Positive and Negative Impacts of Macro Environment on Business

Business and Business
Environment

Contents
Introduction.................................................................................................................................................3
Task 2..........................................................................................................................................................3
P4 determines the positive and negative impacts the Macro environment has on the business............3
P5 determine the internal and external analysis of the chosen company in order to identify the
strength and weakness............................................................................................................................5
M4 with the help of SWOT analysis justify how they influence the decision making of an organisation 7
P6 explain how strength and weakness interrelate with external macro factors....................................7
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9

Introduction
Business is an enterprise where the entrepreneur was used to buy and sell their products
and services in order to earn money. Business environment analysis reserves a strategic tool
which helps to identify all the external and internal elements which may affect the functions of
an organization (Bag and et. al., 2020). This helps in assessing the level of threats and
opportunities which are presented in the competitive market. This helps in organisation in order
to take many decisions and also arising in advertising different strategies for the company. This
report is about the Tesco PLC which is a multinational grocery and general store, dealing in the
retail sector industry. The report is being discussed about the positive and negative impacts on
the micro environment. The strengths and weaknesses of Tesco PLC and how these are
interrelated with external macro factors.
Task 2
P4 determines the positive and negative impacts the Macro environment has
on the business.
PESTEL analysis
PESTEL analysis is a model which helps the company to determine their external forces
which has an impact on the organisation. The result of which is used to identify the threats and
weaknesses. The model is discussed below:
 Political factors: Tesco PLC is the company which is operating in the globalised
environment. It has many stores around the world and their performance is greatly
influenced by the political and legislative situation in the different countries where they
are operating. It helps in giving flexible job opportunities to the people residing in those
countries (Bughin and Chui, 2017). The company used to demand lower paid basis
employees to highly skilled individuals.
 Economic factors: it is the factor which is concern and influence with the demand, price
and cost of products. The major factor of economics is the high level of unemployment
which decreases the effective demand of many products and services. It is the factor
which is outside the control of the organisation but their effects the marketing and