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Business Strategy

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Contents
Abstract............................................................................................................................................4
Introduction......................................................................................................................................5
Applying appropriate frameworks analyses the impact and influence of the macro-environment
on a given organization and its strategies........................................................................................6
Analyze the internal environment and capabilities of a given organization using appropriate
frameworks....................................................................................................................................12
Applying Porter’s Five Forces model evaluates the competitive forces of a given market sector
for an organization.........................................................................................................................14
Applying a range of theories, concepts, and models, interpret and devise strategic planning for a
given organization.........................................................................................................................16
Conclusion.....................................................................................................................................18
Bibliography..................................................................................................................................19

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Abstract
The business organization can’t run alone. There are many factors and forces which plays the
role to play the organization. All the organizations have own environment, different culture,
process, and many other things. All those things when making the mix with the proper planning
that may help to decide the right strategy.

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Introduction
An organization's work is to produce a product and make the customers satisfied. But for making
a product and make the employees their needs an effective strategy and a proper plan. The proper
plan can make a huge difference in getting the success from all the competitors.

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Applying appropriate frameworks analyses the impact and
influence of the macro-environment on a given organization and its
strategies.
An organization is the key element of a country to forget economic success. Every organization
wants to get success and wants to help in the increase in the economic growth rate. Most of the
famous organizations like Kellogg's organization are increased because of the favorite of the
environment. There are two types of environment in an organization. One is micro and another
is macro. The macro-environment is very much important to favorable at the organization.

Macro Environment Factors: The macro environments area is the outside of an organization.
There are five forces in the macro-environment. Those five forces have equally contributed to
the organization's work.

o Demographic forces: Gender, age, sex, education, birth rate, death rate income materials
etc. are the including demographic forces. Maintaining a company production level is
most important. Because people are the main reason for production. For gather the
market or taking attention from the customer demographic forces is affecting the
company. Being stay a long time in the market that forces very beneficiaries to satisfied
the customer. By these forces produce the products at many levels. And all products set
part by part or many levels. For earning a profit or survive the market a company has to
focus on these forces. So, for achieving the goals a company demographic force is most
important.
o Economic factors: Tax rates, interest rates, policies, law, wages, and governmental
activities are included in economic factors. Because these factors are an economic factor
which affects the economy. Tax rates are the big factors of the economy. For economic
growth tax rates is the most important factor and this factor maintain the overall
economy. Law and policies maintain governmental activities these affect the economy
directly. Most of the money of the economy gathers from the economy. Wages affect the
economy directly or indirectly both ways.

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o Natural/physical forces: Actually natural forces are these factors which can control and
influence human. This factors cannot be controlled but this factor can be control humans
because these factors studied by physics. For any company, this factor is most important
because human is an asset. Human is an asset as customers. Customers make profits by
buying the products. If a company fails the control human that a company cannot achieve
the goals. For complete the market and a long time stay in the market, a company has to
control human behavior by these factors. When a company wants to launch a new
product it’s a duty to know about human needs and wants. Because every company
produces a product for humans or customers.
o Technological factors: There have negative and positive both types of factors. Improve
communication and better management information system is including positive factors.
Improve unemployment and information abuse is negative factors. Any company or
organization needs good communication. If the company employees and employers have
no better communication there have no achievement. There always creates a problem that
can destroy a company or organization. A management information system is most affect
a company because if the information going to the wrong destination so information
abuse. For this reason, unemployment can be improved.
o Political and legal forces: Government's rules, regulations, laws or restrictions are
included in political forces. The types of laws and legislation that introduce the political
body its legal forces. These forces can a huge impact on organizations. For those
companies, owners have to flexible with these factors. Because sometimes the political
situation can be unstable, that time maintain companies owner have to flexible for own
opportunity. Any company for their country should maintain its government’s rules and
regulations. If any company breaks the rules it makes the hamper for that company.
Sometimes for political unstable company growth falls down. That’s why to achieve the
company goals, companies owner have to flexible.
o Social and cultural forces: Social and cultural forces, in other words, sociocultural
forces. Family, religion, education, social organizations, politics and law, values and
attitude, etc. included these forces. Starting a company or organization owners have to
know about sociocultural forces and for a long time stay in the market these forces
impact. Most of the company depends on these forces such as Pen produce industries,

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Paper industries because these are related to education. Education included in these
forces. Eid, puja and religion celebrations that are included with this. So most of the
company based in these forces. So, earning profit and achieve the goals of a company
have to maintain these forces softly. [ CITATION Oxf14 \l 1033 ]

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P.E.S.T. analysis:

o Political: Governments rules, regulations, laws or restrictions are included in political

forces. The types of laws and legislation that introduce the political body its legal forces.
These forces can a huge impact on organizations. For those companies, owners have to
flexible with these factors. Because sometimes a political situation can be unstable, that
time maintain companies owner have to flexible for own opportunity. Any company for
their country should maintain its government’s rules and regulations. If any company
breaks the rules it makes the hamper for that company. Sometimes for political unstable
company growth falls down. That’s why for achieving the company goals, the company
owner has to flexible.

