Analyzing the Impact of Macro Environment on Nissan's Strategies

This report analyzes the impact of macro environment on Nissan's strategies, including the use of PESTEL analysis. It also examines the internal environment and capabilities of Nissan using SWOT and VRIO analysis. Additionally, it evaluates the competitive forces in the automobile industry using Porter's Five Forces model.

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
TASK1.......................................................................................................................................3
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies.........................................................3
TASK2.......................................................................................................................................5
P2 Analyse the internal environment and capabilities of a given organisation using
appropriate frameworks.........................................................................................................5
TASK3.......................................................................................................................................7
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation.......................................................................................................7
TASK4.......................................................................................................................................8
P4 Applying a range of theories, concepts and models, interpret and devise strategic
planning for a given organisation...........................................................................................8
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................10
Books and journals...............................................................................................................10

INTRODUCTION
Business strategy can be defined as set off and different activities which are used to
return my business organisation for formulating a proper strategy within the competitive
market for achievement of goals and objective of the organisation has increased its market
share (Park and Mithas, 2020). Current report chosen organisation is Nissan, Japanese
multinational automobile manufacturing company which has headquarter in Yokohama.
Nissan motors are famous for low cost production as well as highly design with full Techno
facility. In the beginning of the report, there is discussion about influence of macro
environment on the organisation and its strategy by the help of PESTEL analysis (Hart,
Sharma and Halme, 2016). Thereafter, there is also analysis of internal environment in
capacity of the organisation by the use of SWOT and VRIO analysis. in the middle of this
report garage discussion about the porter's five force model which will help organisation in
achieving the competitive advantage within the market. In the end of this report, there is
application of various theories and modern concert which will help company strategic
planning and achieving its goals and objectives.
MAIN BODY
TASK1
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies.
It is important for every organisation to clearly examine the micro environment where
the organisation is going to trade or trading. Help the firm in identification of different
opportunities in the market as well as appropriate decision related to different factors
influencing. In context of Nissan, global organisations for it are important for the firm to
perform proper macro analysis and for this it can use the pestle analysis.
PESTEL analysis of Nissan
PESTEL analysis is Framework which is used by the organisation to clearly examine
its macro environment factors where it is trading or going to trade. It includes Identification
of political, economic, social, technical, legal environmental factors. Organisation in
strengthening its decision making ability as an identification of alternative in the market.
Political: It includes rules and regulations form but different governments within
various Nations organisation is trading currently or is going to trade. In context of Nissan,
companies performing at global level so it have to deal with various policies rules and
regulation formed by different governments in different nations (Anderson, 2019). This is
impacting both positively and negatively to the organisation as company have to face various
policies which will help organisation in strengthening its structure but on the other hand these
policy also make it difficult for the organisation to remain flexible because of continuous
changes and strict rules and regulation form but different nations government like China
America and some Asian countries.

Economic: These are those factors which impact on the performance of organisation
and include factors like trade policy exchange rate GDP growth and many more. In reference
to Nissan, headquarter of company situated in Japan where the organisation is performing for
better because of economic factors like GDP growth is good in Japan, the per capita income
of Japan people is also effective. So, this is working effectively in context of Nissan and help
firm in taking decisions related to global expansion more effectively.
Social factors: these are those factors which are related to the trends within the
society of the market where the organisation is trading. Social factor have direct impact on
the business of automobile industry because there is continuous changes within the trends of
the society. Current time there is a trend believe and culture towards the electronic cars
within the automobile industry which also impacting the performance and decision making
ability of Nissan as it have to know produced more electricity friendly environment friendly
cars which will help in grabbing the behaviour of individuals with in the society in taking
decisions according to eat for increasing profitability (Wei, 2016).
Technology: these are dost factors which are related to changes within the technology
in the market where the organisation is trading and selling its goods and services. In context
of Nissan, company have separate research and development department where search about
different new technologies within the market and use this technology for increasing the
quality of their product. This will help the organisation in grabbing attention of different
individuals within the target market as well as achieving its objectives in an appropriate
manner.
Legal: rules regulations and policies of different authorities within the market where
the organisation is working for the nation where it is governing its functions are covered
under the legal factors. These have direct influence on the performance of the firm as well as
legal liability within the nation where it is working. In context of Nissan, it always follows all
rules and regulations related to different nations where it is selling it services and products.
This will help organisation in building a proper brand image as well as impact positively on
the Goodwill of the firm (Yuliansyah, Gurd and Mohamed, 2017).
Environment: environment factors are those which are related to climate change,
geographic location and other environmental factors. In context of Nissan, company solar in a
proper environmental protection rules where it started manufacturing electric cars which will
help in reduction of carbon and harmful gases within the environment and will protect the
climate change. This also getting positively on the organisation is there is friend within the
society towards electronic cars so company can increase its profitability as well as sales
because of following these norms related to environment (Garrette, Phelps and Sibony,
2018).
It can be evaluated from the about that pest analysis is important part of every
organisation to take decisions related to different aspects of the business. It will enable the
organisation to choose effective strategy and make decisions according to the analysis of
different environments and factors which will directly impact on productivity, profitability
and long run of the organisation.

