Bachelor of Arts Business Management: Strategy and Decision Report

This report, submitted by Nantapob Palapiboon, examines the extent to which organizations, specifically in the fast food (Burger King), automotive (Ford Motor), and beverage (PepsiCo) industries in Asia, must consider both the macro and industry environments in their decision-making processes. It explores the importance of environmental analysis, including PESTLE and Porter's Five Forces, in identifying opportunities and threats. The essay analyzes political, economic, social, technological, environmental, and legal factors (PESTLE) and competitive forces within each industry. It emphasizes the impact of factors like government support, currency fluctuations, economic development, and competitive rivalry on strategic choices. The report highlights the significance of informed decision-making for business success and sustainable competitive advantage.

Name : Nantapob Palapiboon
Student ID: 189107699
Instructor: Audie Wee
Course : Bachelor of Arts (Honours) Business Management (Top-Up)
Subject : Organizational Strategy and Decision Making

Essay Question?
To what extent do organizations need to consider both micro and industry environment in their decision making? Critically discuss how such
analysis would contribute to their overall strategic decision.

Student Number
Programme Business Management
Module Tutor Audie Wee
Module Code: 3BM060 Module Title:
Organizational Strategy and
Decision Making
Assignment Number: 1 Assignment Title: Individual Report
Word Count: 3450 First Attempt
First Marker’s comments
A reasonable level of understanding of the topic and significantly relevant.
Contents were written generally in a very superficial manner lacking in substance and often difficult to grasp.
Would be much better if more in-depth research evidence on the topic and the examples cited to be expressed explicitly to support its claims.
The essay was structured as required but with minor errors in proper citation format and punctuation errors.
However, the conclusion was convincingly written to support the argument.
FACTORS AFFECTING THE BUSINESS (WHAT IMPACT THE BUSINESS)
WHAT DECISION MAKING IS AFFECTED BY THE IMPACT?

AVOID USING , FOR EXAMPLE, I THINK, SHOULD , WOULD ,
First Marker: Audie Wee Date: 9/12/2018 Indicative Mark: 40/100
Second Marker’s or Moderator’s comments:
Second Marker: Date: Indicative Mark:
Moderator: Date: Indicative Mark:
Agreed Mark:
1 2 3 4 5 6 Ttl Mark
40 40 40 40 40 40 240 40
A* A B C D F (fail) F (fail) 0 NS

Assessed
Components (100-85) (84 - 70) (69 - 60) (59 -
50) (49 - 40) (39 -20) (19 - 1) F (0) 0NS
Knowledge &
Understanding
Outstanding
understanding
and detailed
knowledge base.
Outstanding use
of theory /
concepts, with
exceptional
interpretation and
application.
Excellent
understanding of
a wide range of
ideas. Excellent
use of theory /
concepts, with
excellent
interpretation and
application.
Very good
understanding
of a range of
ideas. Very
good use of
theory /
concepts,
with very
good
interpretation
and
application.
Good
understanding
of relevant
ideas. Good
use of
theory /
concepts,
with good
interpretation
and
application.
Fair
understanding of
a few relevant
ideas.
Satisfactory use
of theory /
concepts, with
adequate
interpretation
and application.
Subject
knowledge is
poorly
demonstrated.
Limited and
poor use of
theory and
concepts, with
limited
interpretation
and
application, if
any.
Work
submitted is
not considered
to be a serious
attempt to
meet the
assessed
components
Work
submit
ted is
judged
to be
of no
value
Non
submission
Analysis &
Evaluation
Outstanding ability
to analyse,
evaluate, compare
and construct
values
Excellent ability to
analyse, evaluate,
compare and
construct values
Accurate
analysis and
very good
evaluation
Good analysis
and sound
evaluation
Fair analysis
with some
evaluation
Weak
analysis and
evaluation
Work submitted
is not
considered to be
a serious
attempt to meet
the assessed
components
Work
submit
ted is
judged
to be
of no
value
Non
submission
Critical
Thinking Outstanding
thinking, logical and
creative with
insightful outcomes
Excellent
thinking, logical
and creative with
insightful
outcomes
Very good
synthesis of
ideas that are
articulated clearly
Good
synthesis of
ideas with
mostly
consistent
logic
Logical with some
synthesis of ideas
Inconsistent
logic and
synthesis
Work submitted
is not
considered to be
a serious
attempt to meet
the assessed
components
Work
submit
ted is
judged
to be
of no
value
Non
submission
Research &
Enquiry Outstanding,
rigorous and
sustained enquiry
with exceptional
outcomes
Rigorous and
sustained
enquiry with
excellent
outcomes
Accurate and
consistent enquiry
using appropriate
methods
Consistent
approach
drawing on a
range of
sources
Relevant methods
of enquiry with
some
inconsistencies
Little evidence of
research or
understanding of
appropriate
approaches
Work submitted
is not
considered to be
a serious
attempt to meet
the assessed
components
Work
submit
ted is
judged
to be
of no
value
Non
submission
Presentation &
Completely correct
in-text and
bibliographic
Technically
excellent,
accurate
Accurate and
consistent
referencing and
Good
referencing
and
Fair
understand
ing of
Poor referencing
and little
understanding of
Work submitted
is not
considered to be
Work
submit
ted is
Non
submission

