Impact of Macro Environment on Business Strategy

BUSINESS STRATEGY

TABLE OF CONTENT
INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
P1 Using different frameworks examine the impact of macro environment......................................3
M1 Critically analyse macro environment to determine & inform strategic management decisions..6
D1 Critique & interpret information, data, applying environmental & competitive analysis to
produce a set of valid strategic directions objectives & tactical actions.............................................6
TASK 2.................................................................................................................................................6
P2 Evaluate internal environment as well as capabilities of the enterprises.......................................6
M2 Critically analyse internal environment to assess strengths & weaknesses of organisation
internal capabilities structure & skill set............................................................................................8
P3 Use porter five force model in relevance with organisation..........................................................8
M3 Devise appropriate strategies to improve competitive market position based on outcomes.......11
TASK 4...............................................................................................................................................11
P4 Apply concept/ frameworks for strategic planning in relevance with organisation.....................11
M4 Produce strategic management plan that has tangible & intangible strategic priorities &
objectives.........................................................................................................................................13
CONCLUSION...................................................................................................................................15
REFERENCES....................................................................................................................................16
Books and Journals..........................................................................................................................16

INTRODUCTION
Business strategy is a plan of action which helps in performing different business
activities & functions in an effective way. It is necessary for manager to maintain effective
strategies & approaches to achieve advantage over rivals at marketplace. In addition to this, it
is guidelines which help the organisation for accomplish goal as well as objective of business
organisation. And also it is essential to implement new technologies for performing function
and activities properly. This report is undertaken on Bentley. It is leading Multinational
Corporation of UK which offer luxuries car to its customer at affordable price. This
organisation was founded by H.M. Bentley in the year of 1919. In this report, the SWOT and
PESTLE analysis is used to assess the internal and external environment of business
organisation in an effective manner. Furthermore, porter five force models are adopted by
company in order achieve competitive advantage over rival firm at marketplace.
TASK 1
P1 Using different frameworks examine the impact of macro environment
In industrial sector, strategies play a crucial role as they affect the overall
productivity, growth and overall development of a business. A business strategy is a set of
competitive actions that a business does to attract customers, compete successfully,
strengthening performance, and achieve organisational goals. It outlines how business should
be carried out to reach the desired ends (Hsu, Moore and Neubaum, 2018).
Every corporation needs to develop and adjust itself to changes at every phase thus
implementation of strategies is necessary. Strategies help business to innovate new ideas to
brace businesses marketing activities. Different macro environment elements affecting
business strategies are explained below-
Mission: To achieve leading position in automobile industry and provide quality
products as well as service to its customer.
Vision- Main vision of firm is to change the innovation and implement new invention.
Objective: To enhance and improve efficiency of cars and increase sales unit per
year.

PESTEL Analysis-
It is a tool used to identify as well as examine the macro external forces affecting an
entity. The letters stand for Political, Economic, Social, Technological, Environmental and
Legal. Bentley adopts this tool to identify and evaluate factors affecting growth of their
business. Using this analysis is important as it helps in proper evaluation & understanding of
business and strategies at various levels and helps to identify changes in the macro-
environment. Organisations that successfully monitor and respond to the changes are able to
differentiate from the competition and create a competitive advantage.
Let’s look at various elements of PESTEL analysis.
Political factors-political factors specify the extent to which government and its
policies impact on a business or industry. This involves governmental law and stability as
well as trade, fiscal and environmental law, taxation policies etc. such factors indirectly affect
the growth of the business and diverts business from their core work. Appropriate research
and credentials of market is essential to overcome with those political factors. Different
Countries have their unique rules and regulations according to which business performs their
functions. Bentley focuses and pays attention on these factors and plans their line of action
accordingly to nullify conflicts in any business activities(Revathi and Aithal, 2018).
Economic factors- These have impacts on the economy and its performance, which
in turn directly affects business organisations & their profitability. Such elements include
interest rates, employment or unemployment rates, costs of raw materials and foreign
exchange rates. Such factors cannot be controlled by the business firm’s so a proper research
of market is essential. In context to Bentley, they always try to enhance their relationships
with government and also with the management which helps their business to face such
challenges.
Social factors- These focus on the social environment and analyse the emerging
trends which help a marketer to understand the needs of their customers. They involve
changing family demographics, education levels, cultural trends, attitude changes and
changes in lifestyles. It is important to analyse these elements as they help in determining the
end results of business. Various organisations use social factors so that marketing strategies
are executed properly. Behaviour of the customers and their perception depends upon these
factors thus it is important to analyse these social factors as proper analysis of these factors