Positive and Negative Influence of Macro Environment on Business Operations

This presentation discusses the positive and negative influence of macro environment on business operations and the interrelationship with internal strength and weakness of an organisation.

Business And
Business
Environment(Task
3and 4)

Content Table
 Scenario
 Introduction
 Positive and negative influence of macro environment upon
business operations.
 Internal strength and weakness of an organisation and their
interrelationship with external macro factors.
 Conclusion
 References

Scenario.
As per the scenario after the first business event went very well as member of
Trainee Business Analyst for the North London Chamber of Commerce
and Enterprise(NLCCE) again a lecture was asked by me to deliver on the
second business event which will be based on the discussion about the
impact of macro environment and external macro factors on business
operations and the interrelationship with internal strength and weakness of
an organisation.

Introduction
Business environment refers to the surrounding of an organisation which consist
of several internal and external factors like customers, technology, political,
suppliers etc. This presentation gives the brief about the Positive and
negative influence of macro environment upon M&S operations and about
the internal strength and weakness of an organisation and their
interrelationship with external macro factors.

Positive and negative influence of macro
environment upon business operations.
Macro external factors are those which are not under the control of an
organisation and such factor greatly impact both positively and negatively
to an organisation. It mainly includes political, social, technological,
economical, legal, environmental etc.

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PESTLE Analysis of Mark and Spencer
Political:
These factors are those which are run, managed and changed by he
government authority and changes in government rules and regulation
greatly impact on Mark and Spencer company
Economical:
These factors refers to the rising prices rate, involvement rate, foreign
exchange rate, economic growing forms etc.

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Legal:
These factors refers to the aspect that every firm must carry out their
business operations in and ethical and legal manner.
Environmental:
This factors refers to the environment laws which are being framed
by the government like government has framed a law that every
organisation must take into consideration that the safety of
environment and should accordingly produce its goods and services.

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Social:
As mark and Spencer produce goods and services taking customer
preferences into consideration like the company render health food items.
Technological:
These factors refers to the advancement in technology and IT sectors.
Therefore changing in such factor impact positively and negatively on
Mark and Spencer.

Internal strength and weakness of an
organisation and their interrelationship
with external macro factors.
In order to exist and sustain in the competitive world it is very much
essential for every organisation to analyse and identify their strength
and weakness so that weakness can be overcome and opportunity
can be availed. Thus, ark and Spencer uses SWOT analysis
techniques in order to analyse its strength, weakness, opportunity
and threats.

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Strength:
First major strength of Mark and Spencer company is that it is
considered to be one of the most power full retail brand with a top
of the mind recall.
Second major strength is that Mark and Spencer perceives as “value for
money” due to the best quality and wide of of its products

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Weakness
Limited market share is its major weakness from which Mark and
Spencer suffer from and this is because it possess strong competition
from other retail brands.
Too much dependent on UK markets is is major weakness which limit
is sales revenue.

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Opportunity
Mark and Spencer can develop their websites so that large number of
people get influenced and attracted to get the product and services.

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Threats
Other retail store of Mark and Spencer are term to be a there for
organisation due to their discounted prices.
Depreciation of sterling post- Brexit is a major threat for Mark and
Spencer.

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Thus, it can be said that the strength and weakness of Mark and
Spencer are interrelated with the external macro factor and their
interrelationship is being explained below:
Political:
As these factors refers to the government rules and regulation and some
laws like of wellness and safety of workers and of hazard control, so
as the Mark and Sperncer use to manufacture its goods and
servioxces taking this well and safety aspects into consideration.

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Social:
As customers preferences keeps on changing from time to time and
Mark and Spencer company fails to recognize the customer
changing trends which result the organisation to suffer from its
major weakness that is in the from of its product recall which
indirectly leads to loss in the confidence level of customers.

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Economical:
As the British currency depreciated for more than 10% just after the
UK votes surprised markets with their decision to leave the EU.
Thus, because of which uncertainty in UK economic condition
keeps fluctuating or it can be said that it has sent sterling on a
bumpy ride.

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Technological:
As in modern era technological advancement keeps on taking place so
mark and Spencer has also started rending its product and services
through online system which has help business to attaining its good
brand name in the mind of the customer which is a major strength
for mark Spencer.

Conclusion
From the above presentation it can be concluded that there exist different
macro factors like technological, political, social etc. which possess both
positive and negative influence on and organisation. Apart from this
SWOT analysis is done so as to ensure the strengths and weakness of firm
and how they are interrelated with the external macro factors is being
examined in the above presentation.

References
Halinen, A., Törnroos, J. Å. and Elo, M., 2013. Network
process analysis: An event-based approach to study
business network dynamics. Industrial Marketing
Management. 42(8). pp.1213-1222.
Conrad, D. and Newberry, R., 2012. Identification and
instruction of important business communication skills
for graduate business education. Journal of Education
for Business. 87(2). pp.112-120.

THANK-YOU