Business Strategy: Analyzing the Macro-Environment for Nissan

This report analyzes the macro-environmental factors affecting Nissan and provides strategies for effective competitive edge using Porter's Five Forces model.

Business strategy:

Table of Contents
Introduction:.....................................................................................................................................1
TASK 1:...........................................................................................................................................1
Examine the frameworks to analyse the Marco-environment for the organization and
critically evaluate these factors :............................................................................................1
The critical evaluation and analysis the internal environment of the organisation:.............4
Produce the appropriate strategies to have effective competitive edge using the porter’s five
forces model:..........................................................................................................................6
Use the different range of the theories, concepts and model to make the strategic management
plan for the organisation:........................................................................................................8
Conclusion:....................................................................................................................................10
References:.....................................................................................................................................11

Introduction:
The business strategy is a process in which organisation uses different kind of plan to
attain business objectives and goals in a proper manner. it refers to the blueprint which helps the
organisation to obtain their mission and vision in the profitable way at marketplace. In simple
terms, it is a set of cations that is developed or planned by higher authorities in order to attain
positive outcomes. For the present report, Nissan is taken into consideration. It is an auto mobile
company that offer quality products globally. The report will cover environmental analysis of
respective company by using various tools and frameworks. In addition to this, a strategic plan is
developed that help in meeting with targets and attainment of objectives within stipulated time
frame.
TASK 1:
Examine the frameworks to analyse the Marco-environment for the organization & critically
evaluate these factors :
Overview of the company:
Nissan organisation under the auto mobile industry, having headquarter in the Yokohama
founded on the 28 December 1993. The company offers product & services under the goodwill
name of the Nissan ,Infiniti and Datsun at the international market. The company focus on
producing the cars at the global market place and have a sell around 3,9 million cars in the 190
countries in the market . the organisation are planning to grow their operational activities at
international market by forming the effective strategies management plan for the organisation.
Mission and vision: the Nissan company have a mission statement to enlarge their car
production process at the international level due to the Brexit condition in the market and the
vision is the become the market leader of the car manufacture in this industry . The company
perform its activities at the different countries like Japan, Mexico and south Africa .
Objective: the aim purpose and objective of the Nissan company is to gain their market share in
the different market place by making good strategies plan due to the Breixt condition present in
the company.
Marco environment factors: At the operational activities place , these macro environment fat
ors are present in the atmosphere where the administration operates its task & also get affected
by these factors . it includes the political, social, economic and various another factors which
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have influence on the organisation performance in the market places. These factors have huge
effect on the outcomes of the company in the target market places.
Political factors: here the various factors are included such as tax rate, political stability and
unemployment rate , and instable market situation present in the external environment of the
firm. Due to the condition created by the Brexit condition in the UK market , organisation gets
affected by the instability in the market and organisation needs to make effective policies to
overcome the unseen situation present in the market places. (Bokek-Cohen, 2015).In context to
Nissan, Brexit impact negatively on the performance and profitability. It is analysed that change
in policies also impact on the overall functions and activities of company.
Economic factors: under this factors , it involves the interest rate, inflation rate, and foreign
exchange rate which have influence the purchasing power of the customer in the target market
places. in the context of the Nissan organisation are working on making the effective alliance
with the Renault which will reduce their cost and have more of resource in their operational
level so that effective production can be done. With reference to Nissan, it is analysed that due to
increase in inflation rate of economy, the purchasing power of customers is decline that direct
impact on profitability and revenue of respective company in a negative manner.
Social factors: under this factors, it examine the customer taste and preferences, their belief and
assumption about the goods and services in the market places, their geographical location of the
customer have influence on the purchasing decision of the customer about the organisation
goods and services. In relation to Nissan, it is determine that social factors has high impact on its
brand image and for this the company is focuses on providing quality to customers. In addition to
this, the company is also conducting market analysis which help in gaining insight about
customers requirements that in turn leads to customer satisfaction and retention as well.
Technology factors: under this stage , the Nissan organisation focus on using the different
type of advance technology which helps them to achieve desire level of outcomes within the set
time as these technology increases the productivity of the organisation which helps them to take
competitive advantages in the market place. In relation to Nissan, the company is making use of
innovative technology and adopt new technologies as it help them in making improvements and
providing new and unique products as well as service to customers that has positive impact on
performance of Nissan.
