Macro Environment Analysis: Impact on Business Operations

This presentation explores the intricate relationship between the macro environment and business operations. It delves into the positive and negative impacts of economic, political, social, technological, environmental, and legal factors on a specific organization, British Airways. The analysis examines internal and external factors, including Porter's Five Forces, to understand how these forces influence the company's strengths and weaknesses. The presentation concludes by highlighting the importance of strategic decision-making in navigating the complexities of the macro environment.

Business and Business Environment
TASK 2

Table of Content
Introduction...................slide 3
Identify the positive and negative impacts
the macro environment 4-8
Internal and external analysis of specific
organisations .....slide 9-15
Strengths and weaknesses interrelate
with external macro factors.....slide 16
Conclusion .....slide 17
Reference list..........slide 18

Introduction
The growth and development of the company is
highly dependent on the business
environment. On the other hand, the
business operations are directly or indirectly
is dependent on the macro environment of
the company. Additionally, it has both positive
as well as negative impact on the business.

Identify the positive and negative impacts
the macro environment
The business performance, profitability, market
share, customer reputation and decision
making process are highly influenced by the
external macro environment of any
operational company.

Cont...

Cont....

Cont....

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Internal and external analysis of specific
organisations
The competence level of any business can be
increased with strategic decision making,
which mainly depends on the internal
environment and regulators. These factors
have their impact on the business
organisation and its operations.

CONT....

CONT...

CONT...
The business performance, profitability,
market share, customer reputation and
decision making process are highly
influenced by the external environment and
competence level of any operational company.
Indust
ry
rivalry
Threat of New
Entrance
Bargaining
power of
Buyers
Bargaining
power of
suppliers
Threat of
Substitut
es

CONT...
Threat of New Entrance: Establishment of
an airline company needs huge amount to
revenue, which makes the possibility of new
entries in Airlines Company very low
Bargaining power of Buyers: British
Airways works as an international
transportation company. Therefore, the
company has to deal with various customer
segments from different socio-cultural and
economical background

CONT...
Bargaining power of suppliers: Suppliers
are the major pillar of any national or
international business organisation. For
British Airways the requirement of raw food
materials, health and safety materials is very
high
Threat of Substitutes: There are many
substitutes within the airline market.
However, British Airways has strong brand
value and market reputation for their quality
of services and associative meal products.

CONT...
Industry rivalry: British Airways has huge
competition in different levels in different
marketplace. The service level of different airline
companies varies as per the preferences of the
customers. This situation can cause high risk or
marketing operation of British Airways. However,
British Airways has strong brand value and market
reputation for their quality of services and
associative meal products. It can retain the
customer count and profit level of British Airways
for both domestic and international within the
airline market.

Strengths and weaknesses interrelate with
external macro factors
The opportunities have to be utilised properly by the
organisation in order to enhance its strengths. It can
be stated that the opportunities sometimes forms the
basic foundation for strength of the company. In the
case of British Airways, the political situation of the
nation is a major opportunity
The organisations ability to gain high profitability is
also a major reason of the opportunities that
technological advancement provides. For example,
due to technological advancement the organisations
can use alternative fuel that significantly reduces
cost for providing the services.

Conclusion
From the above discussion, it can be easily
said that macro environmental factors
directly influences the business operations.
Based on the analysis, the business
organisation mainly incorporates business
strategies.

Reference list
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case of state-owned corporate pyramids. The Journal of Law, Economics, and
Organization, 29(6), pp.1217-1252.
Jung, S. and Ha‐Brookshire, J., 2017. Perfect or Imperfect Duties? Developing a Moral
Responsibility Framework for Corporate Sustainability from the Consumer Perspective.
Corporate Social Responsibility and Environmental Management.
Kadam, R.N., 2012. Financial Management for the Organizational success: Challenge
before finance managers. International Journal of Advanced Research in Management
and Social Sciences, 1(1), pp.128-134.
Laudon, K.C. and Laudon, J.P., 2011. Essentials of management information systems.
Upper Saddle River: Pearson.
Lis, A. and Gulak-Lipka, P., 2017. From Editors. Journal of Corporate Responsibility and
Leadership, 3(2), pp.5-7.
Scott, W.R. and Davis, G.F., 2015. Organizations and organizing: Rational, natural and
open systems perspectives. Routledge.
Scott, W.R., 2013. Institutions and organizations: Ideas, interests, and identities. Sage
Publications.
Thornton, P.H., Ocasio, W. and Lounsbury, M., 2012. The institutional logics perspective:
A new approach to culture, structure, and process. Oxford University Press on Demand.

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