Analyzing the Impact of Macro Environment on Business Strategy

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Apply appropriate frameworks analyse the impact and influence of macro environment in
context with organisation and its strategies................................................................................3
P2 Analyse the internal environment and capabilities for an organisation using frameworks...5
P3 Apply porter's five forces model in order to evaluate competitive forces of market sector. .6
P4 Applying a range of theories, concepts and models, interpret and revise strategic planning 7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business strategy is defined as various set of decisions which guides different
entrepreneurs to fulfil all business objectives. A company use many kind of strategies in order to
attract customers and achieve success. It is mainly considered as the backbone all business which
is needed to achieve all goals. There are three levels of business strategy and these are corporate
level, business level and functional level strategy. In terms of strategic management it includes
formulation as well as implementation of all goals which a business takes in accordance with all
type of resources(Moktadir and et.al, 2020). The below report includes analysis of macro
environment to inform strategic management decisions, evaluation of internal environment and
relevant frameworks, strategies to enhance competitive edge and market position and ultimately
the theories, models to produce a strategic management plan. The report is based on Morrisons.
It is the fourth largest chain of supermarkets and has its headquarters in England. The company
was founded in 1899 by William Morrison. The main products in which they deal is food, drinks,
clothing and magazines.
TASK 1
P1 Apply appropriate frameworks analyse the impact and influence of macro environment in
context with organisation and its strategies
Macro environment refers to the condition which is in the economy as a whole instead of
existing in a particular sector. It basically includes six factors which are demographics,
economic, political, ecological, socio-cultural and technological forces. In order to analyse the
impact and influence of macro environment it is further been explained as below:-
Pestle analysis:- Political factors:- It is defined as the influences which government has on a particular
business. It involve various things like government policy, corruption, tax policy, certain
trade restrictions and many more. In context with Morrisons, they faced a major political
concern Brexit which led to huge uncertainty due to various type of changes in their
policies. They also faced the impact of government legislation on their food retailers. As
a supermarket industry, all countries who were importing different products were not
been willing to sell goods due to the reason of tariff. Due to this cost was getting

increased. Due to Brexit changes in consumer behaviour also get arise in context with
specific commodities. Economic factors:- It is defined as the component of overall economy performance. It
involve many factors like economic growth, interest rates, exchange rates as well as
unemployment rates also(Kong and et.al, 2020). In context with Morrisons, the impact of
Brexit created many fluctuations in terms of both currency as well as certain inflationary
forces also. The economic impact also led to increase in the prices of oil. In terms of
employment rates it was directly affecting the spending capacity of customers and due to
this their supermarket industry was getting affected. Social factors:- It focuses on all type of demographic characteristics which involve
customs, income, lifestyle as well as their culture. It is a important factor for an industry
when their main focus is to target specific customers. In context with business the
increment in the age population provides various opportunities to their supermarket
industry. The another social factor which affected them was the increase in education as
well as the health of customers. Technological factors:- There are many innovations which are done in technologies and
it directly the business operations also. It includes factors like automation, innovation,
technological changes and many more. In context with organisation, the rise in
technology helped the company in decreasing all kind of waste so that their business can
be become more efficient. They also influenced and provided the impact to use the form
of digital data so that all latest new trends information can be provided to them. Environmental factors:- These factors have become important due to increment in
scarcity of all raw materials . It includes different factors like weather climate change and
so on. In context with organisation, all carbon emissions got reduced by 26.9% and their
mission is around 30% till the year 2025(LESTARI and et.al, 2020). The company also
decreased the usage of poly boxes in terms of supply chain and started using bins for their
fish products. These environmental factors also influenced them to offer plastic free fruit
products.
 Legal factors:- These type of factors include certain laws like employment laws,
copyright and patents, health and safety laws and many more. So, companies need to
understand what actually is legal and what not. In context with organisation, the main law