Business Strategy

Business
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1 Analyse the impact and influence which the macro environment has on an..........................3
organisation and its business strategies..................................................................................3
Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies..............................................................................3
Critically analyse the macro environment to determine and inform strategic management
decisions................................................................................................................................5
LO2 Assess an organisation’s internal environment and capabilities.............................................5
Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks............................................................................................................................5
Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities, structure and skill set....................................................8
LO3 Evaluate and apply the outcomes of an analysis using Porter’s Five Forces model to a given
market sector...................................................................................................................................8
Applying Porter’s Five Forces model evaluate the competitive forces of a given market sector
for an organisation.................................................................................................................8
Devise appropriate strategies to improve competitive edge and market position based on the
outcomes................................................................................................................................9
LO4 Apply models, theories and concepts to assist with the understanding and interpretation of
strategic directions available to an organisation...........................................................................10
Applying a range of theories, concepts and models, interpret and devise strategic planning for
a given organisation.............................................................................................................10
Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives.............................................................................................................................12
Critique and interpret information and data applying environmental and competitive analysis
to produce a set of valid strategic directions, objectives and tactical actions......................13
CONCLUSION.............................................................................................................................13
REFRENCES................................................................................................................................15

INTRODUCTION
Business strategy is consider as set of competitive moves as well as actions which is
mostly used by a company for various purpose such as attracting customers, gain succession,
improve performance and attaining goal (Alstete and Beutell, 2016). This will also help an
organisation to carry out their business operations as well as functions effectively so that they
can attain desire end. Business strategy include three basic strategics i.e. cost leadership, focus
and differentiation. Organization taken for this is Canon Inc. which is a public company
operating at electronics industry. This company is offering different products such as
Interchangeable Les Cameras, Fixed Lens Cameras, Instant cameras and many more. It is
founded in 1937 by Takeshi Mitarai, Saburo Unchida, Goro Yoshida and Takeo Mardo. Its
headquarter is situated at Tokyo, Japan and they offer their products at worldwide level. This
report will include several topics that are impact as well as influence of macro environment at a
company, evolution of internal environment and capabilities. Moreover it will also include other
applications of different models like porter's five force as well as it will include strategic plan
that can be used for the evaluation of environmental factors. New strategic consultant has been
recruited by respective company and their role is to develop as strategic management.
LO1 Analyse the impact and influence which the macro environment has on an
organisation and its business strategies.
Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies.
It is essential for an organisation to conduct analysis of macro environmental factors
because through it they able to develop decision according to the situation or desire of the
company. For which The Canon Inc. can adopt various methods such as PESTEL analysis,
whose explanation is given below:-
 Political factor- It refers to those elements or policies which are develop by government
that impact on company's business performance. In respect of respective company it is
essential for them to conduct regular and proper analysis of political policy, trade, fiscal,
taxation and so on (Baraibar‐Diez, Odriozola and Fernández Sánchez, 2017). The
political factors of UK is stable which help respective firm to conduct their business in
effective manner. This will have positive impact on company as it will increase its work

performance. Canon's CEO told that he was horrified by Britain's announcement to leave
the European Union. This move hurt the growth prospects of Japan. Europe accounted
for 28% of Canon's sales in 2015 but it does not provide country details. In context to tax
rates, there are chances of notable impacts on Customs Duty and VAT as UK would
need its own tax systems. Transactions to /from will become imports and exports leaving
the other indirect taxes unaffected.
 Economical factor:- This will include factors like employment and unemployment rate,
profitability, buying behaviour of customers and so on. It is essential for The Canon Inc.
to conduct proper analysis of UK economical condition because it will help them in
developing products according to economy of country, peoples and company. The
“Renminbi” is the official currency of China meaning “people's currency”. Many
investors consider the Chinese currency as a potential successor to the US dollar as the
world's top currency, with the rise of China as a global economic power. China will have
to devalue the Chinese Yuan in line with other emerging currencies due to Brexit,
officials are determined to control the pace of the depreciation.
 Social factor:- This will help a company in understanding demographic of market,
customers buying pattern, culture of country lifestyle of peoples and so on. Through
which The Canon Inc. can develop its electronic products accordingly. The UK peoples
are more attracted toward electronic products so it can be opportunities for respective
firm to develop products accordingly. In today environment customer are more using
phones for capturing pictures and it reduces traditional use of cameras.
 Technological factor:- This will help a company in understand technology advancement
at the marketplace so that they can develop products and services accordingly (Ciasullo,
Cardinali and Cosimato, 2017). In respect of The Canon Inc. through this factor they able
to understand UK people views on technology which help them in developing their
electronic products. This company is using new and innovative technological in its
cameras.
 Environmental factor:- It is define as that factor which help a company in developing
strategies by considering environmental functions. In respect of The Canon Inc.
according yo this they can develop their products through eco friendly raw materials as
well as they may also reuse their waste material. Through this UK peoples as well as

