Business Strategy Report: Macro and Micro Analysis of EE Company

This report provides a comprehensive analysis of EE Company's business strategy. It begins with an executive summary highlighting the importance of strategic planning for business success and recommends market expansion strategies for EE Company. The report then delves into a detailed analysis of both the macro and micro environments, utilizing PESTEL to assess the political, economic, social, technological, legal, and environmental factors impacting EE. It examines EE's internal environment through SWOT and VRIO analyses to evaluate its strengths, weaknesses, opportunities, threats, and competitive advantages. The report further applies Porter's five forces model to assess market competition and concludes with strategic planning recommendations, including the use of the Ansoff matrix. The report emphasizes the importance of strategic decision-making for EE Company, a leading British mobile network operator and internet service provider.

Business strategy

EXECUTIVE SUMMARY
Business strategy can be define as set of various activities which are performed by
organization. It is important for business enterprises to formulate business strategy to perform in
business environment. There are various function which can be use by organisation to achieve its
objectives and formulate effective strategies. The present report deals with the external and
internal analysis of the report. It has been recommended from the made detailed analysis that EE
company has to focus on Market expansion strategy in order to achieve the strategies that are
part of their present strategic business plan. In addition to this, organisation can use to identify
the micro and macro environment so that it can formulate business strategy according to
requirement of firm.

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
TASK1.............................................................................................................................................3
P1 Implementation appropriate model investigation 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.............................................................................................................................................9
P3 Analysis the Porter's five forces model which is help to evaluate competition in the market:
................................................................................................................................................9
TASK4...........................................................................................................................................10
P4 Strategic planning for organisation.................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................13

INTRODUCTION
Business strategy refers to the actions and decision that company takes in order to
achieve a goal of the organisation and be competitive in its industry. It is the backbone of the
company as it is the road map which leads towards accomplishment of desired goals. Any
mistake in the road map can outcomes become failure and business getting lost in a crowd of
overwhelming competitors (Akaeze, 2016). The present report is carried on case study of EE
Company to underpin its strategic decisions taken reach a corporate objective. It is one of the
leading British mobile network operator and internet service provider which is brand of BT
group and it is largest mobile network operating firm that provides internet service large scale
and work within brand of BT group. While dealing in 4G networks, another main service offered
by respective firm includes mobile payments, broadband, televisions, radio frequency summary
and HD voice calling. To analyse way this company operates its business and make strategic
decision to run sustainable in complex environment. PESTEL, SWOT and VRIO analysis are
going to be done in present report. Along with this, Porter's five forces framework and Ans off
matrix is also applied on this firm to determine its industrial strengths and weaknesses.
MAIN BODY
TASK1
P1 Implementation appropriate model investigation the impact and influence of the macro
environment on a given organisation and its strategies:
Macro environment is directly linked to the business -cycle which entail conditions that
highly affects a company operations and its performance. Organisation also affects such factors
so discuss below:
Political-: The political system of United Kingdom is strong and stable. These factor are
said to be what kind of policy made by the government and how is impact on any organisation.
For example, government impose new taxation policy and export-import policy which directly
lead to generate a revenue of particular country. It has been announced in the 2018 budget policy
(UK to impose digital sales tax despite risk of souring US trade talks, 2020). In reference of
company, EE company to ensure its sustainability for a long time. Further the government of UK
to acknowledgement the internet as basic human right. Customer believes Internet and data
should be provided by the government and service provider.

