Business Environment Assignment 2022

BUSINESS ENVIORNMENT 1
Name of the topic: BUSINESS ENVIORNMENT
Student Details:

BUSINESS ENVIORNMENT 2
Executive summary
Business environment is amalgamation of external and internal factors that affects the
operating system of company. It involves the factors related to suppliers, clients, owners,
competitors, laws, governments and improvement in various technologies. It is necessary for
company to evaluate the amendments to be made within or outside of the organization. This will
help the companies to develop better strategies and plans to raise the production and profitability
of the organization. This paper concentrates on the macro environmental factors of business
environment that can affect the organization externally.

BUSINESS ENVIORNMENT 3
Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
Identification and analysis of macro environmental factors............................................................4
Political factors influencing Wesfarmers Limited.......................................................................4
Economic factors influencing Wesfarmers Limited....................................................................5
Social factors influencing Wesfarmers Limited...........................................................................5
Technological factors influencing Wesfarmers Limited..............................................................6
Environmental factors affecting Wesfarmers Limited.................................................................6
Legal factors influencing Wesfarmers Limited...........................................................................6
Challenges and Solutions.................................................................................................................7
Possible solutions for the challenges...........................................................................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

BUSINESS ENVIORNMENT 4
Introduction
Business environment is the addition of all institutions, individuals and other services that
are uncontrollable by the business enterprise. They can affect the sustainability and performance
of the organization because of which the functions of business is depending on those factors.
This report explains the macro environmental factors of Wesfarmers, which is one of the top
companies of Australia and deals with commodities and home enhancements products (Hansen,
2018).
Therefore, this report studies the effect of macro-environmental factors on the company
and explains the problems and challenges faced Wesfarmers due to the factors (Murray, 2019).
This paper also shows relevant methods and framework to evaluate the effect of environmental
factors on the performance of the organization.
Identification and analysis of macro environmental factors
Wesfarmers Limited used PESTEL analysis, which is a strategic tool for examining the
macro-environment of the business. The PESTEL stands for Political, economic, social,
technological, environmental and legal factors that influence the company’s macro environment
(Perera, 2017).
Political factors influencing Wesfarmers Limited
The political factors play an important role in identifying the factors affecting the long-
term productivity and profitability of Wesfarmers Limited in global market. By political factors,
it was analyzed that government plays a significant role in the business of the organization in
terms of legal regulations or taxes. One of the imperative divisions of Wesfarmers is Coal