Business Strategy: Macro Environment and Lotus Company Analysis

This report provides a comprehensive analysis of the business strategy employed by the Lotus Company, a prominent British automotive manufacturer. It begins with an introduction to business strategy, emphasizing its role in optimizing organizational functions and navigating market challenges. The report then delves into Task 1, demonstrating the influence of the external macro-environment on the company's strategic planning through a PESTLE analysis, evaluating political, economic, social, technological, environmental, and legal factors. Task 2 interprets the internal and external environmental capabilities using SWOT analysis, highlighting the company's strengths, weaknesses, opportunities, and threats. Task 3 evaluates competitive market advantages and disadvantages using Porter's Five Forces model. Finally, Task 4 interprets the strategic marketing plan, including tactics adopted by the business. The report concludes with a summary of findings and a list of references.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1. Demonstrate about the influence of external macro environment strategic plan for the
organisation perspective...............................................................................................................1
M1. Briefly scrutinize the suitable macro environment about the organisation context ...........4
D1. As in Detailed investigation of overall information data through applying environmental
and competitive analysis to produce to set the optimum path and tactical approaches...............4
TASK 2............................................................................................................................................5
P2. Interpreted the situational internal and external environment capabilities in the perspective
of particular company..................................................................................................................5
M2. Through detailed analysation of above internal and external aspects of environment terms
in strength and weakness within external environment...............................................................7
TASK 3............................................................................................................................................8
P3. To evaluate within the method of applying Porter five forces as in business strategy
formulation to measured eth competitive market advantages and disadvantages within the
context of organisation.................................................................................................................8
M3. Critically analysed the appropriate strategies which can developed the competitive market
position. .....................................................................................................................................10
TASK 4..........................................................................................................................................11
P4. Interpret the strategic marketing plan of an organisation ...................................................11
M4. Produce the tactics that are mostly adopted by business ...................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
The business strategy is the systematic procedure which is assort during to optimised the
aspects of organisational work where various form of business method, function and other
management approaches to help for scrutinizing of the opportunities and challenges in the
market in considerate of specific organisation. A manager or experts in background of
organisation development and marketing team are entitled to identifying the scopes and factor in
the market point of view in which the scopes and issues are evolved during the business
establishment as it also making improvised the decision making of organisation owners and
manager within the perspective of measuring the market share, profit match making with
compare of other company performance and product differentiation other more further featured
process to supports and guide to run the business (Adam, 2016). On the perspective of
Automobile industry their team is prepared to identifying the market issues and performing
opportunities to grab and utilised it in better way.
Introduction of Company
The Lotus company is come across in Automobile industry as it is the most prominent
British automotive venture where it operates within the headquartered in United Kingdom, that
manufactured sports and cars and racing cars to basically in sports events of rally racing
organised in international region as well as it targets the car desirables and youngsters
consumers.
TASK 1
P1. Demonstrate about the influence of external macro environment strategic plan for the
organisation perspective
As the description of macro environment is the external influence which propounded
about the outsider power that can affect the business ventures into differentiate factor like
political, economical, social, technological, environment and legal. For that to analysation the
Pestle framework identification is to mapped the opportunities as well as drawbacks about the
business ventures perspective, similarly as for Lotus company following there is description
about the Pestle analysation on to which scrutinize the positive and negative flaws regarding with
business point of view. But before that there is short brief is contributed about company’s vision,
mission and objectives are as follows.
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Mission: “As to make the exceptional models to deliver within the optimum service”.
Vision: The company is derived about their vision that Lotus is presumes the ‘Simplify, then add
lightness’. Which comprise is that as simple specification presence in model which reflects
unexpected performances (Bakhtieva, 2017).
Objectives: the optimum aim of Lotus company is to provide the best automotive models by
generating the rich amount of accessories in it and enhanced their expectation fulfilled within
their services and quality of performances as they driven through with their product performance.
PESTLE Analysation
The framework of Pestle analysation is emphasis about the macro environment
investigation where it defines the stimulus or impact of external factor influence in overall factor
of market.
Political: As through this factor is derives about the various formation of rules and
regulation which has driven by corporate governance in terms of policies, corporate taxation
rules etc , which has to abide each and every form of company. Different industry of company
having distinct source of principles which follows by the company perspective as the Lotus
company is coms undertaken in Automotive industry as it follows the acts and legislation which
brings the stability as well as it brings the favourable outcomes (Ben‐Amar and McIlkenny,
2015).
