The Cositive And Positive Impacts Of The Macro Environment Has Upon Business Operations

1. Explain why change happens in a business environment. You should include at least three reasons in your answer.

How and to what extent the government does intervenes in the economy. Political factors can be tax policy, labor law, environmental law, trade restrictions, tariffs, and political stability. Political factors that are found in the JetBlue case are:

Political factors refer to the legal activities and political rules that may influence the business in some way. However, ASDA will continue to face many changing in the business for better or maybe worse when it comes to changes in government laws, for example, taxation and unemployment. The government is encouraging business to create or provide different jobs for the consumer this may affect or puts pressure on ASDA as they have to meet the all the government rules and regulation while continues to run the business according to the law (Worthington & Britton

A business does not operate in a vacuum.It has to act and react to what happens outside the factory. These factors that happened outside the business are known as external factors or influences.

A PESTEL analysis is a tool used to analyse and monitor the external marketing and environmental factors that have an impact on a company. Results can be

Economic factors – which include interest rates, economic growth, exchange rates, inflation and taxation changes (Nieman, G; 1998). The change the economy can have a major impact on the behaviour of the business. For example: inflation may cause a higher wage demand from employees (Herrigton, Kew & Kew; 2009).

SWOT and Pestle analysis is a strategic analysis tool that feeds important information into the business strategy formulation process. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. SWOT is used to determine the current position of an organization. The first two components pertain to internal factors and the latter two concern external issues. Pestle (or PEST) is an acronym for Political, Economic, Social, Technical, Legal and Environmental analysis. Pestle is a tool for assessing the external context of an organization (Bee, 1998).

What is SWOT and PESTEL analysis? SWOT analysis is the strategic planning method used to the strength, weaknesses, opportunities and threats in a business. And on the other hand PESTEL analysis stands for political,

“SWOT analysis is a method for analyzing a business, its resources and its environment. SWOT is commonly used as part of strategic planning and looks at Internal strengths, Internal weaknesses, Opportunities in the external environment, Threats in the external environment” (Tutor2u.net, 2015). PEST analysis studies 4 dimensions, same as SWOT. The factors measured in PEST are

Coca Cola’s first main weakness is that it is highly susceptible to any kind of negative publicity. Every kind of negative publicity can hurt the brand badly. Some years ago after traces of pesticides were found in the products of Coca Cola, it had hurt the brand really hard. Sales had dipped in various corners of the world apart from the criticism that flowed. Any such thing can hurt the popularity and sales of coca cola. However, Coca cola can overcome this weakness by being more transparent regarding the ingredients it uses in the production of its brands.

Political condition involve the laws made, government agency and also unions. Since Coca Cola is a multinational company, it run its operation all around the globe. To do this they have to comply with many rules and regulation in many different country. This make it harder for them to do any promotional activity as some country prohibits some product to be advertise. Coca Cola must then study the rules and regulation, terms and condition of a country before engaging it. And also because a Coca Cola manufacturing plan offers jobs to many worker, unions are definitely an important factor that will affect the way they manufacture their product. Pressure form consumer will also affect the marketing strategy as practices that are deem unethical will be

In today's world, no business operates in isolation without interacting with the environment where it operates. Irrespective of the nature of business whether public or private organization; manufacturing; service industry; local or international firm, its operations are inhibited by the environment in which it operates.

PESTEL analysis is to identify and analyze the strategy and business environment, it is stand for Political, Economic, Social, Technological, Legal, and Environmental factors. This model is to assessing the current environment and potential changes. If

Coca-Cola spends huge amounts of fund on marketing every year to remain its competitiveness. However, recently, Coca-Cola had a weak global growth. The sales volume of soda is not so satisfactory. Coke is claimed to have too many calories and sugar, thus being bad to health, as a result of which, consumers turn their attention to other drinks (Kell n. pag.).

The features of economic environment have direct relationship with economic activities .Income and wealth is the components of the economic environment.