Frameworks to Analyse Impacts and Influences of Macro Environment on Company and its Strategies

This report covers different topics as how frameworks impacts and influences macro environment on organisation and its strategies, internal environment and capabilities which helps to increase organisational profitability, porter's five forces that gives opportunities and threats to business. Moreover, theories, concepts and models that interprets strategic planning.

Unit No. 32
Business strategy
Report

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1. Frameworks to analyse impacts and influences that macro environment have on company
and its strategies...........................................................................................................................4
Task 2...............................................................................................................................................7
P2 Internal environment and capabilities is analysed by organisation........................................7
Task 3.............................................................................................................................................10
P3 Porter's five forces model uses to evaluate competitive forces ...........................................10
Task 4 ............................................................................................................................................11
P4 Different theories, concepts and models applied by organisation .......................................11
CONCLUSION..............................................................................................................................12
REFERENCE.................................................................................................................................14

INTRODUCTION
Business strategy is the long-term plan which is used to run the business and make higher
profits in organisation. Strategy helps to find out the problem and get opportunities for business
which increases organisational productivity. In business environment there are many resources
uses to understand the needs of people and provide that kind of products and services (Linder
and Williander, 2017). For gaining the understanding about business strategy and opportunities
Jaguar has been taken that is manufacturer of British Jaguar cars. The management of such
organisation are using different strategies which gives opportunities and increases business
performance. This report covers different topics as how frameworks impacts and influences
macro environment on organisation and its strategies, internal environment and capabilities
which helps to increase organisational profitability, porter's five forces that gives opportunities
and threats to business. Moreover, theories, concepts and models that interprets strategic
planning.
LO 1
Frameworks to analyse impacts and influences that macro environment have on company and its
strategies.
Macro environment is the general environment that impacts operations, decision making
and policies of all business groups at same time (Charles Jr, Schmidheiny and Watts, 2017). For
the purpose to analyse macro environment, corporate strategy manager of jaguar applies wide
types of suitable frameworks to ascertain impacts or influences of certain external factors on
business and its essential strategies. Few frameworks are the followings:
About company
Jaguar is considered as luxury vehicle brand of Jaguar Land Rover, that is British
multinational car produce different types of cars to attracts customers. It was founded in 1922,
UK and expending business all over the world. This is responsible for producing cars until its
operations that is fully merged with Land Rover. The management of such organisation are
making strategies to get opportunities and run business effectively.
PESTLE analysis
It is the acronym for framework used for purpose to identify macro forces that are faced
by business concern. Moreover, PESTLE Analysis is said to the framework that assist

organisational people to monitor and determine factors of external surroundings impacting the
company at huge extent. The reason behind using PESTLE analysis is to understand about a
business environment before launching a new venture and entering in to new market. This states
which challenges a organisation faces while running a business. The descriptions of all factors
with impacts at Jaguar are as follows:
Political factor: It determines the extent wherein government and its policies impact on
business as well as particular sector. As government of UK is stable and makes fair decisions to
provide ample types of opportunities to a company. But in context to Jaguar, political stability is
essential factor that impacts positively on strategies of this entity at the time when managers
make decisions to expand manufacturing factories in other location. This is because decision of
government related to inflexible tax level on sales of motor vehicles drives strategies of chosen
institution negatively. Moreover, introduction of taxes related to fuel consumption as well as
environmental tax to manufacture vehicles that are more fuel efficient could also impact on
manufacturing level along with sales of the automotive company (Whittle and Myrick, 2016).
Economic factor: Elements that impacts economy addition to its performance are
economic factors. It involves raw material costs, rates of inflation or deflation, foreign exchange
rates and economic changes. Economy of UK is most globalised, and market oriented which
influences any company because of slight fluctuations in economic cycle. For example, when
inflation or deflation rates changes then it impacts customers purchasing powers. Moreover,
Jaguar Company operates in huge number of countries and have wide customer base having
preferences for vehicles sold by it. The manages changes and updates their manufacturing and
distribution strategies by tracking trends and economic cycle so to handle and entertain mass
population with the services, all these impacts positively on serving strategies of Jaguar in
international market. But, increments of bank rates impacts negatively on the chosen automaker
as it has to make huge repayments for the loans taken for research or other purposes.
Social factors: It constitutes of preferences, attitudes social status, immediate needs and
trends of consumers. In UK, society trends are characterised into ever changing aspect that
impacts on all types of companies. In case with Jaguar, managers are well aware about religious
values, preferences, perceptions and beliefs of population residing in specific region.
Accordingly, they meet ethical procedures for ensuring smooth trade among customers and that