Economical-: The economic conditions of UK are strong and effectively aid the growth
of companies that come up with innovative systems and techniques. Innovation in UK and
conducting Smart programme started by R&D department of UK government to aid innovative
companies like EE company (Barry, 2017). Telecommunication sector in UK are ranked on top
position globally, where most of the organisations uses advanced technology like 5G services in
mobile network connectivity and high speed of broadband. Increasing the scope of the services
for EE business in the telecom industry, with lot of mergers and acquisition opportunity to drive
success. Synergy from acquisition of EE is helps in improving cost efficiency and low churn
rates. The economy of UK is likely to recover from the impact of COVID-19 disease. Further the
Brexit distribution has lead to limited access to EU market that will lead to expansion of market
share by 6 percent by the year 2021. these figures are predicting that the economy will be
recovering stage and there will be further growth that will be experienced (UK Economic
Forecast, 2020).
Social-: The social status of UK are good and effective because the horizontal growth is
high. It's easily expand the business in different area (Cullen, 2019). EE company, Customer's
needs these packages to communicate with friends, social media challenges, buy product online,
find stable carrier and more. Telecommunication is important aspects of the daily life of average
person. However, if any of the latest trends are taken into account by rivals before firm, then it
can create threats for the company and may even lead to switching of brands by customers. EE
company free building of products for broadband customer and give superior product
differentiation and also provide a growth in smart phones, wearables and smart device
connectivity which is set in the mind of consumers. The key social trends of UK is that there is a
situation of lief long learning, home based volunteering that is people are working from home for
full time especially because of the present situation of COVID 19 that is going to lead towards
enhancement of the sales in form of availing of broadband services of EE company (The Key UK
Social Impact Trends for 2020).
Technological-: The UK is smart player in technology and new innovations which are
reading in daily newspaper and magazine. Daily new investment in telecommunication sector
and EE company also focus in new innovation in product for example high speed network and
alliances for 6G development (Gauthier, 2017). Capitalization in the “cloud computing” services
by BT' is a global service division and will help to achieve economies of scale. It is new research

and development department of telecom like telephones companies developing fibre wire in their
build over copper wire now. Wi-Fi and broadband connection has been set in buses and cars.
This need leads to more investment in companies who hold a strong influence over telecom
development in computers, smart phones and laptops. There has been use of latest 3D technology
in many organisations the ability to use internet connectivity, wireless charging automation,
security in cryptography as latest technology for the purpose of achievement of a competitive
advantage.
Legal-: The telecommunication industry often impacted by the legislation issue,
especially arise with the government, monopolies and customers (Ho, 2016). The UK
government put strict rules, regulation and guidelines which are required to be followed by
telecom companies. The primary legislation governing the telecommunication in the UK is the
communication Act 2003 which came into force on 25 July 2003. But the industry allowed the
organisation to exporting and importing of telecom products (international smart phone and
technical devices). In reference of company, class action law suits against British Telecom
Italian division. EE company is governed by employment legislations 2019 further the latest acts
that are governing the organisation includes Corona virus act 2020 and executive pay ratio that
has been amended and published on January 1 in 2020.
Environmental-: Carbon emission biodegradable and technology is a external
environmental situation that is faced by the telecom sector. It also includes frequent climate
changes and global warming. In context of EE company, the terms of employment, with
technology advancing, employees need to adapt to latest changes. There has to be increased
focus of the organisation to reduce carbon emission. They can easily make a switch to use of
100% renewable energy (Karnani, 2016).
TASK2
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks
In relation to organisation, there are various internal factor which impact organisation
performance and can also reduce chances of success in market place. Analysis of internals
environment is important for organization in making strong decision. As EE company deals in
telecom industry, therefore, to drive success from internal environment, it is essential for this

firm to analyse its capabilities and competencies first. This would help in analysing areas where
more strategies are needed to be developed to maintain its brand image. For this purpose, SWOT
and VRIO analysis are applied on EE Company in following way –
SWOT Analysis:
Strength Weakness
 Strong brand portfolio is major strength
of EE company. This because
organisation is operating in industry by
covering large number of customers
and providing its services in efficient
and cost effective way. This helps firm
in managing brand portfolio (Prajogo,
2016).
 One more strength of organization is
that it is use proper training and
development for its employees. This is
helpful to organisation in managing
workforce and performing with higher
productivity. For this , EE company use
both on the job and off the job training
methods.
 In context of EE company, investment
in researcher and development as
compare to other firms in market. This
act as weakness of firm because this
will leads to decrease in new products.
 EE company also has weaknesses in its
financial planning this is because
organisation is suffering from improper
allocation of fund because of useless
investments in past years.
Opportunities Threats
 In relation to current business
environment the most shining
opportunity in from of EE company is
that it can use governments green drive
produces to take procurements of state
and feral government contracts.
 EE company is investing a lot in its
 Telecom business in providing stable
profitability to organisation working in
it. This attract large number of
competitors to organisation an also
become threat for firm because new
entrant will decreases market of
organisation and leads to unsuitability

