Impact and Influence of Macro Environment on Business Strategy

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Impact and Influence of Macro Environment..............................................................................3
LO2..................................................................................................................................................6
Analysis of Internal Environment and Capabilities.....................................................................6
LO3................................................................................................................................................10
Evaluation and Application of Porter’s Five Forces..................................................................10
LO4................................................................................................................................................12
Strategic Planning for Sainsbury’s............................................................................................12
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Business strategy can be defined as course of actions which is designed to help in
carrying out functions to achieve business objectives. Strategies are very important as they insure
success of the business activities in form of achieving business objectives. This is because
strategies of the business are developed after analysis of various factors that might affect the
success of the business functions and activities. Factors that are analysed in developing strategies
are macro environmental factors affecting business, micro environmental factors affecting
business and internal factors that can affect business and its success. Factors of the environment
for business has been divided in two types these are external and internal. External factors again
divided in micro and macro factors of the business environment. This report will discuss about
what the macro and micro factors that affect business are and how strategies can be based on the
--analysis of these factors. This report contextualises Sainsbury’s for discussion of business
strategy. Sainsbury’s is a chain of supermarket in the UK. Company was founded in 1896 and is
headquartered at London, UK. Sainsbury’s operates in retail industry and serves around 2400
locations across UK. This report will includes devising a strategic management plan for
Sainsbury’s so that on the basis of internal and external analysis.
LO1
Impact and Influence of Macro Environment
Macro environment factors make significant impact on the functioning of the business.
This is very important for Sainsbury’s that it analyses its impact on timely basis because the
factors that exist in macro environment are completely uncontrollable and timely identification
and analysis of their impact and influence can help organisations in developing strategies to deal
with the impact of external environmental factors. External environment can make direct impact
on realising vision of the company. In context of Sainsbury’s its
Vision-
‘To help customers to live for less’

This means that vision of the Sainsbury’s is to ensure that customers get easy and
affordable access they need; healthy food, quality clothing, stylish homewares and latest
technology.
Mission
‘To be consumers’ first choice for food, delivering products of outstanding quality and
great service at a competitive cost through working faster, simpler and together’.
Mission statement is considered to be a way through which companies can realise their
vision.
Objectives
Environmental management system- managing environmental system over which company
has direct control
Own brand products and suppliers- Influence suppliers to reduce their direct environmental
impact and improve environmental quality
Transport- Increasing the efficiency of transporting product, and address employees and
customer travel with aim of reducing CO2 emission
Energy- Reducing CO2 emission from energy consumption
These objectives of the Sainsbury’s are based on focus of the company on the
environment and its protection (Guo and Wang, 2019). Company includes practicing
environment friendly practices do that it can reduce its negative impact on the environment.
The impact that macro environment make on the practices of the company can be
analysed through application of PESTLE Framework for environment analysis. This is as
follows-
Political Factors
The issue of Brexit has set serious consequences for the companies who are dealing in
chains of supermarket business. The decision that the country has taken of leaving the market of