Analyze the impact and influence which the macro environment has on an organisation and its business strategy.

Unit 32 Business Strategy - Pearson BTEC Level 4 Higher National Certificate and Level 5 Higher National Diploma in Business

Learning Outcome 1: Analyze the impact and influence of the macro environment on an organization and its business strategy.

Scenario and Activity

Your role is to shadow the Corporate Strategic Manager of an SME from Thames Valley SME 100, producing an environmental analysis and strategic growth management report. This report will guide strategic planning for future institutional growth.

Section I: Internal and External Analysis for Strategic Planning

  1. Present an overview of the organization, including its mission, vision, objectives, and core competencies.
  2. Use PESTLE analysis to critically evaluate the external environment and macro factors affecting strategic formulation. Assess strategy`s role in achieving direction and conduct stakeholder analysis using the Power/Interest grid model.
  3. Evaluate the internal environment using strategic frameworks such as RBV strategy, McKinsey`s 7S model, and Value Chain analysis. Identify organizational strategic capabilities and components.

Section 2: Strategic Plan Development

  1. Assess strategic directions using Porter`s strategy model and Bowman`s strategy clock.
  2. Justify growth platforms and strategies like Hybrid strategy, Diversification, and Vertical/horizontal integration.
  3. Conclude with recommendations based on the environmental analysis and strategic findings.