Business Strategy: External Macro Factors Impacting Business Operations

Unit – 32
Business
Strategy

Table of Contents
INTRODUCTION.................................................................................................................... 3
TASK 1................................................................................................................................... 3
P1. Examine the external macro factors that impact business operations..........................3
M1. Analyse the macro environment for developing strategic management decisions.......6
D1. Interpret data and information for environmental and competitive analysis for
developing strategic decisions, objectives and tactical actions...........................................6
TASK 2................................................................................................................................... 6
P2. Analyse the internal environment and capabilities of business with appropriate
frameworks......................................................................................................................... 6
M2. Examine the strength and weakness of internal environment with its capabilities,
structure and skills.............................................................................................................. 8
TASK 3................................................................................................................................... 9
P3: Porter’s five forces........................................................................................................9
M3: Choosing right strategy for gaining competitive edge.................................................10
TASK 4................................................................................................................................. 11
P4 & M4: Application of range of theories, concepts and models and devising of a
strategic management plan...............................................................................................11
CONCLUSION..................................................................................................................... 15
REFERENCES..................................................................................................................... 16

INTRODUCTION
The managers of an organisation develop innovative idea through strategic decision-
making procedure for competing with rivalries is called as business strategy. This is most
important for business to identify its strength and opportunity for minimising controllable and
uncontrollable. As per the given case study, this project is based upon Nissan as being
Japanese automobile company which was founded on 28th December, 1993. This project
examines the external macro factors that impact business operations either favourably or
unfavourably (Ango and Plé, 2015). It analyses the internal environment and capabilities of
business with appropriate frameworks. Additionally, it elaborates the Porter’s Five Force
model for identifying the competitive strategies of business. This project demonstrates the
various theories and models that are applicable in devising strategic plan.
TASK 1
P1. Examine the external macro factors that impact business operations
Business Strategy:- It refers as the process through which managers of company
aims to develop various strategies to sustain in global market. These strategies are further
classified as stability, expansion, retrenchment and combination strategy that builds power
and ability of organisation to compete with rivalries. It is essential to understand the current
position of company with its available rivalries that might create threat for business
operational activities. Managers of Nissan implement these business strategies for
determining the future direction through predicting vision and mission that has to be
achieved in particular duration.
Nissan:- This is Japanese automobile company which was founded on 28th
December, 1993. It is headquartered in city of Nishi-Ku, Yokohama, Japan. This
organisation is automotive industry with its ISIN number is JP3672400005. The Chairperson
is Yasushi Kimura and Chief Executive Officer is Makoto Uchida (Brands, 2014). Its products
include automobiles, luxury vehicles and commercial means of transport, outboard motors
and forklift trucks. The production output is 5,556,241 units in 2016 with 138,910 numbers of
employees in FY 2017. It has variety of divisions that are Nissan, Infiniti, Nismo and Datsun
with its website at www.nissan-global.com/EN.html.
 Vision:- The vision of Nissan is to build trust of employees, customers and
shareholders for supplying qualitative products to enlarge their target market for
increasing sales and profits.

 Mission:- The mission of Nissan is to develop unique and creative automated
vehicles at superior measurements which have the capability to increase its value
and goodwill.
 Objectives:- The main motive of Nissan is to diversify their products from rivalries to
enlarge customers with clean and safe driving experience for customers.
PESTLE Analysis:- This technique refers as the process through which managers
analyse macro-environmental factors that impact business operations. It is most important
for organisation to build its competitive strategies effectively that develops opportunity for
minimising threats through precautionary steps (Braun, Latham and Porschitz, 2016).
Managers of Nissan implement this as to monitor and respond changes in macro-
environment for being stable in global market.
 Political:- This includes rules and regulations imposed by government of Japan,
political stability or instability, foreign trade policy, labour and environmental laws, tax
policies, etc. Managers of Nissan are favourably affected as they build close relations
among government of United Kingdom and Japan that leads to play major role in
exchange of goods and services. The government of political leader is stable that
that creates opportunity for company to follow same policies and procedures. The
managers of Nissan may also face negative impact from political factor through trade
restriction which results in high cost of their products by not being able to purchase at
least price (Cox, 2014).
 Economical:- It involves economic growth, interest rate, disposable income of
consumers, etc. Managers of Nissan are positively impacted as Japan is the third
largest economic sector in world with its total GDP rate of $4.9 trillion at November,
2017. The managers of Nissan are negatively impacted by least disposable income
of customers as buyers aim to save their earnings during inflation by postponing their
plan for future.
 Social:- The social factor consists of population growth, age and income distribution,
health and safety measurements, etc. The managers of Nissan are favourably
affected as they create job opportunity for the unemployed rate of population to
survive their lifestyle effectively. It develops customers support and loyalty through
providing them qualitative products and services at least cost (Grix and Houlihan,
2014). The managers of Nissan are unfavourably affected as increase in population
growth keeps on changing their demands which affects the business activities.
 Technological:- This factor includes technology and communication infrastructure,
automation and innovative ideas. Managers of Nissan adopt various technological
equipments for developing and designing their models of vehicles as to attract large