innovation projects which also help
organisation in using opportunities
related to it. This is because it help
organisation identification of pricing
strategy because of product
differentiation in market.
in profits.
 Economic condition are also impacting
as threat to organisation because due to
impact of COVID-19 there is economic
slowdown. This will impact on
organization functions and leads to
unstable sales of product and services.
VRIO Model:
Resources Valuable Rarity Inimitable Organized What is the
result?
Global
presence
Global
presence
- - - Competitive
Disadvantage
Products Products Products - - Partially
competitive
Software Software Software Software - Competitive
advantage on
temporary basis
Employees Employees Employees Employees Employees Competitive
advantage
In relation to EE company, there are various factors which shows organisation capacity .
These are Products , global presence, software technology and employees.
Valuable: These are the resources that possess the potential to add value for customers in
order to render a strategic and competitive edge to company in market (Shuen, 2018). In this
regard, valuable resources of John Lewis are discussed below:-
in relation to this, it includes those resource which are important to organisation in achieving
comparative edge in market because the add value to organisation in serving its customers. In
context of EE company, there are four resort4ces which are discussed below:

 Global presence: This is valuable resource to organisation because firm is performing its
functional global level for example
London, Bristol, Darlington, Doxford, Greenock, North Tyneside, Plymouth and Leeds.
This also helps firm in increasing its profitability. Products: In relation to this, product of organisation are also valuable resource to firm
because it is offering high quality products and services in whole UK which cover
maximum market. Employees: Employees of EE company act as an most valuable resource to firm. This is
because use effective programs related to training and development of these employees
and managing operation in efficient way.
 Software: In relation to EE company, organisation performing in telecom industry where
it is essential for organisation to use well developed software in managing different
operations. It is also offering services like broadband connections and 4G internet and
mobile network. This make software of organisation an valuable resource for firm.
Rarity: It includes this resource which are rare to organisation are essential for firm to
work on its daily operations. In relation to EE company there are three resource of firm which
are rare to organisation. These are product, employees and software. All of these are discussed
below: Products: Products of organisation are rare item fro firm, this is because organisation is
using innovation in its products and services. EE company is providing high speed smart
phone network to customers, broadband services and many other products. Employees: The employees of John Lewis are rare owing to their unique skills,
knowledge and competence which can not be copied by any individual or firm. The
collective efforts of workforce lead to the accomplishment of organisational objectives.
 Software: This is also act rare resource organisation because EE company is using its
own software which act as an rare resource for firm.
Inimitable: It include those resource which are impossible for organisation to be coped
by other competitor in market (Sneh, 2018). In relation to EE company, employees and software
are two resources of organisation which can not be imitate by its competitor in market. Employees: It is non imitable resource of EE company because organisation is using
effective training and development programs for its employees which help them in

increasing motivation and working in effective manager. Company is also using various
motivation techniques which are helpful in relation employee for long period of time.
 Software: in relation to this resource, organisation is using high security platforms and
systems which help firm in managing the security of its system and software.
Organised: Under these, all these factor which are related to organisation and are need to
be organised by firm are induced. These are those resources which are helpful to organisation in
gaining maximum comparative advantage in market where is is trading. In context of EE
company, the most organised resources of organisation is there employees. This act as an
advantage to organisation.
 Employees: Employee in organisation act as an competitive advantage to organisation .
This is because organisation is using a effective system for hiring of talented employees.
EE company also provide training to employees about there respective job by using both
on the job and off the job training methods.
It can be summarize from the above mentioned VRIO analysis that human resource is the
resource that is going to provide EE company to achieve a long run competitive advantage in the
present scenario.
TASK3
P3 Analysis the Porter's five forces model which is help to evaluate competition in the market:
Porter's five force model is a tool which is help to determine competition within the
industry's and also help to find out the weakness and strength of the company. It is model which
is help to identifies corporate strategies and also enhance the company profitability. The five
forces model is given by Michael E. Porter (Sneh, 2018). EE company uses this model so which
are discuss below:
Threat of new entrants-: The threats of new entrants, one of the forces in the porter's five
forces industry analysis framework which refers to the threat that new competitors pose to
current player in the industry. In references of company, huge barriers to entity in form of large
economies of scale, large capital requirements and large product differentiation, heavy switching
cost to buyers and unfavourable government policies so in the telecom sector has a high threat of
new entrants.

