Impacts of Macro Environment on Business

This presentation explores the impacts of macro environment factors on business growth and stability. It discusses political, economical, social, technological, legal, and environmental factors and their positive and negative impacts on businesses. The presentation concludes by emphasizing the importance of understanding and managing these factors for business success.

BUSINESS
ENVIRONMNET

Introduction
Performance of the business plays very important role to compete
in the market. It helps to business organisation to maintain its
stability in the market. There are different types of organizations
which runs to earn profit maximization. In this present files it
explains the types and scope of organization like there are three
types of organization private, public. And voluntary organisation

Impacts of macro environment
Macro environment factors are impact
on the entire business. Macro factors are
the external factors includes political,
economical, social, technological,
environmental. These all factors
influenced the working of the business.
Company has to control on these factors
to minimize the future risk. Macro
environment either give positive or
negative impacts too.

Political factors
Political factors impacts on business growth in great extent.
Political factors are the external factors controlled by
government. These factors may affects from increase or decrease
the tax rates(Steurer, 2013). These political factors is predictable
because of the changes in political parties. Political factors
includes the population ratio, demographic factors. These all
factors affect the company negatively or positively.

Positive impacts
• It helps to minimize the future risk.
• Political factors helps to decide the product expansion strategies.
• It aids to improvise in business ethics.
• It mange the working environment by giving quality services to
the customers.
• Government also helps to develop new industries in the market.

Negative impacts
• It may decrease the purchasing power of the customers.
• Due to high interest rates customers are not able to
purchase costly services.
• It gives low productivity in the organisation.
• It decreases the business expansion scope.

Economical factor
Due to changes in inflation rates, interest rates impact on negatively or
positively on the businesses. Due to increasing the inflation rates
apparently business have to increase the prices of product and services.
Through this situation customer are not getting interest in heavy prices
of product. It decreases the sales of the company Mark & Spencer.
Economic factors are influenced by external factors.

Positive factors
• Economic factors helps to make new strategies.
• Low inflation rates help to increment the demand of the products.
• Devalued interest rates helps to increase the commodity expansion.
• Stable economic condition helps to identify the customer needs and
wants.
• In smooth market condition helps business to take new marketing
strategies to attract the customers.

Negative impacts
• It may desecrate the purchasing power of the customer.
• It decreases the sales revenue of the company.
• Diminish the future growth.
• It creates crisis in the business.

Social Factors
Social factors are those factors who influenced by the customers.
It is the another macro factor which impacts business
organization(Carrió-Pastor, and Calderón, 2015.). It involves
customer age, income, culture, religion. Social factors affect the
demand and supply of the product. It may increase or decrease
the sales of the business due to unemployment customer cannot
afford high cost services.

Positive factors
• Stable economy increase sales of the products.
• Increasing the purchasing power.
• It helps organisation to take new product expansion.
• Analyse the needs and wants of the customers.

Negative factors
• Due unemployment decrease the sales revenue of the
product.
• Decrease the profit revenue of the company.
• Diminish the business future stability in the market.
• Negative impacts on business plans.

Technological factors
This macro factor gives positive impacts on the M&S. It helps to
increase the employee's productivity in M&S company. This
technological factors diminish the work costs. It is effective to
minimize the time costs and other expenses. It helps to raising the
product quality services of marks & Spencer. It gives support to
manage the all work in the company and increase the profit
revenue as well.

Positive impacts
• Increase the productivity between staff members.
• Enhance the product quality.
• Achieve the customer satisfaction.
• Increase the brand image.
• Give skilled talented employees.
• Helps to achieve the target into great extent.

Negative impacts
• Due to lack of knowledge employees get stuck to access
the new techniques.
• Increase the customer dissatisfaction level.

Legal factors
Legal factors are those factors which is imposed by the
government. It is the set frame work of the regulatory bodies
which is necessary to implement in the organisation. These are
the regulations are created for the protection of customers or
employees. These factors impacts positively or negatively both.

Positive impacts
• It helps to maintain loyalty and trust among the customers.
• Increase the employee's stability in the business.

Negative impacts
• Create government involvement in the business plans.
• Involves inflexibility in work.

Environmental factor
Environmental factors helps to increase the brand image in the
market of the company. These factors involve the fulfilment of
social responsibilities. These external factors are unpredictable.

Positive factor
• Create more brand value.
• Maintain business stability in the future.

Negative factors
• Due to lack of anti social company face the trouble.
• Due to unfair trade practises company faces the low
demand of the products.

Conclusion
From the above report it can be concluded that macro or micro
factors affects the business all the factors are explained to define
the growth of the business. Overall it was explained about the
business organisation and its role.