Impact of External and Internal Factors on Business Operations

Report on Impact of Externa
and External

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
LO3............................................................................................................................................3
P4 Identify the positive and negative impacts the macro environment has upon business
operations...............................................................................................................................3
LO4............................................................................................................................................5
P5 Applying SWOT analysis to evaluate internal environment............................................5
P6 Interrelation of strengths and weaknesses with the external macro factors......................6
M4 Influence of SWOT over decision making......................................................................7
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................8

INTRODUCTION
This report provides a deep insight into the external and internal factors having an
influence over the business. Businesses is required to analyse these factors based on which
strategies are built for the business operations. In this report, Pepsi-Co corporation is taken as
an organization.
LO3
P4 Identify the positive and negative impacts the macro environment has upon business
operations
An enterprise is established while considering many different factors. The members of
the organization try hard to bring in additional benefits to the business. These factors are
mainly the macro environmental factors which has a huge influence over the business and
timely analysis of it is necessary. But these factors can bring in benefits as well as
disadvantages to the business. The Pestle analysis of Pepsi-Co corporation is drawn below to
get a clear understanding.
Political factors: Not just the development of the economy is important but also the
political system of UK. There has been a certain change in the regulations and laws of the
country in addition to the political stability in the country. Currently, UK is facing political
unrest with respect to change in government and imposition of certain restrictions (Hamilton
and Webster, 2018). The company is also facing issues in other nations as well such as
introduction of soda tax in Berkeley in 2015 and this has led to the reduction in soda
consumption. There is change in the alcoholic industry environment as well which consist of
competitive products, pricing pressures and the target to achieve the share of sales in the
global market. Government has a huge role in it by setting rules which acts as a barrier to the
company.
Positive impact- The political situation is more and more widespread and uncertain but has
the capacity to bring in many benefits to the industry. Also, the trend of integration is
increasing which will provide an opportunity to expand abroad.
Negative impact- The country is not stable over the few years. There the investors of the
Pepsi need to analyse the market in detail if they want to expand their earnings and market
share.