Business Environment: Factors, SWOT Analysis, SMART Objectives and Recommendations

Business
Environment

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.Macro environment Factors with their positive & negative aspects in business operations.3
2. SWOT analysis and its interrelationship with external factors..........................................5
3. SMART objective and Recommendations for a company.................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

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. The report covers the external factors that affect the profitability as well as
productivity of an organization. With this, SWOT analysis framework is going to use to analyze
threats, strength and weaknesses so that improvements can be done rapidly. Later, it covers
SMART objective of the chosen organization that helps them to improve in their services and
gain competitive edge at marketplace.
TASK 1
1.Macro environment Factors with their positive & negative aspects in business operations.
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.
It consist of elements such as employees, supporting services, competitors and so on. These
factors help companies to attain the overall objective and goals(Hillary, 2017).
Internal factors- Those factors which impact the environment and culture of the
organisation. Internal factors directly affect on the activities & operations of a company.
Changing in these factors directly lead to change in structure and strategies of a company. The
main internal factor that helps an organisation to attain objective is Employee. The overall sales
and profitability of a company depends on skills and talent of an employee.
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.
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

external factors on the activities of organisation. Below is the description of these factors in
relation to London EV Company limited:
Political: Those factors on which government interferences is taking place and impacts
on the functions of a company. It involves political stability, tax rates, policies, tariffs and many
more. In context to London EV Company Limited, the company is operating in UK and want to
expand in other locations of UK. The political stability of United Kingdom is good and the
government is helping businesses to reduce the effect environment on organisations. In addition
to this, the company has to follow all the policies which is related to production of Emission
vehicles on the country (Niemann-Struweg, 2014).
Positive: The political factors help companies to form effective strategies and reduce the level of
issues which rise from politics.
Negative: The Company is facing lot of hurdles while following all the rules & regulations of
UK government.
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.
Social: The culture, customs, norms, beliefs, opinions ad values of a society directly
affect the performance of an organisation. Change in these social factors alters the strategies of a
company. It is important for company to consider all social factors while expanding its function
on other countries.
Positive: The people of society prefer to change their as per the new trends. This increases the
sale of emission vehicles of company.
Negative: change in market trends and social trends of the people of society might force people
to shift towards another substitute.