Influence of External Macro Environment on Business Strategy

This document discusses the influence of external macro environment on business strategy, specifically in the context of Lotus company in the automobile industry. It includes a SWOT analysis of the company and highlights its strengths, weaknesses, opportunities, and threats. The document also provides insights on the suitable macro environment for the company and its impact on the organization's perspective.

Unit – 32
Business
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Demonstrate about the influence of external macro environment strategic plan for the
organisation perspective.........................................................................................................3
M1. Briefly scrutinize the suitable macro environment about the organisation context........4
D1. As in Detailed investigation of overall information data through applying
environmental and competitive analysis to produce to set the optimum path and tactical
approaches..............................................................................................................................5
TASK 2............................................................................................................................................5
P2. Interpreted the situational internal and external environment capabilities in the
perspective of particular company..........................................................................................5
M2. Through detailed analysation of above internal and external aspects of environment
terms in strength and weakness within external environment................................................7
TASK 3............................................................................................................................................7
P3. To evaluate within the method of applying Porter five forces as in business strategy
formulation to measured eth competitive market advantages and disadvantages within the
context of organisation...........................................................................................................7
M3. Critically analysed the appropriate strategies which can developed the competitive
market position.......................................................................................................................8
TASK 4............................................................................................................................................9
P4. Interpret the strategic marketing plan of an organisation.................................................9
M4. Produce the tactics that are mostly adopted by business..............................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The business strategy is the systematic procedure which is assort during to optimised
the aspects of organisational work where various form of business method, function and other
management approaches to help for scrutinizing of the opportunities and challenges in the
market in considerate of specific organisation. A manager or experts in background of
organisation development and marketing team are entitled to identifying the scopes and factor
in the market point of view in which the scopes and issues are evolved during the business
establishment as it also making improvised the decision making of organisation owners and
manager within the perspective of measuring the market share, profit match making with
compare of other company performance and product differentiation other more further
featured process to supports and guide to run the business (Adam, 2016). On the perspective
of Automobile industry their team is prepared to identifying the market issues and performing
opportunities to grab and utilised it in better way.
Introduction of Company
The Lotus company is come across in Automobile industry as it is the most prominent
British automotive venture where it operates within the headquartered in United Kingdom,
that manufactured sports and cars and racing cars to basically in sports events of rally racing
organised in international region as well as it targets the car desirables and youngsters
consumers.
TASK 1
P1. Demonstrate about the influence of external macro environment strategic plan for the
organisation perspective
As the description of macro environment is the external influence which propounded
about the outsider power that can affect the business ventures into differentiate factor like
political, economical, social, technological, environment and legal. For that to analysation the
Pestle framework identification is to mapped the opportunities as well as drawbacks about the
business ventures perspective, similarly as for Lotus company following there is description
about the Pestle analysation on to which scrutinize the positive and negative flaws regarding
with business point of view. But before that there is short brief is contributed about
company’s vision, mission and objectives are as follows.
Mission: “As to make the exceptional models to deliver within the optimum service”.
Vision: The company is derived about their vision that Lotus is presumes the ‘Simplify, then
add lightness’. Which comprise is that as simple specification presence in model which
reflects unexpected performances (Bakhtieva, 2017).
Objectives: the optimum aim of Lotus company is to provide the best automotive models by
generating the rich amount of accessories in it and enhanced their expectation fulfilled within
their services and quality of performances as they driven through with their product
performance.
PESTLE Analysation

