Business Environment Report: Macroeconomic Factors and SWOT Analysis

This report provides a detailed analysis of the business environment, focusing on both macro and micro factors that influence organizational operations. It begins by defining the business environment and explores the positive and negative impacts of the macro environment, including factors like inflation, employment, and GDP. The report then delves into the PESTLE analysis, highlighting its impact on business operations. Furthermore, it conducts an internal and external analysis, utilizing SWOT analysis to identify strengths, weaknesses, opportunities, and threats. The report also examines the interrelation between strengths, weaknesses, and the external macro environment, emphasizing the importance of analyzing these factors for effective decision-making and goal achievement. The report concludes by summarizing the key findings and emphasizing the significance of understanding both internal and external factors for business success. References are also provided.

BUSINESS
ENVIRONEMENT

Table of Content
• Introduction
• Positive and negative impacts of macro environment
• Internal and external analysis
• Strength and weaknesses interrelate with external macro factors
• Conclusion
• References

Introduction
Business environment is defined as the procedures of accumulating
micro as well as macro factors that impacts whole organisational
operations. These factors involves stakeholders, competitors,
customers and many others all these influence the process of
decision taking as well operative activities of firm

Positive and negative impacts of
macro environment
Macro environment is considered as a situation which exists within
economy as a whole instead of a specific region or industry. This
involves the trends into inflation, employment , gross domestic product
and others. There are several factors that are represented into macro
environments of the organisation that develop a huge effects upon
whole business operations in both ways positively and negatively.

Cont..
The PESTLE analysis of Sainsbury's with its positive and negative
impact on their business operations are mentioned below:
 Political factors
 Economic factors
 Social factors
 Technological factors
 Legal factors
 Environmental factors

Internal and external analysis
There are several factors which are present into internal as well as
external environment of the business that effects the organisational
profitability. This involves workers, investors and many more. So, this
is crucial for for firm's management to develop strategies according
their advantages so that operations can be performed appropriately

Cont..
For this, Sainsbury's used the SWOT analysis to measure strengths as
well as weaknesses. It aids them to obtain future opportunities in
effective way. So, the SWOT analysis of respective company are
mentioned below:
Strengths:
• Great place to work at with employee diversity
• World's renowned brand
Weaknesses
• Brand switching

Cont..
• Low margins
Opportunities
• Enhancing level of income
• Exploring market
Threats
• Commodities price
• Competition in market

Strength and weaknesses interrelate
with external macro factors
There exist relationship among strengths and weaknesses of
organisation which is interrelated with macro environment. The
respective organisation has to deal with external factors which impact
their business operations and decision making in an effective manner. It
is very important to analyse each and every factors to know about
positive and negative impact to business so that goal and objectives can
be achieved in proper manner.

Cont..
These factors are interrelated with each other as external has both
strength and weaknesses that helps in grabbing opportunities which are
as follows:
• Political Factors
• Economic Factors
• Social Factors
• Technological Factors
• Legal factors
• Environmental factors

Conclusion
From the above report, it is concluded that business environment of the
company involves several external as well as internal factors that
effects their business operations positively and negatively. So, it is
essential for firm's manager to ascertain all the component that impact
enterprises in order to minimise negative effects. Also, internal analysis
are performed with the help of SWOT for identifying their strengths
and weaknesses. Moreover, it also get to know that strength and
weaknesses are inter-related with the macro environment of firm which
aids them into decision-making procedures.

References
• Makarova, Y. L. and Polyanin, A. V., 2015. Formation of the
business environment in the agricultural sector. Вестник
аграрной науки. 53(2).
• Saleem, M. A., 2017. The impact of socio-economic factors on
small business success. Geografia-Malaysian Journal of
society and space. 8(1).