Impacts of Olympic Games on Macro Environment

This presentation discusses the positive and negative impacts of Olympic events on the macro environment. It provides insights into urban regeneration, housing, transport improvement, jobs, tourism, and financial benefits as positive impacts. On the other hand, it highlights the high cost, lack of long-term jobs, Olympic debt, and rising consumer prices as negative impacts. The presentation also explores the influence of macro environmental factors on Olympic events, such as political, economic, social, technological, environmental, and legal factors. Additionally, it offers recommendations and solutions to address the challenges, including utilizing the stadium for local events and providing long-term job opportunities. The presentation concludes with a SWOT analysis and references for further reading.

Developing
Destination-Specific
Events--

This presentation covers the positive and
negative impacts of the Olympic events on
the macro environment. Also
recommendations for improvements and
solutions to minimize the adverse impacts of
Olympic event to maximize profit have been
given.
Introduction

Positive:
 Urban regeneration: Government making a new stadium.
 Housing: Government building 5000 homes for the Olympic
village.
 Transport improvement
 Jobs: Benefit for those area having high unemployment rate
 Tourism: Income from huge tourists visit for game
 Financial Benefits
Negative:
 Cost: High cost on event
 Lacks of long term job: This event only provides job till the end of
the project
 Olympic debt: Requires huge fund, which usually borrow from
other country
 Rising consumer prices: Due to Olympic event, landlords around
stadium will increase the price, which will impact locals
Impacts of Olympic games on
macro environment

 Political factor: Tourist can visit UK without any fear
 Economic factor: Government has enough funds to spent
on Olympic event
 Social factors: UK citizens are also excited about this event,
hence public support the decision for organizing Olympics
 Technological factor: UK has enough technology to finish
the project on time and at minimum risk to labors working on
the project
 Environmental factor: UK has stable climate with most of
the sources available in country itself
 Legal factors: There are no legal issues, because project is
undertaken by UK government and it’s a pride for nation to
organize such a big event
Influence of macro environmental
factors on Olympic event

 High cost: As the Olympic events are one time
event, due to which return from project is for short
period. The profit margin is also low because of
short duration cash inflows. To solve this; after
Olympics, stadium might be utilized for local
events to generate revenue for long term.
 Lacks of job: It cannot be denied that major
employees working for Olympic project get jobless
but if government can possibly utilize the premises
for other uses than most of the workers specially
low wage workers can continue their job for long
term.
Recommendations and
Solutions

Strengths:
• Strategic planning of legacy and
regeneration considered in
advance of the games
• Brownfield site with potential for
redevelopment and
regeneration
• Cross party political support and
commitment for regeneration
• Involvement of wide range of
stakeholders
Weaknesses:
• Governance and strategies for
regeneration are complex
• No planned (long term)
evaluation of regeneration
• Limited holistic consideration of
regeneration
• Public consultation time
constrained by the need to
deliver infrastructure
Opportunities:
• Olympics provides a focus for
drawing together regeneration
initiatives and aligning local
policies
• Enhanced investment in wider
regeneration programmes
Threats:
• Economic climate; global
recession; spending reviews of
UK government
• Potential conflict between local,
regional and national policies
SWOT analysis

 London net, 2020; Available through online:
http://
www.londonnet.co.uk/ln/guide/about/olympi
cs2012_stakeholders.html
 Get smaart, 2020; Available through online:
http://
getsmaart.com/student-guides/index.php/st
udent-life-advice/London_2012_Update
References