The framework of Pestle analysation is emphasis about the macro environment
investigation where it defines the stimulus or impact of external factor influence in overall
factor of market.
Political: As through this factor is derives about the various formation of rules and
regulation which has driven by corporate governance in terms of policies, corporate taxation
rules etc , which has to abide each and every form of company. Different industry of
company having distinct source of principles which follows by the company perspective as
the Lotus company is coms undertaken in Automotive industry as it follows the acts and
legislation which brings the stability as well as it brings the favourable outcomes (Ben‐Amar
and McIlkenny, 2015).
Economical: The factor of economic factor the describes about the factor which are
determined or having important role in it as inflation, recession, demonitization, or any
corporate destruction which slow the down the economy of nay region that having a direct
impact on country’s companies like in United Kingdom having one factor that can effect the
Lotus company as it Brexit market where more of automotive company get resist to not
trading within outside customers such as in Europe countries the relation as in business terms
are not appropriate way.
Social: Through enhancement of the socialise factor which helps to considerate the
demographic factor as it allows the targeted customers which demonstrate the organisation to
choosing the right featured of trait consumer in group of age, gender, religion and other
business norms that actually performed in socially segmentation. As for Lotus company they
have opted their customer on the basis of their product specification and objective to
introduced in the market where youngster and car desirables are considered for their product.
Technological: To making implement of new resources in terms of advancement of
machinery new updating of any kind of software is introduced in the market through the
considerate of the company vision and objectives. As in perspective of Lotus venture they
determines about their technologies which they introduce for the betterment of their product
like in their models and accessories which improvised their creativity and decision making
stronger.
Environment: On highlight the welfare of culture benefits in surrounding
environment like in provide general description about organisation to not produced the any
kind of product which having any type of negative flaws or create any disturbance harms
towards the environment welfare. Lotus company has ensure that their having models which
can pollute the environment by not to be happen they started to inputs the eco friendly fuel
which will not produce any kind of air pollution within the atmosphere.
Legal: By announcing the regulatory norms and values through government factor or
aspects within the presence of policies that driven the outermost of company perspective on
which they have to abide the rules in terms of employment acts, bonus acts and many other
that driven through compliances to making understands about the working procedure
continues through systematic procedure (Davenport, 2014).
M1. Briefly scrutinize the suitable macro environment about the organisation context
The formal analysation of Pestle framework within the context of Lotus venture as
they have suitable factor from macro environment would be Social and Technological factor
as it will helps to making approach the right consumer and introduced the new technology
which will brings the productivity enhancement as well as growth in company. Other factors

are also having importance as they derives the generalisation about the significant situational
benefits such as regulation and laws related to automotive industry as well as general,
economic slow down reasons which impact the company growth and it reduces the power of
buying after that to not making any kind of climatic disturbance (Engert and Baumgartner,
2016).
D1. As in Detailed investigation of overall information data through applying environmental
and competitive analysis to produce to set the optimum path and tactical approaches.
Through overall perspective of the Business strategy in background of Lotus company
where the discussion is coming through in macro environmental factor which emphasis about
the opportunities and challenges of the organisation performance factor. On other hand of the
analysation of internal assessment of Swot Analysation in terms of automobile business
perspective to gain and measured of strength and weakness along with opportunities and
threats of the company availability in market and as per the last interpretation of Porter’s five
force to making examine about the threats and consumer behaviour and perception about the
product existence in the market or further the new player performance in the market.
TASK 2.
P2. Interpreted the situational internal and external environment capabilities in the
perspective of particular company
The background of internal and external environment having the competency is to
determined of an organisation considerate in the formation of Swot analysation to making
describes about the strength, weakness, threat and opportunity of market consideration as
well as company point of view. These orientation is derives about the particular company
positive and negative factor along the opportunity available and threats of their products. As
in Lotus automobile company having the enhancement of Swot Analysation to measured the
issues and opportunities actively participants by company team player as per growth
performances (Grave, Van de Wetering and Rutledge, 2018).
Swot Analysis: This Swot analysation is comprising all the threats, weakness and
opportunities are internally available in Lotus Company in automotive industry and market.
Strength: As it propounded of the inner stability and outsourced strongest influnces
which the company performed in their benchmarked level of performance as in context of
reliability, Quality status which represent the product and service of Lotus Company. As they
have created the light weight of model design as heavy featured of optimum power of engines
as well as they have prominent experts who came to designed the models and suggests the
best practises to increase the best quality of manufactured and they have strong marketing
team of brand promotion in all over the international market.
Weakness: This is the negative internal factor that describes about the company less
productivity approach where they have capabilities but it enough to accomplish the objectives
as the Lotus company having their manufactures are not owned they have to hire from other
domicile engineers as they have to depend on other manufacture and they have huge
restriction in other countries like Europe as they do not able to produce their model in those
countries market.
Opportunities: Many other companies promotes the lotus company cars in other
region as they manufactured Formula One concept model, They have better service quality in
which they substitute their production or manufactured house which having enhancement
cost of production declination (Jasiulewicz-Kaczmarek, 2016). Having a wider scope in

