Impact and Influence of Macro Environment on Business Strategy

This report discusses the impact and influence of macro environment on business strategy. It explores the external factors such as political, economic, social, technological, legal, and environmental factors that affect the functioning of an organization. The report focuses on Nissan, a Japanese automobile company, and its strategies to navigate the macro environment and gain a competitive advantage. It also includes an assessment of the internal environment, Porter's five forces analysis, and stakeholder analysis.

BUSINESS STRATEGY

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO 1.................................................................................................................................................3
Impact and influence of macro environment in an organization.................................................3
LO 2.................................................................................................................................................5
Assess the internal environment..................................................................................................5
LO 3.................................................................................................................................................7
Porter’s five forces.......................................................................................................................7
LO 4.................................................................................................................................................9
Models, theories and concepts.....................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy are decisions which the organization has to take so that there is a better
functioning and operations of the organization so that the objectives and goals can be met. This
helps the company to get a competitive advantage and a sense of direction in which the
organization must work so that the reputation and standards of the organization can be met.
Nissan is a Japanese company which is having its headquarters in Nishi-Ku and belongs to the
automobile industry. There are over 138,910 employees working in the organization and was
originated in 1933. There are a lot of factors like the internal and external which impact the
functioning of an organization which is going to be discussed in the report. Measures to analyse
the competition in the market so that the right decisions can be taken for the benefit of the
organization.
MAIN BODY
LO 1
Impact and influence of macro environment in an organization
The organization has to analyse the external factors before making any decisions so that
there is a better functioning. The pressure on the management and the stakeholders is a lot which
is why they have to make sure that the company has taken the right decision for the better
competitive advantage in the market (Kitsios and Kamariotou, 2019). Nissan has been in this
industry from 86 years which is a lot of experience for any automobile in the market. This factor
has made the organization take the right measures and for a better future in this market. The
further report consists of the external analysis of the factors which are affecting the organization
and those can be controlled for the better functioning.
 Political Factors
There is a stability which is visible in the government of the country because of which there
are no major changes which have to be done by the organization. To expand them globally with a
strong portfolio in the market Nissan has been using an effective strategy for themselves which is
helping the organization to have a better functioning. There is a transparency which is present in
the organization between the employees and the customers so that the organization can maintain
their standards and understand the customer’s expectations. There is one drawback for the

organization which is that the company is not having a control on the corruption level in the
country.
 Economic Factors
The unemployment rates in the country have fallen and that is a great help for the employees
and he population of the country. The lifestyles are improving in the country which is making the
population shift to this product which is making the prices of the products according to the
demand. There is a requirement of a lot of experience and skills in improving a product which is
a great advantage for Nissan because the employees have been trained in that aspect. The team
work in the organization is high which is why the productivity of the company is also good and
is making the organization have better operations.
 Social Factors
The satisfaction of the customers has to increase so that there is a better functioning of the
organization and also there is going to be higher profit margins. There is no discrimination of
any sort which is taking place in the organization so that the productivity and operations are
matching the standards of the organization (Bentley-Goode, Omer and Twedt, 2019). The trends
and expectations of the customers are changing which has to be matched by the organization so
that the organization can have a better functioning. There is a fair treatment in Nissan for the
employees and the customer which is making the company has a successful functioning.
 Technological Factors
There is a requirement of a lot of changes which have to take place which can affect the
productivity of the organization and that has to be well maintained in the organization. The
quality has to match the expectations of the customers which are possible when the organization
makes sure that they are matching the standards of the customers by getting in the right
technology which is required. The technology requires a lot of investment which Nissan does so
that they can get loyal customers in the organization. Technological changes also remove the
pressure from the employees so that there is a better functioning and the value of the brand
increases.
 Legal Factors
There are a lot of laws which have come in the industry for the employees and the customers
rights so that there is a well balanced functioning of the businesses in the market. Nissan has
been following all the laws and regulations which have been implemented by the organization so

that there is a better functioning. The employees are being given the right wages and the
employees are motivated from time to time. The customers are given transparency in the market
so that they can be comfortable with the organization.
 Environmental Factors
Nissan has already taken a lot of measures to improve the environment therefore the
organization is coming up with electrical cars which is the best alternative for fuel vehicles in the
market. There are right measures which are being taken by Nissan from time to time so that they
can have a better functioning and measures for the long run in the market (Mahmood, Chung and
Mitchell, 2017). There are zero carbon footprints measures as well which are being taken so that
the organization can have a better functioning and the raw materials will reach the organization
quickly and the demands will be met by the organization on time.
Ansoff growth matrix
The company is having a diversification strategy for themselves since the company is
having a lot of experience and a strong portfolio in the market for themselves. Nissan can entire a
new market with new product and still be able to have profitability because they use the right
strategies to attract the customers and promote their products in the market effectively. There are
going to be risks involved in this strategy but Nissan has a lot of improvement which the
company can make so that the business will be able to grow effectively.
LO 2
Assess the internal environment
To understand the importance of resources and value of the factors a very effective
framework for organizations to get a competitive advantage. There are right decisions which can
be made by businesses so that the company can have higher productivity and the organization
will be able to work accordingly. Nissan has been using this framework from a long run so that
they can use the resources in the organization affectively which is good for the productivity and
the long sustainability of the products in the market.
Resources Valuable Rare Inimitable Organization
Capital  
Intellectual property   
Human Resource  
Technology    