government get attracted by increase their goodwill. Its products are developed in Japan
and it is offering its products to different part of the world.
 Legal factor:- This factor will include all the legal terms which are developed by a
government in order to provide guidelines for companies. In respect of The Canon Inc. it
is essentials for them to consider each and every legal factor of United Kingdom because
through it they can operate in effective as well as legal manner. This will help in smooth
functioning of organisation as well as help in achieving set targets.
By conducting analysis of these factor The Canon Inc. able to develop strategies and
plans in effective manner.
Critically analyse the macro environment to determine and inform strategic management
decisions.
According to the perspective of Cubas‐Díaz and Martinez Sedano, 2018, there are
number of macro environment factors which impact on decision making of a company such as
political, social, economical, technological and so on. These factors impact on business
operations and functions in negative as well as positive manner. Such as macro environmental
factors help The Canon Inc. to develop framework in effective manner which guide them for
conducting work effectively as well as it also help in gaining high goodwill. On the other hand
negative impact of respective factor are if company adopt environmental factor then they have to
use eco friendly products which are comparatively expensive. Along with this if they adopt
method of reusing waste material it all increase the phases of production process which will take
more time as well as cost.
LO2 Assess an organisation’s internal environment and capabilities.
Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks.
There are various models and approaches which The Canon Inc. can adopt in order to
conduct analysis of internal environment and capabilities such as SWOT analysis and VRIO
model analysis. Explanation of both model is given below:-
SWOT Analysis
Strengths Weaknesses
 It is consider as one of the leading  They have huge competition at market

electronic company around the world.
 Their wide portfolio include products
like DSLR's, Photocopiers, printers and
so on.
 The respective company is present at
the Tokyo Stock Exchange as well as
NYSE (Canon SWOT Analysis,
Competitors & USP, 2008).
 It is also consider as one of the leading
environmental friendly company.
which limit its market share growth.
 There are various companies which
make face products of Canon which
impact on their brand image.
Opportunities Threat
 They may more focus on the growth of
technology.
 They can also tie up with leading
companies of mobile by integrate their
cameras such as Apple, Samsung etc.
 They have huge range of competition at
marketplace such as Nikon, Sony,
Panasonic etc.(Gupta, 2016).
 There are various companies which
offer cheap electronic or technology
products at local market.
VRIO Model Analysis
Resources/Capabilities Valuable Rare Imitable Organised Impact of Competitive
Advantage
Model design Yes - - - Competitive
Disadvantage
Advance feature Yes Yes - - Temporary competitive
advantage
Camera Lens Yes Yes Yes - Unused competitive
advantage
Employees Yes Yes No Yes Long term advantage