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Environment factors: under this factors, the organisation focus on using the environmentally
user friendly product and raw material in the production process and reduce the use of the
carbon oxygen in making the engines for the cars and safe the environment resource at large
expand to save the resource for the next generation. In order to deal with such factor, it is
determine that Nissan make use of eco friendly products for manufacturing cars and also follows
all the environmental laws in order to abide by penalties of government.
Legal factors: under this factors, the organisation needs to implemented different type of the
laws and regulation in the operational level so that all the function of the organisation are
performed in the proper manners. the organisation perform its activities at the different country
so it needs to follow different laws which are required by the organisation to carry out the
process. In context to Nissan, the company follow all the law such as health and safety, equality
act, data protection as it help in raising productivity. Along with this, following of all the laws
also help company to implement activities in a systematic and smooth manner without any
delays.
Stakeholder analysis:
The stake holder are the person who gets affected by the organisation performances in the target
market places. As per the Nissan organisation it includes the stakeholder such as shareholder,
employees, customer and communities which are interested in the productivity of the
organisation in the target market share.
Customer: it is considered as the important and essential stakeholder of the company as
completed goods and services are consumed by the customer which affects the profitable of the
organisation. these customer can purchase the product from the various source such as dealers,
websites and different showrooms present in the target market. these customer are also helpful
in collecting the feedback of the good and service offered to them.
Employees: in the every organisation , there are its people known as employees who are
working for achieving the organisation goals and objectives in the most effective manners.
these people have skill and knowledge which helps them to executed the task in the productivity
manners.
Shareholders: these are the person of the organisation who are interested in organisation profit
margin and focus on making the profitable strategies plan for the organisation to expand and
grow their business to the next level in the target market place.
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Government bodies: these are the legal bodies which are present in the every country providing
different law and policies which organisation to needs to apply in their management to operate in
that particular section of the market . (De Beelde and Tuybens, 2015)
The critical analysis of Marco environment factors have positive as well as negative influence
on the performances of company . the positive side is that organisation are able to achieve the
desire level of profits by forming effective strategies plan for the entity. the Nissan organisation
focus on making proper use of available resources in a proper and productivity manners. the
organisation follow the various laws which make its operational activities effective in the process
and generate desire results in the organisation. the negative side of these factors is that
organisation are enable to develop effective strategies which lead their effective performance at
marketplace and affects the profits margin in the company.
The critical evaluation and analysis the internal environment of the organisation:
To study the internal environment of the company various tools & techniques are used by the
manager to analyse the internal factors of the entity to make the strategies for the growth of the
company at international market.
SWOT analysis: this analysis assist company to determine the internal environment factors that
impact is the organisation are able find out their strength and weakness which are present in the
organisation and match them with the opportunities and threads which are exist in external
environment;
Strength:
 the Nissan organisation was successful in making the alliance with the Renaults which
is considered as the longest lasting alliance in the automotive industry. The Renaults
was able to holds the 43 .4 5 stake in the Nissan and 15 % stake Nissan company was
able to holds in the Renaults. This helps the organisation to cut down the cost and invest
in the new project at the international market.
 the Nisan organisation focus on Research and development department to meet the
requirement of the customer in the international market places. The company spends
around US $4.27 billion in their research to find the growth in the automotive industry .
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 the Nissan organisation are present at the international market places which assist in
increasing the market share of the organisation. and become the effective leader in the
UK and across the nation.
 The organisation are known for the management style which assist them to attain the
desired outcomes in the most effectual manner by improving the operational activities
Weakness:
 The organisation have poor marketing strategies and advertising which results in poor
brand awareness among the target customer which lead to lesser profits at market places.
The another competitive organisation have spent more in advertising their product in the
market which harm the sale amount of the Nissan organisation.
 Another factor which is considered as the weakness of the Nissan organisation is
massive product recall in the market places. The US is a important market for the Nissan
organisation but recall product damage the organisation brand in the market places.
Opportunities:
 Improving the US and UK economy, the organisation can grow their business at
the various location with the increase in demand of the car in the US market
place. the interest rates are low in the market which helps the customer to
purchase more in the market .
 The market share of the Nissan organisation has been increase due to the timing
and new release of the cars model in the market condition. The organisation have
a new market where they can increase their operational activities and enhance the
market share in the international market place.
 Government are encouraging the fuel efficiently in the organisation production
process , here the Nissan organisation have come up with the new car ruining on
the electricity in the market .