United kingdom where most of youngster are preferred the Lotus company vehicle car as
they have better goodwill in the market.
Threats: The most disturbance of Lotus company is they have less prominent market
share in the presence of automobile industry as European countries are more likely to
manufactured of luxuries and sports car like BMW, Audi, Porsche etc. The aspect of external
factor in macro economic they have less consumption of luxury product and services, as
many consumer are not likely prefer to go sports cars and they prevent more pollution factor
that why Lotus company having a strong threat of not manufacturing the Eco friendly
models.
VRIO Model:- This model is described as analytical technique implied by an
organisation for developing its effective resources to increase its competitive strategies for
sustaining in global market. It is essential for an organisation for developing larger strategic
schemes for company in order to achieve its goals and objectives (Laudon and Traver, 2016).
The managers of Lotus Cars implement this model as to examine their internal and external
strategies for minimising controllable and uncontrollable risk that can affect the stability of
business.
Resources Valuable Rareness Imitability Organized
Global presence Yes No No No
Distribution channel Yes Yes No No
Technology Yes Yes Yes No
Customer service Yes Yes Yes Yes
 Valuable:- The managers of Lotus Cars are highly valuable as its main motive is to
utilise its scarce resources effectively. It leads company to achieve goals and
objectives efficiently and develops competitive strategies for being stable in global
market. The company majorly focus on its global presence as being highly dedicated
towards this resource for building good brand image and reputation in global market
by building trust and faith among its potential customers (Lokuwaduge and
Heenetigala, 2017).
 Rareness:- Managers of Lotus Cars aims to utilise these scarce resources by
developing various competitive strategies to compete with its rivalries such as Cater-
ham Cars, Geely and Aston Martin. The company managers mostly emphasize on
providing direct and indirect channel of distribution for its customers to meet their
requirements at various location. This channel of distribution involves manufacturers,
wholesalers, agents, retailers and consumers.
 Imitability:- The managers of Lotus Cars focus on adoption of new technology in
their scarce resources for developing new structure, design and model of their car. It is
beneficial for company as it cannot be copied by its rivalries available in perfect
competition market. The main purpose of company is to attract large number of target
market by encouraging them to purchase least-cost effective products with specialised
features that result in accomplishing success efficiently.
 Organized:- Managers of Lotus Cars concentrates on developing good customers
service by providing them qualitative products and services for fulfilling their needs
and wants. It is essential for company to build good customer relationship
management that tends to analyse the change in taste and preference of their potential
buyers (Maheshwari and Yadav, 2018). The company further manufacture car model
as per the desire of its customers and supply features such as air bags that are helpful