In a company there are various resources which help them in attaining their goal and
objective. These resources are also use to determine firm's capabilities and effectiveness.
Evaluation of The Canon Inc. through VRIO model is given below:-
Valuable- It refers to those products of a company which are rare and that will help them in
attaining goal or set target. Valuable resources of respective firm are:
 Model design- Model design of electronic products offer by respective company are
unique and innovative which attract more and more customers (HunTer, 2016).
 Advance feature- Respective company conduct research on regular basis through which
they able to introduce new as well as unique features in their products.
 Camera Lens- Lens of respective company camera are of advance feature which help
person in capturing beautiful and clear pictures.
 Employees- Staff of respective company are highly educated, innovative, hard-working
and so on which help them in attaining every set target.
Rare- It refers to those products which are rare for other companies and that help company in
gaining competitive advancement. There are some product of The Canon Inc. which are not rare
such as model design because there are several other company which offer almost same design
products, rare products are given below:
 Advance feature- Respective company products have rare advance features as compare
to their competitors which attract huge range of customers (Leischnig, 2017).
 Camera Lens- Camera lens of respective company are very unique which help
photographer in capturing most clear image.
 Employees- Employee are rare because it help them in attaining objective in more proper
way.
Imitable- It is define as those products of a company that cannot be copied by other companies.
There are some products of respective firm which can be copied such as Model design and
Advance feature but they are also have products that can not be imitate like:
 Camera Lens- Lens which are used by a The Canon Inc. are highly advance which
cannot be copied by other competitive companies easily (Noe, 2017).
 Employees- Staff of respective firm are loyal to their workplace as well as they are
highly skilled, knowledgeable and experienced that can not be copied by others.

Organised- This is define as those resources which required to be organized after some duration
of time. In respect of respective firm there some resources required to be organized such as
Model design, Advance feature and Camera Lens according to new innovation. But there are
some resources which didn't need to organised for long time duration that is:
 Employees- Staffs are respective The Canon Inc. are highly skilled, knowledgeable,
flexible and experienced which help them in attaining objective effectively.
Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities, structure and skill set.
According to the perspective of Parry, 2016, The Canon Inc. conduct analysis of internal
environment in order to know their strength as well as weakness. By which respective firm
management able to know various strength such as their employees are very effective, they
adopt technology easily, they have huge market value, customers loyalty and many other. These
all benefits help The Canon Inc. management to conduct business operations and functions in
effective manner which help in attaining target. On the other hand, there are some limitations of
respective company are their inventory planning is not effective, in some new products defect
are detected due to quick launch and many more. These weakness impact on respective company
operations and function negatively so it is essential for them to overcome it properly.
LO3 Evaluate and apply the outcomes of an analysis using Porter’s Five Forces model to a
given market sector.
Applying Porter’s Five Forces model evaluate the competitive forces of a given market sector
for an organisation.
Porter's five force model is generally adopted by a firm in order to evaluate level of
competition at the marketplace. So that they can develop strategies or plans accordingly which
help in attaining target or objective. Analysis of The Canon Inc. marketplace by using porter's
five force model is given below:-
 Threat of New Entrants- This can be define as condition according to which a new
company can inter into particular company easily because that have very less rules and
regulation (Pham, Pham and Pham, 2016). In respect of respective company the threat of
new entry is low because in order to enter into electronic industry huge expense is
required which is not possible for every company.

 Threat of Substitute- This is define as condition in which there are several other
companies who offer same kind of products or services that are offer by particular firm.
In respect of The Canon Inc. the threat of substitute is high because in electronic industry
there are several other companies which offer similar products like Canon such as Nikon,
Panasonic, Sony and many others. There are many phone which can take better picture
and phone have other features also such as calling, texting and many more.
 Bargaining Power of Suppliers- It is a situation according to which a suppliers can
demand more money for offering low quality products. In respect of The Canon Inc.
bargaining power of suppliers is low at industry in which respective firm is operating. So
suppliers have less control over the price as well as respective company also maintain
proper relationships with suppliers.
 Bargaining Power of Buyers- This is consider as situation if their will be huge number
of customers in particular industry then they can demand for high quality products at less
price (Quirke, 2017). In respect of respective company bargaining power of buyers is
more because there are various other companies who offer same kind of products so they
have large number of options.
 Competitive Rivalry- This is define as condition at which there huge of competitive
company in the marketplace. In respect of The Canon Inc. they have high competitive
rivalry because there are various company which offer same kind of products in the
marketplace. For example Nikon, Sony, Panasonic, HP Inc., Samsung Electronic co. and
many more.
By conducting analysis through porter's five forces model The Canon Inc. able to
understand its position at the marketplace as well as they can also develop strategies and plans
accordingly.
Devise appropriate strategies to improve competitive edge and market position based on the
outcomes.
For every company it is essential to develop proper strategies and plans because that will
help them in attaining market advancement effectively as well as successfully. These strategies
are generally related with the several factors such as gaining competitive edge, taking feedbacks
and suggestion, improve product quality and so on (Rahimi, Møller and Hvam, 2016). Along
with this, by adopting these strategies The Canon Inc. also able to develop strategies as well as

