Positive and Negative Impact of Macro Environment on Business Operations

This presentation discusses the positive and negative impact of macro environment on business operations. It explores the factors such as political, social, ecological, economical, technological, and legal that influence the business environment. It also covers the internal and external analysis to understand the strength and weakness of organizations and the interrelation of strength and weakness with the external environment. Additionally, it explains the concept of SWOT analysis and its impact on decision making. References are provided for further reading.

Business And Business
Environment
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Content
• Introduction
• Positive and negative impact of Macro environment on
business operations.
• Internal and external analysis to understand strength and
weakness.
• Interrelation of strength and weakness with external
environment.
• SWOT analysis and its impact on decision making.
• References
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Introduction
 Business is a set of activity performed so as to gain monetary
benefits from products that a company produces. Surrounding in
which a organisation is operating is known as business environment.
Internal and external environment effect the business procedures.
 National Westminster Bank is commonly known as NatWest. It is
one of the largest retail and commercial Bank in the UK established
in the year 1968 by the merger of National provisional Bank and
Westminster Bank.
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Positive and negative impact of Macro environment on
business operations
Macro environments consists of
several factors such as
political, social, ecological,
economical , political, legal,
technology. External business
environment depends on these
factors. Business is sensitive
towards these factors.
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Cont...
Economical factor: Economy is taking shape in different part of the
world. Due to globalisation it effects the working of every
organisations throughout the globe.
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Cont...
Political factor: Government policies effect working of
firms. Especially public sector units who are under direct
control of organisations. But even the private
organisations are influenced by political decisions.
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Cont...
Social: This factor may not directly influence the
performance of the company. Changing cultures of the
society impacts the business operations especially those
which are operating in a single country.
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Cont...
Technological: Business communities are moving towards
more use of technology which has increased the
performance of the companies. It has changed the way of
doing business.
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Legal: As the rights of stakeholders needs to be taken care
of by the companies hence this factor influences the
operations of the organisation. Banks like NatWest have
to properly check the legal laws as they are operating in
the field of finance industry.
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Cont...
Environmental : Many organisations especially in the
primary and tertiary sector has been impacted by this
factor. Government and societies are forcing companies
to make their operations Eco-friendly.
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Internal and external analysis to understand strength and
weakness
There are various factors upon which companies internal and
external environment depend upon. Doing internal and
external analysis means analysing these factors and its
impact. It helps to understand the strength and weakness of
organisations.
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Interrelation of strength and weakness with external
environment
NatWest is a large bank in terms of its size and structure.
This organisation like every others needs to have
knowledge about companies strength and weakness.
Future policies are made according to the strength and
weakness of an organisation.
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SWOT analysis and its impact on decision making
Strength and weakness of the company influences its
decision making process. Any future plans are made
according to the opportunities it has and threats it will
face. SWOT analysis is done to make future decisions.
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Cont...
Strength
It provides diversified banking solutions.
Company has achieved highest level of customer
satisfaction.
It is known for its aggressive marketing.
Approx 800 branches that helps to serve it 750,000
customers.
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Cont...
Weakness
Internal audits have damaged the company reputation.
Less number of market share outside Great Britain
Opportunities
Opportunities in the rural sector as they are moving
towards formal economy.
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Threats
Economic instability throughout Europe
Highly competitive environment.
Increasing tax barriers
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References
Drucker, P.F., 2017. The Theory of the Business (Harvard
Business Review Classics). Harvard Business Press.
Javalgi, R.R.G., Gross, A.C., Benoy Joseph, W. and Granot,
E., 2011. Assessing competitive advantage of emerging
markets in knowledge intensive business services.
Journal of Business & Industrial Marketing. 26(3). pp.
171-180.
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THANK YOU
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