Business Environment: Macro Factors Impact Analysis with Case Study

This presentation provides an analysis of the macro environment and its impact on business organizations, focusing on both positive and negative effects. It covers political, economic, social, and technological factors, using PESTLE and SWOT analyses of GM Motors and the BBC as case studies. The an...Read More

Business and business environment
LO 3 & LO 4
PRESENTATION

Positive negative impact of macro environment factors
Positive Impact Negative impact
Low cost tends to be involved in terms
of making any changes in rules and
policies in the United Kingdom because
of political stability.
Because a major portion of income is
paid in the form of duty, the imposition
of import duties tends to reduce firm
profitability.
Political factor: It covers various
factors such as political stability, ,
labour law, corruption,trade
restrictions, tax policy, government
policy etc.

SWOT Analysis of Both Public and Private Sector Organisation
SWOT Analysis of GM Motors.
Strength-
•Joint partnerships with Chinese automobile manufacturers
•Vehicles that are both safe and environmentally friendly
•Brand portfolio that is strong
•In the automobile market in the United States, we have a strong
presence.
•Environmental policy and sustainability
•On Star is a one-stop shop for all things automotive.
Recalls of uncommon products

Strength
•BBC is considered as one of the largest as well as oldest broadcaster in the whole
World.
•In all over the World it create goods image of their reputed brand in the mind of
audience of different countries.
•They also called as most fastest news broadcaster on .radio and television
BBC SWOT

PEST of GM Motors
Political Factor- - The automobile business is a standardised
one. Companies in the automotive industry must adhere to
the legislation enacted by various governments. Government
in The prices of replacement parts and labour might skyrocket
as a result of recalls. Not only are the expenditures involved,
but the company's brand image may also be harmed. China is
a prospective market for General Motors on its path to future
growth. However, the escalating trade war between the
United States and China appears to be impeding their
progress. investigations might result in expensive fines and car
recalls.

Environmental-
PEST continued…..
The raise in the cost of raw materials used to make the
product might have a significant impact on General Motors.
Increases in raw material prices can lead to an increase in the
cost price and, as a result, a decrease in profits

Continued…
Social- As people are becoming more environmentally
conscious, the introduction of electric vehicles has the
potential to drastically alter people's habits and purchasing
habits. General Motors should do a thorough investigation and
develop marketing techniques that appeal to the social
segment. In terms to increase customer base , GM's subsidiary
offers modern services such as related to security and
automation to its consumers.

Continued…
Technological- As the vehicle industry is undergoing significant
technical changes, General Motors invests extensively in new
and developing technologies in order to get a competitive
advantage and stay in the market. One of its initiatives is to
limit the use of gasoline-powered cars and, as a result,
greenhouse gas emissions.

PESTLE of BBC
Political: The US and UK's political
stability in terms of rules and
regulations will assist the BBC improve
their brand image on a huge scale in
the future (Huang and et. al. 2013).

Continued…
According to the findings of the
aforementioned analysis, all
sorts of organisations must
adhere to all legal requirements
in the operating nation.

Continue……
. External variables have both a good and negative
influence on the organization's performance. GM
Motors has a system that enables seamless
operations, allowing the corporation to obtain a
higher likelihood and market share

Conclusion
It is vital to work in accordance with the law in order to run a
successful business. Staff members from several departments
work together successfully without experiencing any business
interruptions when collaboration and coordination are
maintained. Structures are set up according to the size of the
organisation for the purpose of giving orders and commands.

LO- 3
External Analysis with their impact to org.
Political factor : It involves various topic such as labor law, tax
policy, government policy, political stability and so on.
Positive impact-Due to the reason political stability in
UK states, that any changes in regulations and regulations
come at a cheap cost.
Negative-Import tariffs tend to diminish firm profitability since
a substantial amount is paid as duty.