Economic and Financial Management of Tata Consultancy: Impact of Macro and Micro Environmental Factors

Financial management
Tata Consultancy

Executive Summary
TATA Consultancy services is affected by wide number of macro and micro environmental
factors which endanger its economic success and lower its financial stability. The uncertain
environment created by Brexit along with delay in growth of UK technology sector, negatively
affects the economic growth of TCS in UK. In addition to this it is also analysed through
application of SOWT and PESTEL analysis that COID-19 has negatively affected the growth of
TATA Consultancy services leading to loss of profitability.
The high legal costs affecting TATA Consultancy services is another macro environmental
factor leading to economic and financial loss of TATA Consultancy services. The organization
has to deal with high legal expenditure resulting in huge profit cuts of the firm. In addition to this
internal factors such as high attrition arte and loss of market valuation further impact the
economic and financial position of the firm.
It is recommended that he respective organization invests in improving talent management s
that skilled employees can be developed at the company to face fierce market competition. In
addition to this better financial management specifically for the legal expenditure of the firm is
essential for ensuring that TATA Consultancy services avoids costly lawsuits and is able to
safeguard its profit as well as IP from legal trouble. These suggestions will support the company
in eliminating external and internal threats to its profitability, economic growth and finical
performance .

Contents
Executive Summary.........................................................................................................................2
Contents...........................................................................................................................................3
INTRODUCTION...........................................................................................................................1
Subject.........................................................................................................................................1
Background..................................................................................................................................1
Analysis...........................................................................................................................................1
Key micro and macro environmental aspects that impact the technology sector and TATA
consultancy..................................................................................................................................1
Environmental analysis................................................................................................................4
CONCLUSION AND RECCOMENDATION...............................................................................5
Conclusion...................................................................................................................................5
Recommendation.........................................................................................................................6
REFERENCES................................................................................................................................7