Business Strategy

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Assessment of macro environment........................................................................................1
TASK 2............................................................................................................................................3
P2 Analysis of micro environment and capabilities of organisation...........................................3
TASK 3............................................................................................................................................5
P3 Evaluation of competitive forces...........................................................................................5
TASK 4............................................................................................................................................6
P4 Formulation of strategic planning..........................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy is basically a plan of action which combine all the decisions to
implemented for the purpose of achievement of pre-determined set of objectives. In this
assignment business strategy has been formulated for Marks and Spencer. Marks and Spencer is
a British multinational companies deals in fashion accessories and food. It was founded by
Michael Marks and Thomas Spencer in the late 18th century. The report include the analysis of
macro environment of the country which can affect the growth of the company. Secondly the
report covers the assessment of micro environment and capabilities of the firm. Later the report
comprise the evaluation of competitive by application of Porter's five forces model. Finally the
report apply theory to interpret and devise strategic planning for a given company (Akter, and et.
al., 2016).
TASK 1
P1 Assessment of macro environment
PESTLE Analysis
Every business probability of success is contingent on the factors such as government
policies, economic prosperity, rules and regulations of the country and so on. It is essential to go
through country's political, economical, social, technological, legal and environmental landscape
of the country. PESTLE Analysis is a tool used to analysis the factors of macro environment
which can influence the growth and functioning of the company. PESTLE is an acronym for
political, economical, social, technological, legal and environmental. PESTLE Analysis of UK in
context with Marks and Spencer are given below:-
Political factors: These factors are basically concerned with how government decisions
and actions impact the development and operations of the company. Political factors comprises
of government policies, taxation system, foreign trade policy, stability and corruption. UK
follows Westminster system of governance. Political stability is a key advantage for business
enterprises. However Brexit has created obstacles for the businesses in the country. Sooner
country will recover political stability and business operations will be streamlined. The country
has friendly relations with many developed and powerful countries of the world included USA.
Overall Marks and Spencer have a huge growth potential in the country as government does not
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intervene in the trading activity of the country. Political factors are favourable for the
organisation.
Economical factors: It comprises of cou.ntry's money related affairs and indicators such
as inflation rate, corporate tax, exchange rate, interest rate and so on. UK is a financially strong
country. Per capita income of the citizens is increasing rapidly. It is one of the fastest growing
economies of the world. The nation is enjoying economic prosperity. Recruiters are obliged to
compensate employees with minimum living wage prescribed by the government. Poverty in the
country is somewhat negligible. People are fond of purchasing luxury items. Country has a
perfect inflation rate therefore value of money decreases slowly over time. Moderate inflation
rate encourage many people to start their business. It also in accomplishing financial goals
quickly. Government reduced corporate rate which enable entrepreneur to conduct business
operations smoothly. UK is to be considered as famous platform for foreign direct investment.
No economical factor is hindrance for the growth of the company (Higgins, Omer, and Phillips,
2015).
Social factors: It consist of culture, value, belief and lifestyle of the country. UK has a
large customer marketplace. UK has multicultural population instead of social class. Due to
advancement in medical treatment the death rate of the country is reduced to large extent. Birth
rate is far more than death due which population of the country are increasing rapidly. Average
age of the population is increasing. There is a increase in population of old age people. Many
service sector such as real estate, holiday, insurance and health care took advantage of rise in age
of population. This can be seen as threat for business as majority of company relies upon youth
for their revenue. There is still wide scope for the firm to flourish (Woerner, and Wixom, 2015).
Technological factors: These are the factors which take into considerations the technical
aspect of the country. UK is a hub of highly intellectual and innovative minds. Technological
development is praiseworthy for the growth of the country. Information Technology
infrastructure of the country is highly advance. Many IT specialist contribute to the growth of the
business enterprises. There is cut throat competition among IT expert due to which company
easily get cheap and smart technical staff. Company can take advantage of advancement
technological infrastructure of the country. London is a technological hub continuously work on
advancement in technology. Businesses are continuously improving their technology in order to
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