Macro and Internal Environment Analysis of Iceland: PESTLE, SWOT, and Porter's Five Forces

ENVIRONMENT

Table of Contents
INTRODUCTION ...........................................................................................................................................3
PART A.........................................................................................................................................................3
Defining macro and internal environment analysis of Iceland by using appropriate strategic
frameworks such as PESTLE, and SWOT and evaluation of its capabilities and resources ......................3
Applying porter’s five forces model to examine competitive forces of retail industry for chosen
supermarket..........................................................................................................................................10
Identifying Iceland existing and potential competitive edges................................................................11
Devising reliable tactics and tactical objectives to achieve overall strategic aims.................................11
PART B.......................................................................................................................................................12
Presenting the strategic planning by using effective theories and models............................................12
Justification and suggestion based on application of strategic growth models.....................................15
Evaluating ways by which chosen tactics can be monitored to assure success.....................................15
CONCLUSION.............................................................................................................................................16
REFERENCES ..............................................................................................................................................17

INTRODUCTION
Business environment term defined as combination or collection of certain factors
whether it is internal & external that influence organizational practices and management
activities in varied manners. Some forces put positive impact on a company and certain impact
negatively. The effect of each factor depend on competencies of a sector. The current assignment
will be based on Iceland, which included in list of older, but popular supermarkets in the UK. It
was founded in 1970s with limited resources. By offering quality products organization has now
reach at global level. It has an emphasis on sale of fresh fruits and frozen items, including
prepared vegetables and meals. Organization offer valuable and budget friendly products that
made buy easier for consumers. The study will explain internal and external environment
analysis by using PESTLE, SWOT, Porter’s five force, stakeholder analysis and value chain
models in regard to supermarket. Furthermore, it defines current and in the future competitive
benefits, including strategic planning for firm by applying range of models, theories, and
concepts.
PART A
Defining macro and internal environment analysis of Iceland by using appropriate strategic
frameworks such as PESTLE, and SWOT and evaluation of its capabilities and resources
Without considering external and internal factors and conducting environmental analysis,
a company like chosen supermarket may unable to obtain expected results (Kwilinski et.al.,
2019). In the corporate world, there are many models, theories and concepts exist that
organization management may take into their consideration that are;
PESTLE analysis-
Political factor-
Fluctuation in any political factors like government rules and policies related trade, etc.
may directly impact an organization management strategies and practices. For example, due to
pandemic, government in every nation has taken decision to close market and make
announcement of lockdown, which put negative impact on Iceland business tactics. It drives the
attention of management to redevelop each tactic by considering current circumstance and

external business environment within retail industry. Due to this, management may feel a lot of
pressure to run venture smoothly. Trade barriers, tax rate changes and other forms of fluctuations
relate to this factor may bring challenges for company in term of sustaining venture for long run.
Economic factor-
Changes in economic factors may impact strategic management practices and actions of a
company. For example, due to COVID-19, many people are job less recently, which is of the
biggest change in unemployment rate. It increases ration of unemployed individual that may put
negative affect on Iceland strategies in term of restructuring employment plan and tactic. It may
affect recruitment and selecting tactics of company in term of driving attention of hiring local
people, which is not possible for manager to hire in a bulk.
Social factor-
Current market trend as social factor may put positive impact upon Iceland business
strategy related to supply chain management operation of brand. For instance, people due to
health issue and to look fit may adopt healthy diet, which include consumption of vegan items, it
drives attention of manager towards obtaining vegan food products from sustainable suppliers
which enable firm to enhance satisfactory level of supermarket. It allows organization to
maximize its customer base and profitability.
Technology factor-
Technology advancement in term of emerging social media marketing platforms may put
positive impact on advertising tactic of Iceland. For example, it drives concentration of manager
to use Instagram, which enable them to develop new strategy to promote supermarket globally
by creating official account and mention each information about its products that help gaining
attention of new consumers and contribute to retaining existing (Pantano and Vannucci, 2019). It
also supports to generate excellent brand awareness, which is quite essential for marketer to
produce.
Environmental factor-
Customers and government prime concern in the context of environmental problems may
put direct impact on sustainable management strategies of organizations. For example,