Impact of Macro Factors on Business Operations

Business and Business Environment

INTRODUCTION
 Business and Business environment means collection of all the internal and external
factors including customers, employees, management, demand supply etc. which affect
the business organisation.
 The presentation will discuss internal and external factors that impact on business unit.
 Furthermore, it will describe relationship between various functional units and their
impact on business decisions.

Positive and negative impact of macro factors on
business operations
As all the factors of environment are dynamic and the business organisation need to accept the
changes matched with the environmental factors so that their growth in the market can
continue. Some macro factors can be explained through PESTLE analysis:-
 Political factor
 Sainsbury's is retail company which exposing itself in political environment.
They must diversify their risk so that the impact on the organisation can be eliminated.

Economic factor
 The macro factors which come under economic factors are inflation rates ,exchange rates, taxes,
saving rate, growth rate etc. These factors also directly affect the business of Sainsbury's .
 Negative impact
 Any change in interest rates, growth rates or exchange rates will affect the business of
Sainsbury’s.
 E.g.- Increase in exchange rates will stop Sainsbury's to import the goods from across the borders as
high rates will bring them to lower their profits margin which will lead to loss for the company.