Positive and Negative Impacts of Macro Environment on Business Operations

Business enviroment

P4 Identify the positive and negative impacts the macro
environment has upon business operations, supported by specific
examples.
The positive and negative impacts the macro environment
has upon business operations
Political (P) : Political factors are those factors that are
made, run and changed by the government. These factors
show the level of anticipation by the government in different
trades. Generally political factors includes trade policy,
labour law, trade restriction, tariffs, and political stability.
The government has its own set of polices and rules which
company has to follow. Mark & Spencer is the retail
company and provide clothing, food products, luxury. The
positive impact of political factors is they provide security to
the company helps to maintain their repo in front of the
customers.

Cont..
Economic (E) : Economic factors are determinants of an
economy's performance that directly impacts a company and
have long termed effects. For example, a rise in the inflation rate
of any economy would affect the way companies' price their
products and services. Economic include inflation rate, interest
rate, foreign exchange rates. Like inflation is the rate at which
prices in the economy are increasing. If inflation rate is low
company enjoys their profit at good demand. Otherwise, inflation
can reduce the purchasing power of customers. If inflation rates
are increase the rates of product and services of Marks & Spencer
will automatically increase and affect to the customers vis versa

Cont...
Social (S) : Social factors are fundamental that one cannot
directly control but they definitely affect the company. To
increase the income Marks & Spencer should adopt technologies
and strategy which is according to the customers needs and
wants. If they fail to reach customers wants so, it would be
directly effect on the customers. Social factors are totally
depends on the customer satisfaction which is necessary to
fulfilled.'
Technological (T) : Technology factor helped businesses operate
efficiently in competitive markets such as retail as modern IT
systems help increase productivity & lower costs.