Impact of Macro Environment on Business

This presentation discusses the impact of macro environment on business and how it affects the objectives of the organization. It covers the positive and negative impact of political, economical, social, technological, legal, and environmental factors. It also explores the internal analysis of strengths, weaknesses, opportunities, and threats. The presentation provides insights into the interrelation between weaknesses and strengths and the impact of political, economic, social, technological, legal, and ecological factors on business.

Business and Business
Environment

Introduction
 Business environment consist of bothy internal and external factors
which impacts the objectives of the organisation.
 It includes factors such as market trends, technology, government rules,
suppliers, society and so on.

Positive and negative impact of macro
environment
 Micro factors: these are those factors which affect overall strategy of
business in decision making and performance level.
 Internal factors: These factors are those which affect company's
operations and overall culture of organisation which influences working
structure, leadership of company. Employee support is also a factor
which helps in achievement of objectives.

Macro environment factors
 These are factors which are related to
bot negative and positive impact on
which organisation has no control.
 To make analysis for understanding of
impact it is understand trends
prevailing in macro environment.

Political factor
 Positive: London EV Company Limited will form strategies so that
overall negative impact on environment can be reduced.
 Negative: Negative aspect of this is that there are lot of changes which
company has to do with regards to rules and regulations formed by UK
government.

Economical factor
 Positive: This means that if purchasing power of consumers rise then it
will lead to increase in sale of vehicles for London EV Company
Limited.
 Negative: If overall economic environment is not in favour of company
then this may lead to decrease in sales and wastage of investment which
is done by London EV Company Limited on expansion strategies.

Social factors
 Positive: This means that if there is sudden change in style of people
they have developed preference for cars then this may lead to increase
in sales of London EV Company Limited.
 Negative: There are continuous changes in social trends of people
which might lead to shifting of the trends towards another brand.

Technological Factors
 Positive: Technology & innovation are two most important factors
which determine market share of manufacturing company. A new
technology adopt might lead to increase in market share of London EV
Company Limited in UK.
 Negative: many times there can be situations in which London EV
Company Limited may not compete with already established vehicles
which are having high mileage and are fuel efficient. This may affect
their sales and growth in a negative manner.

Legal factors
 Positive: Positive impact of this is that this will lead to increase in
safety of passengers.
 Negative: Increase in laws in UK might lead to lot of modification in
exiting policies of London EV Company Limited.

Environmental Factor
 Positive: This is related to vehicles having low emissions and low
consumption of fuel which will lead to conservation of environment.
 Negative: Pollution test have become very strict in UK which imposing
heavy penalties on company if there is lot of tests which have to be
followed by company.

Internal Analysis
 Strength: London EV Company Limited is a company which is
already providing engineering services.
 Weakness: London EV Company Limited is willing to expand
themselves in UK. This market is already having presence of many car
manufacturers.
 Opportunities: There are many opportunities in such 1950 UK was
second largest manufacturer of cars in whole world which makes it a
great market for increasing sales of company.
 Threats: There are many threats in external environment which are
many established brands such as Bentley, Daimler, Land Rover,

Interrelation between weaknesses and strengths
 For every organisation external and internal analysis is very important
as it will help them in identification of various opportunities which they
can avail and impact of different threats prevailing in the external
environment. These type of threats should be minimized using strength
of company.

Political impact
 Strength: UK's Government is considering and helping companies in
their expansion plans.
 Weakness: There are so many political barriers which is going to
impose a negative effect on the manufacturing industry such as tax
regulations and many such political barriers.

Economic impact
 Strengths: From future prospect it is very helpful for growth of
London EV Company Limited which will help in increasing profit
percentage.
 Weaknesses: There has been decrease in productivity and sales of
existing companies due to recession and many economical aspects of
UK. This may also lead to reduction in sales of London EV Company
Limited.

Social impact
 Strengths: There has been a growth in disposable income of people
which may lead to spending more ion luxurious items and items which
may lead to increase in status symbol of people.
 Weaknesses: There has been various customer requirements according
to needs of consumers which can’t be implemented by London EV
Company in present scenario when they are planning for expansion. .

Technological impact
 Strengths: Growth and advancements in technology has led to increase
in demand for electric cars. This will lead to increase in sales in UK
London EV Company Limited.
 Weaknesses: Technological advancements had led to adoption of such
changes by many existing car manufacturers in UK, competitors may
adopt the technology before London EV Company Limited And this
may lead to increase in threat.

Legal impact
 Strengths: such requirement when followed by company will help in
building a brand image in market as this is a new brand of car
manufactures in UK.
 Weaknesses: Legal requirements are different in every country and that
has to be considered which leads to large number of modifications in
company.

Ecological impact
 Strengths: Sustainable energy use helps in usage of resources in an
effective manner which leads to effectiveness in the overall functioning
of company.
 Weaknesses: Every country possess their own laws related to
environmental protection which has to be modified by London EV
Company Limited.

CONCLUSION
 From the above report it has been analysed that macro environmental
factors impacts the affect the organisational goals. Organisations
purpose is depend on its type and legal structure.
 PESTLE analysis is used by the companies to know their threats and
opportunities so that they can expand their business according to it.

REFERENCES
 Hillary, R., 2017. Small and medium-sized enterprises and the
environment: business imperatives. Routledge.
 Kasemsap, K., 2018. Mastering business process management and
business intelligence in global business. In Global Business Expansion:
Concepts, Methodologies, Tools, and Applications (pp. 76-96). IGI
Global.