Analysis of Macro and Internal Environment of McLaren Automotive

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1. Appropriate frameworks for the analysis of influences and impacts of macro environment
on selected enterprise and its strategies.......................................................................................3
M1. Critical analysis of macro environment to determine as well as inform strategic
management decisions.................................................................................................................7
P2. Appropriate framework for analysing internal environment along with capabilities of
chosen organisation......................................................................................................................7
M2. Critical evaluation of internal environment..........................................................................9
P3: Evaluate the use of Porter's five force model in competitive market..................................10
M3: Produce appropriate strategies to improve competitive edge and market position of
company.....................................................................................................................................11
P4 & M4: Using range of theories produce strategic management plan to gain business
objective ...................................................................................................................................11
D1: Apply environment and competitive analysis to produce strategic direction, objective as
well as tactical actions...............................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business strategy involves combination of decision as well as actions which are
performed to secure the competitive position and accomplish business goals. It is used to carry
out desirable performance by securing core position within the market (Akter and et. al., 2016).
An effective strategy outline the process by which business needs to be carried out in order to
reach desired ends. To better define the topic McLaren company has been selected which is the
automotive company of United Kingdom. The company manufacture as well as sell sports cars
globally by dealing customers via physical stores and online platform. This report cover topics
like determine the process by which macro environment can impact the strategies of an
organisation. Critically evaluate internal environment on the basis of internal capabilities,
structure as well as skill set. Prepare appropriate strategy by using Porter's five force model to
gain competitive edge and establish unique position in market. Further, produce strategic
management plan by using set of theories and model.
MAIN BODY
P1. Appropriate frameworks for the analysis of influences and impacts of macro environment on
selected enterprise and its strategies
Organisational overview: McLaren Automotive is well popularise automotive
manufacturer of UK. Its main products are super cars that are manufactured in house by
production team having full facilities. It serves worldwide areas with its services and products to
sustain its position in international market. The vision statement of McLaren Automotive is to
achieve excellence within all its businesses (McLaren Automotive, 2017). Considering its
mission statement, it is to innovate, grow, create and sustain business through developing people
addition to culture. Objectives of the respective institution is to preserve along with promote
motoring history together with related heritage, to become guardian together with conservator of
motor-sport memorabilia that involves motor sport trophies, photographs and many more. .
Macro environment: The environment that resides outside business boundaries and have
huge impacts on operations and performance of firm is described as macro environment (Charter,
2017). Various elements are part of this environment which viable influences strategies that the
company is either implementing or is willing for implementations. To analyse and monitor
macro environment and its impacts on enterprise together with key strategies, various

frameworks are used by corporate strategy manager of McLaren Automotive. Few frameworks
are discussed underneath:
PESTLE Analysis
It refers the the framework through which is majorly opted with the purpose to scan
environmental components and determining key change drivers is defined as PESTLE analysis.
It allows companies to assess existing situations within external boundaries and potential
changes. Following is the application of such framework within McLaren Automotive:
Political factor: It refers to the dimensions given by politics. It indicates political
situation of a nation that influences programmes, strategies, tactics, actions and operations
adopted by a corporation. In UK, it has been analysed that there is stable and fair system of
politics that provides ample opportunities to automotive industry to gain growth and expansion
objectives. With respect to McLaren Automotive, grabbing the opportunities and gaining growth
will impact positive on the employed strategies as this will help in achieving international goals
of institution. In contrary, post- Brexit news resulted in threats for the respective firm as it causes
various issues in context to increasing trade barriers, vehicle costing as well as lower sales that
resulted in reduces operation ease and sustainability which impacted drastically on strategies to
manage the company.
Economic factor: Entire economic performance of a country is described within
economic factor (Feldman, Amit and Villalonga, 2016). UK's economy is seen as highly
developed and have orientation with market. McLaren Automotive offers its super cars in
hundreds of nations which posses different exchange rates as well as consumer disposable
income. When there are some business cycle changes in economy of UK, in such situation,
various impacts on strategies of company arises. For instance, in recession period, sales volume
might decrease. Moreover, more production then market requirements or demands increases
inventory cost and lower revenues that impacts negatively on strategies of company. However,
there are some periods in which sales of company increases because of multiple auto-mobile
purchasers that will help in boosting profits and capturing wide segment within commercial
market can impact positively on existing strategies of McLaren Automotive.
Social factor: Elements that scrutinise social environment of country and gauges
determinants such as cultural trends, analytics of population, attitude for product an so on. UK's
population have various preferences, interest and positive attitudes for super cars. For satisfying