of suppliers. With this, they can promote the products and increases demands for vehicles that
results in more production and positive impacts of sales strategies of entity.
Technological factors: It is referred with technological advancements. Within entire UK,
technology is not only preferred for manufacturing and delivering commodities to end people but
also used for managing and running entire business operations efficiently. In consideration to
Jaguar, it is well popularising for adopting cutting-edge innovations within its designing and
manufacturing practices of vehicles. It introduces its vehicles with electronic performance
models that have intelligent systems that impacts in positive manner on strategies to attract
customers (Charter, 2017).
Legal factors: All the elements that have interrelation with political dimensions are said
to legal factors. In UK, it is important for all companies to possess knowledge about what is legal
as well as what is allowed in territories within which they operate. Jaguar initiates operations by
fulfilling all trade laws, advertisement acts and other compliances which impacts positively on
delivering quality cars to customers. But when it fails in adhering one or two legislations that
pays huge penalties that impacts negatively on its revenues.
Environmental factors: Influence of circumferential environment as well as impacts of
ecological elements are part of environmental factors. The political systems and representatives
of UK made various programmes in order to improve environmental situations. Jaguar managers
gives huge importance to address issues within environment of nations. Also, it made
programmes for manufacturing fuel efficient vehicles through using recyclable materials and its
advanced diesel engines uplifts its position in competing market that shows positive impacts on
its strategies.
Stakeholders analysis
Stakeholders analysis is the tool through which managers assess potential changes within
the interested parties involved with business. Stakeholders plays significant role while making
decisions for entity and making strategies for any project. Various stakeholders are part of Jaguar
that have distinct level powers and influences differently. The following is the stakeholder’s
analysis power/interest grid for Jaguar Company:
LEVEL OF
INTEREST
LEVEL OF
INTEREST

LEVEL OF POWER HIGH LOW
HIGH Managers Government
LOW Employees Customers
According to the mentioned grid, level of power and level of interest are two aspects that
helps in understanding the frameworks and analysing stakeholders’ impact on company. Main
stakeholders of Jaguar Company and their impacts on strategies are the following:
High power, high interest: In this, organisational managers falls that have high powers
as well as high interest. In case with Jaguar, managers make essential decisions along with
execute the workings accordance to roles and situations that impacts positively on devising
effective strategies to attain profits.
High power, less interest: Government is the stakeholder of company that have high
powers but less interest on what is going at workplace. They have powers to alter entire
workings of Jaguar through some political decisions that in-pacts its existing strategies in
negative manner.
Low power, high interest: Organisational employees generally have low power, but they
have high interest in business strategies. Jaguar have huge employees and shares valuable
thoughts for improving production and innovate designs of vehicles shows which helps in
implementing strategies positively and promptly.
Low power, less interest: In this grid, Customers are the sole stakeholders that have low
power and low interest in changing ways to work at workplace. Customers of Jaguar get
involved with company when they have to make purchase of the car. When customers buy
limited vehicles of Jaguar then it impacts on generating revenues negatively.
Task 2
P2 Internal environment and capabilities is analysed by organisation
Internal analysis means to know the internal capabilities of business organisation and get
information which factor can affects its administration. With the help of internal analysis
organisation explore its competencies, viability and position in marketplace that helps to make
profits (Kingsnorth, 2019). For organisation, this is important that to analysis the environment by

