Positive and Negative Effects of Macro Environment on Company Processes

Business and business
environment

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
LO3..................................................................................................................................................1
P4 Describe the positive and negative effects of macro environment has on company
processes, with concrete examples to illustrate...........................................................................1
M3 Adapt the PESTLE model correctly to enable a thorough study of an organisation's macro
climate..........................................................................................................................................3
LO4..................................................................................................................................................4
P5 Perform internal and external analyzes to define strengths and deficiencies in different
organizations................................................................................................................................4
P6 Clarify how shortcomings and strengths interrelate with external macro influences............5
M4 Applying the SWOT / TOWS model correctly and explain how it affects decision taking. 7
D2 Critically evaluate the impacts that both macro and micro factors have upon business
objectives and decision-making...................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCE..................................................................................................................................9

INTRODUCTION
The business environment is associated with marketing term which is used by an entity in
order to take the competitive advantages. There are different types of business are running in
market that all needs to be analysis themselves so they can identify which factor has impacted on
business. In other words, if a person is going to start an run their activities in relation to business
then it should use different tools and models for the purpose of evaluating business environment
(Cohen and Kietzmann, 2014. If it is properly checked then there is a changes to improve the
organisational productivity. This is important for organisation to conduct various analysis which
are related to different element and helps to run a business. This is the ability which uses by firm
to build and maintain the great customer relationship. This report is based on Tesco that is larger
size super market in London UK. This is retailing company that offers variety of products at
retailing cost that attracts customers and increase profitability. This report covers different topics
such as positive and negative impacts of macro environment, internal and external analysis and
strength and weakness of macro factors.
LO3
P4 Describe the positive and negative effects of macro environment has on company processes,
with concrete examples to illustrate.
Macro environment – This refers as combination of various external factor which arises
out of the organisation in competitive environment and has impacted on business whether
positive and negatively. Whenever, some is going to start or establish their business in business
environment then it should analysis the macro environmental factor that states how such factors
are related to business sand affected the business activities. These are uncontrollable factor
which cannot be control by management and needs to monitor on business activities so they can
be overcome. Tesco is larger size retailing super market that sales different types of products at
discounted cost and attracts customers.
PESTLE analysis – This is a tool which is used by organisation to analysis the industry
and particular business in order to know how such factor has affected the business and can run it
successfully. This is related to external factors which is used by management of Tesco company
to identify the all opportunities and dangers for a specific business. This involves some factors
that are as defined:
1