TASK2
P2 Analyse the internal environment and capabilities of a given organisation using
appropriate frameworks
There are various internal environment factors which also impact on the performance
of the organisation as well as its decision ability within the current market where it is trading.
In context of Nissan, company can use SWOT analysis and VRIO analysis. To examine
different factors within the current market related to internal capabilities and environment of
the organisation.
SWOT analysis of Nissan
SWOT analysis of Framework which is used by the organisation to clearly examine
its strength weaknesses opportunities and threats within the current market to increase its
decision making ability as well as perform at effective level.
Strengths
 Effective alliance: the major strength of Nissan is that it has effective alliance with
Renault which makes it possible for company to expand its global operations and
share technology more effectively.
 Effective research and development: Nissan also have strength of research and
development department because company spend huge amount on research and
development which help company in developing the bestselling electric vehicles in
the world.
Weaknesses
 The major weakness of Nissan is its marketing and advertising capabilities where it is
not able to promote its branding effectively within the world (LIU, 2017).
 Massive product recalls in USA is also acting as a weakness for the organisation.
Opportunity
 Increasing government regulations are the major opportunity in front of Nissan
because due to changes in government policy regarding petrol and diesel Vehicle
Company can easily promote its electric vehicles.
 Company also have a opportunity to type with different organisations within the
market for increasing its market share as well as launching company as an worldwide
organisation.
Threats
 Increasing competition is a major threat in front of Nissan because there is continuous
development of various other automobile industry organisations which are impacting
negatively on the profits of Nissan.

 Natural disasters are also impacting as a threat to the organisation because
headquarter of Nissan is situated in Japan which is earthquake prone area.
VRIO analysis of Nissan
It is a Framework which is used to understand the competitive advantage and
capability of the organisation by examining different tools and their external and internal
values within the organisation. It includes four factors which study the resources in the form
of valuable, rare, immediate and organised. All of these are discussed below:
Valuable: Valuable resources which are important and foremost for the every
organisation in the competitive environment where it is trading. In context of Nissan,
company have four valuable resources which are technology financial resources human
resources and innovation. These all are valuable resources for the organisation because they
facilitate company a competitive advantage and important for the organisation to achieve its
goals and objectives (Gürel and Tat, 2017).
Rare: It includes those resources that cannot be acquired by one or very few
companies under considered as a rare for the organisation. Combination of rare and valuable
resources granted temporary competitive advantage to the organisation. In context of Nissan,
there are three rare resources from the valuable resources to the organisation. These are
technology, Innovation and human resources. All of these are there to the organisation
because they cannot be graft easily by different organisation within the market because of
high investment made by the organisation on them (Sia, Soh and Weill, 2016).
Imitate: It include the resources which are costly to imitative other organisation
doesn't have them and want to imitate from the organisation. In context of Nissan, the two of
its major resources which are human resources and technology cannot be imitated by its
competitive because organisation made a high investment in human resources as well as
technology where it is impossible for other to make it (Dawes, 2018).
Organised: It includes the resources which are a competitive advantage to the
organisation for longer period of time and is organised by the organisation to use the fuller
value of that system process politics organisation structure and culture in related to the
resource. In context of Nissan, there is only one resource which is organised by the
organisation and it is the human resources of the firm. This is because human resources are
the important part of the organisation and it spends a huge amount on training and
development of these resources for the competitive environment and gaining that advantage.
So, from the above it can be evaluated that both SWOT analysis help in identification
of different capabilities and internal environment strengths of the organisation which can be
used to grab the golden opportunities within the market and increase the market share of firm
by enabling its performance in an effective manner and strong its decisions

TASK3
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation.
Porter's five force model
Porter five forces model is that business analytical model which will help the
organisation in understanding various factors within the industry where it is trading and
attaining the sustainable level of profitability by managing its different operations. This
model is propounded by Michael E porter. Define five types of forces which are competition
within the industry potential of new entrants into the industry power of suppliers power of
buyers and threat of substitute product. All these factors are stated below:
Competition in industry: This is the first force within the five forces of competition
which is directly related to the competition within the industry. In Context of Nissan,
operating in automobile industry where there are large number of competitors within the
industry which have equal or bigger organisation then Nissan as well as they also enjoy the
economy of scale and large scale production. This makes it low competitive advantage factor
for Nissan because there are large number of competitors which have good infrastructure as
well as investment in comparison to Nissan. Organisation has to form proper policies and
procedures to deal with its competitive rivalry as well as must charge lower prices from its
customer (Schawe and Billing, 2018).
Potential of new entrants into the industry: According to the name, this is directly
impacting on the performance of the organisation and actors in competitive advantage or
disadvantage to the firm because of new potential of new entrants within the market. Nissan
is trading in automobile industry the capital investment as well as infrastructure investment is
high for a new entrant. All season procedure for obtaining the licence and starting is business
is also difficult for a new entrant because of different government policy. It this is a
competitive advantage to the Nissan, there are no chances for new entrants with in this
industry where the organisation is trading.
Power of supplier: It is also important factor within the porter's five force model
which is directly related to the performance of the organisation within the market and a
competitive advantage towards suppliers. In context of Nissan, it is trading within the
automobile industry where there are large number of supplied to the organisation because of
the product availability and high profit margin. Competitive advantage to the Nissan it can
easily begin from its suppliers about the cost of products because there is large number of
supplier where organisation can also get the benefit of credit facilities (Bryson, 2018).
Power of customer: powers customer can be define porter's five force model which is
directly related to the influence of customer on the product of organisation. Nissan has large
number of customer place as well as industry is also having various types of customer
because of continuous development and improvement with the technology. Competitive
advantage to the organisation because there is large number of customers of company can
charge high rates from its customer and increase its profitability.

Threat of substitutes: tractor within the porter's five force model which directly
impact on the performance of the organisation because of that of substitute within the market
where the organisation is trading. This can impact on the organisation performance as a close
substitute can give a tough competition to the organisation and can decrease the profitability
of form as it have to reduce its margins on a product because of close substitute. In Context
of Nissan, companies operating in a closed competitive market where there is large number
of substitute available to the company products and innovative car. This have to clear all the
factors and take decision according to it within disconnected because it is not a competitive
advantage for the firm (Papke-Shields and Boyer-Wright, 2017).
It can be seen from the about that porter's five force model can be used by the
organisation to analyse the competitive advantage and its resources for making profitability
within the market and running the business for long period of time.
TASK4
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation.
It is important for every business organisation to make a proper strategic plan where it
can achieve the goals and objective as well as properly and locate its resources to different
activities for gaining maximum advantage within the market. In context of Nissan, it can use
a proper Framework which is known as ANSOFF matrix. It will help in forming different
strategies at different level which will help organisation informing better.
Market penetration: it refers to the process where the organisation used to develop
its existing product within the existing market to expand its business as well as increase its
market. Nissan is operating at global level where company have large market cover and it can
easily give the strategy where it can develop its existing cards by using some innovative
methods within the existing markets where the companies trading for stabilizing the
environment as well as gaining maximum advantage by increasing its market cover in
existing markets (Cassidy, 2016).
Market development: this strategy can also be up by the organisation where it can
launch its product within the new market. The strategies helpful for the organisation where it
is want for the expansion two different economies. It is also good option for Nissan because
there are various countries where it can launch its business and launch the existing products
within these markets. This will help company in increasing its market cover in other Nations
as well as increase profitability by global reach.
Product development: this strategy can also offer by the organisation in which
organisation have to develop its product a new product within the existing market. This
strategy is helpful for Nissan as company can developed new type of electronic cars which is
also an opportunity for the organisation within its existing market because of easy norms
related to electronic cars and changing trend within the market (Channon and Jalland, 2016).

Diversification: diversification is the most risky strategy this is because it includes
the launching of new product within the new market. This includes high risk of product
failure as well as implementation of use cost on market research as well as product
development. This strategy is not suitable for Nissan, this is because companies operating in a
global market where it is difficult for the firm to recover from the huge loss which will occur
from this diversification strategy (Lang, 2018).
It can be seen from the above business strategy that ANSOFF matrix is useful for the
organisation to implement a proper strategy but in context of Nissan it should choose the
strategy of market penetration where it can easily achieved its aim, objectives and targets.
CONCLUSION
It can be concluded from the above mentioned report that it is important for every
organisation to formulate a proper business strategy for achieving its goals objectives and
targets. It is also analyse that Nissan is trading in a global level so organisation have to
clearly examine its strength and weaknesses of internal and external factors by the help of
SWOT and pestle analysis. This can also see that competitive environment analysis is
important for the organisation which can be done by the use of porter's five forces model
which help organisation in knowing its competitive advantage and point for gaining it. In end
it can also concluded that organisation can use the ANSOFF matrix for performing and
identifying the particular strategy for doing business in competitive environment.

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