Threats:
 The Nissan company have to face the tough competitive present in the target market.
the China car organisation are providing the lower price car with the same feature to the
customer which are threads for the Nissan organisation.
 Increase in the foreign exchange rate which can affect the Nissan organisation
operational task at the international market places.
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 The Nissan organisation are working in the various global location which harm the
natural resource to large expand which needs to the reduce in coming year.
 The demand of low fuel price goods can be thread for the organisation to provide such
goods and service in the long run.
Value chain analysis: this analysis assist company to attain competitive advantage in the
market place and obtain the high level of profit and plan to grow their business at international
level . it includes the set primary and support task or activities which helps the organisation to
change over the inputs into effective value added outcome for the target customer.
The Nissan organisation uses the support services like infrastructure and employees skills to
use the advance technology to provide the effective outputs with the alliances with the Renault to
reduce the production cost and increase the market share of the organisation. the primary set
includes the inbound logistic and outbound logistic, marketing and sale department which are
used to attain the goals and objective of the company in long term. The organisation need to
secure place to keep its raw material at the operational area which needs to be look after the
controller of the organisation and manage the production house in effective manners .once the
product are made then the logistics process applied where goods and services are reached out the
target customer , the company make effective strategies to make customer aware about the
organisation product and services. (Jiang Gong Wang and Kimble, 2016)
The critically examine of the internal environment of the respective organisation has positive and
negative influence on the performances of the company in the target market places. The positive
impact is that it enable to identify their strength which are present in their organisation and tries
to match them with the opportunities prevailing at market location so that organisation can
develop effective strategies to grow their operational activities globally. The negative affects is
that organisation are not able to analyse the level of competition prevailing in the market and
hence cannot take competitive edge over the another organisation.
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Produce the appropriate strategies to have effective competitive edge using the porter’s five
forces model:
The porter’s five force is act as tools and techniques which are used by the organisation to see
and find out the competitive forces that are prevailing in the industry and can affects the
performances of the company in the market places. Such competitive forces assist company to
overcome the competition present in the target market place and see the inherent profits
available for the organisation in the market .
Threats of new entrants: under this phase, the company provide its customer with the unique a
and different kinds of product and service as this industry provide variety of goods and services.
it is difficult for the another organisation to enter into this market as it costly to enter and need
large amount of capital requirement. The government also make various polices to enter into
such market which also add problems for the organisation. With reference to Nissan, it is
analysed that company is emphasise on providing different and innovative product at
marketplace along with the good quality. This help company to attract large number of people
and satisfy them so that they can retain for loonier time period and did not switch to another
brand.
Bargaining power of supplier: . in the automotive industry , the Nissan organisation have
large amount of supplier in the market which make them less powerful as buyer are less in the
number and weak the power of the seller in the market . here different organisation are
providing the similar goods and service in the market so customer can switch to another
organisation goods if they are offered at lesser price in the market places. (Najafizadeh. and
Kazemi, 2019). It is determine that bargaining power of suppliers is low to Nissan as there are
many suppliers prevailing at marketplace who provide raw material easily. This help company to
negotiate with the suppliers which cut down its cost and assist in earning higher profits.
Bargaining power of the buyers: the Nissan organisation operates in the environment where
there are less number of supplier in the market so they can’t control over the price. In such
condition, the product difference is large which make difficult for the buyer as they are not able
to find the same product in the market . here customer are low price sensitive so quality of goods
and service are important for the organisation. the firm focus on offering new goods to attach
more customer towards the organisation goods. If it is taking about Nissan, such threat is high for
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the company as there are lot of companies offering similar product in market. It is important for
Nissan to make offer quality, innovative products at an affordable price as it help in developing
good relationship with customers and retain them for longer time frame.
Threads of substitute goods: the Nissan organisation works in the industry which have lesser
substitute products and services in the market places which makes its low profits making
market . here the customer are looking for the goods and services at lower prices and switch to
another product in the market . the customer switch to another different goods and services if
they are available at the low prices. With relation to Nissan, there are lot of substitutes is
prevailing at market which shows threat of substitute is high to the respective company. In order
to deal with this, it is important forb higher authorities of Nissan to maintain good relation with
customer and focuses on fulfilling their requirements in an effective manner.
Rivalry among the existing organisation : the Nissan organisation works in the industry
which have lesser competitors present in the market which create weaker force in the industry.