at time of accidents as precautionary steps. It leads to develop customer support and
loyalty for achieving high level of satisfaction at which they are ready to pay high
prices.
M2. Through detailed analysation of above internal and external aspects of environment
terms in strength and weakness within external environment
By having the optimum understanding about the internal and external factorization of
Lotus Automobile Company As to measured their Swot Analysis it obtained some
highlighted point as in strength, weakness, opportunities and threats which is propounded
within the generalisation to scrutinize it as in term so threats and weakness is most important
factor that has to be recovered where Lotus is one of the automotive company whose still
suffering to not manufactured the Eco Friendly vehicle in the presence of the market as well
as they have to depended in other manufactured labour (Mervelskemper and Streit, 2017). All
these elements can make consequences which cen decrease the growth of the company. But it
ensures they have captured the other region market within their better performances by
entitled of business opportunity and strength as they utilised it in proper manner.
TASK 3
P3. To evaluate within the method of applying Porter five forces as in business strategy
formulation to measured eth competitive market advantages and disadvantages within the
context of organisation
On the behalf of the Porter’s Five Forces demonstration it helps to analyse the
competitive market as in terms of substitute, opportunities and scope of challenges in new
market business growth optimisation, dynamic changes of product and market specification
along with consumer taste and preferences in terms of approached the product and services
which evaluate the growth of buyers and suppliers.
Porter’s Five Forces
This is the functioned through managerial procedure which generates the optimum
information regarding the organisation performance as well as their scope and opportunities
regarding with product and market as well as it also represent the competitors nature as they
introduced the same products within belong from same industry to applying the strategic
planning.
 Threats of Substitute: The term of product respective when there is strong market
having an approach of consumer as they are like eth product quality and quantity but
the disclose of new substitute can presence makes disturb the other market product
performance. As in context of Lotus company having their good will of their product
in the United Kingdom market according to their performances they gained the more
exposure of market share, but within their existence the substitute of another product
of similar nature of brand can create a growth disturbance of another come across of
product as in model (Sciascia, Mazzola and Kellermanns, 2014). Consumer are
having vulnerable behaviour and attitude where they basically pursue to buying those
product aspects whose having optimum efficiency in long terms perspective similarly
they scrutinize the product in different shades in model comparison within other
companies to making their decision making power increases.
 Threat Of New Entrant: By having the existence of the other company arrives in the
same market as in this scenario the automobile company having more competition

within the highly performed competitors in the market to gaining the exposure and
advantages to perform and retain the consumers. As in consideration of Lotus
company automobile it is based on United Kingdom region where the influencing of
new entrant would be in low as it has already the benchmarked automobiles
companies like Jaguar, Aston Martin, Bentley Porsche and Ford Mustang and others
which are prominent and desirable performers in automotive industry where Lotus
company have to generates more efficiency in their product specification. In between
is there is new company arise in this competitive market it can fluctuates the
background the scenario of the automobile industry where existing company will
suffer if the new player as business venture can becomes high efficiency in the
market. It can have the high resource and more attractive exposure of marketing. By
the coming of new entrant brings the effective promotional strategies to having
awareness motive within the existence of consumer context.
 The Bargaining power of Buyers: On the study of automobile industry they have
bargaining power is high in context of United Kingdom based ventures as the
consumer having the plenty of option to buy their choices of model as per their
capabilities (Sting and Loch, 2016). As in framework of Lotus Company attribution
they enact to presence of bargain power of buyer are less as they only manufactured
the sports cars in formula one conceptual and the consumer they have targeted are in
sports cars lovers and younger one who are having passionate of buying super sports
F1 cars conceptual as they have limited consumer requirement of in terms of not gain
more functional concept of model they produce they have only one limited model
design which they are concerned to be manufactured.
 Bargaining Power of Suppliers: The factor of bargaining power of supplier are
quite in fragmented in nature where many firms are having supplying power but in
forming of Lotus Company they have scope of bargain influence of supplier are les or
limited as because more or less consumer are only interested to buying the company
product as the venture is only produced the sports vehicles as well as racing of
formula One concept in which limited consumer are likeable to purchase the product
of Lotus company as on the reason as they have limited influencing of suppliers. As to
analyse before that clients are in vulnerable behaviour to not preferred the similar
concept of car as their taste and preferences having dynamic in nature which is
ongoing to perception change on the basis of performances in the market.
M3. Critically analysed the appropriate strategies which can developed the competitive
market position.
According to the Porter’s Five Forces is been investigate on the perception of Lotus
Company automotive venture in profitability aspects as they are in product competitors
and replacement of other company efficient product is n ongoing process of happening in
market, As it having the new player entrant in the market which can having more efficient
marketing promotional activities in which existing company growth can be slows down in
perspective of market share and profit margin. The bargain stimulus of buyers and
suppliers are vulnerable in nature as because in United Kingdom there are many opted of
high class of performance automobile companies where the consumer having their
preferences as per the their purchasing capacity if there would be more demand then there
would be more supply of raw material or product specification (Wroblewski, 2017).

