Impact of Macro Environment on Organization Strategies

Business Strategy
Contents

INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Impact of macro environment in a organisation strategies...............................................1
TASK 2............................................................................................................................................4
P2 Analysis of internal environment of JP Morgan...............................................................4
TASK 3............................................................................................................................................6
P3 Evaluate porter's five forces model in context of the organisation...................................6
TASK 4............................................................................................................................................8
P4 Formulating and Implementing strategic models and theories.........................................8
CONCLUCION.............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy refers to an integration of all the decision taken and actions that is
performed by a company to achieving the goal of the organisation and to secure the competitive
position in the market (Business Strategy, 2020). It is the backbone of every business that leads
to complete the specific goals in the business. JP Morgan is one of the leading global financial
services company since 1968, which provide solutions in different fields like securities, treasury
services, investment banking, markets, private banking, merchant services and commercial
banking in more than 100 plus countries. This firm serves millions of customers, institutional,
government clients etc. further this report through the light on impact of macro environment in
the company external and internal conditions and revenues. After that using porter's model to
evaluate the competitors that are present in the market. Thereafter the company use various
model, theories and concepts to determine the strategic capability of the business and critically
evaluate this to know the sustainability.
TASK 1
P1 Impact of macro environment in a organisation strategies.
Macro environment refers to the external environment which affect the business overall
activities either positive or negative (Fritscher and Pigneur, 2020). This factor is uncertain and
they have an impact in a overall performance of an employees and its working. It is the factor
that is affected by the monetary policy, fiscal policy, GDP, employment rates and consumer
spending. The impact of macro environment affects the decision making process such as
spending, borrowing and investing. Here, J P Morgan use PESTLE analysis tool to better
understand the organisation environment and its sustainability over time.
 Political Analysis- It is the factor that affect the overall business unit by its
profitability or survival. It plays a significant role in the profitability and
sustainability of the JP Morgan because government continues to implement tough
rules and regulations on the financial industry (Ojiako, 2020). To overcome this
monetary issue company applied more strict restrictions to consumers account.
Maximise the level of tax may demotivate the company to increase their profits.
 Economic factors- This factor impacts the sustainability and profitability of the
business. It involves various factors like interest rates, economic growth, exchange
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rates, disposable income of an individuals and business. This factors affect the
purchasing power of the customers (Ghauri, Grønhaug and Strange, 2020). The GDP
growth of the country affect the JP Morgan sustainability in the near future and the
interest rate of the the nation also affect the person willingness to borrow or invest.
Therefore, high rates result in greater investment and it would maximise the growth
of the company. Financial market also affect the companies capital in a way that keep
in mind the demand and supply. The stability in the nation currency creates a great
impact on the longer survival of the firm.
 Social Factors- This factor refers to the individual beliefs, costumes, values and
attitudes who live in a particular society (Al-Surmi, Cao and Duan, 2020). This factor
involve population growth, health consciousness, age distribution and so on. This
factor directly point out the customers satisfaction and what derives them. It affects
the JP Morgan company in a way that it is very essential to carefully understand the
consumers, education level, lifestyle and values and beliefs in a society. There are
various social factors which affect the firm popularity. Firstly, the population of the
company, in their respective age and genders is greatly impact the product that would
offer by the company. Here, the firm would unable to sell their premium class product
to the general public where majority of people are belong to lower class rather they
would focus on the niche marketing. Because of knowledge differentiation firm
would be very careful to not to lose their connection to the potential customers
priorities and interests.
 Technological Factors – This factor involves the change in technological innovation
and development that effect the merchandise and firm (Yu, Park and Hong, 2020).
Elements in this analysis are automation, digitalisation, mobile technology etc.
Technological analysis majorly focus on the developments that would taken place
only in digital technology and this also offer the new channels of distribution,
logistics and manufacturing. In context of JP Morgan, it distance itself from the free
user banking firm and refocusing on their company plans onto the digital platforms.
The essential reason of digitalisation is easily connect with their customers and
financial firm. This type of change is important because it is the primary interaction
between the individuals and the company. The very important change that the
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