Economic and Financial Management: Impact on Business Companies

ECONOMIC AND
FINANCIAL
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
ECONOMIC IMPACT ON BUSINESS COMPANIES.................................................................3
Macro environment analysis...................................................................................................3
Micro analysis........................................................................................................................4
Impact of factors on business operations................................................................................4
IMPACT OF MICRO AND MACRO- ECONOMIC FACTORS ON MAPLIN...........................5
Background of company.........................................................................................................5
Micro economic analysis........................................................................................................5
Macro-economic analysis.......................................................................................................6
RECOMMENDATIONS.................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
The analysis of the economic and financial management is very necessary for the
business and its development. This is necessary because of the reason that the analysis of the
environment help the company in managing its business and taking decision (Krutikova and
Kravets, 2018). There are many different tools and techniques like PESTLE analysis, SWOT,
Porter analysis, Ansoff matrix and many other tools which help the companies in identifying the
changes taking place in the environment and then implementing the same within the company.
The present report is based on company Maplin which is an online retailer dealing in
electronic goods and is headquartered in UK. The present report will start by outlining the
economic impact on the business with help of different types of tools of environment analysis.
Further the report will highlight the impact of these factors over the company and the reason for
its failure. In the end some recommendations are being made for the improvement.
ECONOMIC IMPACT ON BUSINESS COMPANIES
Macro environment analysis
The macro environment is defined as the forces which are external to the company and
are out of control of the company. these are the factors which impacts the working of the
company to a great extent. This is majorly due to the reason that the business operates in the
external environment and any change taking place there impact the operations of the company.
for analysing the macro environment, the tool used is the PESTLE analysis. This is a tool which
help the company in analysing all the factors which are included in the external environment and
includes following-
 Political- This includes the changes taking place within the political structure and
policies of the government of the country and the regulating bodies.
 Economic- These are the factors which are relating to the economy of the country
whether be it economic cycle like recession, inflation, changes in foreign exchange rates,
interest rates of bank and all other economic factors (Pelto, 2019).
 Social- This includes the changes taking place within the attitude, perception, values of
the people relating to the product and services of the company.
 Technological- This factor includes the changes taking place in the sector of technology.
This includes any advancement or upgradation which takes place within the technology
and related equipment and machines (Ferri, 2019).