Business Strategy: Impacts of Macro Environments on Organization

This report discusses the impacts of macro environments on organizations, focusing on Bentley Motors. It explores the internal and external factors that influence the company's business strategies. The report also includes a PESTLE analysis, Ansoff's Growth Vector Matrix, and SWOT analysis of Bentley Motors.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1) Impacts of macro environments on organization with the help of appropriate framework. 1
M1) Macro environment to determine and inform strategy management decisions..............7
P2) Internal environment and capabilities of company by using proper framework.............8
M2) The internal environment to assess strengths and weaknesses of an organization.......11
P3) Porter’s five forces model .............................................................................................11
M3) Strategies to improve competitive edge and market position.......................................13
P4) Interpret and devise strategic planning through various theories..................................13
M4) Strategic management plan that has tangible and priorities and objectives.................14
D1) Applying environmental and competitive analysis to produce a set of strategy directions,
objectives and tactical actions..............................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business strategy is defined as the path that is frequently used by the management to
process and operate the various functions in effective way as per to achieve the goal of respected
company. The process or operation of the company is well attending in their goals. As per this
there are various functions and which is typed by the company and then it will be followed by
the team management to achieve the aim of firm. This report is overall based on the organization
Bentley motors (Felsmann, B., 2016). In which this report submitted the various strategies which
is used by Bentley motors. This is a multinational motors service organization. They offer
various type of services like they manufacturing various design of car and motors. They came in
market in 1998. they used to manufacture various luxury car and SUV s. In this report the
discussion is based on internal and external ability which is along with the business strategies
plan and how the company is reliable to achieve their organizational goal with a short duration of
time. Also in this report the analysis through proper porter’s analysis model and this report
include various learning with base of internal and external matter of knowledge.
MAIN BODY
P1) Impacts of macro environments on organization with the help of appropriate framework.
Strategy: Strategy is defined as the planning or process to implement something which is based
on significance of organization. As per the guide or direct the right path to organization to
achieve their goal. It involves the vision and objective that should be identify and completing the
necessary action which are required to be compelled. The objective of organization this that their
is very useful in terms of management and the management team using this in an appropriate
way manage the resources for successful execution of strategy.
Vision: The vision of Bentley motors is to generate safer and reliable product to the
customer. the motor cars is based on luxurious and technological based. Which play the
significant role in term of customers needs. Along, with this they usually create maximum
number of luxury cars and maintained the quality of motor car in the the country.
Mission: The main mission of Bentley motor is used to provide safer and luxury car and
motor material of desired customer and make it brand image in worldwide.
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Objective: Primary objective of Bentley motors is to increase the profitability and
revenue of the company by generating more revenues as well as attained the quality of services
and product to their selected customers.
Pestle analysis
It is defined as the a framework which is used to determine the various external factors which a
potential to influence the operation and overall function of any organization. This can bring
benefits to company also. As per this pestle analysis of Bentley motors is discussed below:
Political factor: Political factor play a very vital role in the identification of various
impact which rises on any organization. In the context with Bentley it affect the long-term
profitability in certain countries or in market. There are various electrical factory which is
affected are mentioned below-
 Political stability and importance of diverse diversified investors in the sector of country
 Economy risk of invasions of armies and militaries
 Increase the level of corruption specially from the diversified is financial sector which
regulate their work
 The intellectual protection of the property
 Trade and cost regulation which is based on traffic related to diversified financial operations
 Antitrust laws related to financial diversification
 The increased tax rates and incentives
 Wages legislation concept of minimum wages and overtime
 Provide mandatory employee benefits Product lebelling and other requirement in the financial’s diversification
Economical factor: There are various macro environment factors which effect the
growth and profitability of Bentley motors like inflation rate, savings rates, interest rates or an
exchange rate and various economical cycle (Abdelaa and et. al., 2018). Which help in the
determination of demand and investment in an economy. Economic factor that Bentley motors
should can consider while the going to the pest analysis are-
 Type of economic system in countries on a base of operation and their process
 Government interventions in their various markets and related diversification and their
finance policies
 Foreign exchange rate or domestic exchange rate and stability of host country currency
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 Efficiency of economical market which provide Bentley a to raise capital in local market
 Infrastructure quality in the industry
 Education level
 Economic growth rate
 Unemployment rate in a country Inflation rate and also interest rate
Social factor: The society influences and culture is always creating impact on the culture
of an organization in environment (Timpanaro and et. al., 2016). There are various attributes and
attitudes of the population player vital role in the marketing of Bentley motor cars. The customer
is also approaches in given market. As per the design and new cars on a base of various aspect
the social factor that leadership of Bentley should must be analyzed through the pestle analysis
are-
 Demographically and skill level of the population
 Structure module and the power structure in the society and
 Prepare spirit which create the broader nature of the society some societies encourage the
new start-up while some do not Health and environment, consciousness and attitude are responsible in the social influences
Technological factor: Technology is fast in the various industries across the world. So,
as this the Bentley started the automation technology. Which help them to get more efficient
work and effective matter in their corporations (Yarimoglu, E. and Binboga, G., 2019). The
technology analysis involves the understanding of the following impact-
 Technology impact on product offering
 They create impact on cost structure and diversified financial
 Industries impact on value chain structure and also distribution of the Bentley capital limited
corporations Diffusion of the technological rate which enhances and decreases sometime
Environmental factor: As per the aspect with environmental factor which create the
impact on the Bentley capital limited. Which should be considered as-
 Weather
 Climate changes
 Law regulating environment pollution
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 Air and water pollution
 Recycling of the product and services
 Waste management it will be implemented in the corporations
 Create ecological impact in the world scenario Support the renewable energy which help to develop in country growth
Legal factor: The legal framework is not enough to protect the property rights of an
organization. Firm should always careful among their product and services. Which is reliable to
advertise in the market. Some of the level factor that Bentley capitals should consider while
entering a new market is mentioned below-
 Must aware with the discrimination law
 Copyright and patent law which is based on intellectual property law
 Consumer protections acts and e-commerce act are driven
 Go through the employment law health and various safety law
 Also create a resemblance on the data protection
Ansoff's Growth Vector Matrix
It is defined as the growth and development strategy framework than a business able to expand
their marketplace with the ability of product and services (Lichtenthaler, U., 2020). So, as per the
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Illustration 1: PESTLE ANALYSIS

given company there are four factors which are used by Bentley motors in the expansion of their
business.
Market penetration: As per the given context and the Ansoff’s matrix, this strategy is
mainly concentrate on provision of existing product at the present market place. As per this
Bentley motors have ability to gain a loyal customer along with various opportunities to increase
market shares. In which they are already preparing and dealing with the various customers. They
manufacture luxurious cars with help of effective communication. So, it can be achieved.
Product development: This product development is defined as offering new product in
the old market. This also allow company to meet their demands for the customer. In the context
with Bentley motors, they manufacture luxurious product in every market. As per the order or to
increase their sales by preparing the best possible ways to those people who afford it.
Market development: The basic aim of these strategies is to provide old product in new
places or new market places. This provide benefits in the execution of strategy. This prefer to
hold new customers towards for the product or services which is taking entry in the new
locations.
Diversification: It is defined as a risky planning because it deals with the new product in the new
market. This is strategies create lot of investment in the behalf of promotional activities and
analyzing the possible outcome to grab new user (Fletcher and et. al., 2016). Time is driven to
increase profitability and revenue.
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Illustration 2: ANSOFF MATRIX

Swot Analysis
This is defined as the analysis of an organization based on their strength, weakness,
opportunities and threat. In the context with Bentley motors, the SWOT analysis is described
below:
STRENGTH
 Popularity: They are popular for their
unique mixes of sporty and luxury car.
 Brand uniqueness: They create
differentiation among with various version
of car. Which is being expensive and high
quality of products. This create brand
uniqueness.
 Technology: Bentley used new technology
and new core for customer and they
assemble in normal car. Car designs: They create beautiful design
of car that attract customer.
WEAKNESS
 Limited reach: The selected car and auto-
motors of this organization have limited
reach to customer and their regions.
 Long waiting for products: They usually
deal with best quality of car which drive
various accessories, then it take longer
period of time.
 Small target group: They usually target
small group of people. They deal with
expensive car. So there target group are
reach people. Who have effective
purchasing power to buy.
OPPORTUNITIES
 Promotion: They do not present their
brand as in advertisement . usually they
sponsor number of events. As per this,
they recall brand.
