Positive and Negative Impacts of Macro Environmental Factors on Business

This presentation discusses the positive and negative impacts of macro environmental factors on business operations. It explores how political, economic, social, technological, environmental, and legal factors affect businesses. The presentation also analyzes the strengths and weaknesses of Tiger European, a coach and van hire business, in relation to these external factors.

Business and
Business Environment

Table of Content
 Introduction
 Positive and negative impacts the macro environmental factors
 Swot analysis
 Strengths and weaknesses interrelate with external macro factors
 Conclusion
 References

Introduction
A business can be defined as a formal structure wherein goods and services are exchanged for
either each other or money and involves some or the other kind of investment known as capital
and customers to whom the products or services produced will be sold. The factors that
influence the operations of the organization are collectively known as the Business
Environment. Tiger European is a coach and van hire business that is run by a family having
an experience of over 300 years in the industry.

Positive and negative impacts the macro
environmental factors
The macro environment has both positive and negative impact to business which are as
follows:
Political Factors- It include intervenes of government in economy or industry. This include
political stability, corruption, foreign trade and so on. It includes both impacts:
 Positive Impact- Tiger European gain positive impact due to political stability of UK
market and people believe in inner workings.
 Negative Impact- Due to rise in hidden corruption, it has to face problem and uncertainty
of market due to Brexit.

Cont.…
Economic Factors- The factor includes inflation rates, interest rates, exchange rates and so
on. It includes
 Positive Impact- The respective organisation can gain profit due to free market along with
diversified economy in public and private sectors.
 Negative Impact- Due to recession and Brexit, profit ratio has declined as people were
provided with free services.

Cont.…
Social Factors- This factors present norms, values of population, characteristics, norms and so
on. It includes
 Positive Impact- High standard of living of people leads them to use high quality of
transportation services for their use.
 Negative Impact- Profits has been decline due to switching of services from one to another.

Cont.…
Technological Factors- Such factors affect activities and operations of industry in terms of
level of innovation, research and development, automation and so on. It includes
 Positive Impact- Use of new and innovative technology leads respective organisation to
easily and quickly supply of raw materials and people from one place to another.
 Negative Impact- As Tiger European is small company which leads to rise in cost for
business.

Cont.…
Environmental Factors- These are most important factors required to be considered by
industry while operating their business such as carbon footprints, weather, climate and so on. It
includes
 Positive Impact- Tiger European follows all environmental laws for running their
transportation at market.
 Negative Impact- There is change in laws related to environment which is difficult for
respective organisation to make changes.

Cont.…
Legal Factors- These legislation and laws includes copyright, patent, employment, protection
and so on. It includes
 Positive Impact- The following of legal factors leads to increase brand value and goodwill
at marketplace of respective organisation.
 Negative Impact- The government impose penalty for respective organisation if they avoid
legal laws and regulations.

Swot analysis
 Strengths – Tiger European offers safer and flexible transportation within the UK. The
transports also come along with facilities for the impaired. The company only hires
professional chauffeurs who are skilled and experienced. The company has been operating
for more than 100 years and is trusted by the customers and has been successful in
maintaining a long term relationship of loyalty with them.

Cont.…
 Weaknesses – The company operating on a small scale does not use upgraded technology
and there have been cases where the company did not have adequate data of the people
they gave their vehicles to hire. The company being operating for a very long time now,
still requires its vehicles to be tested and the vehicles can have improved infrastructure.
The company has a high pricing against the kind of products and services provided by it.

Cont.…
 Opportunities – Tiger European has an opportunity of growing its business through
expansion in different cities and countries. The vehicles can have emission free engines
built inside them so that there is no harm to the environment. The company can conduct
surveys and after carefully analysing the results come up with solutions customers are
seeking for their problems and build a new target market. The company can open its
service centres along the way so that in case of any emergency, professionals who can help
are available 24/7 for assisting the customers.

Cont.…
 Threats – The company can have serious competition posed from new local entrants who
offer an expanded range of services with innovative ideas and environment friendly
vehicles. Also, there are chances that public transportation companies may acquire the
organization's business completely. There can be privacy concerns raised by the customers
and misuse of technology by the driver which will have an impact on the overall brand
image of the company.

Strengths and weaknesses interrelate with
external macro factors
The strengths and weaknesses interrelate with external macro factors are as follows-
Political Factors
 Strength- Political stability of the market
 Weakness- Hindrance in conducting the activities
Economic Factors
 Strength- Rise in profits due to free market structure
 Weakness- Decrease in the profit ratio due to reasons like recession and Brexit

Cont.…
Social Factors
 Strength- Delivering high quality services because of high standards of living
 Weakness- People switching their jobs resulting in a decline of profits
Technological Factors
 Strength- Use of innovative and updated technology
 Weakness- Being a small company, the cost of installing new technology is more

Conclusion
From the above report, it can be concluded that strengths and weaknesses are interrelated with
the macro factors like political, economic, social and technological. The company has various
strengths and weaknesses that it use to build its brand image and also identify the opportunities
available and the threats that can prove to have impact on the overall positioning of the
company in the customers' minds.

References
 Avramenko, A., 2012. Enhancing students' employability through business simulation.
Education+ Training. 54(5). Pp. 355-367.
 Ballard, C. and et. al., 2012. Dimensional Modeling: In a Business Intelligence
Environment. IBM Redbooks.

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