Positive and Negative Impact of Macro Environment on NatWest

This presentation explains the positive and negative impact of macro environment on NatWest, a reputed international bank of UK. It also demonstrates the interrelation between micro and macro environmental factors.

Business environment
(Task 3-4)

Tables of Contents
• Introduction
• Positive and negative impact of macro environment
• Micro and macro analysis of organization
• Interrelation between strengths/weaknesses and
macro environment
• References

Introduction
This presentation is based on NatWest which is reputed
international bank of UK. In this presentation,
positive as well as negative impact of macro
environment has been explained. Along with this,
interrelation betwixt micro and macro environmental
factors has also been demonstrated

Positive as well as negative impact of external
factors on organisational activities and practices
A organisation can get higher success if it operate its
business functions and activities according to its business
environment. In simple words, without considering
environmental factors no organisation can accomplish its
desired goals and objectives.

Cont...
Different external components are following as under along
with their positive as well as negative impact:
• Political factors
• Economic factors
• Social factors
• Technological factors

Micro and macro analysis of organisation
Every organisation is surround by its business environment
which can influence positive as well as negative impact on
organisational performance. It is huge duty of business
person to make sure that their strategies and polices are
according to their environmental factors.

SWOT analysis

SWOT analysis of NATWEST
Strengths (Internal): This company have great brand image
in United Kingdom. As it provides
financial services at lower interest
rate. It is also associated with various
sports event which helps it in
increasing its goodwill in market
place.
Weaknesses (Internal): This company have less global presence
because its most of branches are
established in United Kingdom only.
Due to some controversies this
organisation have reduced its brand
image.

Cont...
Opportunities (External): This company can enhance its profitability
and productivity by expanding its
business at international level. By
developing fore market this company can
also increase its market shares.
Threats (External): Continuous changes in economic polices
can decrease its profitability.
Competitive environment in banking
industry can also become big threat for
this company.

Interrelation betwixt strengths/weaknesses and
macro environmental factors
NATWEST bank is known for their strong position on UK.
People have trust in their brand which can be considered as
the main reason they have such a high valuation. They hold
a position in table leader of European bank but after the
incidents like Brexit their business is expected to go down
because they may loose revenue in from other European
countries.

Cont...
NATWEST bank has to introduce new technology in their
business operation so they can stop their competitors from
getting competitive advantages, his strategy involve extra
expenditure which they can not bear in current scenario
because they are facing various kind of challenges which is
stopping them from earning high revenue.

References
Nicolaidis, C. and Katsaros, K., 2011. Tolerance of ambiguity and
emotional attitudes in a changing business environment: A case of
Greek IT CEOs. Journal of Strategy and Management, 4(1), pp.44-
61.
Ratten, V., 2014. Future research directions for collective
entrepreneurship in developing countries: a small and medium-
sized enterprise perspective. International Journal of
Entrepreneurship and Small Business, 22(2), pp.266-274.

THANK YOU