Negative & positive impact of macro environment

This presentation discusses the negative and positive impacts of the macro environment on businesses and their activities. It covers topics such as internal and external analysis, the relation of strength and weakness with external macro factors, and provides references for further reading.

Business and
Business
Environment

CONTENT COVERED
 Introduction
 Negative & positive impact of macro environment
 Internal & external analysis
 Relation of strength and weakness with external macro
factors
 References

Negative & positive impact of macro
environment
Every business is affected by external factors which are operating
outside business organisations. All these factors are
uncontrollable and these can be changed in desired time
frames. There have been evaluated positive and negative
impacts on business and their activities.

CONT....
The analysis is made on NATWEST firms which are leader in
granting loans to customers, their main aim is linked with
helping the business in expanding their activities by providing
them financial help.

Political factors
The PESTLE analysis is described as:
Political Factor: All the plans and policies which are
formulated by government officials are called as political
factors. The prices of goods and services which are offered by
business gets fluctuated if there is changes made by
government in laws and regulations which are followed in
economy.

Economical factors
Economical Factors: It comprises of total economic conditions
in which business activities are operating like inflation and
definition. The NETWEST banks have to identify and measure
all the factors in order to maintain all plans and policies in
relation to money can be spend by single individual.

Social Factors
Social: In relation to this, there are different factors that have
affect the working of society thus business activities are also
affected. In order to control this current trends in economy and
lifestyle of people plays a very essential role.

Technological Factors
Technological: There are
various invention in
technologies thus business
is achieving growth in
economy.

Legal & Environment
Legal: There are various laws which are enacted by government
and these had to be followed by every business while they are
performing business operations.
Environment factors: Companies have to adopt effective plans
and policies which doest not affect the factors which are
operating in environment.

Internal and external analysis
It is essential for every business organisation to find out internal
and external factors which create huge impact upon company's
performance. For that, managers have to develop strategies
and policies in order to deal with problems in effective
manner.

SWOT Analysis
SWOT analysis are defined as the
studies which are conducted
by organisation in order to
identify their strong and weak
factors which are affecting
business operations.

Strengths
SWOT analysis of NATWEST
STRENGTH
NATWEST has strong distribution network therefore, they can
reach to their target audiences in order to achieve higher
profits and sales ratios.

Weakness & opportunity
WEAKNESSES
NATWEST is not able to handle problems and challenges which
are driven up by new entrants.
OPPORTUNITIES
Due to low inflation rate, the company get chances to stay in
global market, it also enables credit at lower rates.

CONT....
THREATS
The company operates in different countries which has
own policies and strategies. Thus, it is very difficult
of NATWEST to follow various political rules and
regulations.

Relation of strengths and weaknesses
with external macro factors
Strategy are very important factors while executing plans that are
designed by higher authorities, in order to fight with all the
elements that are greatly affecting their business operations.

CONT...
Strengths: They have maintained good and effective relations
will all the other firms which are operating in economy. They
have kept low interest rates of borrowing money and this is
valuable in achievement of competitive

CONT...
Weakness: There are other businesses that are dealing in the
same business and these affect their profit ratios. NATWEST
has to analyse all the external factors from economy which are
linked with their weakness.

REFERENCES
Fernando, A.C., 2011. Business environment. Pearson Education
India.
Gebauer, H., Paiola, M. and Edvardsson, B., 2010. Service
business development in small and medium capital goods
manufacturing companies. Managing Service Quality: An
International Journal. 20(2). pp.123-139.
Halbert, T. and Ingulli, E., 2011. Law and ethics in the business
environment. Cengage Learning.'

Thank You!!