maintain proper relationship with stakeholders. On the other hand in order to gain market
position respective company may adopt different types of strategies such as do market analysis
for understanding customers need and requirement, conduct activities for improving brand
image and value and many more. Moreover, The Canon Inc. can also implement new product
development technique in which they can introduce new product in the marketplace.
LO4 Apply models, theories and concepts to assist with the understanding and
interpretation of strategic directions available to an organisation.
Applying a range of theories, concepts and models, interpret and devise strategic planning for a
given organisation.
A company may adopt different theories, models and concept in order to conduct
strategic planning in most effective way according to the report. This is so because through it
management able to conduct proper analysis of market, understand customers need and demand
and many more (Remane, 2017). The Canon Inc. adopt two model i.e. Ansoff Matrix as well as
Porter's Generic Model that will help them in developing effective strategies or plans for the
business growth. Explanation of both the model are given below:-
Ansoff Matrix Model
This model is developed by Ignor Ansoff in the year 1957. It is consider as strategical
preparation instrument which will help a company in measuring future success as well as growth
of business. This will aid an organisation management in determining way through which they
can expand their business at potential marketplace. Evaluation of respective mode in the context
of The Canon Inc. are given below:
 Market Penetration- It is define as action plan according to which company decide to
sell their existing product or services at the existing marketplace. In this they generally
improve their advertisement and promotional activities so that more customers can get
attracted (Remane, 2017). In respect of respective company if they adopt this method
they have to enhance or improve their promotional activities so that they can attract more
audiences for their electronic products.
 Market Development- This is a situation in which a company decide to expand their
business operations and functions at new marketplace by attracting new audiences with
their existing products. In respect of The Canon Inc. they can expand their business

operations as well as functions at the new market so that they can earn more profitability
through huge number of audiences.
 Product Development- This is consider as situation in which an organisation will
develop and launch new product in the existing marketplace so that customers get more
attractive products. In respect of The Canon Inc. if they adopt this method of Ansoff
matrix then they have to introduce new electronic product at marketplace so that
customers get attracted and purchase the product.
 Diversification- This is define as situation at which company need to introduce a new
product at the new marketplace. Through this they able to target new customers by
offering more innovative new product and services. In respect of respective company if
they adopt this method then they have to develop a new product and they also have to
launch it at new market.
By analysing all the matrix, most appropriate matrix for The Canon Inc. will be market
development in which they can expand their business in new marketplace. This will help
company to attract more and more customers towards business and increasing market share.
Porter's Generic Model
It is define as a strategy which is adopted by a company in order to focus on the
achievement of competitor benefits at a particular defined area (Shuen, 2018). This will also
help a company in deciding which strategy they adopt for deciding the cost of the product so that
they can gain high competitive advancement. Explanation of respective strategy in the
perspective of The Canon Inc. is given below:
 Cost Leadership- This is define as strategy according to which a company will become
a low cost manufacturer at a particular marketplace. Respective factor will consider
technology, economies of scale, preferential accessibility to raw material. Through this
an organisation able to attain cost advantage at potential marketplace. In respect of The
Canon Plc. If they adopt respective strategy they have to reduce their cost so that more
and more customers approach to their products.
 Differentiation – According to this strategy a company will develop unique products so
that it will provide high value to the buyers (Trevisan, 2016). In respect of The Canon
Inc. if they adopt this method then they have to add some unique features to their
products so they they able to satisfy users need, desire and expectation. Through this

