Positive and Negative Impact of Macro Environment on Business Operations

This presentation discusses the positive and negative impact of macro environment on business operations of an organization. It covers political, economic, social, technological, environmental, and legal factors. It also includes an internal and external assessment to identify strengths and weaknesses.

BUSINESS AND BUSINESS
ENVIRONMENT

LO3
P4 Positive and negative impact of macro environment
on business operations of the organisation
 The macro environmental factors have a high level of business operations that are been
taken within the organisation.
 The positive and negative impact laid by the macro environment on Direct health
foundation are:

Political:
 Positive: A supportive and helping political factors will lead to rise in operational and
functional rise in the overall operations of the organisation. This will help in setting up
of the business operations in most effective way.
 Negative: Any political restriction or barrier will lead to the failure of business
operations that are been carried out at the organisation in much suitable way. This will
lead to rise in the differences and setting up of adverse operational conditions for the
business.

Economic:
 Positive: the good economic condition like high rate of GDP and low inflation rate or
support to FDI will help in carrying out of suitable business operations leading to the
increase in revenue generation by Direct health foundation.
 Negative: A non stable and slow economic growth organisation will lead to failing of
the organizational structure of the selected organisation. This can also cause the
organisation to lose their customer base.

Social:
 Positive: This will help in meeting the operations that will help in improving the
growth and development of the selected organisation. The shift in social power will
impact the organisation to a higher level. Following of these social factors will help in
proper establishment of a firm like Direct health foundation. This will help in proper
rise in the growth measures of the organisation.
 Negative: Any sort of social reluctance can lead to the failing of the organisational
structure of the organization that will impact the overall growth measures that are been
carried out at the selected enterprise. The shift in social and ethical power may ead to
the fluctuation in operations of the firm.

Technological:
 Positive: Suitable planning and implementation of the technological tools and
measures such as ERP management system, MIS etc this will help in proper planning
of the business operations that will help in improving the overall performance of the
organisation.
 Negative: The failure of the technological system will lead to the severe consequences
on the overall performance of Direct health Foundation. It also needs to look after its
data security measures in most effective way.

Environmental:
 Positive: That will help in proper planning of the operations that will lead the
organisation to improve its functional operations that are been carried out at the firm
that will help in meeting operational needs of the organisation.
 Negative: implementation of this environmental factors will help in meeting the
functional needs within the firm that will help in improving the performance of the
firm.

Legal:
 Positive: Following of the legal obligations will help in improving the sales of the
organization that ensures effective functioning of the business operations of the
organization.
 Negative: Any legal restriction can lead to have negative impact on the overall
operations of the organisation.

LO4
P5 Internal and external assessment to identify strength and weaknesses
SWOT analysis
Strength Weakness
 Well trained and skilled labors and workers, dedicated to
provide the health and well being services to people in UK.
 World class medical infrastructural facilities.
 Have a good focus on health and social care services that
improves its performance.
 Operates majorly in UK only, restricting its area of operations.
 Limited presence in emerging markets and health care service
providers.
Opportunity Threat
 Can link up with local and international pharmaceutical
organisation to provide health and social care services in order
to establish its outlets in the emerging market around the world.
 Can focus on the geographical expansion of the services in
order to get more business.
 High susceptibility to financial losses.
 Economic changes and political decisions like Brexit.

External factors:
 Political: a good market presence and political support is the key element that will lead the organisation to set the
proper health and social care services within UK. The firm can get effective licence to operate its health care outlets in
organisation.
 Economical: The post Brexit conditions may impact the operations of the firm but it will help in suitable rise in the
carrying out of the services and thus will lead to rise in overall operations of the organisation.
 Social: Following of health and well being awareness will lead the Direct health foundation to have a high and
significant growth in the operations that will lead to the rise in overall functionality of operations carried out by the
firm.
 Technological: The advancement of technology in medical and health care services will support organisation to
support its operation's and thus will lead the organisation to setting up of overall well being measures that are carried
out within the organisation.
 Environmental: the Direct health organisation will look after the proper assessment of the environmental factors that
will help in suitable rise in the carrying out of their business operations in most effective way.
 Legal: Following of the health and well being measures will lead the enterprise to have a good rise in the effectiveness
to follow certain health and well being measures that will lead the Direct Health Foundation to carry out their
operations with ease.

P6 Interrelation of strength and
weaknesses with external environment
 External and internal assessment of the Direct health foundation will help in carrying
out the operations and thus will impact the operations of the organisation’s.
 This will help in setting up of suitable planning and this will help in putting the
functional capabilities that will lead to rise in knowledge about the strength and
weakness of the Direct health foundation.

Internal assessment
 Mission and objective
 Organisation structure
 Work culture:
 Employee behaviour:

External assessment
 The evaluation of the political, social and economic factors will lead the firm to have a
good share of operations and setting effective business strategies that will help in
carrying out of the evaluation process that is been carried out at the organization.
 Other than this, the technological, environmental and legal factors are required to be
placed on effective evaluation in order to have a high level of operations that will help
in meeting the operational needs of the organization.
 This can be said that the proper planning of the internal and external assessment will
lead the Direct health Foundation to have a rise in the setting up of the operational
goals and effective functional polices that will lead to increase in their operational
functionality and achieve targeted goals of organisation.

CONCLUSION
Along with this, the evaluation of the internal and external environmental factors is been
conducted to identify the strengths and weaknesses of the organisation and their
interrelation with external environment is also analyzed. This will help in improving the
understanding and knowledge about the operational requirements and extent of operations
that are been carried out at the work place.

REFERENCES
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