Report on Business Strategy of Nissan: Macro Environment Analysis

This report provides an analysis of Nissan's business strategy, focusing on the impact of the macro environment. It begins with an introduction to business strategy and its importance, followed by a detailed examination of the macro-environmental factors affecting Nissan, including political, economic, social, technological, legal, and environmental factors. The report utilizes the PESTLE framework to systematically analyze these factors and their influence on the company. Furthermore, the report employs stakeholder analysis to identify and prioritize key stakeholders, such as employees, customers, suppliers, and shareholders, considering their power and interest in relation to Nissan. The analysis highlights the importance of communication with stakeholders to build and maintain effective relationships. Overall, the report provides a comprehensive overview of Nissan's strategic approach within its business environment.

Business Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Impact of macro environment......................................................................................................3
REFERENCES................................................................................................................................8

INTRODUCTION
Business strategy is very important topic for the any business or companies, because top-
level management within each business is always responsible to use various business strategies
in its daily operations. Currently many organisations are investing very huge fund for developing
or improving their business strategies, because if any business has well-developed and well-
improved strategies, then it can easily gain very high profit in the market. This is the main reason
that, business strategy term is necessary and important for a company or business. There are
HRM strategies, marketing strategies, finance strategies and management strategies etc.
completely come under business strategy. In this dynamic and modern world, there are very high
competition within each industry or sector, in which existing management within each business
is highly responsible to use some productive business strategies within its daily operations,
otherwise that business can’t survive in the market. Currently those businesses are gaining huge
competitive advantage within their respective industry or sector which used some effective
business strategies within their workplace. This report discusses business strategy aspect of the
Nissan. It is popular Japanese automobile company, headquartered in Nishiku, Yokohama,
Japan. Currently this company has very large customer base within the international automobile
industry. Some specific frameworks also have been used for properly analysing business strategy
aspect of this company.
LO1
Impact of macro environment
Factors which has involved in the macro business environment of the Nissan highly
affects this organisation and its strategies (Lyneis, 2020). Top-level management within Nissan
is highly responsible to consider all factors of its macro business environment, because these
factors can affect its business strategies in both ways positively and negatively. Currently there
are various productive frameworks or tools available in the market which can support Nissan for
systematically analysing major factors of its macro business environment. For example; PESTLE
and Stakeholder tools are best for analysing these factors, in which both factors have been used
below;

PESTLE Analysis
PESTLE Analytical tool mainly refers six major factors of macro business environment,
like; political, economic, social, technological, legal and social. In this situation, top-level
management of company highly need to consider these all factors. Impact of these all factors has
been discussed below;
Political factors: Political factors can highly affect to Nissan, because top-level management of
company is always responsible to fulfil those all formalities which has imposed by the
government of any country. For example; government of the United Kingdom has imposed
taxation on those all businesses or companies which operates within its authorised zone. In this
situation, existing management of Nissan is responsible to properly fulfil taxation formalities
(Joshi and Anand, 2018). On the other side, company need to consider various rules and
regulations also which has passed government in different countries. According to governments
of different countries, a company is always responsible to not harm health of local people by
their it’s any operation. In this situation, top-level management of Nissan is highly required to
avoid those all operations which can harm to the heath aspect of people.
Economic factors: Economic factors also highly influences to business environment of Nissan.
For example; currently mainly developed and developing countries are able buy products and
services of the company. There are most people within the United Kingdom can easily buy
vehicles of Nissan, because this country has very excellent economic conditions. Basically,
healthy economic conditions of a country always positively affect to the company. On the other
side, unhealthy economic conditions of a country can negatively affect to this company.
Basically, Nissan provides both ranges of vehicles. For example; ordinary vehicles and premium
vehicles. In this situation, company is able to sell its premium range of vehicles only in those
countries which has well-developed economic conditions etc. like; United States, United
Kingdom, Germany, France, Canada, Russia etc. On the other side, company is able to sell its
ordinary vehicles only in those countries which currently has in their developing stage, like;
Philippines, Thailand, Mexico, Israel, etc. That why economic factors highly influence to the
Nissan and its strategies.

