Business Environment

Business Environment

Cover Content
•Introduction

Introduction
The external as well as internal that affects the overall objective and performance of an organization is termed
as Business organization. Factors like current trends, environment condition, customers, suppliers, technology
and many more factors is the part of Business organization. It assists company in identifying business
opportunities and optimally utilizes its resources (Botha, Kourie and Snyman, 2014). In this current report,
London EV Company Ltd is chosen as a base company. The company head office in UK and founded in year
2013. The objective of company is to enhance its business of car manufacturing within UK that is in other cities
of UK.

Macro environment Factors with their positive & negative
aspects
• Micro factors- These factors impacts the overall decisions, strategies as well as performance level of
an organization. It affects the business of individuals with the change that takes place in external
environment whether it is alteration in strategies, capacities, resources and many more.
• Macro environmental factors- These factors have both negative and positive aspects on which an
organisation does not have any control. In order to analyse the impact of these factors it is important
to understand trends which is prevailing in market.

Cont....
I
In order to analyse macro environmental factors, the manager
of the company uses PESTLE analysis framework. It is a
technique that attains organisation to know the affect of

Cont....
• Economical: The economic conditions, buyer’s willingness, market trends affect the overall business
performance of accompany. With reference to London EV Company Limited, the economic conditions
of UK have gone down when BREXIT takes place in the economy. The purchasing power is adversely
affected of the people of UK.
• Positive: Rising in the economic conditions of United Kingdom will directly impacts on the sales of the
company as the buying power of customer’s s increases.
• Negative: If economic condition is not improved then the money as well as time which is spent in
manufacturing of cars is going on waste. Thus, the sales of London EV Company Limited decline
adversely.