Business Strategy: Macro Environment, Internal Capabilities, Porter's Five Forces

Business Strategy

Table of content
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Macro environment of company.......................................................................................1
TASK 2............................................................................................................................................3
P2. Internal environment as well as capabilities of organisation...........................................3
TASK 3............................................................................................................................................6
P3. Porter's five force model..................................................................................................6
TASK 4............................................................................................................................................7
P4. Application of various models as well as theories to interpret as well as strategic planning
................................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Business strategy signifies plan which is formulated by administration team of business
organisation in order to smooth running of company in an effective manner. It assists in
achieving competitive advantage over rivalries at Marketplace. It focuses on those strategies
which are implemented by administration team that help in accomplishing vision of business
organisation. This report is depends on organisation Starbucks. It is the International chain of
Coffee houses which is founded in year of 1971. This assignment will provide discussion
regarding influence of external atmosphere by adopting proper framework and assess internal
ability of organisation. Furthermore, they also provide explanation regarding porter's five Force
model that help in achieving competitive edge at Marketplace. By executing conception theories
and model that assists in conducting various work in an proper way (Arslangulov, 2017).
TASK 1
P1 Macro environment of company
The mission of business organisation is to offer wide variety of product and services to
customer according to their needs.
The vision of Starbucks is to accomplish leading position around world.
Objective:
 The objective of Starbucks is to increase sales by 20% in upcoming 1 year.
 They also focus on increasing profit margin by 10% in upcoming 6 month.
Therefore, macro environment signifies component and factor that imposes direct effect on
organisation in both a favourable or adverse manner. In order to control this kind of factor, the
management team of chosen organisation can adopt PESTEL analysis that is going to be
mentioned below:
PESTEL analysis is a tool that help organisation to scan external environmental factors
through which the organisation conduct their operations in proper way that help in taking better
decisions during specific period of time..
Political factor involves government political condition as well as laws and regulation in
many more. In context of Starbucks, it is determined as a global organisation having above
30,000 stores in different countries then the political factor imposes direct effect on company is
law and regulation. It is important for Starbucks Company to use rules and regulation for
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conduct operations and functions of organisation in an appropriate way that enforces positive
effect on organisation. On the other hand, due to stability in political condition of country such as
India and any other developing country in which the Starbucks start their outlets that imposes
adverse effect on the country. Therefore it is necessary for Starbucks to consider those factors in
order to run their business in an appropriate manner.
Economic factor involves unemployment rate, interest rate, exchange rate and many more
that imposes direct effect on company. Due to having low wage rate in US it provide affordable
cost of labour for conducting their work in an appropriate manner that increases positive effect
on company. In addition to this, Starbucks provide product and services to its user according to
their needs that help in achieving competitive edge over rivalries in the Marketplace. It increases
profit margin and sales in upcoming time period.
Social factor social factor involves taste, preferences, need and want of its customer that
enforces direct effect on organisation. The company provide products and services according to
need of customer that help in satisfy them. In addition to this, due to change in want of customer
so that it is impossible for business organisation to provide good like coffee according to their
need (Boduljak, 2019).
Technological factor Technology is very significance for organisation and it is important
for management team of Starbucks to execute latest technology for offering appropriate facilities
to user. Therefore, in context of a Starbucks they focus is on tied up with Apple to launch app
based discount for its customer and also launched free Wi-Fi in store that attracted large number
of user during particular phase of time period. In addition to this, due to increase in cost of
advanced technology that increases cost for the company that imposes negative effect on
organisation.
Environmental factors it involves climatic as well as weather condition that impose
positive effect on organisation. The organisation focuses on protecting environment in order to
provide eco-friendly goods to them that increases profit margin of organisation. In addition to
this, due to increasing rate of pollution that enforces negative effect on activity and functions of
business organisation.
Legal factor involves laws regulation which must be followed by company in order to
carry out their operations in an appropriate manner. Such as in context of Starbucks, their focus
is on confronting need for regulating in context of beverages so that the management team of
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