Business Environment Analysis Report: Macro Environment Impact

This report provides a comprehensive analysis of the business environment, focusing on the impact of the macro environment on business operations. It utilizes PESTLE analysis to assess various external factors. The report further employs Porter's Five Forces to conduct an internal and external analysis, identifying strengths and weaknesses of organizations. It also emphasizes the interrelation between these strengths and weaknesses with the external macro factors, including how threats and influencing factors shape the organization and its operations to meet customer demands. The report concludes by summarizing the key findings and highlighting the importance of understanding the business environment in decision-making processes. The analysis includes a SWOT analysis, with examples of company strengths such as strong brand reputation and the use of smart information systems.

Business and Business Environment

Table of content
 INTRODUCTION
 TASK
Identify the positive and negative impacts t
he macro environment has on business operati
ons, supported by specific examples.
Conduct internal and external analysis of s
pecific organisations in order to identify streng
ths and weaknesses.
Explain how strengths and weaknesses inte
rrelate with external macro factors.
 CONCLUSION
 REFERENCES

INTRODUCTION
Business environment is defining as
the sum total of all the factors both
in outside and inside of the business
environment that affects the
production of the business and its
working capability. It is very
important as it enables the firms to
analyse their competition and the
actions.

TASK
Identify the positive and negative
impacts the macro environment has
on business operations, supported
by specific examples.
The positive and negative impacts on the
macro environment can be analysed
through the implementation of the PESTLE
in the organisation which is discussed
below:
PESTLE is describing as the framework that
work on various factors that impacted the
functioning of the business environment.

Conduct internal and external analysis of specific organisations in order to identify strengths and weaknesses.
The internal and external analysis of the
organisation can be done with the help of
Porter's five forces analysis which is
conducted as below:
Porter's five forces is a framework that
help in analysing the company's
competitive environment and other forces
that help in generating effective results in
the functioning of the organisation.

Explain how strengths and weaknesses interrelate with
external macro factors.
The strength and the weaknesses are the results
of the macro environment evaluation. The impacts
of the threats and the influencing internal and
external factors are highly affects the working of
the company. These factors raise the positive and
negative facts about the organisation and the
impacts of these factors use to shape the
organisation and its operations in order to cope up
with the customers’ demands.

SWOT Analysis
 Strengths - The strengths of the company include
strong brand reputations, presence of the
organisation on both the online and offline modes,
they are having effective value chain with smart
information systems.

CONCLUSION
 From the above report it is concluded that
business environment is the set of internal and
external factors which make major impact on
the overall business operations and functions.
The business environment affects the various
decisions in context of sizes, types and scope
of the organisations.

REFRENCES
 Betti, N. and Sarens, G., 2020.
Understanding the internal audit function in
a digitalised business environment. Journal
of Accounting & Organizational Change.
 Büyüközkan, G., Havle, C.A. and
Feyzioğlu, O., 2021. An integrated SWOT
based fuzzy AHP and fuzzy MARCOS
methodology for digital transformation
strategy analysis in airline industry. Journal
of Air Transport Management, 97,
p.102142.

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