Referencing referencing.
Consistent and
accurate use of the
Harvard style.
referencing and
presentation.
Consistent and
accurate use of
the Harvard
style.
presentation.
Generally accurate
use of the Harvard
style.
consistent
approach to
conventions.
Good attempt
to use the
Harvard
style.
convention
. Fair
attempt to
use the
Harvard
style.
conventions.
Limited /
inaccurate attempt
to use the Harvard
style.
a serious
attempt to meet
the assessed
components.
Absence of any
in-text or
bibliographic
referencing.
judged
to be
of no
value
Communication
Outstanding,
coherent and
logical structure.
Exceptional clear
and fluent
communication
Excellent ability
to communicate
ideas clearly and
appropriately
Very good
ability to
communicate
ideas clearly
Most Ideas
communicated
effectively
Ideas are
communicated
with some
success
Ideas are not
communicated
effectively
Work submitted
is not
considered to be
a serious
attempt to meet
the assessed
components
Work
submit
ted is
judged
to be
of no
value
Non
submission

189107699
Contents
Introduction ............................................................................................................................7-8
Important of Decision Making in Organization.........................................................................8
PESTLE analysis of different industry...................................................................................8-9
 Political factor........................................................................................................9
 Economic factor.....................................................................................................9
 Social factor.........................................................................................................10
 Technological factor.............................................................................................10
 Environmental factor............................................................................................11
 Legal factor.....................................................................................................11-12
Discussion on PESTEL analysis of each industry...................................................................13
Porter's Five Workforces of each industry and their analysis.............................................13-15
 Competitive Rival........................................................................................................13
 Power of Buyers...........................................................................................................14
 Power of Suppliers.......................................................................................................14
 Threat of Substitutes to market....................................................................................15
 New Entrants to market................................................................................................15
Discussion on Porter's Five Analysis Workforces of each industry........................................15
Conclusion..........................................................................................................................15-16
References...........................................................................................................................................18
Appendix........................................................................................................................................19-20
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Introduction
This essay is focus to what extent that the organizations such as fast food industry
(Burger King), Automotive industry (Ford Motor) and Beverage industry (PepsiCo) in Asian
countries which need to consider both macro and industry environment in their decision making.
The organization environment and that need to confront industry equal, providers, clients,
potential new contestants, substitution of item and services. The industry means that all
companies that produce goods and services are the same or can be replaced, and those highly
competitive companies can meet the same needs of the same type of consumers. Environmental
analysis is a study of the organizational environment to identify factors that may have an impact
on the organization, whether positive or negative. With environmental analysis, organization can
better identify the opportunities and threats that the business environment provides while making
decision. The analysis of the competitive condition is a challenge matter, which include:
characterizing, recognizing the primary highlights and qualities of the aggressiveness
investigation of the opposition, and situating it as an association that work to accomplish a
comfortable of competitive advantage for the organization.
All organizations need to determine the external factors in their environment that may
affect their operations. Mussnig (2007) says that an organization just can be success in the event
that it can figure out how to utilize its own particular possibilities and to adjust that to the
organization's condition of macro and organization environment factors. Kieser (1976) says that
the decent variety in the organization development of the company are influenced by external
segment they are environment factors, competitive position, customer situation, technological,
environment, social situation and cultural differences. These all are the factors that every
industry should consider on while making the decision in organization.
Porter (1985) analyzed that five workforce is a Structure that effort to determine the
altitude of race in the strategic development of an industry and a business and it uses the
economics of internal organization to obtain the five workforce that attempt the violence of
contest to determine the attractiveness of the industry. For all the companies, the tension of
competition is the main stimulation of industry competitiveness (Porter 1980). Potential aspect
include continuous rival advantage brought by motivation, compete between online and offline
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companies, strong competitive strategies for advertising expenditures, corporate concentration
and transparency. (Porter 1985) Five-factor analysis helps companies understand the factors that
affect the profitability of a particular industry, and can help to make information about to enter
appropriate industry; whether to expansion capital in a distinct industry; and to improve a