Economical: The factor of economic factor the describes about the factor which are
determined or having important role in it as inflation, recession, demonitization, or any corporate
destruction which slow the down the economy of nay region that having a direct impact on
country’s companies like in United Kingdom having one factor that can effect the Lotus
company as it Brexit market where more of automotive company get resist to not trading within
outside customers such as in Europe countries the relation as in business terms are not
appropriate way.
Social: Through enhancement of the socialise factor which helps to considerate the
demographic factor as it allows the targeted customers which demonstrate the organisation to
choosing the right featured of trait consumer in group of age, gender, religion and other business
norms that actually performed in socially segmentation. As for Lotus company they have opted
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their customer on the basis of their product specification and objective to introduced in the
market where youngster and car desirables are considered for their product.
Technological: To making implement of new resources in terms of advancement of
machinery new updating of any kind of software is introduced in the market through the
considerate of the company vision and objectives. As in perspective of Lotus venture they
determines about their technologies which they introduce for the betterment of their product like
in their models and accessories which improvised their creativity and decision making stronger.
Environment: On highlight the welfare of culture benefits in surrounding environment
like in provide general description about organisation to not produced the any kind of product
which having any type of negative flaws or create any disturbance harms towards the
environment welfare. Lotus company has ensure that their having models which can pollute the
environment by not to be happen they started to inputs the eco friendly fuel which will not
produce any kind of air pollution within the atmosphere.
Legal: By announcing the regulatory norms and values through government factor or
aspects within the presence of policies that driven the outermost of company perspective on
which they have to abide the rules in terms of employment acts, bonus acts and many other that
driven through compliances to making understands about the working procedure continues
through systematic procedure (Davenport, 2014).
Structure conduct performance model:
It is another analytical framework for analysing influence and impact of macro
environment on business and its strategies. The model was propounded by Edward Chamberlin
as well as Jaon Robinson in the year 1933. As per the framework, market environment have short
term along with direct impact on structure and practices of company that influences
performances of business. The model includes three elements that are significant fro entity to
consider as they influence behaviour of market towards organisational strategies. The elements
are as follows:
Structure: It is defined to construction, formation as well as make-up of industrial
company. It is also said to kind of environment wherein organisation operate. In context to
Lotus company, it works in market structure of Automotive industry in which technological
changes occurs on rapid manner that impacts strategies of the company to manufacture cars and
other vehicles in positive manner.
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Conduct: The element defined about behaviour of buyers and sellers within market
structure. This al;so includes the manner wherein buyers and sellers interact and they ways they
behaves. Lotus Company interact with its consumers through emails and provides them detailed
information about its products that are vehicles and also provides discounts its loyal clients that
impacts positively on its strategies to sell products in market.
Performance: This comprises accomplishments of particular market or industry. The key
performance dimensions which are considered in market are product quantity, production
efficiency and product quality. In case with products of Lotus Company, production of vehicles
is done with great efficiency. However, due to lack of availability of materials on time, the
company have to compromise with quality of materials in manufacturing vehicles that impacts
negatively on its operational strategies.
M1. Briefly scrutinize the suitable macro environment about the organisation context
The formal analysation of Pestle framework within the context of Lotus venture as they
have suitable factor from macro environment would be Social and Technological factor as it will
helps to making approach the right consumer and introduced the new technology which will
brings the productivity enhancement as well as growth in company. Other factors are also having
importance as they derives the generalisation about the significant situational benefits such as
regulation and laws related to automotive industry as well as general, economic slow down
reasons which impact the company growth and it reduces the power of buying after that to not
making any kind of climatic disturbance (Engert and Baumgartner, 2016).
D1. As in Detailed investigation of overall information data through applying environmental and
competitive analysis to produce to set the optimum path and tactical approaches.
Through overall perspective of the Business strategy in background of Lotus company
where the discussion is coming through in macro environmental factor which emphasis about the
opportunities and challenges of the organisation performance factor. On other hand of the
analysation of internal assessment of Swot Analysation in terms of automobile business
perspective to gain and measured of strength and weakness along with opportunities and threats
of the company availability in market and as per the last interpretation of Porter’s five force to
making examine about the threats and consumer behaviour and perception about the product
existence in the market or further the new player performance in the market.
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TASK 2.