 Focus on emerging market: They have
chances to focus on their new trend of
market. This gain maximum profit in their
goal perspective. Merger and acquisition: They acquire
lower brand and merge with various
organization to develop new strategies.
THREAT
 Changing government norms: This create
complication while this formulate new
guidelines and this generate hurdle for the
selected organization.
 Competition: They have their various
competitor like Ferrari, and other
recognize brand.
 Enhancement in fuel prices: The fuel
prices are higher and this create negative
impact in marketing of respected
organization, because their car consume
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higher rate of fuel.
M1) Macro environment to determine and inform strategy management decisions
The macro environment analysis is the major step which is taken in the strategic analysis
which help in eradicating traditional, strategic planning cycle, it is of sometime which is used to
refer an external analysis, a pestle analysis will be driven in this context. In the context with
Bentley motors, they used to manage various factor which craete impact inj the organisation
channel. The macro-environmental state the analysis of strength, wekaness, opportunities and
threat realted with bentley motors. As per the their goals are-
 Various environment factor which affect the development and growth of Bentley motors
 Create impact which help in affecting the growth of selected firm.
In addition to this, Bentley motors have are some leader idea which usually retaliate the macro
environment factor-
 Networking with leader in firm
 Networking with various political parties
 Read financial newspaper
 Read management magazines
P2) Internal environment and capabilities of company by using proper framework.
Strategic capability: It is defined as, in which the organization hold or captured their resources
and competence which are used by firm in such a way to complete their business objective and
successfully compete in business environment at various marketplaces. Resources and the
competences are two component which is a part of strategic capabilities. This help organization
to see their objective and process of fixing the assets which are effectively used. In the context
with Bentley motors, they has their own technologies and investment which shows the
competence and resources of that particular organization (Samad, S., 2018)(Şener and et. al.,
2019).
Resources based view strategy: It is one of the best management model, which shows the
company strategic resources in such a way a to identify the competitor and gain competitive
advantage.
McKinsey’s seven model: This model is usually applied in organization to determine the
business is in profit or loss by using new implementation plan by making changes in the
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organization. As per the aspect of future in which it considered 7s which are divided into two
parts. For example hard S and soft S. this factor include strategy, structure and system. In overall
context, the strategies refers to the plan which is implemented to achieve competitive advantage.
Structure means the partition of company into various departments for carry the various
functions of business in effective manner. This help in the analysis of various department like the
departments responsible for their particular function in appropriate manner. The last segment of
this system that provide understanding the process and operation of company which provide
knowledge to perform in effective manner. In addition to this, the soft as is defined as skill, staff,
style and shared value. So, overall all the seven factor can be used by the upper level
management of Bentley motors in such a way which help organization to provide better direction
to human resources. So, as per this they perform various task in effective manner for gaining the
competitive advantage. This, help organization to grow effectively in their marketplaces.
VRIO model: This model is defined as the analysis of several resources of form and
provide observation of resources which is beneficial to profit. It and generating revenue but not
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Illustration 3: McKinsey MODEL

in a context with gaining competitive advantage. This word VRIO defines valuable, rare
inimitable and organization.
Bench-marking: This is defined as the brand image which helps a company in attending
competitive edges (Dayan and et. al., 2017). This help an firm in growing and making changes in
their environment. This is divided into four factor which is mentioned below:
Performance bench-marking- There are various element which is affect the various
functions of Bentley motors. In which this provide help in analyzing gaps between their service
and set goals.
Practice bench-marking- It consists of various practice among the concept which is
followed by company to success their objective. There are a number of ways to adopt in order to
create practice benchmark as per the view point of Bentley motors.
Internal bench-marking- It is an art program which is understanding by the organization
that this require to watch changes in various reasons. Which is defined as departments units
program and many more all these are used by company and successful. Manager to make sure
that they perfectly increase their performance and potential to face the quality of competition.
External bench-marking- In the context with Bentley motors, it will be compared to their
competition in the market within the same industry. They are also focusing on developing new
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Illustration 4: VRIO MODEL

trends and new quality of services to their customer which provide extreme level of benefit to
company.
With the help of these VRIO model, organization will analyse their resources which help
to achieve the competitive advantage in marketplaces. Similarly, in addition to Bentley motors is
help the organization to analyse their reality in the ability and hierarchical mode of execution
level.
