Positive and Negative Impact of Macro Environment

This presentation covers the positive and negative impact of macro environment on businesses. It discusses the interrelationship of strengths and weaknesses with external factors such as political, economic, social, technological, legal, and environmental factors. The presentation provides insights into how these factors affect business operations and the importance of analyzing them for formulating effective policies.

BUSINESS
ENVIRONMENT
TASK 3 & 4

Content Covered
•Introduction
•Positive and negative impact of macro environment
•Internal and external analysis of organisation
•Interrelationship of strengths and weaknesses with external
factors
•Conclusion
•References

Introduction
Environment in which commercial activities of a business take
place is known as business environment. This is made up of
large number of factors called internal and external factors of
business.

Introduction
Environment in which commercial activities of a business take
place is known as business environment. This is made up of
large number of factors called internal and external factors of
business.

Positive and negative impact ofPositive and negative impact of
macro environmentmacro environment
Environment is a place where large number of enterprises
execute their commercial activities with an aim of
increasing the level of revenues. Number of factors are there
which exist in the environment and largely affect operations
of a business.

Internal and external analysis
SWOT analysis
 Strengths
 Weaknesses
 Opportunities
 Threats

Interrelationship of strengths and
weaknesses with external factors
Macro and external factors such as political, economic,
social and technological,all these largely interrelate with the
strengths and weaknesses of an organisation.

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Political factor: For safeguarding the basic rights and duties of
citizens and to deliver them a better standard of living
government of every country make some rules and regulations
for controlling the operations of a business.

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Economic factors: For capturing a larger market share and to
offer quality products and services to customers it is very
essential for the NATWEST design strategy as per factors
which come under the category of economical factors.

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Social factors: Customers are the final target of every firm so it
is very necessary for the firm to first identify if any change is
take place in the habits and tastes of customers so that firm
can give shape to its activities in the same direction.

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Technological elements: Use of latest technology for making
products and services for large number of customers provide
large number of benefits to an organisation.
Legal factors: For running smoothly in a country it is necessary
for every business enterprise to comply with all the standards
set by the government.

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Environmental factors: Government of every country made
standard and it is the responsibility of every business to make
environment friendly products. Adoption of environmental
friendly techniques provide various advantage to the
organisations and at the same time build positive image of
company in the market.

Conclusion
From the above information it can be concluded that strengths ans
weakness of a firm are largely affected by the factors exist in the
business environment So this analysis should be done by the
manager for formulating effective policies.

References
Macdonald, R., 2012. Unilever. A Strategic Analysis.
Madsen, D. Ø., 2016. SWOT Analysis: A Management Fashion
Perspective.
Hamilton, L. and Webster, P., 2015. The international business
environment. Oxford University Press, USA.