P2. Interpreted the situational internal and external environment capabilities in the perspective of
particular company
The background of internal and external environment having the competency is to
determined of an organisation considerate in the formation of Swot analysation to making
describes about the strength, weakness, threat and opportunity of market consideration as well as
company point of view. These orientation is derives about the particular company positive and
negative factor along the opportunity available and threats of their products. As in Lotus
automobile company having the enhancement of Swot Analysation to measured the issues and
opportunities actively participants by company team player as per growth performances (Grave,
Van de Wetering and Rutledge, 2018).
Swot Analysis: This Swot analysation is comprising all the threats, weakness and
opportunities are internally available in Lotus Company in automotive industry and market.
Strength: As it propounded of the inner stability and outsourced strongest influnces
which the company performed in their benchmarked level of performance as in context of
reliability, Quality status which represent the product and service of Lotus Company. As they
have created the light weight of model design as heavy featured of optimum power of engines as
well as they have prominent experts who came to designed the models and suggests the best
practises to increase the best quality of manufactured and they have strong marketing team of
brand promotion in all over the international market.
Weakness: This is the negative internal factor that describes about the company less
productivity approach where they have capabilities but it enough to accomplish the objectives as
the Lotus company having their manufactures are not owned they have to hire from other
domicile engineers as they have to depend on other manufacture and they have huge restriction
in other countries like Europe as they do not able to produce their model in those countries
market.
Opportunities: Many other companies promotes the lotus company cars in other region
as they manufactured Formula One concept model, They have better service quality in which
they substitute their production or manufactured house which having enhancement cost of
production declination (Jasiulewicz-Kaczmarek, 2016). Having a wider scope in United kingdom
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where most of youngster are preferred the Lotus company vehicle car as they have better
goodwill in the market.
Threats: The most disturbance of Lotus company is they have less prominent market
share in the presence of automobile industry as European countries are more likely to
manufactured of luxuries and sports car like BMW, Audi, Porsche etc. The aspect of external
factor in macro economic they have less consumption of luxury product and services, as many
consumer are not likely prefer to go sports cars and they prevent more pollution factor that why
Lotus company having a strong threat of not manufacturing the Eco friendly models.
VRIO Model:- This model is described as analytical technique implied by an
organisation for developing its effective resources to increase its competitive strategies for
sustaining in global market. It is essential for an organisation for developing larger strategic
schemes for company in order to achieve its goals and objectives (Laudon and Traver, 2016).
The managers of Lotus Cars implement this model as to examine their internal and external
strategies for minimising controllable and uncontrollable risk that can affect the stability of
business.
Resources Valuable Rareness Imitability Organized
Global presence Yes No No No
Distribution channel Yes Yes No No
Technology Yes Yes Yes No
Customer service Yes Yes Yes Yes
 Valuable:- The managers of Lotus Cars are highly valuable as its main motive is to
utilise its scarce resources effectively. It leads company to achieve goals and objectives
efficiently and develops competitive strategies for being stable in global market. The
company majorly focus on its global presence as being highly dedicated towards this
resource for building good brand image and reputation in global market by building trust
and faith among its potential customers (Lokuwaduge and Heenetigala, 2017).
 Rareness:- Managers of Lotus Cars aims to utilise these scarce resources by developing
various competitive strategies to compete with its rivalries such as Cater-ham Cars, Geely
and Aston Martin. The company managers mostly emphasize on providing direct and
indirect channel of distribution for its customers to meet their requirements at various
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location. This channel of distribution involves manufacturers, wholesalers, agents,
retailers and consumers.
 Imitability:- The managers of Lotus Cars focus on adoption of new technology in their
scarce resources for developing new structure, design and model of their car. It is
beneficial for company as it cannot be copied by its rivalries available in perfect
competition market. The main purpose of company is to attract large number of target
market by encouraging them to purchase least-cost effective products with specialised
features that result in accomplishing success efficiently.
 Organized:- Managers of Lotus Cars concentrates on developing good customers service
by providing them qualitative products and services for fulfilling their needs and wants. It
is essential for company to build good customer relationship management that tends to
analyse the change in taste and preference of their potential buyers (Maheshwari and
Yadav, 2018). The company further manufacture car model as per the desire of its
customers and supply features such as air bags that are helpful at time of accidents as
precautionary steps. It leads to develop customer support and loyalty for achieving high
level of satisfaction at which they are ready to pay high prices.