Value chain analysis: In the context with Bentley motors, they go with the technology in
their normal cars. They installed very high quality of hardware and software to operate their cars.
As per their services they are deal with high rate of services for their product in the aspect of
customer.
Cost- benefit analysis: The sum of advantage that are take in and compared with the
investment. which is involved through organization is most important. In the context with
Bentley motors they are successfully carrying their cost leadership strategy. they take advantage
from a target group who have potential to afford their cars and motors.
M2) The internal environment to assess strengths and weaknesses of an organization
An internal analysis help in an organization internal environment in such way which
allow to use the firm resources in adequate manner to gain profit, competencies and competitive
advantage in various marketplaces. This internal environment help an organization to know their
strength and weakness. This help in determination of various changes in respect with firm. Their
are several aspect like beginning strategy formulation. In the context with Bentley motors, they
used to understand their weakness and strength. As per this, Benltey motor facing problem in
their weakness which is, car of expensive and threat is about the rising price of petrol which
craete negative imapct on Bentley motor.
P3) Porter’s five forces model
The porter's five forces is defined as as the factor which affect the industry in the earning
profit margin and also used to analyse competition at their various marketplaces for achieving
their prior goals.
Industry Rivalries: It implies competitions between different variety of industries.
Bentley motors have developed and expand their operation in various countries and they are
facing higher competition in the market. in the respect of luxury cars and expensiveness cost
ratio their competitors are Ferrari, Lamborghini and some of fixed firm.
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Threat of new entrants: In this context, Bentley motors are also have a threat for their
new entrant because they are facing and competing with a small target groups for those customer
who have potential to buy. So, the new entrant can reflect some barriers and their profits.
Bargaining Power of Suppliers: The most important part of any business is vendor in the
context with Bentley motors, their suppliers are fixed and limited. So, they have higher power of
supplier in the context of their services and product.
Bargaining Power of Buyers: in the context with the Bentley motors, the buyers
bargaining power is very low because of the cars and motors which is specifically designed for
those who believes in technology and new core of digitization. cost factor is also so on a higher
rate. So, customer bargaining power is low and the respect with selected firm.
Threats of Substitute: In a relation with Bentley motors, they have very low chances of
substitute from their competitor because they deal with expensive rate and quality of cars and
motors (Van Clieaf, M., 2016). So, the competitor are very less in number and the chance of
substitution. In the context with, this is relatively very low because there were specific target
group to sell their cars and motors.
Table 1
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M3) Strategies to improve competitive edge and market position
There are various strategies which is used to improve the competitive advantage and
create a saturated level of organization position. In which three are which is used to gain
competitive advantage are cost leadership, differentiation and focus, this help in market in view
point of firm to gain maximum advantage in market. Cost leadership defined as lowest cost
producer. This help to gain large scale production in low income and this help to get more profit.
Differentiation strategy state that enterprise good and service are unique from their competitor.
This is gained by delivering highly quality of product and service to customer. As pr the view
point of Bentley motors, they have less bargaining powers due to their quality of luxurios car and
with sporty with classical accent of car. This also state the rivarly site of various organisation
which work as compititor for a market.
P4) Interpret and devise strategic planning through various theories
There are various theory which describe the several aspect of business planning and
strategies. As per the context with Bentley motor, some the strategy are discussed below:
Porters generic strategy
This theory is given by Michael porter's. which determined and state that the
concentration to the cost and several technique. Which is important for an organization to
achieve their respective goal. This theories implies on the various basis of of situation in demand
and give a clear instruction to manage the various functions of an organization.
Cost leadership: According to this strategy, the cost leadership is an initial state of any
organization to provide a success path in the modern technology. There are various functions
which is performed by organization to achieve their goals. In which the minimum use of money
is in a proper timeline and the cost investment is used in a effective way. Which help the asset
and produce the raw material of product in lower cost. Which finally help the final product to
give of long term profit.
Differentiation strategy: As per this is strategy, promotion technique to attract the
consumer and make their brand unique from others. In the context with Bentley motors, they are
not used to to promote their cars and motors in the market because their target groups are small
and a make their cars and motors for for those customer who have potential to purchase this.