they also get the opportunities to demand more price according to the technology or
product's feature. This type of cameras are specially made for professional
photographers. Focus- This is define as method through which a company able to get competitive scope
in the particular industry. This factor is divided into two aspects which are mentioned
below:
◦ Cost Focus- According to this method company need to focus on the achieving cost
advantage. If the respective company adopt this method then they have to minimise
cost of the product. This is so because through it mostly customers can afford the
product which enhance their sales.
◦ Differentiation Focus- According to this strategy a company need to develop new or
innovative product according to their target segment. This is so because it will help
them in being unique at competitive marketplace (Uhl and Gollenia, 2016). In respect
of The Canon Inc. if they adopt this method they have to introduce new as well as
unique feature or products so that they attract more and more customers. In this they
can set price accordingly to new innovation.
By analysing all the above factors it can be determine that The Canon Inc. can adopt cost
leadership approach so that they can attain their target or objective in effective manner. Along
with this it will also help them in gaining high competitive advancement.
Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives.
Strategic Management Plan
Strategies- The Canon Inc. can adopt market develop strategy according to which they will
introduce their electronic product at the new marketplace. This is so because through it they can
adopt or grab market opportunities in effective manner (Viardot, 2017). On the other hand, The
Canon Inc. may also adopt cost leadership strategy in order to gain high growth or development
opportunities at their potential marketplace.
Objectives- The objective which are developed by The Canon Inc. are given below:-
 The Canon Inc. want to launch their electronic products at the market of Vatican City
within 1.5 year for increasing their market share by 25 percent. Vatican, a city-state
surrounded by Rome, is the smallest country in the world encircled by a 2-mile border

with Italy. The most imposing building in Vatican is St. Peter's Basilica which was built
during the 4th century and rebuilt during the 16th century. The pope resides in the Vatican
Palace within the city walls. The nation has no income tax and no restriction on the
import and export of funds.
 The respective company also going to low down the cost of products at level of 12
percent within 10 months which help in increasing customers base.
Tactics- For conduct functions according to the set objective tactics which respective company
adopt are given below:-
 They must conduct management of funds so that they can conduct operations in effective
manner for attaining set objective.
 It is also essential for them to hire skilled and experienced people of Vatican City
becuase it help in understanding market.
By adopting these factors The Canon Inc. Able to expand their business at Vatican City
in effective manner as well as it will also help them in adoptying cost leadership style successful
for attaining set objectives.
Critique and interpret information and data applying environmental and competitive analysis to
produce a set of valid strategic directions, objectives and tactical actions.
The Canon Inc. management adopt numbers of model which help them in understanding
about the competitive and potential market in order to attain goal and target effectively. For
example they adopt PESTEL analysis for conducting evaluation of external environment of
electronic market as well as it will also help them in developing strategic plans accordingly
(Whittle and Myrick, 2016). Along with this, they also implement SWOT as well as VRIO
evaluation which help them in knowing weakness, strength, opportunities, threat, capabilities
and performance of their business. Through this respective company also able to develop
strategies and plan for gaining competitive advancement at potential marketplace. This is
possible because it will help business in providing direction so that all members can work
accordingly.
CONCLUSION
By analysing above mentioned topics it can be summarised that for a company business
strategy plans an essential role because through it they can develop or create strategies and plans

in effective manner. This will also help them in attaining goal as well as objective by
understanding environmental situation and condition. In order to adopt business strategy process
it is essential for a company to conduct market evaluation properly and for that they can
implement different strategies, models or approaches such as VRIO, SWOT, PESTEL and
porter's five force model. This is essential because after evaluating micro as well as macro
environmental factors an organisation able to conduct effective analysis of competitive market
which help in developing strategies or plans. Along with this firm can also adopt several other
model or technique for example Ansoff matrix, porter's generic model and so on. By adopting
this a company can conduct business operation properly which help in attaining objective or
target.

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