five forces that are as defined:
Competitive rivalry: This refers as competition which is facing by organisation while
running a business. In context to Nissan, competitors are Bentley, Aston Martin, Tesla that are
automobile company selling the cars with design and model that can helps to attracts the
customers and maintain the sales. Competitive rivalry is a threat which is facing competition in
market and reducing the sales (Demirel and Kesidou, 2019).
Bargaining power of suppliers: This refers as suppliers who sales raw material and
finished products at different prices as they have power to set the prices. In Japan and UK there
are many suppliers who are selling different quality of raw material at different prices that helps
to run the business. In Nissan, management is having good relation with suppliers who sales raw
material at low cost which is creating the opportunity maintaining the business. The power of
suppliers in UK is low as many people are available who are providing better quality of raw
material at different prices so organisation have option to buy raw material from low cost
suppliers.
Bargaining power of buyers: Buyers are those people who identify their needs and make
buying decision by selecting the best option. This is important for organisation to maintain the
business activities by selling the products at discounted prices which can attracts customers and
maintain the good performance. The bargaining power of buyers in market is low as such
organisation is providing better quality of products with timely services at free of cost which
highly attracts customers and increases sales. Nissan is taking the opportunity by attracting
buyers and selling the cars at different prices which helps to maintain the good performance.
Threat of substitutes: This is defined as substitution that may affect the selling activities
of organisation. If substitution is available then no existing activities can be managed properly.
In regard of Nissan, motor bike, cycle, auto and buses are substitution which affects the sales of
existing products and services. This can be threat for Nissan as people can use substitutes in case
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of increasing prices so prices should be relevant and should be available on EMI which can help
to increase the sales and take competitive advantages.
Threat of new entrants: This is another aspects of organisation which is related to business
organisation and helps to operate the business. In context to Nissan, there are many people who
can enter in to new market for running the business and managing the performance. This can be
threat for Nissan because new organisation with high techniques and capital can enter in to
market for running activities and increasing brand image (Canevari‐Luzardo, Berkhout and
Pelling, 2020).
Therefore, this model is uses by Nissan organisation for running the business and
maintains activities by delivering quality and design of cars. Threats which are facing by
organisation need to be overcome by making appropriate strategies which helps to maintain the
good business.
Task 4
P4 Range of theories and models that interpret strategic planning
Bowman strategy – This is a strategy which is uses by organisation to states the positions
of business which they are having and helps to attain the business goals. This state how an
organisation is positioning its products and services by maintaining two dimension first one is
product and second is perceived value that helps to maintain the overall brand. This strategy is
uses by Nissan company in order to maintain a position of the products at the highest price level
which attracts customers to maintain their standard and position in competitive market
Porter's generic strategy: This model illustrates how a organization can benefit from
competitiveness by choosing an acceptable approach and maintaining good results. With the
support of this current organization, the competitiveness and enduring advantages can be
achieved. The definition of this strategy is set out below:
Cost leadership: This section relates to the cost of goods and services that claim that, to
meeting with business goals, the company has to offer its products at a lower price. Herein, the
organization has set prices to become a low cost producer. It can be done by Nissan company by
reducing the low cost of their cars, which can help to attracts consumers and improve
profitability.
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Differentiation: This relates to differentiated products, as customers demanding various
items that can excite consumers and grow sales and profits. In this plan, Nissan is required to
provide different design of cars that attracts the potential market, which help to address the
expectations of the consumer and the system towards competitive advantages.
Focus: Such a standardized strategy relates to cost reduction and distinction, which helps
to improve efficiency and profitability. In order to implement this approach, Nissan had to set
low prices and offer various type and design of cars that could help improve efficiency and boost
sales volume.
It was determined from the above debate that Nissan would use the correct cost-focus
approach to take advantage of the comparative edge. Herein, the manager set low prices for his
products, which help to increase sales and competition on the market. It would be advantageous
to Nissan because the consumer would have a low cost effect and buy raw material and sale them
at different prices which can help to increase profitability.
Strategic Planning
Strategic planning refers as activities which are important and helps to maintain the high
performance. Having proper planning and strategies is required to perform the activities so
productivity can be maintain for increasing performance. In context to Nissan, management are
preparing strategic planning that are as defined;
Strategic planning – For running and attaining the business goals there is need to have
proper planning that can help to manage the activities. In context to Nissan, managers are
formulating plans by understanding their needs that helps to operate the business and increase
performance. The managers decide the goals and take right action which helped to run business
and maintain performance.
Background – Nissan is a Japanese company that is multinational automobile company,
selling the different models of cars which attracts the customers and increase organisational
productivity. This organisation was founded in 1933 for the purpose of selling different models
of cars that help to increase the productivity and profitability.
Vision – To increase automobile industry by using new technology and features that help
to run business.
Mission – Increase sale and number of customers by increasing automobile sector.
Objectives:
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 To capture market share by 50%.
 To bring new technology and innovation in automobile sector every year.
 Bring improvements in customer satisfaction by 70%.
 To increase the profitability and productivity by 60%.
 To improve the brand image and increasing competitive advantages.
Marketing Mix – This is a tool which is uses by organisation in order to provide
different types of products and services which can help to maintain the profitability. This tool
supports organisation to operate their business and increase effectiveness that are defined as:
Product Nissan is producing different design of cars, vehicle and
trucks that helps to run the business and increase
organisational productivity.
Price The cost of cars is starting from 1500000 GPB that varies to
model and size that helps to increase the customer base.
Place This organisation is operating business by operating many
stores and distribution centre that increase business sales.
Promotion The management of such company is using magazine, social
media, print media, news papers that helps to inform the
customers and increase sales.
Physical evidence The design, structures and features which create a brand
image in the eyesight of people.
Process Online websites, stores and other process are uses by
management that operating business and managing the
activities.
People In this organisation, sales manager, marketing manager,
production manager, customer service, finance and accounting
people are performing their roles.
Strategies and tactics formulation:
Engage people in business idea: This tactics and strategies should be adopted by
organisation by engaging employees which helps to operate the business and increase the
organisational productivity and profitability. In context to Nissan organisation, management are
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engaging employees with business ideas which help to accept the challenges and changes in
business so activities can be managed properly. This can help to maintain high performance by
increasing performance.
Training and development tactics: This is important strategy and tactics which uses by
organisation for accepting challenges by getting training and development programme. This can
help to bring innovation and technology in supplying process and distribution which helps to
maintain the good performance. By using this, new car model is provided by organisation with
training that helps to improve organisational productivity (Rahmawati and Rahadi, 2020).
Implementation and control:
This is ending stage that are performed by Nissan management, operating business by
implementing plans which helps to operate the business and maintain high performance. All
activities are properly managed and controlled by using Benchmarking and KPI that can help to
increase the business performance in competitive environment.
CONCLUSION
From the above report it can be concluded that strategies are important that helps to bring
new ideas and innovation so all task can be completed and maintain the good performance.
porter’s five forces model is uses by organisation that provide competitive advantages. PESTLE
analysis is uses to know the impacts and Mckinsey model states the internal capabilities of
organisation.
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<https://www.swotandpestle.com/nissan/>
(Zucchella and Previtali, 2019) (Cao, Xu, Bian and Sun, 2019) (Council, 2019) (Burgelman,
2020) (Wang, 2019) (Gans, Stern and Wu, 2019) (Shao, 2019) (Alkan, 2020) (Weng, 2020)
(Ekolle, 2019) (Demirel and Kesidou, 2019) (Rahmawati and Rahadi, 2020) (Canevari‐
Luzardo, Berkhout and Pelling, 2020)
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