Impact of Macro and Micro Factors on Business Objectives and Decision-Making

Business
environmental analysis

Contents
INTRODUCTION...........................................................................................................................3
TASK2.............................................................................................................................................3
PESTLE analysis and its positive and negative impacts.............................................................3
SWOT analysis............................................................................................................................4
Critically evaluate the impact of both macro and micro factors upon business objectives and
decision-making...........................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment is defined as the collection of various internal and external factors
that affects organisational performance and functionality in positive and negative manner.
business environment analysis is referred as the strategic tool and process that help organisation
to identify all internal and external factors that impacts business performance. It helps to assess
all opportunities and threats that influences business in directly and indirectly. In this report the
chosen organisation is Tesco which is British multinational groceries retailer founded in 1919 by
Jack Cohen. Headquarter of respective organisation is situated in Hertfordshire, England, United
Kingdom. It has 7,005 shops by which it provides products and services to customers. In this
report Pestle analysis, SWOT analysis and how organisational strengths and weakness are
interrelated with macro factors are discussed. Impacts of macro and micro environment factors
on business are covered in this project report.
TASK2
PESTLE analysis and its positive and negative impacts
PESTLE analysis is referred as the framework that examines all external factors such as political,
economic, social, technological, legal and environmental factors that affect business
functionality and functions as well. it helps business to identify market dynamics and facilitates
to gain various market opportunities as well as develop strategies to overcome threats. Factors of
pestle analysis are discussed below:
Political factors: As Tesco is one of the largest retailer organisations that must follow all
rules and regulations in order to ensures all compliance and safety of products. There are various
factors are included such as tax policies, trade restrictions, fiscal policies and government
interventions that affect business in various manners (Donders,2018). The respective
organisation deals with number of countries so, it is necessary for Tesco to analyse all changes in
political environment of all respective countries. Political stability is the biggest opportunity for
organisation that helps to carry out trade in effective manner. On the other hand, new regulation
of BREXIT and US- China trade war creates threat for Tesco organisation.
Economic factors: Tesco offers range of products and the economic factor plays vital
role in the consumption of those products. In economic factors various factors are included
inflation rate, interest rate, economic growth pattern and foreign exchange rates (Galatoulas,