Business Strategy: Impact of Macro Environment and Internal Capabilities of M&S

Business Strategy

EXECUTIVE SUMMARY
Business strategy can be set of activities which are used by organisation in relation to
achieving its business objectives by managing resources. In relation to formulation of effective
business stagy it is important for organisation to identify internal and external environment. For
this purpose organisation can use frameworks like SWOT, VRIO and Pestle. These all are
helpful in identification of factors which impact organisation internally and externally. Along
with this, it is also essential for firm to use appropriate frameworks which helps in identification
of current market in achieving competitive advantage in business function. For this firm can use
Porter's five force model which will use to identify the factors which can impact organisation
while working in market. Organisation like M&S can use its goals, mission and objectives to
formulates effective stagy and chose one strategy from Ansoff matrix to achieve profitability and
productivity in target market.

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies..........................................................3
TASK 2 ..........................................................................................................................................5
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
framework...............................................................................................................................5
TASK 3............................................................................................................................................9
P3 Porter Five Force model to evaluate competitive forces of market..................................9
TASK 4..........................................................................................................................................10
P4 Strategic planning for organisation.................................................................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy can be defined as set of activities which has to be use by organisation
relation to achieving its business objectives. This is useful for organisation in achieving its
business objective by defining the goals and path to achieve these goals. The major roles of
business strategy in organisation is to manage resources and improving functioning of firm to
achieve business objectives. In relation to current project, a study is done on M&S, which is a
British multinational retail company and operates business at global level(Johnstone, 2016).
Under this report, there discussion about internal and external factors which are impacting
organisation and are important in relation to decision making process. There is also discussion
about Porters five force model which will help organisation in identification of competitive
advantage in market. In end, there is use of Ansoff matrix along with strategic management plan
to achieve business objectives.
MAIN BODY
TASK 1
Applying appropriate frameworks analyse the impact and influence of the macro environment on
a given organisation and its strategies
Today, business environment consists various outside factors which can impact on
performance and decision making ability of organisation. This is because its dynamic in nature
which includes various complex and rigid tasks, that possess challenges on firms related to
respond towards changing government policies, economic fluctuations and many more. For this
purpose, in order to respond towards such factors and run business sustainably, it is essential for
firms to adopt concept of external environment scanning. In context of Marks and Spencer,
management in organization is using PESTLE analysis. This include external environment which
can be define as environment that impact frim from outside. This is a framework which can be
use by organisation in relation to scanning the external factors which are impacting on
performance of firm in current and future time. It includes scanning of different factors to
develop better strategies ad discussed below:
Political: It include those factors which are related to political environment of area where
organisation is working. In relation to M&S, it is operating at global level where its is essential
for organisation to formulate appropriate strategy. The major political factors which impact