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Business Strategies and Environment

University: Mont Rose College of management & Sciences

  • Unit No: 32
  • Level: High school
  • Pages: 15 / Words 3798
  • Paper Type: Assignment
  • Course Code: K/508/0574
  • Downloads: 400
Question :

This sample will let you know about:

  • What is Business Strategy?
  • What is the Impact of MACRO environment over organisational strategies?
  • Discuss Internal Analysis of firm.
Answer :
Organization Selected : EE limited telecom company

INTRODUCTION

Business Strategies are different set of framed decisions that are implemented by corporate owners to achieve certain business goals and objectives. It refers to master blueprint of organisation so that can immune its competitive edge in industry and carry out its operations effectively and efficiently. Strategy are plan that explains course of actions for purpose of achieving long term desired goals (Johnson,  2016Rothaermel,  2016).

Everything Everywhere (EE) is one of leading mobile network operator and internet service provider in UK. It is a subsidiary of BT Group serves almost 32 million customers and situated in Hatfield, London. Company deals in variety of products such as fixed line telephony, mobile telephony, broadband internet and digital television. This report exhibits information regarding the analysis of macro and micro environment with help of PESTEL and PORTES model. Further this report throws light on internal climate of EE limited telecom company through SWOT and VRIO analysis. Lastly, it contain detail about different strategic directions which can be opt by company to enhance it productivity (Thompson, Strickland,  and Gamble,  2015).

For Gain Knowledge About Business Strategy so firstly you need to Know Business Dissertation Topics so You wil understand better about business strategy.

TASK 1

P1 Impact of MACRO environment over organisational strategies.

Macro environment reflects the external surroundings over which firm has no control. These factors are related with entire economy where organisation operating its business. It means a summation of all forces that are capable of influencing whole performance and decisions of business enterprise. The survival of company is totally depend upon how much it has ability to tailor and cope up with upcoming changes of outward environment. Organizations use different frameworks to analyse external climate for the sake of examine prevailing changes. PESTEL is one of popular model for purpose of determining each element of economy that may affect business affairs. PESTEL represents political, economical, social, technological, environmental and legal factors.

PESTEL MODEL IN CONTEXT WITH EE TELECOME LTD.

  1. Political Factors: these forces justify the intensity about how and at what extent government interferes in economy or specific business industry. This involves various types of policies, political stability of international markets, employment laws, trade restrictions so on. UK's political scenario is deep rooted with ethics of democracy and enjoys sustainable governance system which ensures that there is high consistency level in policies. Due to political stable environment more and more investors get attracted to invest there funds in nation's capital. Government has made tax reliefs policies which provides relaxation to investors at great extent. It creates opportunity for EE telecom to invite new investors to invest in company's different projects also it can increase its compatibility with other rivals. But still there are some uncertainties due to Brexit revolution due to which UK has to face some problems in terms of data exchange and privacy control which affects adversely on local as well as international business of EE telecom. To resolve this issue company can use updated technical software to ensure that customer's private and confidential data is secured and more protected (Grayson, D. and Hodges, A., 2017).
  2. Economical Factors: these factors are related with performance level of economy which includes growth patterns, exchange rates, inflation rates, consumer's purchasing power, unemployment rates so on. UK enjoys strong GDP from past years also it is the 5th largest economy with optimal investment climate in world. Nation has cultivated diversified economy which allows businesses to explore distinct markets that generates profits. UK sometimes faces issues regarding exchange rates and problem of recessions. The opportunity for EE owners is that they can smoothly expand their business in different markets.  The problem of fluctuations in interest or exchange rates may affect profits margin of company and can fall in prices of products.
  3. Social Factors: these forces refers to different demographic features, attributes, values and belief, social trends that interferes in business operations and decisions. UK is popular for its cultural festivals and tradition across globe. It has huge consumer base market with multicultural population which offer ample of chances to organisation so that they can developed diversified variety of products and markets to fulfil the demands of different regions. Social class of people enjoys high standard of living with higher education system. This brings opportunity for EE owners to produce higher level of services and products to highly advanced customers (Welford,  2016Moseley III,2017).
  4. Technological Factors: these factors relates with the emergence of new technology or innovative modification in current technology which affects the operational and manufacturing techniques of organization. UK is one of the leading country in technological advancement as it has a strong network of financial and technology industry. This creates opportunity for EE telecom by adopting innovative techniques company can easily entertain its potential users which increases its market share and help in offering smooth internet facilities. Moreover, it expand scale of investments in high speed network and collaborations for 5G development. Sometime this factor brings negative impact because of continuous modification in technology can influence the functioning of business as company required to implement changes take place in environment. For resolving this issue company needs to be updated and must invest in research and development program to get all information about changes.
  5. Environmental Factors: these factors refers to forces which influence environment of following country. UK environment is friendly where many local bodies, NGO's , government take numerous steps and organize various programs to eliminate the negative influence of economic and technological growth over nation's environment. This creates opportunity for EE telecom to widely focus and take proper initiatives to reduce carbon emissions as well as produce pure renewable energy products. These factors creates unfavourable situation for firm because government poses various restrictions to protect environment to cope up with these kind of problem company may focuses on e-waste management (Akter,  and et. al., 2016).
  6. Legal Factors: these forces refers to legal rules and regulations made by government according to which organisation needs to operate its business. UK legislation system is highly flexible and because of its political stability there are less chances changes in legal laws and standards. This brings opportunity for EE telecom is that the policies of organisation will remain static and there are less chances to loose organisational confidential reports (Woerner,  and Wixom,  2015).

