Business Strategy: Impact of Macro Environment, Internal Analysis, and Competitive Forces on Organisation

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies..........................................................1
P2Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks.............................................................................................................................5
P3 Applying Porter's Five Forces model to evaluate the competitive forces of a given market
sector of an organisation.........................................................................................................7
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation.........................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy are bundle of various plans, actions and objectives that determines how
all the activities of a business operates in order to achieve their business objectives to acquire a
competitive edge in the marketplace by providing its products and services. It helps to direct the
actions of all the employees towards achievement of a common objective which will result in
increasing the productivity of the employees. It helps the leaders and managers in decision
making process which results in efficiency and effectiveness in the functions and operations
(Amirshenava and Osanloo, 2022). This report is based on a British multinational retailer. It has
its headquarter in Paddington, London, England. It specialises in selling clothing, beauty, home
products and food products. The company provides great value to its customers across various
nations. The report will cover the impact and influence which the macro environment factors has
on organisation strategies and operations. It will analyse the internal factors and capabilities that
may impact the operation of a particular venture. It includes the evaluation of Porter's five forces
model and various theories,concepts in context to the organisation selected which will help the
organisation to plan strategies that may result in achievement of organisational objectives.
MAIN BODY
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies.
Internal and external analysis help a company to identify the strength and weakness that
may impact the functioning and operations of a company and opportunities and threats that may
lead the company to prosper or loose its share in the competitive marketplace. In order to analyse
these factors various models are applied which are as follows:
Pestle analysis of Mark and spencer
It is a tool that helps to analyse all the macro factors which helps an organisation to gain
a clear picture of all the environmental factors that may impact the organisation and its
functioning. In context to Mark and Spencer ,this model will help the organisation to evaluate
the impact of different factors on the overall operations of the company and to hold competitive
edge in the marketplace. The various factors in Pestle analysis are as follows-
 Political factors: These factors emphasis on government control and influence upon
different industries (Ansoff and et.al, 2019). These involves the various rules and
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regulations which include trade and tariff policies, taxation, fiscal policies and more,that
may interrupt the smooth functioning of operations as they are binding for all the
organisations to operate properly. In context to Marks and Spencer, the company had the
benefit of EC's trade agreement that reduces the sourcing cost(Baharudin and Abdullah,
2020) . The company can also utilise the benefit of large EU market to travel their
products freely with any trade and tariff .The company is committed with all government
regulations which helps a company to grow and acquire competitive edge in the market
place.
 Economical factors: These factors have a direct impact on the long term development of
any organisation in the market. These factors includes inflation rate, disposable income,
unemployment rate, interest rates and more that may impact the price of products and
services. Marks and Spencer, is a leading company in UK. Fiscal and monetary policies
of UK are being properly managed buy the government which have results in low
inflation rates . Due to financial crises, there is reduction in the disposable income of
consumers which may lead to decrease in the sales of products and services offered by
Marks and spencer.
 Social factors: It reflects the importance of society and impact of their culture and
lifestyle on the price of different products and services. These factors can influence the
buying periods, purchasing habits and lifestyle. This factors include Religion and ethics,
consumer buying patterns, demographics, health , opinion and attitude and more. In
context to Marks and Spencer, have emerged its global presence by providing trendy and
comfortable clothes to its customers every year. The company have grasped the
opportunity of providing ready to make food items for their customers as they are more
portable and handy to customers which helps the organisation to acquire a good share in
the marketplace.
 Technological factors: The technological advancement in the environment directly or
indirectly impacts the organisation(Bjornsrud-Tidwell, 2021). New innovation and
advancement in products and services by competitors may lead the company to loose its
share in the market. In context to Marks and Spencer has started its online shopping
which helps the customers to shop whenever and wherever they want. It also provides
self checkout services 24*7 hours which helps the company to hold a competitive edge.
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