Analysis of Macro Environment and Internal Environment of Nissan

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................................3
LO 1.............................................................................................................................................................3
Analysis the impact of macro environment on an organization and its strategies....................................3
LO 2.............................................................................................................................................................6
Evaluation of internal environment in order assess its weaknesses and strengths of an organization
structure, internal capabilities and skill set..............................................................................................6
LO 3.............................................................................................................................................................8
Porter’s Five forces model for evaluating competitive forces.................................................................8
LO 4...........................................................................................................................................................10
Range of theories, models and concepts to interpret strategic planning.................................................10
CONCLUSION.............................................................................................................................................14
REFERENCES..............................................................................................................................................15

INTRODUCTION
Business strategy refers as formulation of strategic plans and implementation of strategic
tactics in order to achieve business objectives and goals. Business strategies help in decision
making process of manager and allocation of resources. Nissan is automotive industry. It is
founded on 26 December in the year 1933. The founders of Nissan are Masujiro Hashimoto,
Kenjiro Den, Rokuro Aoyama, Yoshisuke Aikawa, Meitaro Takeuchi and William R. Gorham.
It deals in the products of automobiles, commercial vehicles, luxury vehicles, forklift trucks and
outboard motors. The headquarters of firm are situated in Nishi-ku in Japan. The firm is
officially registered in Kanagawa-ku and Yokohama.
The project report will apply appropriate framework in order to analyze the influence of
macro environment in organization and on its strategies. It will analyze the internal environment
in order to asses’ weaknesses and strengths of company and for identifying its structure and
internal capabilities. The study will apply Porters five forces for evaluating the competitive
forces in organization. The report will apply a range of concepts, models and theories to interpret
devise strategic planning for the company.
LO 1
Analysis the impact of macro environment on an organization and its strategies
Pestle analysis is framework and tool that helps to monitor and analysis the macro
environment of a business and also helps to indicate the impact of these factors on an
organization performance. Hence, Pestle analysis if Nissan is done to evaluate the impact of
macro environment factors on its business operations and strategies.
Pestle Analysis of Nissan
 Political Factors - To Nissan business need to take care of Brexit adjustments while
operating their business in United Kingdom. The company wants expansion in Iranian
market. There is political influence in those markets which the company is trying to enter.
The level of political stability is also beneficial for Nissan (Akter, Wamba, and Childe,

2016). There are trade protectionist policies in United States. Thus, the Nissan is getting
affected by these policies.
 Economical Factors -. The inflation rates in various countries are influencing the
business of Nissan. Exchange rates of various countries are another economical factor
that is influencing the company's costs. Nissan is also affected by the taxation system of
different countries. Various countries have different interest rates that also restricted the
loan taking capacity and finances of firm. In countries where unemployment rate is high,
this provides an opportunity to Nissan to offer those jobs and increase productivity of the
company.
 Social Factors - The social factors such as purchasing power of the customers is
influencing the business of Nissan. In developed countries the class structure and
hierarchy is good. Thus, the Nissan is not facing any problem in developed countries but
in under developing and developing countries the people are not self sufficient to pay
such a huge amount to purchase the vehicles of Nissan. Thus, Nissan strategy is to
produce low costs cars and vehicles in order to gain competitive advantage.
 Technological Factors - The technology helps Nissan to gain the competitive edge.
Nissan Company is producing latest technology cars and vehicles. The company uses
various software’s and machineries to implement fast delivery in their organization
(Leonidou, Christodoulides and Palihawadana, 2017). The Nissan use advanced
technology in their vehicles through which they are able to meet their customers’
expectations. Nissan currently using Seamless Autonomous Mobility system that is
developed by NASA, this will provide firm a competitive edge. Technology like ICE
systems in the cars also facilitates the customers.
 Environmental Factors - The Nissan need to meet the emission standards in various
countries. They are setting a specific pollution limit to do production of the automobiles.
The emission includes hydrocarbon, monoxide and sulfur oxide. These emissions are
harming the nature and the surroundings. The company is also working hard to fulfill the
safety standards. The safety and precautions have taken on earlier basis before the Nissan
vehicle go on the roads and markets. The company is also taking various measures to
control environmental pollution