Analysis of Global Business Environment: Factors and Impacts

This report provides an analysis of the global business environment, focusing on the impact of micro and macro factors on businesses. It examines the retail fashion industry in the United Kingdom, using Marks and Spencer and Next plc as case studies. The micro-analysis covers strengths, weaknesses, opportunities, and threats (SWOT) for both companies. The macro-analysis explores political, economic, social, and technological factors affecting these retailers. Political factors include free trade agreements and taxation, while economic factors involve financial crises, exchange rates, and employment. Social factors encompass consumer preferences and demographic changes, and technological factors relate to innovation and security. The report concludes by summarizing the significant impacts of these factors on business development and performance, supported by references to academic sources.

Global
environment

Table of Contents
Introduction......................................................................................................................................3
Impact of Micro and macro factors on business ........................................................................3
Micro analyses............................................................................................................................3
Macro analyses............................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

Introduction
The global business environment affected various cost and raising revenues of firm to great
extent. Increasing exchange rates of UK affecting international investors' profitability of
organization. In this report there is clear level of macro ans micro analysis.
Impact of Micro and macro factors on business
Retail fashion industry of United Kingdom is very wide, it is growing with the rapid
speed. Burberry, next plc are the big retailers in this sector. They offer cloths, shoes etc. To the
wide range of consumers globally. Next plc is considered as 2nd biggest fashion retailer which
has market value of 7.16 billion. Annual sales of M&S was 10.3 billion in 2018.
Micro analyses
Marks And Spencer
Strength Weakness
Wide varsity of products
Large number of stores and outlets
Popular design brands
Bad publicity regarding non trendy store.
Manual working is increasing cost.
Opportunities Threat
internationalization
More efficient level of mark segmentation.
increase level of competitions
Strategy failure.
Next Plc
Strength Weakness
Financial Position
Return Of Capital Expenditure
Skilled labor Force
Research and Development
Cash flow problems
High employee turnover rates
Opportunities Threat
Technological developments
Green government drive
Political uncertainties
availability Substitute products
Macro analyses
Political factor

Marks and Spencer is big fashion retailer that is affected by political factors, as
government of Uk has free trade agreement in which firm has facility to trade freely in other
nations. That helps in decreasing sourcing cost and raising revenues of firm to great extent.
Raising taxation has affected Next plc badly. This has increased financial burden on business and
restricted to maximize its profit.
Economic factor
Marks and Spencer (M&S) has affected by financial crises. Due to crises in economy
M&S has cut job rate by 2% and has terminated 7000 employees in that year. Recession affects
the firm and reduces its profitability to great extent. Increasing exchange rates of UK affected
Next Plc, as Next Plc is enraged in international trade hence if exchange rates are high then it
may find difficulty in attracting international investors that affects profitability of organization to
great extent. High employment rate help Next plc in raising sales of firm that boost productivity
of organization.
Social factor
This is the factor that is related with social values, lifestyle, preferences of people. As in
the marks and Spencer more level of inactivation have been unsporting the communities to helps
in the cutting down the internal cost. On the other have the next plc is been effaced by the level
of demographic changes and increase level of employee turnover ratio. There are more impacts
of the both demographics and fashion in order sty and currents relevant changes.
Technological changes
This factor have clear relation regarding the more level of innervation which have clear
influence of company performance in accurate way. As the mark and Spencer have the
developmental in strengthener the more level of security, risks and coalescence which make
major level of developed. On other hand which have the presentiment the more level of target of
the new customer.
CONCLUSION
From the above file it can be concluded the macro and micro factor have the significant of
impacts in business developmental and compass performance.

REFERENCES
Nandonde, F.A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence, 38(4).pp.54-61.
Kuusela, E., 2019. Sustainability trends effecting modern business practices.
Dani, S., 2019. Strategic Supply Chain Management: Creating Competitive Advantage and
Value Through Effective Leadership. Kogan Page Publishers.