Business Environment Analysis: Puma's Macro and Micro Factors

This report provides a detailed analysis of Puma's business environment, focusing on the impact of macro and micro factors on its operations. It begins with an overview of Puma, followed by an identification of the positive and negative impacts of the macro environment, supported by specific examples. The PESTLE model is applied to provide a structured analysis of the political, economic, social, technological, legal, and environmental factors affecting Puma. Internal and external analyses are conducted to identify Puma's strengths and weaknesses, and how these interrelate with external macro factors. The report then applies SWOT/TOWS analysis to demonstrate how these factors influence decision-making within the company. Finally, it critically evaluates the impacts of both macro and micro factors on Puma's business objectives and decision-making processes, concluding with the importance of aligning operational activities with the external environment. Desklib provides similar solved assignments for students.

Business and Business
Environment
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Content
Introduction
Overview of company
Identify the positive and negative impacts the macro environment has upon business operations, supported by
specific examples-
Apply appropriately the PESTLE model to support a detailed analysis of the macro environment within an
organisation.
Conduct internal and external analysis of specific organisations in order to identify strengths and weaknesses.
Explain how strengths and weaknesses interrelate with external macro factors.
Apply appropriately SWOT/TOWS analysis and justify how they influence decision-making
Critically evaluate the impacts that both macro and micro factors have upon business objectives and decision-
making
Conclusion

Introduction
When the activities of an organization are affected by some
external as well as internal forces, then it considered as the
business environment. This is containing various elements
like needs or wants of the customers, economic factors i.e.,
demand and supply, trends, technological components and
social values. Company should focus on the different ways
by which the operational activities are obstructed by these
elements. Additionally, business environment also helps in
finding out the prospects which may result in success of the
business.

Overview of company
Puma is a multinational company which is established in
Herzogenaurach, Germany. This company has come into
existence in 1948 when Rudolf Dassier thought of starting a
business in sportswear. The company is serving different
clothing styles in the fashion design industry, not only this
the founder of the business has also expanded its overall
work towards the manufacturing of camping tools.

Identify the positive and negative impacts of the macro environment upon
business operations
There are some ranges of pros and cons of all these elements in the
working of the business.
• Positive Impact- If company goes with the policies which are
formulate by the government of the country. Such awareness of the
business institution in respect to frameworks of legislative body
will help them in avoiding any adverse situation and complication.
• Negative Impact- One of the major disadvantages of external
surrounding of any business organisation is that it is very tough to
forecast the trends in any of the elements.

Apply appropriately the PESTLE model to support a detailed analysis
of the macro environment within an organisation-
• Political Factor
• Economical Factor
• Social Factor
• Technological Factor
• Legal Factor
• Environmental Factor

Conduct internal and external analysis of specific organisations in
order to identify strengths and weaknesses-
In business the company firstly have to analyse the areas
which are currently supporting in the generation of mass
revenue generation of the firm. It can formulate the better
options for the firm as management will focus on
improvising these areas as well as generate more beneficial
ways through which it becomes very often to avoid some
kind of risky activities.

Explain how strengths and weaknesses interrelate with external macro
factors-
Due to the inability of the firm in handling the external
factors which are prevailing in the industry, it may also
affect the several different tactics which are going inside the
firm as well. Like if the company is strengthening and have
all the powers in respect to changes about the tax structure.
Then this may not create any kind of risk and threats for the
firm because company has already prepared its financial
department to tackle such unpredicted situated in very
efficient way.

Apply appropriately SWOT/TOWS analysis and justify how they
influence decision-making
Strengths
• The quality and use of material which have been used by the
company for the manufacturing of the product is making the
business more effective in gaining the trust of the customers.
Weaknesses
• The marketing department of the company is not using some
unique and innovative ideas for the promotion of the products.
Opportunities
• There is a possibility for the company to further establish its
business in the new emerging markets, by this Puma will get some
new sources from where it will generate the revenue.
Threats
• Presence of the famous companies such as Nike,
Adidas is hazardous for the Puma as these companies
are selling leisure products and this is the reason why
most of the consumers prefer the products which are
provided these companies.

Critically evaluate the impacts that both macro and micro factors have
upon business objectives and decision-making-
Macro environment of the business can resist the
firm in reaching its desired goal in case company
avoid to fulfil the responsibilities as per the
requirements. Moreover, this could also increase the
problems in the firm as it can build the severe
changes in the firm for which company might not be
ready. Not only this, external factors can affect the
decision-making procedure such as cost, plans
related to the formation of marketing strategy.

Conclusion-
The above given presentation went into the detail discussion on the components which together forms the external
environment for the business. These elements possess that capability by which they can adversely impact the
working of any business institution. Company’s must have to align their overall operational activities with the
components which are spreading in the outer surrounding of the business.

References-
Books and journals
 Nudurupati, S.S., Garengo, P. and Bititci, U.S., 2021. Impact of the changing business environment on performance
measurement and management practices. International Journal of Production Economics, 232, p.107942.
 Betti, N. and Sarens, G., 2020. Understanding the internal audit function in a digitalised business
environment. Journal of Accounting & Organizational Change.