Positive and Negative Impact of Macro Environment on Business

This presentation discusses the positive and negative impact of macro environment on business productivity and success. It covers the internal and external analysis of an organization, as well as the interrelation of strengths and weaknesses with external factors. The presentation concludes with the importance of identifying and analyzing the internal and external environment for maintaining and improving firm's goodwill and productivity.

BUSINESS
(TASK 3 & 4)

Content Covered
• Introduction
• Positive and negative impact of macro environment
• Internal and external analysis of organization
• Interrelation of strengths and weaknesses of company
with its external factors
• Conclusion
• References

Introduction
Today, business environment plays an important role for
organisation’s productivity and success. It is necessary
for every business manager to consider all factors existing
in an environment. Company has to provide a better
working environment to their workers which can help to
provide higher productivity and profitability in the long
run.

Positive and negative impact of macro
environment
Pestle analysis: It is the
responsibility of employer to
largely assess PESTLE factor.
These are mentioned as below:
Political factors: NATWEST
follows the rules and policies
imposed by government.

Cont.…
Economic factors: When country suffer from recession, bank
plays an important role for the development and
improvement of economy.
Socio culture factors: People come from different cultures
and religion so, company mainly focuses on satisfying their
needs.

Cont....
Technological factors: Bank can use new technology
software which helps customers to easily transfer and pay
their bills.
Legal factors: It is necessary for company to work under
various laws and regulations.
Environment factors: It affects the interest rate during period
of inflation and deflation.

Internal and external analysis of organisation
Swot analysis: Manager has
responsibility to identify the
company’s strengths,
weaknesses, opportunities
and threats. These are
elaborated as below:

Cont.…
Strengths: Company provides various incentives facilities to their
workers because it helps in increasing the efficiency level of
employees
Weaknesses: If company raises their interest rates as compared to
competitors, it can affect their profitability and growth.

Cont.…
Opportunities: They also work in foreign exchange market. So,
company is able to provide various benefits to their target
customers that can help to gain higher profitability
Threats: Government has imposed various policies and
procedures which affect the performance of business.

Interrelation of strengths and weaknesses
with external factors
Both the SWOT and PESTLE analysis are crucial factors
which help to accomplish goals and objectives of company. Both
the external and internal factors are helpful for company in order
to achieve goals and objectives effectually in the near future.

Conclusion
It can be concluded that it is necessary for every
organisation to identify their internal and external environment
with the help of swot and pestle analysis. These tools mainly
focus on maintaining and improving firm’s goodwill and
productivity.

References
Ahmed, I., Aamir, M. and Ijaz, H. A., 2011. External factors and
entrepreneurial career intentions; moderating role of personality traits.
International Journal of Academic Research. 3(5).
Auzair, S., 2011. The effect of business strategy and external environment on
management control systems: a study of Malaysian hotels. International
Journal of Business and Social Science. 2(13).
Chang, Y. Y., Hughes, M. and Hotho, S., 2011. Internal and external
antecedents of SMEs' innovation ambidexterity outcomes. Management
Decision. 49(10). pp .1658-1676.

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