Business Strategy: Macro and Internal Factors Analysis

Business Strategy

Table of Contents
IINDRODUCTION..........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
P1.................................................................................................................................................1
TASK 2 ...........................................................................................................................................4
P2 ................................................................................................................................................4
TASK 3............................................................................................................................................7
P3 ................................................................................................................................................7
TASK 4............................................................................................................................................9
P4 ................................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INDRODUCTION
Business strategy can be describe as a framework of many important decisions which are
taken by an organisation. This is very helpful in achieving desired aims and targets of a firm
(Akter and et.al ., 2016). By developing strong strategies for organisation as well as taken right
decision the firm will be able to carry out tasks and activities in better and effective manners.
Business plans of action are referred to as compilation of many decisions that is specially
developed by company to acquire a fierce edge over its competitors. This guides in the
development of an appropriate plan as well as identifying strengths and weakness of organisation
which will have impact on business objectives. The company chosen for this report is NEXT Plc.
It is a British multi national company dealing the in retail sector. Next Plc is one of the largest
companies as it is develops products of high and durable quality according to the need of
customers. It is a fashion retailer organisation and offers products and services globally. Next Plc
was established in 1864 and was founded by Joseph Hepwoth. Its headquarter is located in
Enderby, Leicestershire, England, UK. This report includes in depth details about the business
strategy as well as different factors which affect organisational strategies. This includes
application of framework which will impact the macro environment and the internal environment
for developing an efficient business strategy. This report explains porters five force model in
order to analyse competitive forces in the industry. Apart from this various theories, concepts
and strategic management plan is developed in respect of organisation.
MAIN BODY
TASK 1
P1
Macro business environment refers to the outside factors of an organisation that have
huge impact on development of business strategies. It is essential for Next Plc company to
examine and assess all the factors (Bell, Bryman and Harley, 2018). This will help in the
formulation of better strategies for organisation which will in turn lead to achievement business
goals. Factors of macro environment different elements such as technology, customers, clients,
suppliers, government and many other factors. All these factors have a crucial impact on the
organisation and help in development of organisational targets. For identifying the impact and
influence of macro environment on Next Plc company as well as its strategies PESTEL analysis
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will be very useful. This is an effective framework that will be very useful for respective
company and its influences on organisation is explained below. Political factors – This factors include the degree of influence of government over
organisation. It is very essential for the firm to identify as well as analyse different rules
and regulation set by political party (Brewster, 2017). This helps in determining the
effect of political factor on Next Plc company. This factor includes taxation policies,
government stability and instability, trade restriction, foreign trade policies and many
other rules and regulation. Government of UK market area are develop strong policies
which will help companies which are dealing in retailing sector. This country has stable
government and political party that will leave a positive impact over organisation. This
will also assist the respective company to grow and develop their business as well as
earning more profits and also create a brand image for their company in the minds of
people so that they are able to recollect the name of the brand quickly. Economical factor – This factor determines all those elements that are related to the
economy of the country. Economic factor includes economic growth rate, exchange rates,
inflation rates, unemployment rate and so on. There has been a study that UK is one of
the fast growing economies of the world. This can be consider as an advantage for
respective company as this will leave a positive impact on the organisation. Economical
factors lead to direct as well as indirect influences on Next Plc company. When
economic rate as well as GDP of organisation are high then it will lead to increased
purchasing power of customers. This will help in increasing in sales and profits of
organisation. Social factor – Social factors comprise of several elements which will have direct on
indirect influence over business as well as its activities. Social factors include customers'
attitudes, behaviour, culture, customs, population, demographic and other social factors
(Cavusgil and et. al., 2014). It is essential for Next Plc company needs to carefully
understand, identify and analyse each and every factor in order to develop product and
services. The company is dealing with a high competitive environment so this makes it
vital to carefully understand and analyse need and wants of customers. Next Plc
company will have to manufacturer those products which is as per the requirement of
customers as well as market trend. This company is dealing in fashion retail industry and
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