Unit 32 - Business Strategy

Unit 32 - Business
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Application of frameworks that influences macro environment..................................................3
Critically evaluation of influence macro environment ..............................................................7
LO 2.................................................................................................................................................7
Internal environment and capabilities.........................................................................................7
Critical evaluation of internal environment that states internal capabilities and skill set ........10
LO 3...............................................................................................................................................10
Application of porter's five forces in order to evaluate competitive forces in given market....10
Uses of appropriate strategies which helps to improve the competitive edge..........................13
LO 4...............................................................................................................................................13
Application of various theories, concepts and models in strategic planning............................13
Strategic management plan that has tangible and tactical strategic priorities...........................15
CONCLUSION..............................................................................................................................17
REFERENCE.................................................................................................................................18

INTRODUCTION
Business strategy is considered as competitive action or move which is taken by
management in order to run their business successfully. It is important for corporation to have
strategic plan so they can establish their business and make efforts to grow it continuously. In
simple term, this is a documented plan which states how a company is setting out to attain their
goals (Setiawan and et. al., 2019). This plan helps to deal with competitors by looking at needs
and wants of customers which provide long term growth and sustainability. To understand about
business strategy concept, this report has been prepared on the basis of Morgan Motor company
which is car manufacturing company in UK. This organisation was established in 1910 by Henry
Frederic Stanley Morgan. This report covers different topics such as macro environment that
determines and inform strategic management decisions, evaluation of internal environment that
consider internal capabilities, structure and skill set and appropriate strategies which helps to
improve competitive edge and market status in competitive market by using porter's five forces
model. Moreover, description of theories, concepts and models would cover in this report which
helps to attain the business goals.
LO 1
Application of frameworks that influences macro environment
Macro environment: The situations which arises in whole economy not in a particular
sector is described as macro environment. This is the condition which exists in whole economy
rather than specific region and sector. It involves major changes which cannot be controlled
because it is related to external environment. The corporate strategy manager of Morgan Motor
Company emphasises on using strategic planning frameworks for determining dimensions or
factors which impacts strategies and decision of entity. For this, two framework that are PESTLE
analysis and Stakeholders analysis are used for analysing impacts as well as influences on
strategies and company. Application of both frameworks is as follows:
PESTLE analysis
PESTLE analysis is a suitable framework for analysing and monitoring situations within
macro environment and its factors that may impact on business (Hammonds, 2018). In present
era, to analyse the impacts of external factors on strategies and business, all companies use the

framework. It includes few factors which are discussed in relevance with Morgan Motor
Company:
Political factor: International trade programmes, taxations, restrictions of trade,
government policies and stability or instability of political system in overseas market are part of
political factor. Within UK, it is seen that the country has stable and supportive political system
that provides huge opportunities to companies that have unique innovation in automotive or
another sector.
Positive impacts: In recent years, huge political integrations are happening across
nations which provides expansion aspects to business. In addition, government of UK provides
incentives and subsidies to motoring companies like Morgan Motor Company and with adoption
to them it can enhance its positions and improve image in the market that could impact positively
for strengthening financial performance and business strategies.
Negative impacts: However, occurrence of few situations can cause hurdles or issues for
the entity. For instance, Occurrence of Brexit causes issues for implementing activities related to
trade and working with other nations that impacts negatively on expansion strategies and
performance of designated business (Chakma, 2018).
Economic factor: Disposable consumer income, growth of economy, business cycle and
so on includes in economic factor. UK has globalised and highly developed economy that
influences entire performance with strategies of entity.
Positive impacts: Within UK, Morgan Motor Company implements operations by
carefully forecasting changing that can occur within business cycle in upcoming duration. This
impacts positively on the strategies as company frames suitable strategies in present and
implements them in the uncertain situations which strengthens its ways to operate and margins of
profits.
Negative impact: When Morgan Motor Company fails in maintaining prices of its cars
according to economic circumstances then situations such as reducing on volume of sales and
revenue can arise which could result in negative impacts on overall enterprise strategies.
Social factor: Population's shared beliefs, age distribution, attitudes and preferences have
linkage to social factors. In UK, it is seen that social conditions are in favour of company that
allows to make unique combinations of heritage, crafts and others in manufacturing cars.