Impact and Influence of Macro Environment on Organization and its Strategies

Business Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
Impact and influence of Macro environment on organization and it’s strategies .....................3
LO2..................................................................................................................................................6
P2 Analyze Internal environment and capabilities .....................................................................6
LO 3.................................................................................................................................................8
Porter’s five forces......................................................................................................................8
LO4..................................................................................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy refers as the set of actions and decisions that undertakes by
organization to achieve it’s goals in it’s industry. A ideal business strategy always supports
organization to be competitive in it’s sectors and leads high profitability in the business. In
addition, it guides decision-making process for recruitments and allocates adequate resources. A
successful business strategy always helps organization to stay competitive and builds good brand
image in the business market. To understand role of business strategy has an example of Nissan.
It is a Japanese automobile company which is headquartered in city, Nishiku, Yokohama. It has
wide brand portfolio and sells it’s product multiple countries. The vision statement of the Nissan
is to enrich people’s live. While mission statement is to offers unique and innovative automotive
car products and services that influences superior measurable valuable to all stakeholders either
internal and external (NISSAN MISSION AND VISION STATEMENTS: AN ANALYSIS,
2019). The main objective of the company is to zero emissions of carbon through automobiles.
It has taken corporate society responsibility to give values to the people and keep environment
pollution free. This report provides understanding about impact and influence of the macro
environment on company and it’s strategy through analytical models. In this report will discuss
about McKinsey 7s model for analyzing internal environment of the company.
Impact and influence of Macro environment on organization and it’s strategies
There have certain analytical tools i.e. pestle analysis and stakeholder analysis which undertakes
to analyze impact on influence of macro environment on organization’s performance,
productivity and operations.
Pestle Analysis
It is a analytical tool that is used to analyze and monitor organization’s performance and
it’s strategy in and devise a strategy which can effectively helps organization to stay competitive
and improves it’s chance of sustainability and productivity as well. Pestle analysis is used to
analyze external environment of the Nissan company as analytical tool. The model comprises six
factors that are described as follows:
Political factors

In recent years level of political stability is quite good that influences Nissan’s
performance and operation because it does not have to change their product policies to meet
governmental policies. Due to high political stability enables to trade it’s products to large
number of customer’s as well as it manufactures some customized auto-mobile products which
meets government policies (Achinas and et.al., 2019). Thus, Nissan enables to influence it’s
products development strategy effectively. But it gets negative impact on it’s trade expansion
strategy due to trade barrier. According trade policy a particular organization cannot trade it’s
product in multiple countries. So, Nissan motors company unable to build good relation with
potential trade partners that harms organization by preventing enable exports.
Economical factors:
High interest rate, GDP growth, financial performance, unemployment etc. are economic
factors which impacts on Nissan Group plc. In recent years automobile sectors has affected by
economic crisis negatively because it reduces selling of vehicles. Nissan Group has also
impacted negatively in term of selling revenue such as demand of luxury or high cost vehicles
has impacted poorly while poor economic condition. The reason behind was that taxation price
was also high which automatically has improved luxury products price (Simões, 2020). High
level of unemployment rate in country gives positive impact on it’s recruitment strategy for lead
strength in supply chain management. Nissan group recruits large number of people who are
willing to work on lower wage thus it enables to lower price on it’s products.
Socio-cultural factors
Nissan Group plc is operated into two sectors such as manufacturing and retailing so it
become easier for the organization to give value it’s customer in the business market.
Organization uses demographical segmentation strategy to target it’s main customers while
considering age and gender factors which impacts on their purchasing behavior (Vallati and
Grassi, 2019). Nissan targets male mostly who always looks for such kind vehicle which gives
them a attitude and differentiate them from others. As resultant social factors influence
demographic segmentation strategy of Nissan whereas it enables to improve customer’s buying
behavior and in return generate high revenue within business.
Technological factors