M2. Through detailed analysation of above internal and external aspects of environment terms in
strength and weakness within external environment
By having the optimum understanding about the internal and external factorization of
Lotus Automobile Company As to measured their Swot Analysis it obtained some highlighted
point as in strength, weakness, opportunities and threats which is propounded within the
generalisation to scrutinize it as in term so threats and weakness is most important factor that has
to be recovered where Lotus is one of the automotive company whose still suffering to not
manufactured the Eco Friendly vehicle in the presence of the market as well as they have to
depended in other manufactured labour (Mervelskemper and Streit, 2017). All these elements
can make consequences which cen decrease the growth of the company. But it ensures they have
captured the other region market within their better performances by entitled of business
opportunity and strength as they utilised it in proper manner.
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TASK 3
P3. To evaluate within the method of applying Porter five forces as in business strategy
formulation to measured eth competitive market advantages and disadvantages within the
context of organisation
On the behalf of the Porter’s Five Forces demonstration it helps to analyse the
competitive market as in terms of substitute, opportunities and scope of challenges in new
market business growth optimisation, dynamic changes of product and market specification
along with consumer taste and preferences in terms of approached the product and services
which evaluate the growth of buyers and suppliers.
Porter’s Five Forces
This is the functioned through managerial procedure which generates the optimum
information regarding the organisation performance as well as their scope and opportunities
regarding with product and market as well as it also represent the competitors nature as they
introduced the same products within belong from same industry to applying the strategic
planning.
 Threats of Substitute: The term of product respective when there is strong market
having an approach of consumer as they are like the product quality and quantity but the
disclose of new substitute can presence makes disturb the other market product
performance. As in context of Lotus company having their good will of their product in
the United Kingdom market according to their performances they gained the more
exposure of market share, but within their existence the substitute of another product of
similar nature of brand can create a growth disturbance of another come across of product
as in model (Sciascia, Mazzola and Kellermanns, 2014). Lotus Company have high
substitute threat as consumers prefers to use public vehicles for going to long distant
places that reduces sales demand of its offerings. Consumer are having vulnerable
behaviour and attitude where they basically pursue to buying those product aspects whose
having optimum efficiency in long terms perspective similarly they scrutinize the product
in different shades in model comparison within other companies to making their decision
making power increases.
 Threat Of New Entrant: By having the existence of the other company arrives in the
same market as in this scenario the automobile company having more competition within
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the highly performed competitors in the market to gaining the exposure and advantages to
perform and retain the consumers. As in consideration of Lotus company automobile it is
based on United Kingdom region where the influencing of new entrant would be in low
as it has already the benchmarked automobiles companies like Jaguar, Aston Martin,
Bentley Porsche and Ford Mustang and others which are prominent and desirable
performers in automotive industry where Lotus company have to generates more
efficiency in their product specification. In between is there is new company arise in this
competitive market it can fluctuates the background the scenario of the automobile
industry where existing company will suffer if the new player as business venture can
becomes high efficiency in the market. Threat of new entrant are generally high in
automobile industry as government help the companies to enter in the market through
providing subsidies and monetary assistance for the innovation that puts huge threat on
other players. It can have the high resource and more attractive exposure of marketing.
By the coming of new entrant brings the effective promotional strategies to having
awareness motive within the existence of consumer context.
 The Bargaining power of Buyers: On the study of automobile industry they have
bargaining power is high in context of United Kingdom based ventures as the consumer
having the plenty of option to buy their choices of model as per their capabilities (Sting
and Loch, 2016). In automobile industry, it is seen that buyers have high bargaining
powers as they are the one for whom products are manufactured. When buyers negotiates
then Lotus company also have to approve on their terms till some extent that puts
pressure on company to make customer happy and make some profits. As in framework
of Lotus Company attribution they enact to presence of bargain power of buyer are less
as they only manufactured the sports cars in formula one conceptual and the consumer
they have targeted are in sports cars lovers and younger one who are having passionate of
buying super sports F1 cars conceptual as they have limited consumer requirement of in
terms of not gain more functional concept of model they produce they have only one
limited model design which they are concerned to be manufactured.
 Bargaining Power of Suppliers: The factor of bargaining power of supplier are quite in
fragmented in nature where many firms are having supplying power but in forming of
Lotus Company they have scope of bargain influence of supplier are les or limited as
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