Cost focus strategy: According to the cost focus strategy, they produce of course the
range of product to market by maintaining the lowest cost. which provide benefit to the
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organization. As per the Bentley motors, they fix their pricing which are expensive and they
maintain their quality of product as per the view point of customer which attract them to
purchase it.
Differentiation focus strategy: In the context with Bentley motors, this strategy is focus
on the unique functions and services which is developed especially for their consumer (Aldea
and et. al., 2016). The selected organization have a capability and ability to developed new
technological changes in their cars and motors to attract the customer. In the present competitive
edges the single business strategy could not work in the market. So, it is better to develop and
formulate new strategies and new functions which help and organization to get competitive
advantage from their respected marketplace.
M4) Strategic management plan that has tangible and priorities and objectives
Strategic management need to grow by their strategic planning process. This help an
organization to create an strategy which is prepare and implemented in such a way which create
positive aspect for an organization. Their are various component which is used in this that show
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Illustration 5: PORTER'S GENERIC MODEL

tangibility and priorities and objective. In this their are five strategic element which show the
process of planning.
 Initial assessment
 Situation analysis
 Strategy formulation and proper improvement
 Strategy implementation
 Strategy monitoring
in the relation with Bently motors, they used to determined various cost focus strategies
and several analysis which have their proper process. This help to signify various measurement
which is taken through Bentley motor to understand the situation and condition.
D1) Applying environmental and competitive analysis to produce a set of strategy directions,
objectives and tactical actions
As per this, their are various environment and competitive analysis which is used to
suppose create various strategy to get direction for objective. This is set of activities which is
used by organization to achieve goals. After visualizing deep observation of the firm vision,
mission and values. Bentley motor must follow these strategy which help him to undergo with
strategic analysis. This analysis help Bently motor to gain competitive advantage through their
prefered marketplace.The purpose of using various strategies which help to analyze an
organization external and internal environment. This help in to get most successful strategic
substitution. There are various level of strategy, such as corporate level, business level, and
functional level. In context with selected firm, they used to perform an environmental
consideration which include various issue operational inefficiencies, employee motivation, and
overall analysis of economical and financial issues.
CONCLUSION
As per the above discussion, this is analyzed that the business strategy is most important
factor to raise profit and revenue of company. In context with organization their strength and
weakness are discussed. This overall observation provide help to seek new opportunities. Which
help organization to know the threat. The porter’s law state the various factor which affcet
business strategies and their organization structure.
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REFERENCES
Books and Journals
Felsmann, B., 2016. Do institutions matter in business strategy?–The changing focus of strategic
management to institutions: a literature review. Vezetéstudomány-Budapest Management
Review, 47(5), pp.2-11.
Aldea and et. al., 2016. Capability-Based Planning: The Link Between Strategy and Enterprise
Architecture.
Van Clieaf, M., 2016. Designing Performance for Long‐Term Value: Aligning Business
Strategy, Management Structure, and Incentive Design. The Handbook of Board
Governance: A Comprehensive Guide for Public, Private and Not‐for‐Profit Board
Members, pp.514-535.
Abdelaa and et. al., 2018. Digital business transformation and strategy: What do we know so
far?. University of Cambridge.
Timpanaro and et. al., 2016. Sustainability as a business strategy in Sicilian
viniculture. Calitatea, 17(S1), p.186.
Yarimoglu, E. and Binboga, G., 2019. Understanding sustainable consumption in an emerging
country: The antecedents and consequences of the ecologically conscious consumer
behavior model. Business Strategy and the Environment, 28(4), pp.642-651.
Lichtenthaler, U., 2020. Beyond artificial intelligence: Why companies need to go the extra
step. Journal of Business Strategy.
Fletcher and et. al., 2016. Qualitative research practices and family business scholarship: A
review and future research agenda. Journal of family business strategy, 7(1), pp.8-25.
Samad, S., 2018. Examining the effects of environmental strategy and competitive advantage on
business performance. Management Science Letters, 8(9), pp.891-902.
Şener and et. al., 2019. Sustainable dressing: Consumers' value perceptions towards slow
fashion. Business Strategy and the Environment, 28(8), pp.1548-1557.
Dayan and et. al., 2017. Knowledge management as a factor for the formulation and
implementation of organization strategy. Journal of Knowledge Management.
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