competing strategy while making decision in organization.
Important of Decision Making in Organization
Decision Making is the way toward picking the best choice in the distinctive decisions.
Every organization needs to settle on choice as a component of the administrative procedure. For
any organization, quality and opportune basic leadership are basic to the achievement (Kieron &
Andrew 2014). If there is no decision-making, arranging, association, order, control, staffing and
other diverse administration capacities won't have the capacity to complete. The type of
decisions that can guide the organization are concerning long term business development
strategies, competitor strategies, core management strategies and other essential operational and
functional strategies. Hence, it can be said that organizational decision making largely depends
on the various strategies that can be implemented in organizational scenarios. The companies
need to make decisions that can guide their future progress and essential development.
Decision can help in assessing the accomplishment of organizations (Gould, S 2008). In
the planning procedure, rights choices ought to be made in numerous viewpoints. Thusly, basic
leadership is a fundamental measure that help arranging. In this aspiring world, associations can
achievement when settling on right and significant choices. Consequently, the correct choice
helps the effective activity in each association of the business. The correct choices can help the
companies to make better use of the opportunities that are present before them in any given
market. Moreover, risk management also requires significant decision making to tackle the
crucial challenges that are present in the given organizational environment.
PESTLE of different industry
Political factors
Adequacy in tending to these issues brought up in the PESTEL/PESTLE investigation
enhances each industry in worldwide business execution in the long haul. The accompanying
with are the fundamental political outside segments in the full scale state of every industry:
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1. Government help for web based business
2. Political solidness in economies
3. Increase governmental exertion for foundation in developing countries
(Singh, S 2009) add that Growing worldwide Exchange assertions is any authoritative
courses of action between nations on exchange relations and Exchange understandings can be
common or worldwide among two states or more than two states. (Daniel Kissinger 2017)
Burger King get the odds to increment their business on the base of enhancing worldwide
exchange and set up the worldwide store network. The external factor of political security
diminishes difficulties to the organization's development and extension of their business.
(Christine R 2017) The government is increasingly supporting technological innovation to
improve the economy. This situation provides Ford with the opportunity to use government
incentives for innovation, environmentally friendly products and sustainable development.
(Ferguson, E 2017) Government help for ecological items is a shot for organizations to build up
their items to meet or outperform natural expectation.
Economic factors
This section of the PESTEL / PESTLE analysis outlines the economic changes and trends
that affect business performance. The following are the main economic external factors affecting
of each industry:
1. Currency rate is not the same
2. High economic development in creating markets
3. Growing worldwide exchange assertions
In the Asian market economies are rapidly developing. This causes the currency rates in
these economies to keep on changing. Changing currency rates affect the decision making
functions of organizations as they are unable to fix pricing and estimate the actual value for the
products in the given market (Daniel Kr 2017). Fluctuating currency rate is a significant factor
that affects the decision making of organizations in terms of pricing, placement and promotion.
There is high economic development is certain markets whereas other markets in the
same economy might not experience growth that is significant. Hence, companies like Burger
King have to look out for specific markets where there are more development opportunities than
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other markets. PepsiCo has a more extensive marketing policies in economies such as United
States where market opportunities are larger. However the company has to consider specific
markets in Asian regions with high growth rate (Pauline M 2017). Ford has a better and wider
marketing network in the USA, where the market prospects are uniform in the vast majority of
the country. In countries where markets are more niche compared to the bigger economies, the
organizations still have restricted presence (Christine R 2017).
The economic growth rates across the world keep on fluctuating. The exchange rates are
subject to government policies and administrative decision making. More regulated economies
tend to have slower growth in exchange rates. In essence, companies have to keep these factors
in mind while making decision concerning expansion into newer markets. Some of the aspects
that concern decision making in regards to the factors mentioned are.
Pricing- Companies tend to decide on pricing considering the feasibility of acquisition of
resources, government policies and other significant factors.
Promotion- The promotion in the newer markets depend upon the specific audience preferences
and other related factors.
Exchange- The exchange rates determine how much investment the company is willing to make
in a company and how much profitability the company can realize as a result of the exchange
rate.
Revenue- The revenue that companies can gather from given economies greatly affect the
decision making factors in that specific economy.
Sales- Sales decisions depend on how much the organization can actually sell in the given area.
The sales decisions that are to be made by the organization depend on the projected sales ratio.
Sociocultural Factors
Every industry should dependably represent sociocultural impacts in its
remote/full scale condition. The social patterns and changes and their impacts on buyers and
workers are considered in this piece of the PESTEL/PESTLE investigation.
1. Expanding consumer assorted variety
2. Additional separating states of mind about product quality
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