using appropriate framework and improve the business activities. In context to Jaguar, managers
are using different frameworks to analysis the internal environment that are as defined:
SWOT analysis of Jaguar
Strength Weakness
 Jaguar is well known brand between
luxurious auto mobile sectors.
 Jaguar is having skilled employees that
works to deliver beautiful and
innovative cars.
 Barriers to market entry that helps to
retain rich and premium customers.
 Spending on research and development
that provide latest tech in competitive
environment.
 High brand recall that creates position
and promotions.
 Lack of product ranges in comparison
to another organisation.
 Less popularity in German and
Japanese market.
 It mainly depends on few models that
reduces potential customers (SWOT
analysis of Jaguar, 2019).
Opportunities Threats
 It targets new market that increases sale
of business organisation.
 Uses of Hybrid technology by
understanding customers’ needs and
lifestyle.
 Reduction the emission of CO2 that
cater to delivery of cars and freedom to
trade according to government policies.
 Acquisition of target new customer
bases that make high sales and profits.
 It has competition from Porsche, Aston
Martin, Audi, BMW etc.
 Changes in government and
environment policies.
 Instability of financial resources due to
recessions
 Increase in material cost.
VRIO analysis of Jaguar – This consider as useable strategy or framework which is
used by organisation to get their internal capability and viability in competitive market. This

analysis increases intelligence and data analytics for the purpose of sustainable growth. By using
this, it increases value of Jaguar because it has different resources which are valuable, rare,
inimitable and organised in synchronised form that helps to attain the business goals. The VRIO
analysis in context to Jaguar is defined as:
Resources Valuable Rare Inimitable Organised
Financial resources Yes No No No
Highly innovative
gadgets
Yes Yes No No
Brand image Yes Yes Yes No
Effective Supply chain Yes Yes Yes Yes
Valuable – In Jaguar, there are many resources such as financial resources, innovative
gadgets, supply chain and brand image, which are valuable for organisation and increasing
productivity and profitability in competitive market. Financial resources are valuable as it helps
to purchase raw material and other things that helps to produce products. If organisation does not
have enough funds, then it became difficult to purchase material and produce cars. Highly
innovative gadgets are valuable as it is used to add new features in cars which is desire of
customers that attracts them and increases organisation sale. If company does not have
innovative ideas and gadgets, then it became difficult to compete with others. Brand image is
main element which attracts high profile customers who wants to maintain their status.
Therefore, brand image is valuable for Jaguar that has good image in market and attracts
customers to get it. Moreover, if organisation is having good supply chain then only it can sale
its products all over world. For Jaguar supply chain is valuable which inform people and helps to
buy products from any places.
Rare – This means products and services which are not available in market easily that
increases organisational productivity and goodwill. For Jaguar, all resources such as innovative
gadgets, brand image and supply chain are increasing value of organisation because they are rare
for other organisation to get such resources easily that helps to create a difference and make
profits. Financial resource is not rare for other company that means it can be arranged whereas
other resources are not. This helps to increase the internal capability and growth of organisation.

Inimitable – This means resources which are impossible to copy by other organisation in
order to take competitive advantages. For Jaguar, brand image and supply chain are inimitable
that cannot be imitate for another organisation. This helps to increase the organisational
productivity and profitability by capturing high market share as well and brand value (Cassidy,
2016).
Organised – For running business and it is important for organisation that all resources
are organised which helps to maintain the business effectively. Jaguar is British car manufacturer
company who produces cars by organising supply chain management which helps to increase the
sale of business organisation and also increases profits. With the help of this resource Jaguar is
enjoying competitive edge and maintaining higher profits (Laursen and Thorlund, 2016).
Task 3
P3 Porter's five forces model uses to evaluate competitive forces
Porter forces are considering those factors which is used to take the competitive
advantages by increasing brand value and profits. Currently, there are many organisations who
are producing similar kind of products and services in order to become more successful and
highly competitive. So, they use different strategies which can affect the business activity as well
as competition level. In context to Jaguar, management are using porter's forces which is used in
competitive environment such as:
Barriers to entry: For establishing a business this is important for organisation to enter
into market which is difficult for them because there is need to have financial and other capital
resources. In context to Jaguar, this can be opportunity for organisation to take the competitive
advantages as to enter into new market for other company is difficult due to lack of financial and
skilled human resources. This reduces the threat of entrance and increases Jaguar sales.
Threat of substitutes: When there is similar product is available in market then existing
organisation faces less productivity and profitability issues that also reduces brand image. In
context to Jaguar, the substitute products are bus, bicycle, Auto and other vehicle which may
impacts on administration and sale of products. Therefore, this factor tends to high threats for
chosen organisation as customers have option to use such vehicle instead of cars that can reduce
the interest of people as well as sale (Pham, Pham and Pham, 2016).

