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P2 Analysis of Internal Environment and Capabilities

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Added on  2020-10-22

P2 Analysis of Internal Environment and Capabilities

   Added on 2020-10-22

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Business Strategy
P2 Analysis of Internal Environment and Capabilities_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Application of appropriate framework to analyse macro environment................................1TASK 2............................................................................................................................................4P2 Analysis of internal environment and capabilities of firm.....................................................4TASK 3............................................................................................................................................6P3 Application of Porter's five force model to evaluate competitive forces...............................6TASK 4............................................................................................................................................6P4 Application of theories and models.......................................................................................6CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10
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INTRODUCTIONBusiness strategy refers to the process in which managers formulate policies and plansthat render direction or guidance to various other departments for attaining their set targets andobjectives in defined time period. It is a action plan for long term according to which tasks areperformed by employees and at the same time minimize the risk (Al-Swidi and Al-Hosam,2012). It is the duty or responsibility of management of company to oversee all external &internal factors at the time of formulating strategies. This will help them in carrying out all theactivities and operations in an effective and cost efficient manner and at the same time alsoassists in completion of work on time. In the present assignment, chosen organisation is UnicornGrocery that offers household items to their potential customers. It is a cooperative grocery storewhich is headquartered in England, United Kingdom. The report includes application of PESTLEframework for analysis of macro environment. Internal environment and capabilities of firm arealso analysed along with application of Porter's five force model. At last, range of theories andmodels are applied to interpret strategic planning of organisation. TASK 11.1 Application of appropriate framework to analyse macro environmentPESTLE analysis: Fundamentally, business environment is a mix of two variables, that is, internal andexternal. Internal forces are those which exist inside the business enterprise and are controllableone. On the inverse of this, external forces are those which are present outside the company andare uncontrollable. That is the reason behind determination of external variables and its effect onactivities of business organisation. These factors may influence either in negative or in positiveway on operations and activities of firm. To distinguish positive and negative effect of macroforces, firms are using a tool called PESTLE analysis. This tool assists manager of UnicornGrocery in determining impact of political, legal, economical, environmental, technological andsocio cultural factors. Political factors: Legal authority of UK set a few guidelines by covering the componentssuch well-being and security, risk control, risk identification and some more. Unicorn Grocerydid not take after these standards and disregard the health of their workers and they get injuredwhich hamper the positive picture of firm (Avramenko, 2012). Because of this organizationsbear huge loss that is the reason to consent and execute its activity according to the standards set1
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by government. This helps the company in performing its operations in well manner andincreasing its productivity and profits. Economic factor: Inflation rate, interest, loans, deflation etc. are the factors that go undereconomic variables. Any kind of change or alteration takes place in these forces may highlyinfluence activities and functioning of business (Bansal and Hoffman, 2012). For instance, InUnited Kingdom, if banks or financial institutions will increase their interest rate on loans, thanthis will make a deterrent in development and growth activities of company as sufficient amountof funds are require for it. Social factors: Prevailing trends of market, taste and preferences of customers, buyingbehaviour of customers etc. are the variables that comes under social factors. Firms are requiredto carefully analyse these factors and considers those in order to make products accordinglywhich completely satisfies needs and requirements of customers. Technological forces: Technology plays fundamental part in case of retail industry. So, itbecomes fundamental for organizations to use high end technology in operations and processesof firm so that high quality products can be delivered to customers. For this it is extremelyimportant that situation of brand ought to be spoken with clients consistently. For this UnicornGrocery need to put more in its advertisement exercises. Further, to keep up its market share, itis fundamental for firm utilize updated technology for communicating with its clients and tomanufacture final items for them. Legal factor: legislations and regulations made by government are change frequently .Because of this firm do different endeavours to keep refresh with new enactments. Firmadditionally do change in its well-being and security legislation in order to guarantee health andsafety of employees. Environmental factor: Today, purchasers of each item are winding up more sensitiveabout environment protection. This reality impact firms to make items with quality crudematerial and utilize standard process for making last items (Bill Pasmore and CMC, 2010). Above mentioned are all the factors that influence operations and activities of company.Various forces exist in business condition influence capacity of an organization so all these mustbe distinguish and assess by the chiefs of so firm can design its future exercises.Ansoff's growth matrix to measure strategic position of company:2
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