Positive and Negative impact of Macro Environment Factor

This presentation discusses the positive and negative impacts of macro environment factors on business organizations. It covers the political, economical, social, technological, environmental, and legal factors and their effects on business operations. The presentation concludes with the importance of implementing suitable strategies to overcome these factors for the growth and development of the company.

BUSINESS AND BUSINESS
ENVIRONMENT
P4 and P5

Introduction
• Business environment refers to all the internal as well as external factors or
components of an environment that directly affects organisation operational
activities.
• These operational activities mainly involves with management, employees,
demand and supply and customers satisfaction.

Positive and Negative impact of Macro Environment
Factor
• PESTLE analysis is one of the most crucial strategic tool that is used and
implemented by the organisation to identify the overall external factors in order
to achieve competitive advantage.
• It is mainly conducted to identify and analysis the present situation of the
organisation as it allows to find out what are the factors which are faced by an
organisations

Political Factors
• Positive Impact: Recent going taxes as well as import export policies of various
countries are in favour of the organisation that allows and provide it excellent
opportunities in order to expand their business world wide.
• Negative Impact: The changes in the tax as well as import-export policies
creates negative affect on the organisation as it directly and indirectly affect the
sales revenue rate due to decrease in purchasing power of the targeted market

Economical Factors
• Positive Impact: Marks and Spencer need to focus and work in online sectors
for their customers lookout their deals and it also helps to reduce the cost and
time.
• Negative Impact: Low income and low economic conditions of customers
affects the demand and supply of the products and services.

Social Factors
• Positive impact: Offer products as per the needs and preferences of customers
provides an advantage to Marks and Spencer in market.
• Negative impact: Marks and Spencer provides quality products and services to
their customers with fair price policy but over dependency on single brand gave
negative impact on the organisation.

Technological Factors
• Positive Impact: Marks and Spencer have to use and implement online
marketing strategy in order to attract customers and take competitive advantage.
• Negative impact: Use of outdated technology impacts firm negatively and
lowers down the quality of its products.

Environmental Factors
• Positive Impact: Marks and Spencer should uses ozone-friendly raw material as
it enables to gain more customer reliability
• Negative Impact: Due to climatic changes or any disaster there is delay in
transportation of products on time.

Legal Factors
• Positive Impact: Marks and Spencer have to follow and implement the rules
and regulations made by governments. It helps to build a brand image in market
which impacts positively on operations of company.
• Negative Impact: If Marks and Spencer fails to follow laws then they
have to face penalties and it also make a negative impact on brand image of
Marks and Spencer.

Conclusion
• From this PPT, It has been concluded that the internal and external factors plays a
very important role in the growth of the Marks &Spencer. Management of Marks
&Spencer should implement suitable strategies for overcoming these factors in
the development of Company. This report will also discussed the different
functions and objectives of various departments and their interrelation in the
development of company.

References
• Hamilton, L. and Webster, P., 2015. The international business environment.
Oxford University Press, USA.
• Karagiorgos, T., Drogalas, G. and Giovanis, N., 2011. Evaluation of the
effectiveness of internal audit in Greek Hotel Business.