Social factors: Social factors within many countries are favourable to Nissan where it serves.
For example; it currently serves within the United Kingdom, in which the Nissan has very large
customer base within this country (Desyllas and et.al., 2018). Reason is, most people within the
UK are completely literate, in which they give priority to only those brands in the market which
provides quality products. Top-level management of Nissan properly understands the actual
requirements of people within the United Kingdom. That’s why it has made its production
strategies according to social factors of this country. Currently existing upper management of
company tries to provide the excellent quality vehicles to make satisfied them This is the main
reason that, many people within this country use vehicles of Nissan.
Technological factors: In this dynamic and modern world, technological factors are positively
affecting to the business environment of this company. Currently those all technological gadgets,
machineries and gadgets are available in the market which can improve existing performance of
company in the market. In this situation, the management at Nissan should use these all
technological gadgets and tools within its productive processes for developing modern vehicles.
By using new technology, company can such specifications in its vehicles which will attract lots
of new customers in the market. Currently most automobile companies are taking huge
advantages from technological factors, in which Nissan also need to properly consider these
factors within its business environment (Yuliansyah, Gurd and Mohamed, 2017). Day by day
there are competition within the automobile industry is increasing. In this situation, top-level
management of this company is responsible to use high-fi technology in its daily operations for
gaining huge competitive advantages within the market.
Legal factors: There are legal factors also highly affect to the Nissan, because existing
management of this company is responsible to adhere those all legal and ethical considerations
which has passed by government of different countries. For example; according to government
of the United Kingdom, each and every business or venture within this country is responsible to
properly adhere business law which has passed by parliament of the UK. In this situation, Nissan
should properly adhere business law while conducting its operations within the United Kingdom.
Environmental factors: Environmental factors are highly affecting to the company, because top-
level management of the company is responsible to follow those all rules and regulations which
has passed by different environment protection organisations (Bai, Cordeiro and Sarkis, 2020).

In this situation, top-level management of company has highly required to avoid conducting such
activities in its workplace which can harm natural environment. On the other side, currently
company is following these rules and regulations as well. For example; company never produce
such vehicles which releases harmful gases and smoke.
Stakeholder Analysis
The management of Nissan can use stakeholder analysis also for identifying its major
environment stakeholders which affects its strategy aspect in both ways positively and
negatively. Basically, existing management of Nissan should follow three major steps of
stakeholder analysis tool for properly analysing its major stakeholders. These three steps of
stakeholder analysis has been discussed below;
Step 1: Determination of stakeholders
This is the first step in the stakeholder analysis tool where the management of Nissan
should prepare a list of its main stakeholders (Yuan and et.al., 2018). For example; currently
employees, customers, suppliers and shareholders etc. are some major stakeholders of the
company.
Step 2: Prioritize stakeholders
This is the second step where the management need to prioritize its stakeholders on the
basis of power and interest. Nissan mainly need to employ power/interest grid which give
opportunity for knowing actual power and interest of various stakeholders. Basically,
power/interest grid supports in dividing all stakeholders into four categories, these four
categories of stakeholders has been discussed below;
 High power and high interest: There are shareholders always has high power and high
interest in Nissan, because they always provide fund to this company by buying its
shares. On the other side, shareholders always take too much interest in company for
gaining excellent results.
 High power and low interest: There customers mainly come under this category, because
customers always have high power on any business or company. On the other side, they

have different other companies also to fulfil their needs of vehicles. That’s why
customers have law interest in Nissan.
 Low power and high interest: Employees have low power in the Nissan, because they
always work according to upper management’s instructions. On the other side, they have
high interest as well, because they have completely depended on Nissan to fulfil their
earning needs.
 Low power and low interest: Suppliers come under this category, because suppliers have
no power for taking decisions within the company. On the other side, suppliers have low
interest as well, because they have other businesses also to supply their goods or items.
Step 3: Communicate with stakeholders
This is the final step within the stakeholder analytical tool, where the management of
Nissan need to properly communicate with it’s all stakeholders (Singh and Kushwaha, 2017).
The objective behind communication is to build an excellent relationship with them. The Nissan
will defiantly able to maintain an effective relationship its various stakeholders by taking this
step.

REFERENCES
Books & Journals
Bai, C. A., Cordeiro, J. and Sarkis, J., 2020. Blockchain technology: Business, strategy, the
environment, and sustainability. Business Strategy and the Environment. 29(1). pp.321-
322.
Desyllas, P., and et.al., 2018. Capturing value from innovation in knowledge‐intensive business
service firms: the role of competitive strategy. British Journal of Management. 29(4).
pp.769-795.
Joshi, M. and Anand, V., 2018. Small business owners’ external information-seeking behaviors:
The role of perceived uncertainty and organizational identity complexity. Journal of
Small Business Strategy. 28(3). pp.48-68.
Lyneis, J. M., 2020. Business policy and strategy, System Dynamics Applications to. System
Dynamics: Theory and Applications. pp.179-207.
Singh, A. and Kushwaha, T., 2017. Role of customer relationship management (CRM) strategy
in development of business organisation. International Journal in Management &
Social Science. 5(1). pp.275-285.
Yuan, Y., and et.al., 2018. Business strategy and corporate social responsibility. Journal of
Business Ethics. pp.1-19.
Yuliansyah, Y., Gurd, B. and Mohamed, N., 2017. The significant of business strategy in
improving organizational performance. Humanomics.