Analyzing the Impact of Macro Environment on Business Strategy of OCADO

Business Strategy

Table of Contents
INTRDUCTION..............................................................................................................................3
TASK...............................................................................................................................................3
Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies...............................................................................3
Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks.............................................................................................................................6
Applying Porter’s Five Forces model evaluate the competitive forces of a given marketsector
for an organisation..................................................................................................................9
Applying a range of theories, concepts and models, interpret and devise strategic planning for
a given organisation..............................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRDUCTION
Business strategy is group of actions which is utilized by organization for achieving their
vision and objectives for long time. With help of effective business strategies reputation and
brand image of company are easily maintained in minds of consumer for long time. (Chen, Jing
and Tan, 2019). The chosen company for analysing the activities of business effectively is
OCADO which is situated in United Kingdom. The company was established in 2000 and it is
the multinational retail based company. The organization are dealing with wide range of products
such as electronic equipments, grocery items, home appliances and others. This report will cover
analysis of internal environment and capabilities of a given organization using appropriate
frameworks, appropriate frameworks analyse the impact and influence of the macro environment
on a given organization and its strategies. It also covers porter's five forces model and evaluating
the competitive forces of a given market sector for an organization.
TASK
Applying appropriate frameworks analyse the impact and influence of the macro environment on
a given organisation and its strategies.
Ocado's mission is to provide an unparalleled range of products on it's e-commerce
websites and provide them exactly as they are ordered before time to provide a seamless
customer experience. Their long term goals include:
 Change the way customers shop for their daily requirements by making every type of
product available online
 Become the most reliable and popular online e-commerce service provider for all
supermarket chains in UK
Being a web focused retail giant, it is subject to various elements of the macro-environment
given below in the form of a PESTLE analysis.
PESTEL Analysis -
It stands for political, economical, social. Technological, environmental and legal. It is a
method which is utilized by OCADO for analysing the impact of macro external factors which
are described below -
 Political – It refers to different types of government rules, laws, policies and other type
of activities which is followed by the company for run their functions smoothly. In

relation to OCADO, it is essential for management that they must initiate various policies
and rules of UK government effectively within organization. Because with the help of
effective policies company easily maintain good relation with stakeholders in long term
which includes customers, suppliers and others. In the light of Brexit and political
instability, the prices of food items has been unreliable and spending is not consistent at
all.
 Economical – It refers to those factors which effects the performance and productivity of
organization economically which includes interest rates, salary of employees etc
(Devinney and Hartwell, 2020). In context to OCADO, management must use different
types of pricing strategies for enhancing the sale of their product in short duration
between customers. It includes gift vouchers, discount in prices and other strategies. Due
to using these strategies the revenue and economic growth of organization are effectively
sustained in long run. With help of pricing strategies the buying powers of users are
effectively in difficult situations also. Grocery industry has been experiencing inflation in
costing of materials used to produce finished goods and the slowdown of the economy
amid the pandemic has affected Ocado as well.
 Social – It refer to those factors which are responsible for influencing changes in the
behaviour and attitude of consumers which includes social class, family etc. In relation to
OCADO, it is necessary for higher authority that must provide services and products to
customers according to their needs and wants. Because in today's time mostly people like
those type of products which are stylish, easily adaptable and consumed in low time. For
example cloths, food products and others. But in other side due to frequent change of user
taste and preferences company faced lot of challenges for delivering their product to
customers in time. However, Ocado has been putting emphasis on clean grocery products
as customers are demanding organic and healthy food products and it has a robust model
minimizing waste in the food delivery process.
 Technological – It basically concerned with those factor which is used by firm in the
aspect of digital platforms and technology and technological equipments (Dunne, and
McBrayer, 2019). In context to OCADO, it is necessary for management that must use
advanced technology in both offline and online mode for deliver their product to
customers in fast manner. It includes various software, online portals, official website and