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o Economic: Tax rates, interest rates, policies, law, wages and governmental activities are
included economic factors. Because these factors are an economic factor which affects
the economy. Tax rates are the big factors of the economy. For economic growth tax
rates is the most important factor and this factor maintain the overall economy. Law and
policies maintain governmental activities these affect the economy directly. Most of the
money of the economy gathers from the economy. Wages affect the economy directly or
indirectly both ways.
o Social/cultural: Social and cultural forces, in other words, sociocultural forces. Family,
religion, education, social organizations, politics and law, values and attitude, etc.
included these forces. Starting a company or organization owners have to know about
sociocultural forces and for a long time stay in the market these forces impact. Most of
the company depends on these forces such as Pen produce industries, Paper industries
because these are related to education. Education included in these forces. Eid, puja and
religion celebrations that are included with this. So most of the company based in these
forces. So, earning profit and achieve the goals of a company have to maintain these
forces softly.
o Technical: There have negative and positive both types of factors. Improve
communication and better management information system is including positive factors.
Improve unemployment and information abuse is negative factors. Any company or
organization needs good communication. If the company employees and employers have
no better communication there have no achievement. There always creates a problem that
can destroy a company or organization. Management information systems are most affect
a company because if the information going to the wrong destination so information
abuse. For this reason, unemployment can be improved. [ CITATION Goo17 \l 1033 ]

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SWOT Analysis:

SWOT analysis is the process of calculating the organization's strengths, weakness, threats, and
opportunities. When a manager or a leader make a SWOT analysis, the leader or the managers
can know not only the employees but also the organization's strength, weakness, threats, and the
opportunity. Now we are discussing about the Kellogg’s organizations SWOT analysis.

Strengths

o Large number of share

o Large number of customers
o Brand image

Weakness

o Unhygienic food
o Local area foods

Opportunities

o Using of new technology

o Make a new sales center

Threats

o New competitor
o Local area business. [ CITATION Ted19 \l 1033 ]

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Analyze the internal environment and capabilities of a given
organization using appropriate frameworks.
To know about the business organization their needs to know about the internal factors and their
related things. There are three things which help to know the internal environment. Those are
internal analysis, cost-benefit analysis and the last one is the BCG matrix. The internal analysis
helps to know about the organization, the cost-benefit analysis helps to know about how the cost
can be decreased and the BCG matrix helps to know about the organization's position. Now
those are broadly discussing the Kellogg's organization below:

Internal analysis

Internal analysis exploration of an organization's position, market place, competitive variability.

The internal analysis provides useful information about an organization’s weaknesses, strengths,
opportunities, and threats. For earning profit and stay a long time in market place internal
analysis is most important. If a company cannot do internal analysis, that company doesn’t know
about their opportunity, strength, weakness, and threats. That’s why that company cannot
maintain production level and cannot achieve their goals. Sometimes some companies can
achieve but cannot compete in the market for a long time. So, internal analysis can make a
company profitable and a company competes for the market for a long time.

Cost-Benefit Analysis

Cost-benefit analysis a systematic approach for determining a company’s strengths and

weaknesses. It is the best approach to achieving benefits while preserving savings. All company
uses this way to finds their strengths and weakness. For long time stay in the market, it’s
important for all companies. To make sure company goals and maintain profits level need this
approach for the appropriate results. If a company knows its weakness and strength that a
company can easily make the right line to achieve the goals. Sometimes it’s called costs analysis
because of the company analysis its cost then finds their benefits.[ CITATION Sma18 \l 1033 ]

BCG Matrix

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BCG matrix is the process for calculating the organization's position. When an employer wants
to know what the position of an organization is, he or she makes that analysis. There are four
stages in this. These stages are star, question mark, cash cow and dog. Those four elements are
the different stages for an organization. The high rate of related market share and market growth
rate is a position. This position is known as the star. The question mark is the position where the
related market share is low but the market growth rate is high. Next, the cash cow is the position
where the related market share is high but the market growth rate is low. The last one is a dog
where related market share and market growth rate all those things are low. By using this
analysis an employer can easily access the business position. [ CITATION bus17 \l 1033 ]

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Applying Porter’s Five Forces model evaluates the competitive
forces of a given market sector for an organization.
Porter's five forces analysis

The porter’s five forces about how the organization can control its different types of situations
and make the decision. Mainly porter’s theory about the outside of the organization. The
organization's products how can reach to the customers are discussed in the porter’s five forces
theory.

o The threat of new entrants: an organization can’t run alone. It has to be a leader to run.
Leaders command or order other employees to work. If they’re a business their also be
the competitors. A leader or organization has to maintain all the things. But the threat is
the new competitor. New competitor means a new threat. When their new competitor
they're needed to change the strategy. Kellogg’s organization is one of the best
companies. That organization surviving by competing with other organizations. But the
new entrants of the competitors are the main threat to the organization.
o Bargaining power of suppliers: there are mainly two types of suppliers. Once is the
suppliers who supply raw materials to the organization and another one is they supply
organizations products to the consumers. The organizations earn profit by sailing their
products. The difference between the sailing rate of the suppliers and the buying rate or
the raw materials. If an organization's suppliers bargain when purchasing the raw
materials for the low rate that will be profitable. On the other hand, if the suppliers when
sales the products they have to bargain for a high price. High price means high profit. The
Kellogg’s organization's suppliers have the bargaining power for that it is a profitable
organization.
o Bargaining power of buyers: buyers work is to buy the raw materials for the
organization to produce the product. A buyer can buy the product at a different price but
the good product in the cheap rate can increase the profit. For this their needs the factor.
o The threat of substitute products: people’s mind always changes with time. All the
time peoples don’t taste the same thing. The customer’s nature is to taste new thing. For

