logo

Macroeconomic analysis PDF

   

Added on  2021-02-19

13 Pages4329 Words80 Views
Business Strategy

Table of ContentsLO 1......................................................................................................................................................3P1 Applying appropriate framework's analysis the impact and influence of the macroenvironment on a given organization and its strategies...................................................................3LO 2......................................................................................................................................................5P2 Analyse the internal environment and capabilities of a given organisation usingappropriate frameworks...................................................................................................................5LO 3......................................................................................................................................................7P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given marketsector for an organisation.................................................................................................................7LO 4......................................................................................................................................................9P4 Applying a range of theories, concepts and models, interpret and devise strategic planningfor a given organisation...................................................................................................................9Conclusion..........................................................................................................................................11References..........................................................................................................................................12Books and Journal..........................................................................................................................12

To achieve a specific objective in business there is a course of set decisions and actionswhich have to be planned is known as business strategy. It is like a blue print of a long run,destination and direction of the organization. The purpose of business is to achieve efficiency,deal with threats and challenges, solve situation problems, etc. To achieve the goals of theorganization, compete successfully, attract customers and strengthening performance of theorganization, these are the actions and moves as the result of business strategy. Kellogg's is a multinational American brand which produces convenience food and cerealwhich includes toaster pastries and crackers. Pringles, Cheez-It, Eggo, Frosted Flakes and CornFlakes are several well-known brands of Kellogg's. Kellogg's focuses on serving nourished foodto the customers so that they thrive and flourish. Kellogg's is marketing its manufacturing in 180countries in present. There were many methods which were used in the history of this companyto promote and expand the brand which is now making Kellogg's the most popular in its field. LO 1P1 Applying appropriate framework's analysis the impact and influence of the macroenvironment on a given organization and its strategies.There are many factors which influence the working of an organization which includespolitical, environmental, social, technological, economic and legal which is known as pestle.These are the external factors which influence an organization and is known as the macroenvironment. This external factor analysis will increase the efficiency and profitability of theorganization.Political Factors- The nature of this factor is very drastic and may vary from place to place and this factorwill impact on efficiency and growth of the organization. This factor can play a significant rolein the long run profitability in a particular market or country (Buckley, Burton and Mirza, 2016).Kellogg's company does not support abusive and racist posts which were being circulated by theteam of pro-Trump, this incident can impact the loyalty of the customers based on affiliations ofpolitics. Kellogg's is trying to minimize on wages so that they can make profitability in themarket and the chances of survival are higher. There has been a lot of political changes in thecountry and it is becoming difficult for Kellogg's to survive.

Economic Factors-If there are changes in the foreign exchange rate, gross domestic product, inflation rate,interest rate and current stage of the economic cycle this will really affect the company'seconomy. There is a high unemployment in the country that means anyone will be willingly towork with a lower wage which means the cost of Kellogg's company will fall and the economyof the company will fail. By keeping in mind about the supply and demand, Kellogg's should risethe capital to a fair price. The GDP growth in rate will affect Kellogg's fast growth in the futureis what is expected (Burlton, 2015). Social Factors-The environment of an organization will get impacted due to the culture and the way ofdoing work. The market as well as the operational aspects will be majorly affected by this factor.After a study on the customer’s level of education, segment of society, lifestyle and beliefs helpsin the production of the product and the marketing message which will help Kellogg's to make aprofitability. The importance to reactions of harassment, health standards and environmentprotection are few pointers which Kellogg's need to be fully aware of to make the company grow(Dahlberg, Hokkanen and Newman, 2016). Kellogg's has products which are distributed betweenclasses and have come out with premium products which the lower class cannot afford so theycome with different packaging and a similar product for that class. Technological Factors-It is very important for the company for innovating and getting the knowledge oftechnology not just because of increasing the product's production and making a profit but toprevent any future harm to the company (Dranove and et.al., 2016). Technology is so powerfulthat in no time it can reduce the selling and the price of the products so low and create highernegative impacts on the company. Technology can make the selling of the product even fasterand more production will have to be done and the company must be technologically wellestablished to produce more to get an increase in their customers satisfaction and so get moreinnovative ideas to make them unique so that a substitute cannot beat them. Environmental Factors-There are different environment conditions in different companies. The weatherconditions impact the income and outgoing of the organization. The raw material will have

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
P 2. Analyse the internal environment and capabilities of a given organisation
|15
|4312
|118

Impact of Macro Environment on Kellogg's Business Strategy
|11
|3392
|76

Impact and Influence of Macro Environment on Organization
|11
|3484
|63

Business Strategy of Kellogg company
|11
|3668
|305

Business Strategy for Kellogg's: Analysis and Strategic Plan
|11
|2843
|67

Impact and Influence of Macro Environment on JP Morgan
|16
|5285
|72