Business Environment Analysis: Macro Factors and Organizational Impact

This report delves into the analysis of the business environment, focusing on the impact of both internal and external factors on organizational operations. It begins by outlining the macro environment, exploring its positive and negative influences on businesses. The report then employs SWOT and PESTEL analyses to evaluate the strengths and weaknesses of specific organizations, such as John Lewis and the NHS, in relation to external factors. The report underscores the interconnectedness between internal and external factors, highlighting how effective management of these relationships can lead to improved decision-making and business outcomes. Finally, it emphasizes the importance of PESTEL analysis as a strategic tool for monitoring the external environment and recognizing opportunities and threats. The conclusion summarizes the importance of aligning internal strengths and weaknesses with external macro factors for optimal performance.

The Business
Environment in Various
Organisations

Table of Content
• Positive and negative impacts the macro environment
• Internal and external analysis of specific organizations
• Strengths and weaknesses interrelate with external macro factors

Introduction
Business environment is a very vast concept that comprises of analysis and
evaluation of all the internal and external factors of a firm that have a direct or
indirect impact on its business operations and decision making. This
presentation consists of use of SWOT and PESTEL analysis to evaluate the
positive and negative impact of the business environment on the firm’s
operations.

Positive and negative impacts the macro
environment
Macro environment comprises external
factors that exists and prevails outside the
organisation but have significant impact on
the business operations and functioning of
the firm.

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Political factors- It basically comprises of the level of government stability along
with the amount of interference and interventions made by the government
authority in form of strict policy and regulations.
Economic factors- The economic environment consists of inflation, deflation,
recession, bank rate, purchasing power of customers, level of demand, disposable
income and other factors that are related growth of GDP and economy of a nation.

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Technological- high level of technology improvement is seen in the business
environment of UK that is leading positive impact on business operations of
both John Lewis and NHS. Use of latest technology and digital platforms
helps in making effective communication and interaction with customers in
order to have higher productivity and improved customer base that lead better
business operations.

Internal and external analysis of specific
organisations
SWOT analysis is an effective managerial and
statistical tool use of which is made by
organisation to identify and evaluate their
internal strengths and weakness along with
evaluating the external opportunity and threats.

SWOT analysis of NHS
Strengths Weakness
 Clinical leadership in the business
environment
 Use of latest and most efficient technology
and good CQC report which evidence and
supports consistent delivery of quality
performance.
 Increasing emergency activity and high le el of
bed occupancy.
Opportunities Threat
 Development of integrated and well-
coordinated pathways with the local health
community are supporting better growth and
development
 Uncertainty of national economy is the biggest
threat faced by NHS that is affecting its future
funding models and development.

SWOT analysis of John Lewis
Strengths Weakness
 John Lewis is one of most upmarket
retailing store within UK
 Higher cost of operations
Opportunities Threat
 Expansion of network through making
use of online services and digital
platforms.
 Intense competition and threat of lockdown is
increasingly seen in the retail industry of UK.

Strengths and weaknesses interrelate
with external macro factors
It has been analysed that a direct relationship is exits between the strengths
and weakness of a firm with its external macro factors. Interrelation and
proper coordination between the internal factors and external macro factors
leads and ensure more effective decision making based on the analysis of
strengths and weakness along with prevailing situation and current
circumstances of the firm.

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Along with this, with respect to NHS it has been seen that use of making
latest technology and upgrade medical machinery is its greatest strength that
is directly related with the external macro factor which supports improved
technology and regular automation for this organisation.

Conclusion
a conclusion can be made that PESTEL is a commonly used strategic business
tool that is applied by various organisation to evaluate and keep a track on the
external environment of a company and makes a firm aware about the threats
and opportunity that are prevailing in the macro business environment. At last,
it has been summarised that interrelation between strengths and weakness of a
firm with external macros factor is beneficial and leads improved performance