Analysing the Impact of Macro Environment on Business Strategies

Business Strategy
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
P1. Analysing the impact and influence which macro environment has on business strategies. 1
M1. Critically analyses of macro environment to state and inform strategic management.........5
Task 2...............................................................................................................................................6
P2. Assessing the internal environment and capabilities of an organisation...............................6
M2 Critical business environment evaluation defining organizational capabilities and skills set
.....................................................................................................................................................8
Task 3...............................................................................................................................................9
P3. Evaluating and applying the outcomes of analysing Porter’s Five Forces model to
market sector..............................................................................................................................9
M3. Devise appropriate strategies to improve competitive edge and market position based on
the outcomes..............................................................................................................................10
P4. Application of models, theories and concepts to assist the interpretation of strategic
directions available in organisation...........................................................................................11
M4. Produce strategic management plan that has tangible and tactical strategic priorities and
objectives...................................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCE................................................................................................................................16
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INTRODUCTION
Business strategy is the main planning which is made by managers in order to run a
business and get a competitive advantage. It is important for organisation to make solid and
strong strategies which can be used to make comparison between others organisation effectively.
In other words, business strategy is defined as the process to Strategies Company with new idea
to compete with rivalries through its competitive advantages that creates opportunity to sustain in
global market (González-Rodríguez and et. al., 2018). If organisation has good plans and policies
then it can obtain the higher productivity by facing risk effectively. This project is based upon
the organisation which is Rolls Royce that is automobile company in UK who manufacture
luxury cars and sports cars for its customers and m gaining profit margin. This project
determines the impact and influence of macro environment at business strategies with its internal
environment and capabilities. Additionally, it evaluate the outcomes of business through Porter’s
Five Forces model to analyse competitive advantage This imply various theories, models and
concepts to analyse the interpretation of strategic directions available in organisation.
MAIN BODY
P1. Analysing the impact and influence which macro environment has on business strategies
Macro environment – This means an environment or situations which arises in whole
economy and impacted on business is considered as macro environment. This is important for
organisation analysis the external environment and get information which factor can influences
organisational productivity and profitability. It is important for business concern to focus on such
factors and formulate strategies that can help to reduce the negative impacts and increase
organisational productivity. In context to Rolls Royce, managers are focusing on strategic
planning and frameworks which helps to determine the organisational productivity and
profitability (Setiawan and et. al., 2019).
The vision and mission of Rolls Royce
Mission The mission of Rolls Royce is to fulfil the needs and fuel the
potential of our guests.
Vision It is to follow the guided commitments to great value, the
community, diversity and the environment.
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To analysis the macro environment different frameworks such as PESTLE analysis and
Stakeholder analysis is used by management which has impacted and influenced organisational
strategy and business performance that are as defined:
Political factor – International trade schemes, tariffs, export controls, government policy,
and political class stability or uncertainty in the emerging market are all part of the international
element. This is important to focus on which political system is following by government and
how it supports to business to run their business effectively. This also supports to business
organisation as bring innovation and introduce something new with the help of political system.
The impact of this factor can affects the strategies that are as defined:
Positive impact – After Brexit, UK has separated from European which has impacted
positively such as government policies become stable and supportive for trade which help to
manufacture better quality of cars without any intervene. Moreover, government of UK provide
subsidies and incentives for enhancing their position and improving market image by selling cars
(Putra, and et. al., 2019).
Negative impact – At the same time Brexit has occurred few situations and hurdles for
business organisation as raw material which they purchases from European suppliers has to stop
their purchasing from such nation. And buying raw material from others become costly and
time taking activity which can influence in negatively.
Economical factor– UK has a globalized and rapidly developing economy that
dominates organization strategies on actual results. This factor is related to economical condition
of a nation which can impact on business. This involves inflation rate, interest rates, growth of
economy and business cycle that can influence the entire business (Sousa-Zomer and Miguel,
2018).
Positive impacts - In UK, the inflation rate is moderate that help to run a business
effectively. Such as due to this manager of Rolls Royce become able to produce cars in less cost
and sale it effectively which help to increase production and profitability. Moreover, it has
impacted positively on strategies which help to deal up with difficulties in manufacturing the
cars and operating business successfully.
Negative impacts – It has been seen that from the last year the economical condition of
UK and other countries are reducing continuously due to COVID – 19 that has stopped all
businesses and transportation which has affected the all businesses as their selling activities has
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