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Macro Environment Influence on Strategic Management Decisions of an Enterprise

   

Added on  2021-02-19

15 Pages4372 Words69 Views
BUSINESS STRATEGY

Table of ContentsINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................3LO 1.................................................................................................................................................3P1 Analysis of appropriate frameworks and their influence on macro environment on giveorganisations and their strategies............................................................................................3M1 Critical analysis of strategic management decisions.......................................................5LO 2.................................................................................................................................................5P2 Analysis of internal model through applying VRIN model..............................................5M2 Swot Analysis to conduct internal analysis of the company............................................6LO 3.................................................................................................................................................7P3 Porter's Five Force Analysis for evaluating the competitive environment.......................7M3 Appropriate Strategies.....................................................................................................8LO 4.................................................................................................................................................8P4 Strategic plan and application of Ansoff matrix and Bowman's Strategy Clock..............8M4 Strategic Plan.................................................................................................................10D1 A set of strategic directions and actions.........................................................................11CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12

INTRODUCTIONBusiness Strategy can be defined as a defined set of actions or plans formulated to beimplemented on the business operations so that the required targets and goals of the companycan be achieved. O2 Company is a leading telecommunication firm operating in the UK and tobecome a leader in the particular field of telecom industry, it is necessary that they formulateproper business strategies. This report highlights the macro environment surrounding it throughproper analysis along with the analysis of the framework for both internal and externalenvironment. Further, this report highlights application of Porter's 5 force analysis andapplication of Bowman's Model and Ansoff matrix to determine the proper market strategies tobe implemented.MAIN BODYLO 1P1 Analysis of appropriate frameworks and their influence on macro environment on giveorganisations and their strategies.The business environment is the integrated effect of internal environment of a firm and itsexternal environment that surround the industry in which it is operating. There are many factorsthat tare involved in a business environment and while internal factors can be controlled, externalfactors can be controlled by the management of the company (Amran and et.al., 2016). O2Company, to ascertain the positive or negative impact that these factors might have, conducts aregular and efficient environmental scanning of both internal and external environmentsurrounding the company.To conduct the external environment analysis, analysing the PESTLE factors is the besttechnique :-Political Factor :- The various government laws and regulations have been experiencing manyissues. The rising issues of net neutrality and increasing usage of internet has been the twomilestones in the way the telecom industries adopt. Net neutrality however prevents telecomindustries in reducing data speeds. Governments do not fully understand the various problemsthat arise in telecommunication sector. O2 company is hugely affected as there is regularstruggle between the government and telecommunication industries (Moseley III, 2017).Economical Factors :- In the telecommunication industry, interest rates and the inflation,deflation aspect are a very important in determining the growth or decline of an economy.3

Technology like internet and Wi-Fi are assisting factors in growth of any businesses. Also, theprocess of various telecom services depend on different factors like location, customer base etc.O2 company uses internet etc. to capture and target the entire market by expanding throughsocial media pages, websites etc. this has helped them in creating better marketing policies togather more customers.Social Factors :- Expanding in rural areas is both difficult and expensive for the telecom sectoras the cost for developing and giving services in those areas is more than the returns generatedwhich are very slow (Akter and et.al., 2016). Hence, for companies like O2, horizontal growth isvery limited. Also, the limited number of options that a customer has in telecom sector, thecompanies have created a monopoly. They are left with no other option but to buy the packagesand deals that they are provided with as communicating with friends, family, connecting with theoutside world, finding and developing careers through online mechanisms is the rising need ofthe hour.Technological Factor :- The rising need of telecom sector has led to development of a lot ofinnovations in the telecom sector. O2 company has come up with the recent technologicalinnovation or replacing copper layering in their wire with fibre one. This has been copied bymany telecom companies as this reduces the cost and enhance the safety of the users. Therequirement of data connectivity all the time has led to the internet services being providedthrough data packs which connect the users with outward world on their mobile phones(Higgins,Omer and Phillips, 2015).Legal Factors :- Regular innovation and upgrading of the technology used in telecommunicationsector has ultimately led to the public telecom sector and infrastructure being liberalized orderegulated. Also, there has been a change on trend as the industry now gives access to importand export of the products like mobile phones, tablets etc. and other devices. O2 company, isfrequently impacted by the different issues arising in this industry relating to legislation,government etc.Environmental Factors :- The risng temperatures leding to globalwarming and the frquentchange in the climat are raising the questions on the means adopted by the telecom ssector inmaking their productsand services avalilable tot he customers (Buckley, Burton and Mirza,2016). Also, the rising awareness regarding the harmful radiations that the towers set up for4

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