Threat of substitutes-: This force refers to supplier that are threaten because buyer easily
find out substituent product at same quality and attractive price. Threat of substitute in telecom
sector is high due to several substituent products and services are available in the market for
example, Fixed line telephones. Different types product and services are available which is
satisfy the basic need of customers. Switching cost is also affected because substitution is
available so customer easily switches to other product and services.
Bargaining power of buyer-: Bargaining power of buyer is high because if supplier
charge a higher price same product and quality so customer can easily switch them with other
brand (Stubbs, 2019). In relevance of organisation, increase the choice of several technologies
and means of communications are available in the market, entrance of the new firms so buyer
power has been increasing. The customer easily access communication like mail, voice services
and instant messaging(Taneja, 2017).
Bargaining power of supplier-: In refers to telecom industry, low bargaining power due
to several firms are available in the market. The suppliers in this industry are the manufactures of
telephones, fibre optic cable network equipment and billing software makers. Although it might
be appear that the telecom equipment suppliers have considerable bargaining power over the
telecom operators, large number of equipments and vendors are available in the market so dilute
the bargaining power .
Competitive Rivalry-: The industry is highly fragmented with various players, such that
there are as a many five- six players in one region. In context of company, This tends to drive
the low margin and profits down. With low product and service differentiation, innovative
services and low price which are means of attracting of new customers, so the high exist barriers
in the form of regulations and equipment have increased the overall competition.
Porters generic strategy:
It is a model that is based on determination of relative position of business that is used for
determination of profitability of a organisation and help in providing the organisation with long
run competitive advantage.
Cost leadership: It is used for setting out the way EE company can use the position of
low cost producer. The source of cost advantage is depended on the industry structure.

Differentiation: In the differentiation strategy the organisation is seeking to achieve a
unique option in the industry. EE company has been able to achieve differentiation by the high
quality services that they are offering to their target segment of customers.
Focus: The generic strategy of focus is on the competitive scope of business. There is
selection of a segment or a group segment . EE company can either use of focus as a strategy or
use differentiation focus to seek differentiation in the target segment of the industry.
EE company can achieve a competitive advantage by use of cost leadership strategy
where they can use this approach for the purpose of expansion of their present market share by
attracting customers based on their low pricing strategy.
TASK4
P4 Strategic planning for organisation
Strategic management plan
Strategic plan can be define as set of different activities which are used by organisation to
achieve its vision, mission and objectives. This consist of various function which has to perform
by manager in relation to available resources. In relation to EE company, a detail Strategic
management plan is mentioned below which consist of aims , vision , mission and many other
factors needed to achieve business objectives.
Aim: To build digital backbone for Britain so that each user of organisation can use fast
services by achieving business objectives.
Vision: To become leading organisation within Telecom industry by improving cutomer
services and making separate market image.
Mission statement: To improve customer services so that firm can provided quality
services to customers by improving its functions.
Objectives: In order to achieve the current aim of EE Company, following objectives are
made that would aid in driving success -
 To increase market share of organisation by 20% this year
 To increase productivity level of organisation by 10% by improving sales and revenue.
 Launching new service in existing market of UK and promoting it in effective way.
In current situation of organization, EE company an use different kind of strategies which
are related to achievement of goals and objectives in organisation. For this, EE company can use

