Analyzing Macro and Internal Environment for Business Strategy

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1 ..............................................................................................................................................1
P1 Suited frameworks to analysing influences and impacts of macro environment...................1
M1 Analysation of macro environment to determine and inform strategic management
decision........................................................................................................................................5
Task 2...............................................................................................................................................5
P2 Suited framework to analyse the internal environment and capabilities................................5
M2 Critically analyse of internal environment to assessing the strength and weakness ............8
Task 3...............................................................................................................................................8
P3 Porter's five forces model to evaluate the competitive forces................................................8
M3 Suitable strategy to improve the competitive edge and market position.............................10
Task 4 ............................................................................................................................................11
P4 Range of theories, concepts and models for strategic planning and its application.............11
M4 Strategic management plan by considering tactical and strategic priorities objectives......14
CONCLUSION..............................................................................................................................14
REFERENCE.................................................................................................................................15

INTRODUCTION
Business strategy is consider as set of actions and plans, prepared by
management for running their business successfully and increase profitability. The main
object of business organisation is to attracts number of people and employees also,
which helps to perform all business functions effectively by increasing productivity
(Aaker and Adler, 2014). This is a master plan, implemented by management for carry
forward their operations and achieving business goals in competitive market. To
understand about Business strategy Mc Laren has been selected which is auto mobile
company manufacture cars. Its head quarter in UK and number of employees are 3,798
who helps in business activities (About Mc Laren, 2019). The present report is contains
various topics such as application of frameworks to analyse the impacts of macro
environment, internal environment and capabilities of business firm, porter's five forces
model for competitive advantages and different theories to make strategic decisions.
Task 1
P1 Suited frameworks to analysing influences and impacts of macro environment
Introduction: Business strategy is defined as plans which are prepared by
management for running their business successfully. The main aim of business
organisation is to provide better quality of products at reasonable cost which helps to
increase the trust and profits of organisation. To become successful international
company is the goal of business industry for this different types of strategies are
formulated by management which increases productivity and profitability. Business
organisation deal with macro environment which impacts on business strategies.In
context to Mc Laren company, different strategies are formulated by management which
impacts on business strategies by analysing PESTLE factors which are considers in
macro environment such as:
Vision: “To become largest company in auto mobile sector by offering better
quality of cars”
SMART Objectives :
Specific Measurable Achievable Relevant Time Bound

 To
increase
the
product
and
market
image by
introducin
g
qualitative
and
quantitativ
e
products.
 To
increase
10%
profit
share by
2020.
 To
evaluate
the goals
qualitative
and
quantitativ
e data
going to
be used.
Moreover
compariso
n with last
year
budget
and
preparatio
n of new
budget
help to
measure
goals.
 To
achieve
the
organisati
onal goals
different
resources
such as
money,
man,
machine
and time
are used
by
manageme
nt in order
to reach
near by
goals.
 These are
relevant
goals that
will
increase
the market
image and
share by
attracting
people.
Proper use
of
resources
also
improve
the
business
performan
ce.
 Such
goals
complete
in specific
time
frame that
is 1 year
with the
help of
available
resources
and
skilled
employees
.
Mission: The mission statement of Mc Laren is “ To win Grands Prix and world
championships by providing better quality of products.”
PESTLE analysis: This analysis are involves in to macro environment which
helps to run business by understanding the risk in businesses. This is used by Mc Laren
organisation which influences and impacts on business organisation in UK. The detail of
this analysis in regard of UK country are as defined:
Political: It states the political system of UK country where different regulations
are formulated by government for business industry which are require to follow by

industries (Barney, 2016). This involves foreign trade policy, tax rates, political stability
of UK and other country, labour law, trade restrictions etc. which can impacts on Mc
Laren such as:
Positive impacts: In UK, having stable political stability and government subsidy
for low emission impacts positively on Mc Laren, helps to grown the auto mobile sector.
In Global environment, the demand of environment friendly vehicles are increasing
which can help UK country and Mc Laren to run their business successfully.
Negative impacts: Changes in political system and trade regulations in UK can
reduce the sale of Mc Laren organisation because it make difficult for business firm to
follow the new regulations and work accordingly that can reduce that profitability.
Economical: This means the economical condition of a country which helps
people to buy products and services and increase business sale (Baye, Prince and
Squalli, 2016). This involves economical stability, inflation rate, exchange rate, interest
rate, disposable income etc., can impact on Mc Laren auto mobile industry-
Positive impacts: After Brexit, the economical condition of UK is good, that
increases demand of luxury vehicles that helps to increase the sale of Mc Laren as it
manufacture luxurious cars and make efforts to developed countries.
Negative impacts: Business industries are highly depend on customer's
purchasing power which based on economical condition of country. The economical
condition of UK is not good which can down the sale of Mc Laren because people do
not buys products.
Social: The trend, customer's preference and social culture are changing
continuously in country which needs to be satisfied. This factor influences Mc Laren
organisation in UK such as:
Positive impacts: In UK, auto mobile industry is growing faster by launching
new cars as per customer's perception which affects positively Mc Laren to increase the
demand of cars and sale in high quantities (Bharadwaj and et. al., 2013). Moreover, this
affects the popularity of brand and models continuously.
Negative impacts: If Mc Laren do not focus on customer's preference, style and
culture then popularity of Mc Laren can be downfall which impacts on business sale
indirectly.

Technological: Innovation and technology is strong determinant of market share
in UK that helps to increase the market share of auto mobile sector. Management of Mc
Laren focus on innovation that impacts on business:
Positive impacts: By using new technology, Mc Laren is planning to release a
driverless cars with fuel efficient which influences sales and profitability of auto mobile
company in UK. This impacts positively as incremental in productivity and profitability.
Negative impacts: Not following new technology and innovating new cars in UK,
Mc Laren's market share can be reduced and popularity also affected negatively which
can reduce sale of business firm.
Legal: This factor gets to affect the performance and profitability of business
organisation in particular country (Ghemawat, 2013)(Hofer, 2014). This considers laws
which are related to product quality and safety, employees legislation and brand image
in UK that can impacts on business such as:
Positive impacts: Mc Laren is following the product safety rules by providing
airbags and pollution free test which attracts customers to buy Cars and increase
productivity.
Negative impacts: To follow the environmental laws, tax laws and employment
laws impacts positively on UK and organisation as successful operations in region and
international market.
Environmental: Government of UK, is supporting or favouring low carbon
emission and environment friendliness by formulating different policies and regulations.
The impacts on [such factor on auto mobile organisation defined as:
Positive impacts: In UK and other country, pollution test have grown stricter
which is important for vehicles to pass such test. By considering such factor, Mc Laren
manufacture low carbon emission and fuel efficient cars in UK which helps to maintain
the friendliness environment.
Negative impacts: Not providing low carbon emission vehicles in UK, pollution
will be increase in country which can be reason be high date rate that impacts on
business of auto mobile industry negatively (Olson, Slater and Hult, 2015).
Porter Diamond Model: This is a framework which is used by organisation to
analysis the environment and get competitive advantages such as: