Business Strategy: External and Internal Environment Analysis

UNIT 32
Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Framework for external environment analysis......................................................................1
M1. Critical analyses of macro environment for determining as well as informing decisions
related to strategic management...................................................................................................4
TASK 2............................................................................................................................................4
P2. Framework for analysing internal environment along with organisational capabilities........4
M2. Critical analyses of internal environment fro assessing strengths and weaknesses of firm's
internal capabilities structure along with skill set........................................................................7
TASK 3............................................................................................................................................7
P3. Model of Porter's five forces.................................................................................................7
M3. Devising appropriate strategies for improving competitive edge as well as market position
as per the outcomes......................................................................................................................8
TASK 4............................................................................................................................................9
P4. Range of concepts and theories along with strategic plan.....................................................9
M4. Strategic management plan having tangible as well as tactical strategic priorities as well
as objectives...............................................................................................................................11
D1. Critiques along with interpretation of information.............................................................13
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Business strategy is described as action planning for long duration that is formulated for
attaining set of objectives (Allen and Truman, 2016). In short, business strategy is a master plan
which is designed and implemented by organisational management to carry on key operations for
achieving desired business ends. The administrators of all entities carefully plans as well as
designs business strategy with the aim to gain command on dynamic situations, achieving
effectiveness, meeting threats with issues, directing efforts, utilising opportunities and securing
advantageous positions.
To understand the aspects of business strategy, Aston Martin Lagonda is considered for
the report. The organisation is well known for manufacturing automobile addition to luxury
products. The report involves application of frameworks for analysing macro environment fro
the entity. In addition, it also include appropriate utilisation of frameworks for analysing internal
environment together with capabilities of the firm. Further, Porter's five forces model is applied
and evaluation of competitive forces about market sector of the organisation is done. At last,
wide range of models, concepts as well as theories are also applied along with strategic
marketing plan.
TASK 1
P1. Framework for external environment analysis.
Organisational profile: Aston Martin Lagonda is well recognised independent
manufacturer within automobile industry. The entity was established by Lionel Martin along
with Robert Bamford in 1913. The firm has around 2500 employees working at distinct
premises. The headquarters of the firm are situated at Warwick, United Kingdom. The company
manufacturers luxury sports car as well as grand tourers (Aston Martin Lagonda. 2019). In
addition, it has around 150 car dealership in nearly 50 countries within 6 continents that makes it
global automobile brand. The vision of the entity is to build sustainable luxury business for long
term. The mission of Aston Martin Lagonda is to become best in every area of business. The
entity has objective of designing luxurious products having modern styles addition to elegance.
Macro Environment: The broader economic situations as opposite of particular region
sector is termed as macro environment. In other words, the uncontrollable factors which
influences decision making of the organisational management along with affects strategies and
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performances of the business falls under macro environment. The strategic planning manager of
Aston Martin Lagonda uses PESTLE framework for analysing elements within macro
environment so that they can formulate effective strategies fro coming time period.
PESTLE Framework: It is one of the tool that is used for analysing together with
scanning macro environmental factors that impacts overall business to large extent. It involves
six elements that needs major emphasis by business managers while operations activities. The
elements includes political, economic, social, technological, legal and environmental. Strategic
planning manager analyses all these elements in details. Following is the description of PESTLE
framework:
Political: The ways and extent of which political systems intervenes in a country is
reflected by political factors. It includes regulatory practices of government, judiciary
independence, taxation policies, political stability and tariff barriers. Aston Martin Lagonda
having strong presence within UK, having stable political conditions impacting in positive
manner as it ensured sustainability and development of the firm within the nation (Alstete and
Beutell, 2016). Due to some anticipated events like no-deal Brexit resulted in unstable political
environment that became that for the entity as the political system has imposed various
regulations, taxations, legislations and tariffs on importing and exporting materials or finished
products between EU and UK that impacted on negative manner on sales volume of selected
entity as the management has to work as per the imposed aspects and it is very difficult for
management to change their decisions and strategy in short term. In order to ensure more sales,
the company should assess to new market where there is political stability which will help in
making relations with new country and increasing sales volume.
Economic: The factors connected with economy of nation such as business cycle, fiscal
policies, foreign exchange rate, price fluctuations in international or domestic market and
inflation rate. It reflects the entire performance of a country as per economic grounds. The
growth of electric vehicle market in UK is expected to reach around $1.5 trillion dollars in
coming duration (Global Personal Electric Vehicle Cars Market Report. 2019). Hence, it is a
opportunity of Aston Martin Lagonda to make investments for developing electric sports car and
vehicles. As the organisation holds huge market shares within UK, it can result in drastic
changes when rate of inflation are increased due to fluctuations in international market. It states
that various challenges could be faced by managers of the company while sourcing raw materials
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