TASK 4
P4. Interpret the strategic marketing plan of an organisation
The business strategy refers as to forecast and predict the plan for an organisation by
analysing its current actions for anticipating in future by generating vision and mission. The
managers of Lotus Cars focus on business strategy by monitoring and controlling the actions
been performed by its worker through
Strategic Management Plan:- This is defined as the study of strategic management
that involves formulation and implementation of major goals and initiatives within an
organisation (Yadav, Han and Rho, 2016). The managers of Lotus Cars focus on developing
this as to analyse and determine their short and long term goals that have to be achieved in
future.
Features Explanation
Vision The vision of Lotus Cars is to perform its actions with
supplying true and fair products and services for its target
market. It further focuses on innovative engineering,
cutting-edge technologies and advanced materials for
utilising scarce resources effectively. The company proves
value of achieving performance through light weight.
Mission The mission of Lotus Cars is to uncompromised quest for
automotive excellence, allied to a visionary focus on its
structure and model. Lotus is one of the most inspirational
of British brands.
Objectives The main purpose of Lotus Cars for positioning the brand in
evolves and aligned for product range growth for being
recognised as a leading sports car brand.
Marketing strategies The managers of Lotus Cars focus on developing various
strategies to achieve success by competing with competitors
to remain stable. These strategies are as follows:-
 Maximise 47% of sales in 2022:- This strategy is
implied by managers of Lotus Cars as to enhance
market to capture large number of target market
within five years for satisfying their needs, desires
and wants at minimised cost. This motivates
consumers to purchase more of their products that
result in high sales for maximisation of profitability
ratios. It creates opportunity for growth and stability
of business in perfect competition market by
building its competitive strategies.
 Increase market share with 10% at 2023:- The
managers of Lotus Cars focus on their consumers
taste and preference to enhance their level of
satisfaction. The company further aims to develop
its products and services with total quality
management. This leads to increase market share of
business by promoting its product through brand
awareness and develop consumer support with
loyalty at which they are ready to pay high prices for
attaining high satisfaction.

Potential customers The potential consumers for managers of Lotus Cars are
categorised into three sectors for attracting customers
through brand positioning for increasing its sale. These are
described as under:-
 Segmented Market:- Managers of Lotus Cars
segments their whole target market small group of
consumers as to meet the requirements at little level.
 Targeting Market:- The Lotus Cars managers
emphasize their market through targeting specific
group for unique characteristics and focus to serve
them effectively.
 Positioning Market:- The managers of Lotus Cars
position their brand or product to potential
consumers that enhance them to purchase the
product. It results in high level of satisfaction for its
customers by supplying their qualitative products
through direct and indirect channel of distribution. It
is the ability to achieve success efficiently and to
accomplish organisational goals and objectives
within particular duration (Young, Banerjee and
Schwartz, 2018).
M4. Produce the tactics that are mostly adopted by business
The tangible and tactics implemented by managers of Lotus Cars is as follows:-
Features Explanation
Tangible Managers of Lotus Cars implements the three tangible
strategies which motivates employees to build relationship
through engagement and involvement are as follows:-
 Organisational engagement:- Managers of Lotus
Cars focus on employees to develop good relation
among managers, leaders and workers for
understanding and analysing their emotions at
various circumstances. It increase team morale and
leads to achieve goals and objectives efficiently.
 Emotional engagement:- The Lotus Cars managers
engage employees at their emotional level through
which they feel safe to share their views and
information that result in building personal
relationships among each other.
 Role engagement:- Managers of Lotus Cars involve
themselves on the basis of their roles and functions
and remain engaged till the specific target is
achieved to sustain in global market. It develops
competitive strategies for company as to compete
with rivalries through increasing its internal strength
and external opportunities for minimising weakness
and threats.
Tactics The Lotus Cars managers focus on varieties of tactics as to