 Valuable
There has to be a well maintained quality and standards of the products in the market which
can only take place when the workforce is motivated and the technological factors are strong in
the company. Nissan has been able to focus on both the factors affectively which has made the
company have a great reputation in the organization so that there is a opportunity in the
organization. The organization has been able to get high profit margins because they have a
value for the resources which are being used in the organization so that the functioning and
operations in the market can be affective. The resources like technology, capital, and human
resource are more important in Nissan for the organization to have a better functioning (Parnell,
2016).
 Rare
There is a lot of improvement which the company will have to do so that they can make the
use of the materials in the products of the company affective for a long run. There are a lot of
materials which cannot be replaced by any other material which is why it is very important for
the company to be able to find ways and Nissan has done that (Garcia-Swartz and Campbell-
Kelly, 2019). The company is having electrical vehicles which are being produced by the
organization so that there is a better functioning. Rare materials or factors in the organization
have to be used in the right manner so that the profitability in the market can be long. Right skills
and techniques are required by the organization to be able to make this factor come in use by
Nissan and the workforce in the organization has been trained in that way.
 Inimitable
There are a lot of patents which the organization will have to take so that they can compete in
the market because there are a lot of similar products already in market. Nissan is doing a lot of
innovations for a long run which has to be controlled by the company so that there is a better
functioning. The services and products in the market are high which is why the company will
have to maintain their standards according to a long run.
 Organization
There are a lot of strategies and measures which have to be taken by organizations so that
there is a sense of direction. The objectives of the organization have to be completed from time
to time so that the company can have higher profit margins. Nissan is having competitors which

have been in market from long run like Land Rover, Ford, et. The decision making if Nissan has
to be even better so that the company can have better functioning.
SWOT
 Strength
Nissan has a lot of experience in this industry which is a great factor for the organization.
Since the competition is high there are a lot of decisions which have to be taken by the
organization to compete. Nissan has also gained a competitive advantage in the market which is
being well maintained by the organization so that there would be higher results.
 Weaknesses
The workforce of the company has to be motivated from time to time in order to be able to
make the changes take place in the organization. Monitoring and controlling of the workforce is
lacking in Nissan since the company is being more focused on expanding themselves.
 Threats
The competition is high in this industry which will make the organization lose their loyal
customers as well which is going to impact on the long run of Nissan and profitability as well.
 Opportunities
Nissan is having a strong portfolio for themselves which has to be well maintained so that the
organization can have a good functioning for them.
Benchmarking
There are changes taking place in Nissan which is why the company will have to monitor
and evaluate the employees from time to time so that the changes can take place in the company.
Nissan will have to improve their functioning in order to be able to operate effectively and
monitoring and controlling is required by the organization to have.
LO 3
Porter’s five forces
This is a very strong framework which is being used by Nissan for a long run and
selection of the strategies which the organization must use so that there is a better functioning.
The company has to think for their long run so that they can have a better functioning and the
organization will be able to effectively function (Liu and et.al., 2019). The competition in the
market is increasing which is why the company has to make decisions rapidly.

 Bargaining power of buyers (Low)
The bargaining power of buyers is low in the organization because they are just following the
trends and Nissan before innovation understands the needs of them effectively so that they can
make the company have a long run. The customers are shifting from fuel vehicles to electrical
vehicles which can be a great factor for the organization so that there is a better functioning.
 Threat of new entrants (Low)
There are low threats of having new entrants in the market because that would require a lot of
investment which is required. There are already too many competitors in the market which have
made it impossible for any new entrant to come in this industry (Anwar, Shah and Hasnu, 2016).
There is a requirement of a lot of skills and knowledge in this industry as well which is present in
Nissan because of the 86 years of experience.
 Bargaining power of suppliers (Medium)
The suppliers say is not much because there is a strong network which the organization has
developed for them in the market. The organization can shift from one supplier to the other to
have a cost friendly factor in the organization so that the company can have a stable functioning
and profit margins. The organization is focused on saving the cost for the raw material but there
are limited suppliers for batteries which is being used in electrical vehicles which Nissan has to
find an alternative for otherwise the impact can be negative.
 Threat of Substitutes (High)
There are a lot of patents which Nissan has taken in the market so that the substitute for the
products can reduce. This is a very important factor which can make the company to get a
competitive advantage (Hsu, Moore and Neubaum, 2018). There are unique innovations which
Nissan has done over time which the organization has to manage which can be very useful for a
long run. The training and development of the employees also has to be accordingly which can
match the demands of the customers as well.
 Degree of Rivalry (High)
Rivalry in the market for Nissan is high because there are a lot of competitors which are
getting in new products for taking away the market share of Nissan (Galpin, 2019). The
organization will have to find ways through which the company can have a better functioning.
The reputation and standards have to be maintained by the organization by using the right
measure and strategy for a long run.

