Business Environment Analysis and its Impact on Business Policies

This report provides an analysis of the business environment, focusing on the impact of macroeconomic factors on business operations. It delves into the significance of both fiscal and monetary policies, examining their influence on the overall business strategy. The report also explores the competitive landscape, highlighting the role of competition policy in shaping the market dynamics. Furthermore, it covers the concepts of the PESTLE analysis, the impact of stakeholders, and the difference between the macro and micro-environment. The report concludes with a summary of the findings, emphasizing the interconnectedness of these factors and their collective effect on business outcomes. References are included to support the analysis and provide additional context.

BUSINESS
ENVIRONMENT

Content
 Introduction
 Difference between macro and micro analysis
 Competition policy
 Fiscal and Monetary Policy
 Conclusion
 References

Business Environment

Introduction
 Business environment is identify as a set of conditions
political, social, legal, institutional or economical facts that
is not controllable and impacts the functions and activities of
the business entity.
 These factor highly effects on business performance and
activities in favourable and unfavourable manner

Fiscal and Monetary Policy
Fiscal policy: It is depict as an effective system where the
growth and success of economy is highly relay on the tax
collection.
Monetary policy in which demand and supply identifies the
quantity allocation of fund.

Difference between macro and
micro analysis
Macro Environment Micro Environment
 This factor includes major
global, national and regional
trends that highly effects on
business as well as society.
 PESTLE factor which
impacts the demand and
supply of the company.
 This analysis includes
stakeholders and most
importantly, competitors,
suppliers and customers.
 Regional and local factor
effects micro-environment
and effect on business
operations and activities.

Competition policy
 Competitions is highly required for growth and
development in the marketplace. Concept of
competition policy or strategy become necessary in
the marketplace.
 Due to this policy, company is competing with
various challengers such as Waitrose, M&S, ALDI,
ASDA, TESCO etc.

Conclusion
From the above mentioned report, it can be concluded that
business environment has different factors that shape the
product line as well as business segment.
The effect of monetary and fiscal policy of the business has
provide significance here beside with the effect of cultural
environment.

References
Cassell, M. A. and Blake, R. J., 2012. Analysis of Hofstede's 5-D model: the
implications of conducting business in Saudi Arabia. International Journal of
Management & Information Systems (Online). 16(2). p.151.
Cavalcante, S., Kesting, P. and Ulhøi, J., 2011. Business model dynamics and
innovation:(re) establishing the missing linkages. Management Decision. 49(8).
pp.1327-1342.
Cronan, T. P., and et. al., 2011. Decision making in an integrated business process
context: Learning using an ERP simulation game. Decision Sciences Journal of
Innovative Education. 9(2). pp.227-234.

Thank You