Positive and Negative Impact of Macro Environmental Factors on a Business Organization

BUSINESS AND BUSINESS
ENVIRONMENT

P4 EXPLAIN THE POSITIVE AND NEGATIVE
IMPACT OF THE MACRO ENVIRONMENTAL
OPERATIONS ON A BUSINESS ORGANIZATION.
The Macro or external environmental factors play a very
crucial role in the establishment of a business organization
that will help in the better handling of a wide range of
business operations. The organization like M & S has to
effectively take in consideration various sort of the
different business operations that help in its better growth
and development. The positive and negative impact of the
macro environmental factors on the growth and
development of a business organization is as follows:

POLITICAL FACTORS:
 Positive impact: the better handling of the political
relations and networks will help the M & S to have a
hassle free functionality in an organization. It will help
the company to gain a better productivity and handle the
business operation in a very effective way. Besides this
the supportive political government will help in effective
handling of the wide range of business operations of the
retail firm.
 Negative impact: any sort of political disturbance or
change will lay a very deep impact on the business
organization that will affect in effective handling of a
wide range of business operations of the cited retail firm.

ECONOMIC FACTORS
 Positive impact: a good economic stability will help the
business firm to have effective growth and development
of the business organization in all environmental
conditions. Also, the effective handling of the economic
resources will help the firm to mitigate the risk factors.
Other than this, the growing economy will help the
business firm to meet the operational requirements of the
company in a better way.
 Negative impact: the depressive and slow economy will
lay a major impact on the overall business operations of
the company and is needed to be handled in better way to
sustain the functionality of M & S in market.