Here the organisation have a chance to grow their market share in the as there are less
competitors present in the market of such industry. In context to Nissan, it has large number of
competitors such as BMW, for and may more that directly impact on the performance of
company in a negative manner. It is significant for company to offer something unique in market
as it help in attaining competitive advantage at market and also help in fighting with rivals in an
effective manner.
From the above discussion, it has been stated that it is important for Nissan to conduct
market research as it help in gaining insight about market trends and customer needs. It help
company to enhance its customer base level and improve the level of performance and
profitability in a proper way.
Use the different range of the theories, concepts and model to form the strategic management
plan for the company
There are different forms of theories and models that are used by the Nissan organisation to
obtain the desire profits margin the market place. these concepts assist company to take the
competitive advantages in the market by examine the market condition.
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Ansoff growth matrix: according to this matrix , the organisation analyse the competition
prevailing at the market place to make the effective business strategies for expansion of business
activities effectively. Here the organisation examine their growth in the terms of goods and
market in which it operates functions.
Market penetration: According to this factor, the company emphasis on providing the existing
goods and services within the existing market by adding some new offers in it.. With the
references of the Nissan organisation, the ,manager tries to make the strategy which aims at
giving the organisation goods to the existing market and focus on making promotion of goods
in the market to attach more customer to the company.
Product development: under this part of the matrix, the organisation provide the new and
different products and services to the existing customer so that they can get the audience for their
new goods and have a growth in the terms of goods in the market . the Nissan organisation make
sure that they provide new innovative goods to its customer so that they stay loyal to the
organisation for longer period of time. (Riwanto, and Andry, 2019)
Market development: as per this matrix, the organisation aims at entering into the new place
with the existing products & services so that they can enter into different market place and grow
their business activities across the global market places. With reference to Nissan organisation,
the manager focus on capturing the new market with the use of old product so that they take
benefit at market places. The organisation looking into new segment where they can increase
their business and achieve the profits which are important for the growth of the organisation.
Diversification: according to this matrix, the company tries to enter into new & different market
place with the new and advance product and services so that they can enhance their market share
by expanding their business at new location and targeting the new customer so that they can
enter into different market. this matrix includes the high risk as well as high profits in the market
places. This assist company to grow their business into new location to tries to take over the
market by providing the different form of products and service to the customer.
Strategic management plan:
The strategic management is a written document which shows the organisation aims and
objective which are to be achieved within the set time period . it also provide a framework where
the management team can form the growth strategies for the organisation which helps the
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stakeholder to understand the organisation objective which are to be achieved by the effective
plan.’
Aims: Nissan organisation aims to provide the comfortable cars to its customer which are
available at effective prices and good quality of materials.
Objectives: the organisation have a objective to grow its business at the international market
which will helps of business strategies which are made after examining the various factors .
Mission and vision: the organisation make sure that they serve the customer with the high
quality of good and service that will assist them to increase their market share in the target
market places.
STP : The company uses this to divide the target market into effective resource that assist entity
to focus on particular section and capture large market by offering the new products and
services to the target segment.
Segmentation : under this situation, the organisation focus on dividing the target market into
small segment according the needs and wants of the customer and requirement of the section.
This helps the organisation to known what form of good customer are looking in the market
places.
Targeting: after making effective segmentation , the Nissan organisation make target from the
segment and focus on offering the targeted position of the segment to attain their desire profits
within the set time period. (Tajeddini and Trueman 2016)
Positioning: here the organisation after deciding the target segment they tries to promote their
goods & services in the market with the help of effective promotional strategies to place the
right of good at the correct market place to obtain the objectives properly with the time frame as
well.
Tactics: the Nissan organisation used various tactics that assist in expanding business at the
international market places . to operate at the global market the company need to make effective
and productivity strategies plan which lead to new market places.
Conclusion:
According to the above discussion , it is concluded that business strategies are essential for
expanding the existing business at the international market places. The organisation needs to
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evaluate the environmental factors that affect the operational performances of the company in the
targeted market and also effects its profits margin in the long run. The entity examine its internal
environment factors that examine their strength & weakness and opportunities & threats which
helps the organisation to make proper strategies to growth. Then organisation conduct the porter
five force to analyse the competition prevailing in the work environment which will lead to
better management plan for the company in order to attain competitive edge in the market . the
Ansoff growth model is also discussed to see in which areas the organisation can grow their
business at various location.
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