Positive and Negative Impact of PESTLE Analysis on Macro Environment

This presentation discusses the positive and negative impact of PESTLE analysis on the macro environment of public and private sector organizations. It also explores the interrelationship of external macro factors with strengths and weaknesses. The importance of conducting SWOT analysis is highlighted.

Business Environment
LO3 & LO4

Content
 Introduction
 Positive and Negative Impact of PESTLE Analysis on Macro Environment of
Public and Private Sector Organisation
 SWOT Analysis of Both Public and Private Sector Organisation
 Interrelationship of External Macro Factors with Strengths and Weaknesses
 Conclusion
 References

Introduction
Business environment consists of various
factors including internal as well as
external factors. Internal factors include
customers, suppliers, technological
advancement etc. whereas external factors
include political stability, social factors,
legal factors etc.

Positive and Negative Impact of PESTLE
Analysis on Macro Environment
• PESTLE Analysis: It is a framework in which
external environment factor (political, economic,
social, legal, environmental) is evaluated and
calculated. It offers people to oversee the external
factor, which are impacting the environment also
will help in developing strategies.

SWOT Analysis of GM Motors
• General Motors is one of the famous
motor company which is one top in the
world. It is generally known as GM
Motors. Thus, it is important for
management to conduct SWOT
Analysis so as to identify its own
strengths and weaknesses along with
opportunities and threats:

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Strengths Weaknesses
 Company have Joint Ventures with the local china company
which is the greatest advantage to reach the local market.
 It is the only company who has signed the Environmental
Policy which is bound to lower its emission effects and
pollutions in the environment.
 It has the record of Rare Recall Product among the
competitors which makes the brand more trustable among all.
 Due to having the environmental policy they make Eco-
friendly product for their valuable customers.
 They have also a unique features that is Onstar All-in-one
Assistant which is generally provides some security features
during the emergency, if stolen by someone, etc. which will
be discussing further in detail.
 It is totally dependent on the U.S. For its revenue
growth because 60% of the revenue comes from the
U.S.
 Due to joint ventures, people says that they are selling
their products by others brand name instead of their
Brand name which creates less awareness of their
brand?
 Due to high sell of Pickup trucks, they are getting a
high market share for the SUV products and pickups.

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Opportunities Threats
 In current time due to impact of COVID the price
of oil is decreasing day-per-day. Which leads to
high demand of Pickup trucks and SUV's in the
market.
 In this technical time, when everyone is shifting to
the new technologies, the demand of Automated
vehicles is increasing day-per-day which keep them
updated with the technology.
 Timing and Frequency of new model releases due
to high demand and some new update in new
models can help in accelerating the demand
exponentially.
 Due to increase in competition, the sales may be
decreased due to the introduction of similar or
substitute product in the market at lower price.
 In current time exchange rate of U.S. Doller is
changing day-per-day Which decreases the profit
due to large gap in exchange rate.
 Due to over on peak demand of automated vehicles
in few years the demand may show the decline
graph due to product life cycle concept.

Interrelationship of External Macro Factors
with Strengths and Weaknesses
It is important for the management of GM
Motors to link its strength and
weaknesses with external factors so
that relevant changes can be done in
existing plans and policies in order to
achieve competitive advantage.

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External factors Linkage with strength and weaknesses of GM
Motors
Political factor GM motors mainly operates its functions in UK where
political situation is stable thus bring positive outcome to
company in return. On the other hand, it operates in nation as
well where political are instable such as India.
Economic factor Strength: The standard of living of people in UK are much
higher due to economic growth thus the sales of GM Motors
doesn’t much affect.
Weakness: GM gets affected by the fuel price fluctuation
and relative demand of the customers.

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External factors Linkage with strength and weaknesses of GM
Motors
Social factor Strength: GM Motors provides them with high-end
vehicles according to their preferences.
Weakness: Employees having different culture may
create conflicts that may bring company into unknown
loss.
Technological factor Strength: GM motors uses advanced technology in their
vehicles which makes strong their presence into market.
Weakness: Outdated technology brings company
backwards from their rivals.

Conclusion
It can be concluded from the above PPT that business environment contains lots of
complexities which can affect every kind of organisation such as private, public
and voluntary thus it is important for management to analyse the factors of
business environment such as political, social, technological, employees’
behaviour, suppliers changing prices etc. For this, PESTLE and SWOT analysis are
required to conduct so that corrective actions can be taken to deal with them more
effectively and efficiently.

References
O'Cass, A. and Morrish, S., 2016. Anatomy of entrepreneurial marketing. Journal of
Strategic Marketing .24(1). pp.2-4.
Mirchevska, T.P and et. al., 2017. THE IMPORTANCE OF MARKETING
RESEARCH FOR THE COMPETITIVENESS OF SMALL ENTERPRISESS
IN REPUBLIC OF MACEDONIA. Economic Development/Ekonomiski
Razvoj .19(3).
Aprilia, A., 2015. Customer Retention & Customer Relationship Marketing: Strategi
Pemasaran yang Potensial. Jurnal Manajemen Maranatha .4(1).

Thank You