Positive and Negative Impact of Macro Environment on a Business Organization

Business and Business Environment

Introduction
 The present study is based on John Lewis ,it
is a retail departmental store that has its
outlets in the boundary of UK.
 Study will conduct SWOT and PESTLE
analysis in order to analyses business
environment of firm

P4 Positive and negative impact of macro environment on
a business organisation
Macro environment includes all the factors that affect business
environment politically , economically, socially, technologically,
ecologically and legally..
Political environment
 Negative impact : It will have negative impact on
the business environment of John and Lewis , if it is involved
with corrupted political parties , as there are chances of fraud
and unfair trade practices conducted by those political parties
that can affect its retail business and can decrease reputation
of John and Lewis.(Zahari, and Romli, 2018).
 Positive impact : If John and Lewis have good
relations with government and good political parties, than
political environment will have a positive impact on John and
Lewis.

Economic and socio-cultural Environment
 Negative impact : UK economy is facing downfall in prices of goods
and services that is 'recession' that can lead John and Lewis to decrease prices
of its product that ultimately cause a plenty of decrease in its revenue . Also it
will have a negative impact if there will be increase in interest rate , means
increase in the cost of loan that leads to increase in expenditure of carrying
business operation of John and Lewis.
 Positive impact : If the economy of UK is stable means supply is
equal to demand , no inflation and deflation in the economy , interest rate is
stable then country has plenty of income from gross domestic product then
John and Lewis can use this income in its retail business and can increase its
sale.(Widya Yudha, Tjahjono, and Kolios, 2018).