Stakeholder analysis
There is a lot of transparency which is presented by Nissan to the stakeholders of the
organization so that the business can maintain their reputation in the market. The customers have
to be well maintained in Nissan so that they do not shift to another organization that easily and
the company is going to have a good reputation in the market. The stakeholder of Nissan manage
closely which is going to make the company have better decision making and the operations are
going to be effective in nature.
LO 4
Models, theories and concepts
Mission
To get the brand image increase, value of the organization in the market so that the
customers get loyal to the company.
Vision
There is a loyalty which the employees and the customers have towards the organization
because the services and products which is being given to them. The value of stakeholders,
customers, community and colleagues is there in the industry which is helping the company have
a better place for themselves.
Core value
The organization wants to provide the best services and products to the customers so that
the organization can increase their value in the market. Satisfaction of the customers is going to
be focused upon by maintaining the quality and standards of the products.
Objectives
 To increase the market, share by 45% till the end of year 2025.
 To enhance consumer experience by 20% in upcoming 11 months. To increase sales of new product of Nissan by 30% till the end of year 2023.
Ansoff Matrix
 Market penetration
Nissan has already made a place for themselves in the existing market with existing products
which is a great factor for the company. This has made the company get loyal customers and
discounts for them as well so that the sales of the organization can increase. This factor helped

the company to improve the products and match the standards of the customers and as well as
their expectation. Innovation is done in Nissan on a large scale so that the trends and customers
can have their needs be fulfilled and that is good for the portfolio of the organization as well.
 Product Development
Getting a new product in an existing market is a risk factor for Nissan and can impact on the
reputation of the organization as well (Nagy and et.al., 2018). The company will have to be sure
of the product which they are launching in the market so that they can have a better functioning.
It is very important that Nissan gets a competitive advantage in the market because the
competition in the market is increasing which has to be monitored by the organization in order to
get a larger market share.
 Market Development
The new market will not know the old product but that is a tried product in the market which
is going to be appreciated and improved according to the customers so that the organization can
increase the sales and get loyalty of the customers in the organization as well. This is going to
make the operations and productivity of the products increase in the market so that there is a
better functioning.
 Diversification
This is the most risky factor and can be negative and positive for the organization. Nissan has
a great experience and skilled employees in the organization which can understand the customers
and the needs of them so that the company can fulfil them so that the organization can have a
better functioning. There has to be an effective innovation and invention which the organization
has to make so that they can attract the right customers in the company so that the organization
can have a better functioning.
Market Tactics
 Product
There are a lot of innovations and creativity which is being done by Nissan from time to time
so that they can make a strong base for themselves in the market. There are a lot of unique
features as well which the organization has developed and that helps the company to attract the
right customers in the organization. Default vehicles are not sold by the organization to the
customers which makes the organization have a better reputation in market (Apenko, 2017).
 Price

The company used skimming strategy while entering the market but now is using
competitive strategy for pricing the products which is going to be very good for a long run in the
market. The standards of the quality in the products are being maintained by Nissan so that they
can make the organization have a better functioning.
 Place
The organization has opened a lot of stores in the market so that they can make the customers
find it easier to reach out. This is going to improve the standards of the organization and the trust
of the customers will be gained in the organization. The demands of the products in the market
are increasing which is why the organization will have to make a stable base for them so that the
customers can trust and purchase the products of Nissan effectively.
 Promotions
There is a strong market base which Nissan has developed for them in the market so that they
can promote themselves. The best method which Nissan is using in present for promotions are
the online platform which has increased the sales for the organization. The company is finding it
easier to reach out to the customers from time to time (Willmot, LaBerge and Schwartz, 2017).
Bowman’s strategic clock
There are 8 factors which the company will have to analyse and make their own decisions
for the future which are low price, risky high margins, focused differentiation, differentiation,
hybrid, low price and low added value, loss of market share and monopoly pricing. It is after
analysing these factors the organization must select the strategy which they must use according
to the market. Nissan uses Monopoly pricing for the organization to get in the profitability which
the organization deserves and for the reputation of the organization be maintained. Tactical
planning is very essential so that there is going to be strategic planning which is going to be
present. Nissan is having a lot of experience in the market which is why the company will be
able to make better and higher performance decisions for a long run in the market.
CONCLUSION
From the above report it can be concluded that the organization will have to be very
certain about the measures which are being taken by the organization so that the organization can
function effectively for a long run in the market. The competition in the market is increasing
which is why it is very important for the organization to be able to function affectively and the

organization must have the right strategies which they can use. There has to be a strong and
motivated workforce in the organization so that they can take the changes in which is going to
make the organization have larger sales and increase the profit margins. To take out the best
from the employees, there has to be a sense of direction and the right treatment and wages for
them so that they can give the best to the organization which is going to be very helpful. There is
an expectation which the employees have and so do the customers from the organization which
has to be met so that there is a better functioning.

REFERENCES
Books and Journals
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