Competitive rivalry: In global environment, auto mobile sector is growing faster as
there are many organisations who are manufacturing and selling cars as Jaguar which is creating
competition. In context to Jaguar, Bentley, Aston Martin, Mercedes, BMW etc. are competitor
which are producing new design of cars that attracts customers and selling their products.
Therefore, there is highly competitive threat as having many autos mobile company, new design,
features and quality which helps to increase the organisation productivity and profitability.
Bargaining power of buyers: For business organisation customers are important who
helps to increases brand image and profitability by purchasing products and services. This can
help to increase the sale activity and profits level. In context to, Jaguar there are many
automobile industries who are selling innovative feature and attractive cars which increases
competition. So, this may be highly threat for Jaguar to sale its cars at less prices that can attracts
customers. Herein, management need to understand the income level and perception of
customers so selling activities can be increases that states high bargaining power of buyers. This
generate weakness point for organisation to sale their products at competitive prices in order to
take advantages (Sloman, 2017).
Bargaining power of suppliers: For producing the products there is need to have raw
material, which is provided by suppliers, helps organisation to produce cars and increase
profitability. In context to Jaguar, suppliers have moderate power as in UK there are many
suppliers who sales raw material at less prices. So, this is an opportunity for chosen company to
get the raw material at less prices and produce products effectively. In business environment, low
bargaining power of suppliers increases organisational productivity and competitive advantages.
It has examined that Jaguar is taking competitive advantages by running its business
as_1582722034 (1) there is barrier to enter into market for new firms and low supplier's power
which helps to provide products and increasing sales. By selling its cars to customers and
attracting customers it can increase the brand image and organisational sustainability (Johnson,
2016).
Porter's five forces in context to BMW
Barriers to entry: In UK, small businesses are running their business by entering in to
new market as it require small amount and less resources. In case of auto mobile, it is difficult
for auto mobile company to enter in new market because it require high amount of capital and

investors that is difficult. Therefore, BMW is taking advantages to run their business and
managing organisational performance.
Threat of substitutes: In context to four wheeler there are many vehicles such as
bicycle, auto, business and other public transport that can affect the operations negatively. This
can be threat for BMW to sell their cars in competitive market. This challenge is faced by chosen
organisation which can reduce the productivity and profitability.
Competitive rivalry: In context to BMW, it has many rivals such as Mercedes Benz,
Jaguar Geely Auto, Audi and Rolls Royce that are creating competition in market. To reduce this
competition BMW need to bring innovation and new technology that can attracts customers and
be able to sale their cars that helps to attain competitive advantages.
Bargaining power of buyers: This means in UK there are high population where
number o0f buyers are exists. This is opportunity for BMW to set their prices of cars as per their
wants because of having lot of buyers. Herein, low bargaining power of buyers that gives
competitive advantages to organisation and earning high profits.
Bargaining power of suppliers: In context to BMW, the bargaining power of suppliers
is low because management has contracted with suppliers to buy raw material at fixed cost that is
advantages for chosen organisation. This helps to take competitive benefits.
From the above it has evaluated that Jaguar is taking highly competitive advantages
because it is able to make innovation as per customer choice and give efforts to reduce the
threats which helps to increase the productivity and profitability.
Task 4
P4 Different theories, concepts and models applied by organisation
Strategic planning refers as plan and action which is decided by management in order to
become more capable and successful in market. Organisation decide goals and make planning to
complete the goals step by step which helps to complete the task and give achievements. Jaguar
organisation is applying Ansoff's growth matrix to face the competition and growing it
continuously. This model and theory are applied to get business growth and sustain in market
which is defined as:
Market Penetration: The meaning of penetration is process of pertaining something
where existing products are selling into existing market by using promotional sources and