expand their business for high profit margins and to sustain
in competitive market. These tactics are explained below
which are as follows:-
 Pricing strategy:- The business aims to place their
product at competitive pricing with minimising
costing as it attracts to purchase product for high
level of satisfaction with less money value.
Managers of Lotus Cars focus on this as to increase
stability for competing with rivalries through
increase in competitive advantage of strength.
 Total Quality Management:- It is essential for an
organisation as to perform its business activities
with total quality management for building good
customer relations. The managers of Lotus Cars
focus on the product quality as to meet the
requirement of consumers which maximise their
revenue and market share.
CONCLUSION
From the above discussion it have been concluded that business strategy is very
essential for an organisation as to sustain in global market by building its competitive
strategies. The main role for managers of company is to develop innovative idea for
managing and running their business effectively by manufacturing its qualitative products
and services for meeting the requirements of its customers. This project applies various
appropriate frameworks that influence the external macro-environmental factors for analysing
its positive and negative impact over business decision-making process. It further determines
the internal environment capabilities with the application of various theories, models and
concepts. Apartly, it evaluates and applies the outcomes by using Porter’s Five Force
strategies for an organisation. This project implements various range of models by
interpreting and devising strategic marketing plan for business to identify its vision, mission
and objectives for future period.

REFERENCES
Books and journal
Adam, A. K., 2016. Strategy and success factors of business schools. Springer Gabler.
Bakhtieva, E., 2017. B2B digital marketing strategy: a framework for assessing digital touch
points and increasing customer loyalty based on Austrian companies from heating,
ventilation and air conditioning industry. Oeconomia Copernicana. 8(3). pp. 463-
478.
Ben‐Amar, W. and McIlkenny, P., 2015. Board effectiveness and the voluntary disclosure of
climate change information. Business Strategy and the Environment. 24(8). pp. 704-
719.
Davenport, T. H., 2014. How strategists use “big data” to support internal business decisions,
discovery and production. Strategy & Leadership.
Engert, S. and Baumgartner, R. J., 2016. Corporate sustainability strategy–bridging the gap
between formulation and implementation. Journal of cleaner production. 113. pp.
822-834.
Grave, F., Van de Wetering, R. and Rutledge, L., 2018, July. Strategy-IT alignment.
In International Symposium on Business Modeling and Software Design. (pp. 352-
361). Springer, Cham.
Jasiulewicz-Kaczmarek, M., 2016. SWOT analysis for Planned Maintenance strategy-a case
study. IFAC-PapersOnLine. 49(12). pp. 674-679.
Laudon, K. C. and Traver, C. G., 2016. E-commerce: business, technology, society.
Lokuwaduge, C. S. D. S. and Heenetigala, K., 2017. Integrating environmental, social and
governance (ESG) disclosure for a sustainable development: An Australian
study. Business Strategy and the Environment. 26(4). pp. 438-450.
Maheshwari, S. K. and Yadav, J., 2018. Leadership development strategy: The missing
links. Development and Learning in Organizations: An International Journal.
Mervelskemper, L. and Streit, D., 2017. Enhancing market valuation of ESG performance: Is
integrated reporting keeping its promise?. Business Strategy and the
Environment. 26(4). pp. 536-549.
Sciascia, S., Mazzola, P. and Kellermanns, F. W., 2014. Family management and profitability
in private family-owned firms: Introducing generational stage and the
socioemotional wealth perspective. Journal of Family Business Strategy. 5(2). pp.
131-137.

Sting, F. J. and Loch, C. H., 2016. Implementing operations strategy: How vertical and
horizontal coordination interact. Production and Operations Management. 25(7). pp.
1177-1193.
Wroblewski, L., 2017. Culture Management: Strategy and marketing aspects. Logos Verlag
Berlin GmbH.
Yadav, P. L., Han, S. H. and Rho, J. J., 2016. Impact of environmental performance on firm
value for sustainable investment: Evidence from large US firms. Business strategy
and the environment. 25(6). pp. 402-420.
Young, K. A., Banerjee, T. and Schwartz, M., 2018. Capital Strikes as a Corporate Political
Strategy: The Structural Power of Business in the Obama Era. Politics &
Society. 46(1). pp. 3-28.