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 the changing needs of the customers, the organization has to maintain all kinds of
products. Organizations are related to customers. Every customer is not the same but
they need to control the substitute products because of its threats.
o Rivalry among existing competitors: an organization can’t run alone. It has to be a
leader to run. Leaders command or order other employees to work. If they’re a business
their also be the competitors. A leader or organization has to maintain all the things. But
the existing competitors want to make the new product to capture new customers. For this
reason, there needed to rivalry the existing competitors. [ CITATION bus16 \l 1033 ]

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Applying a range of theories, concepts, and models, interpret and
devise strategic planning for a given organization.
Organizations planning based on organizational theories, concepts, and models. All those things
affect to make the organizational plan to get the goal. Proper planning is important to become a
success.

Balanced Scorecard

We all know that an employer of an organization takes all the decisions in the organization.
There are strengths and weaknesses within an organization. But the main thing is strength helps
to run the business and the weakness is harmful to decrease the business growth rate. For this
reason, the leader has to maintain those two things. The Kellogg’s organization maintains all
those two elements. The manager of the Kellogg’s organization wants to decrease their
weakness. Because the organization's weakness is increasing high from the strength rate that
makes a harmful effect on the business organization. On the other, if the strength is increasing at
a high rate, they will earn lots of profit. That also is harmful to the customers. For this reason,
they need to maintain those as equal.

OKRs (Objectives and Key Results)

The objective makes employees and employers self-responsible. When an employer makes the
organizational objective for the employees. The employee's work is to give their best for the
organization to become a success. A leader makes an analysis within the organization. The
employer determines the key result of what he or she takes. All the decision was taken by the key
result to forget the objective. All the employers make or change their plans by observing the key
result of the organization.

Issue-Based Strategic Planning

An employer makes strategic planning to make the plan successful. All the employers want to
get their successful plan but that plan has to change sometimes for some issues. Issues can
change the situation and it has the effect to make planning. When an employer or the employees

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faces some problem and that problem can’t be solved for that time the plan needs to change.
Every organizer wants to get their success but the problem makes the barrier to get the goal. But
the issue cans the weapon for changing the organization's plan and get the goal.

Goal-Based Strategic Planning

When their ad that means people will work to forget the goal. The goal makes employees
motivated and also makes them self-responsible for giving their best for the organization.
Organizations' main work is to make their employees satisfy and produce more for satisfying the
customers. The goal is the key element for the organization but sometimes employees don’t
match the organizational goal and the personal goal. But when all the people or the employer
make the goal they make the goal bases plan that will be very effective.

Real-Time Strategic Planning

Time management helps to work on time. Time management’s work is to maintain the works in
time. Time management makes responsible for doing the work. Timing is a process for getting
the organizational goal. When an employer makes a plan, Managements work is to make all the
related works in time. But if there doesn’t make it their needs to change their plan which is
making all the work in time.[ CITATION Rac19 \l 1033 ]

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Conclusion
A business is the combination of different things. But all the times all the elements are not
working properly. That may harmful to a business. But a proper strategy helps to combine all
those things and helps to make a plan to achieve high achievement.

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Bibliography
business to you, 2016. Porter’s Five Forces. [Online]
Available at: https://www.business-to-you.com/porters-five-forces/
[Accessed 31 10 2019].

business to you, 2017. BCG Matrix: Portfolio Analysis in Corporate Strategy. [Online]
Available at: https://www.business-to-you.com/bcg-matrix/
[Accessed 31 10 2019].

Good leader, 2017. Macro Environment Analysis. [Online]

Available at: http://www.whatmakesagoodleader.com/macro-environment-analysis.html
[Accessed 31 10 2019].

Oxford college of marketing, 2014. Oxford college of marketing. [Online]

Available at: https://blog.oxfordcollegeofmarketing.com/2014/11/04/the-impact-of-micro-and-
macro-environment-factors-on-marketing/
[Accessed 31 10 2019].

Rachel Smith, 2019. Strategic Planning Models. [Online]

Available at: https://www.clearpointstrategy.com/strategic-planning-models/
[Accessed 31 10 2019].

Smart sheet, 2018. Cost Benefit Analysis. [Online]

Available at: https://www.smartsheet.com/expert-guide-cost-benefit-analysis
[Accessed 31 10 2019].

Ted Jackson, 2019. SWOT Analysis. [Online]

Available at: https://www.clearpointstrategy.com/swot-analysis-examples/
[Accessed 31 10 2019].

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