discount offer in order to increase sale. This theory can be adopted by Jaguar that can help to
increase the sale of existing products in particular area. For this, management should make solid
promotional programme and discount offer that can attracts customers and helps to increase sale
by purchasing cars. This can help in growth and sustain in competitive market by using market
penetration as this is less risky and cost saving strategy (Ansoff's Growth matrix, 2019).
Product development: This second strategy is related to develop the new product for
existing market which is highly risky and challenging for organisation. The basis of this strategy
is conducting research and insight for customers’ needs that increases internal capability and
competencies. Jaguar has an option to use this strategy by conducting research and insights in
order to develop new products. This may be challenging for organisation to introduce new
products by spending lot of money and resources and won the competition.
Market development: This is another strategy which covers existing product into new
market that can target existing and new customers also. This is risky for organisation as to
understand the complexity of new market and customers which is difficult. Jaguar has such
option to grow and sustain by introducing its existing cars designs in new markets by using new
distribution channel that can increases organisational sale and profitability.
Market diversification: This is also growth strategy which is used to develop the new
products in new market, helps to increase the capability and sustainability. This is highly risky
for Jaguar in case of adoption where managers need to develop new Cars in new market area that
can help it increase the sale and profitability. With the help of this organisation can grow its
business and get competitive advantages (Peppard and Ward, 2016).
From the above strategy Jaguar is using product development strategy where it needs to
introduce new product in existing market. This will help new and existing customers as they
demand new and technical products which is providing by such organisation. The reason behind
choosing product development is, all strategies are more risk than this. For instance, in market
development it become difficult to understand the market complexity which is risky, in market
penetration there has to bring promotional programme and discounts in prices which can reduce
the profits and diversification strategy is highly risky than all which require money and new
market to get organisational; growth and sustain.

Strategic marketing plan is the activity which is run by management in order to attain
their business goals effectively. In context to BMW, managers are using strategic planning in
order to attain business goals.
Mission - “ To become largest organisation in auto mobile sector and getting higher
productivity”.
Vision – “To satisfy desires of customers and improving life style of people ”.
Objectives –
 To capture market share by 25% in upcoming years.
 To improve market image and profitability up to 70%
 Attracts customers by innovating and using new technology.
Market strategies: To attain the defined objectives and increasing customer range the
management of Jaguar is using different strategies that are as defined:
Differentiation – This is related uniqueness of products and services which are designed
according to customer's desires that helps to attain the competitive advantages. Based on this
strategy Jaguar company set out unique position of its products in order to retain be trust as well
as loyalty of existing customers. Maintaining user experience helps to reach out the potential
customers of company that drives out additional revenue.
Market skimming – Here, the company set high prices for its products and target to
higher income group customers that are not price sensitive. Application of this strategy can help
Jaguar to charge premium price by offering them innovative attributes to maintain user
experience for its cars. This generate the curiosity amongst high and middle income group
people to avail the latest addition.
CONCLUSION
From the above report it can be concluded that organisation have different strategies
which can be used to take the competitive edge such as Porter's five forces which sates which
factor is giving opportunities, SWOT analysis states the strength and weakness of business
organisation get ides to changes threat in to opportunities. PESTLE is used to analysis the macro
environment that can impacts on organisation and its administration. Moreover, organisation
should have strategic management plan that can help to complete the task and achieve business
goals.

REFERENCE
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strategy and results. CRC Press.
Charter, M., 2017. Greener marketing: A responsible approach to business. Routledge.
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Cassidy, A., 2016. A practical guide to information systems strategic planning. Auerbach
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Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
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Online
Ansoff's Growth matrix. 2019. [Online]. Available through:
<https://blog.oxfordcollegeofmarketing.com/2016/08/01/using-ansoff-matrix-develop-
marketing-strategy/>
About Jaguar's vision and mission. 2020. [Online]. Available through:
<https://www.jaguarcharleston.com/about-us/mission-vision/>
SWOT analysis of Jaguar. 2019. [Online]. Available through:
<https://www.marketing91.com/swot-analysis-jaguar/>