TASK 2

P2 Internal Analysis of firm

1. SWOT Analysis: SWOT analysis is strategical tool used to assess the competitive position of a business in an industry. SWOT stands for strengths, weaknesses, opportunities and threats. It is used to devise a strategy by identifying internal factors such as strengths and weaknesses of an organisation and external factors such as opportunities and threats for a company.  SWOT analysis of Ford motors  are given below:-

2. Strengths: These are all factors and elements that gives a company an additional advantage over its competitors. EE owns a powerful distribution channel. It covers every state of UK  because of its large quantity of outlets. Its products are easily accessible to the consumers    because of its strong distribution network which cover wider areas and replenish its stock on time. Another strength of EE is that its products are pocket friendly. They are cheaper enough that customers can easily afford. Company maintains a good bonding with dealers. Dealer also helps in promotion of its goods and services along with its core responsibility (Matt,  Hess,  and Benlian,  2015).

3. Weaknesses: These are all the qualities and resources that company lacks. These are areas of improvement for the company. Weaknesses are all the present of undesirable quality or absence of desirable quality which can mark a dent on company's image. Budget allocation towards research and development is very less compared to its competitors although company is outlying money in research and development more than than mean industry expenditure. Majority of firm's property on its operate its functions are rented rather than owned which leads to large amount of profit drain out in paying rent. Per day sales stock is very high because purchasing and selling inventory is a very time consuming process for EE. This flaw contributes in extra expenditure of capital.

4. Opportunities: These are uncontrollable external factors which are favourable for the company's growth. Company can take advantage of internet penetration by establishing its presence online. Firm can make dynamic and interactive website to promote its business. EE can use social media for lead generation and promotion. Technology is becoming advanced in a fast pace. Organisation can reduce cost and increase accuracy through use of automation. Technology can also aids in consumer research by accumulating data of customers through data science and marketing of products accordingly. Inflation rate is favourable for the organisation as there is moderate inflation in the country which leads to low price of input (Linder,  and Williander,  2017).

5. Threats: These are all the external factors which create barriers towards growth of an organisation. These factors and elements are uncontrollable and unmanageable. No proactive development of innovative products. All innovative products are being made as reaction to rival's products. Steady revenue of the business attract many new competitors which create a scenario of intense competition in the industry. As company is globalising its business its profits suffer from currency fluctuation from many politically unstable countries.

6. VRIO Analysis: It is a framework used for analysing internal resource of an organisation. It was developed by Barney JB in the year 1991. This framework determine four characteristics product should have in order to sustain in the market. The four must have features of a product are valuable, rare, expensive to imitate and lastly organized to capture value. Here is VRIO analysis of EE company:-

7. Valuable: It is a query which examines whether resource adds value to the customers or not. If reply is true than company can ensure its sustainable growth in the market. Financial resources of EE are highly valuable because it helps in taking advantage of profitable investment opportunities. These also defend company from external menace. VRIO analysis exhibit that company's human resource are also worthy. They are highly skilled and their expertise render competitive advantage to the company. Firm's local food products are also valuable to some extent as it unique and easily differentiated. Patents of EE is also valuable resource as it helps in combat competition. Research and development is not a valuable resource of EE because return on investment is very low. R&D did not create enough innovative products which can prove its worth (Hart,  Sharma,  and Halme,&nb

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