Ansoff matrix. It can be define as an framework which is used by organisation to identify the
best suitable strategy which can be used to achieve competitive advantage in market.
Market Penetration: It is first strategy which can be used by enterprise to achieve goals
and objectives. Under this strategy, organisation can used to improve its existing products and
service in market where EE company is trading. This strategy can be used by organisation to
achieve maximum advantage in market. In context of EE company, this strategy can be used by
organisation in market where it is trading because organisation has support of loyal customer
which enable organisation to improve its products and attract more customer in market.
Company is also providing its serves at effective level which help in managing programs and
achieving objectives (van Bommel, 2018). In this, organisation can use media advertisement and
promotional actives to divide market for existing products.
Market expansion: Under this, enterprise use strategy which involve expanding the
market of organisation by the use of existing products and services. In this, organisation can also
use its products in new market to attract new customers. In context of EE company organisation ,
it can also use this system where it lunching new products in market and achieve its objectives
by increasing market share. Organization can use this by entering to new markets outside the
existing area by providing its existing services to customers.
Product expansion: This strategy can also use by organisation to achieve competitive
advantage. Under this EE company can lunch new product and service in market. This can be 5G
services for mobile internet. This is helpful to organisation in attracting new customers and
retaining old customer by lunching product according to Morden requirements. This is effective
strategy which can be use to achieve objectives of firm.
Diversification: Under this strategy, organisation has to lunch its new product within new
market (Warren, 2016). This is most risky strategy which can be use by organisation to perform
its function because it involve high chances of failure.. In relation to EE company this can be
risky strategy because of nature of industry in which organization is working.
It can be evaluated from the above that EE company can use various strategy which are
related to function of firm. It can be seen that organisation can use market Market expansion is
the recommended strategy for EE company after making the detailed evaluation of the present
procedure. strategy to achieve its objectives. This is because in current time, organisation is

serving to 90% of total customer in market of UK. So, it will be effective for organisation to use
this strategy and increase its market share.

CONCLUSION
It can be concluded from the above mention information that business strategy is
important for organisation to achieve its objectives. It can be seen that there are various function
which has to performed organization related to scanning of internal and external environment
and developing better strategy to achieve business objectives. It can also summarised from above
mentioned report that firm hast to perform effective scanning by using models to achieve
competitive advantage in market. In the addition to this, for achieving stable perforce in telecom
business where most of the companion are performing like monopoly market. EE company has
to use business strategy by minimising negative impact.

REFERENCES
Akaeze, C.O., 2016. Exploring strategies required for small business sustainability in competitive
environments.
Allen and et. al., 2016. Women in business: Perspectives on women entrepreneurs. Routledge.
Barry, T., 2017. Communicative strategies and tactics of speech manipulation in intercultural
business discourse. Training, Language and Culture, 1(1).
Cullen, U., 2019. Sociocultural factors as determinants of female entrepreneurs’ business
strategies. Journal of Entrepreneurship in Emerging Economies.
Gauthier, J., 2017. Sustainable business strategies: typologies and future directions. Society and
Business Review.
Ho, P.H., 2016. Analysis of competitive environments, business strategies, and performance in
Hong Kong’s construction industry. Journal of Management in Engineering, 32(2),
p.04015044.
Karnani, A., 2016. Fighting poverty together: rethinking strategies for business, governments,
and civil society to reduce poverty. Springer.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International journal of production Economics, 171,
pp.241-249.
Shuen, A., 2018. Web 2.0: A Strategy Guide: Business thinking and strategies behind successful
Web 2.0 implementations. O'Reilly Media.
Sneh, M.S., 2018. Analysis of Business Strategies of Salesforce. Com Inc. Sneha, MS & Krishna
Prasad, K.(2018). Analysis of Business Strategies of Salesforce. com Inc. International
Journal of Case Studies in Business, IT and Education (IJCSBE), 2(1), pp.37-44.
Soler and et. al., 2016. The impact of family business strategies on hotel room prices. European
Journal of Family Business, 6(1), pp.54-61.
Stubbs, W., 2019. Strategies, practices, and tensions in managing business model innovation for
sustainability: The case of an Australian BCorp. Corporate Social Responsibility and
Environmental Management, 26(5), pp.1063-1072.
Taneja, N.K., 2017. Driving airline business strategies through emerging technology. Routledge.

van Bommel, K., 2018. Managing tensions in sustainable business models: Exploring
instrumental and integrative strategies. Journal of Cleaner Production, 196, pp.829-
841.
Warren, G.E., 2016. Small business strategies for sustainability beyond 10 years.
UK to impose digital sales tax despite risk of souring US trade talks, 2020 [online], Available
through<https://www.theguardian.com/media/2020/mar/11/uk-to-impose-digital-sales-tax-
despite-risk-of-souring-us-trade-talks>
The Key UK Social Impact Trends for 2020, 2020 [online], Available
through<https://www.tbd.community/en/a/key-uk-social-impact-trends-2017>
UK Economic Forecast, 2020 [online], Available
through<https://www.focus-economics.com/countries/united-kingdom>