Positive and Negative Impact of Business Environment

This presentation discusses the positive and negative impact of the business environment on companies. It covers the internal and external analysis of organizations and the interrelationships of strengths and weaknesses with external factors. The presentation also explores the political, economic, social, technological, legal, and environmental factors that affect businesses. References are provided for further reading.

BUSINESS
ENVIRONMENT
TASK 3 &4

Content
Introduction
Positive and negative impact of environment
Internal and external analysis of organisations
Interrelationships of strengths and weakness with
external factors
References

Introduction
Environment in which a business enterprise execute all its
commercial operations is known as business environment.
This is a combination of various internal and external elements
which largely affect the activities of an enterprise.

Positive and negative impact of environmentPositive and negative impact of environment
In a business environment there are various factors which
impact the functioning of the company. There are some
external elements which can influence the growth of
NatWest bank because they have less control so the bank
needs to conduct a PESTLE analysis to identify those
factors.

Continue....
Political Factor: Banking sector largely get impacted from the
various decisions made by the government of UK. They can
put certain regulations like in year 2009 banks saw crisis as
government put imposed regulations.

Continue....
Economic Factor: It can impact them in both negative as well as
in positive manner. Economic factors like inflation rate, fiscal
policy, interest rate, country's GDP and etc. are some of them.
Any change in these could uncertainty in the business.
Social Factors: Lifestyle of the individual defines this element.
Natwest should bring services through taking care of the needs
of people.

Continue....
Technological: NatWest bank should bring services which are
totally focused on technology. They should work on online
banking and should give certain extra on features to the
customer.

Continue....
Legal: All the banks of Britain is governed by Bank of England
Act. There is introduction of a service of 7 day current
accounting switching facilities from the regulatory body.
Environmental: To gain competitive advantage it is necessary
that they deliver services or products which are eco-friendly in
nature.

Internal and external analysis
It is essential for every business organisation, to conduct internal
and external analysis so as to identify those factors which will
put an impact upon future organisational performance and its
productivity.

Continue....
SWOT analysis
 Strengths
 Weakness
 Opportunities
 Threats

Continue....
STRENGTH: The company has been expand itself in global by
providing qualitative products and services to their customers.
This is the main reason as company has several buyers
therefore it can achieve market growth and success from
target market.

Continue....
WEAKNESSES: Generally, the main issue is faced by company is
money laundering. It is very harmful for business of
NATWEST, and forces companies to follow strict rules and
regulations.

Continue....
OPPORTUNITIES: Now these days, customers are spending too
much upon purchasing new products and services. By
adopting effective tools and techniques a company can easily
attract several buyers from competitive market.

Continue....
THREATS: Due to technological advancement, it is not possible
for companies to adopt each and every technique.
UK government has been regulated different rules and regulations
which is must follow to every financial institute this can put an
adverse impact upon sales and profits of a company.

Interrelationships of strengths and
weakness
In order to perform in global environment, managers are being
faced many macro environmental factors which put an impact
upon its strength and weaknesses. Such factors are – political,
economical, legal, environmental, technological and social.

Continue....
Political factors – For NATWEST, company have to follow basic
rights and regulations that are made by the government of UK.
But, if legal authorities make any changes in these laws so as it
becomes very difficult to follow all of these.

Continue....
Economical factors – Due to economic recession, UK's people
were not able to spend their money on buying of luxury
products and services, this would also impact on NATWEST
growth and success.

Continue....
Social factors – As the bank is performing in different countries,
the needs and demands of their customers are also divers from
each other. But the company conducts market research regular
in each section of society, this will help it in overcome with all
barriers.

Continue....
Technological factors – NATWEST is using latest technology in
order to make qualitative products and services. This would
help it in covering large market share and proficiecy in an
imperative manner.

Continue....
Legal factors – In order to smoothly running of a business
organisation, it is necessary for cited company to follow all
legal laws and legislations. If it helps it in performing working
activities in a legal manner.

Continue....
Environmental factors – UK's government forces companies as
to produce eco friendly products and services. This can also
increase environmental awareness among people.

References
 Eisenberg, T. and Miller, G.P., 2012. The English versu the
American rule on attorney fees: an empirical study of public
company contracts. Cornell L. Rev.. 98. p.327.
 Hamilton, L. and Webster, P., 2015. The international business
environment. Oxford University Press, USA.