Does Macro Environment Affects A Business

1. Macro environment analysis: the major externals which affect company’s decision making, marketing strategy and performance. It includes:

PESTEL analysis is widely used to better understand the external environment of the company. The acronym PESTEL stands for political, economic, sociocultural, technological, environmental, and legal factors. PESTEL analysis helps managers better understand the threats and opportunities a company faces.

An organization’s macroenvironment consists of nonspecific aspects in the organization’s surrounding that have the potential to affect the organization’s strategies. Macroenvironmental variables include

Macro environment are the external and uncontrollable factors that influence an organization’s decision making and affects its performance and strategies.

PESTEL is the acronym for political, economic, sociocultural, technological, ecological and legal, and theses are external forces at the macro legal divided into six segments. These forces embedded in the global environment can create both opportunities and threat, so managers must monitor them closely. Managers must be aware of changes, like new competitors entering their market, in order to stay competitive in the business environment/marketplace.

Microeconomic view of international trade differs from a macroeconomic view of international trade by comparative advantage. A

Pestel analysis consists of environmental factors that lead to the understanding weaknesses and strengths of the organization in an attempt to influence the organization’s success. The macro-environmental factors are political, economic, social, technological, environment and legal.

Macro environment is crucial to the development of a company. All the external factors can have huge positive or negative influences on Travis Perkins plc, therefore a better understanding of the environment of the company is of supreme significance (Peng & Nunes, 2007). Among all the analysis tools, PEST analysis is one of the most effective tools to analyze the external environment of a company (Riley, 2012). This part will demonstrate PESTLE analysis of Travis Perkins plc below. The result of PESTLE analysis can be demonstrated in the following table 1.

The PESTLE analysis can be used to assess the strategic relevance of the six principal components of the macro-environmental: political, economic, social, technological, environmental, and legal forces. It can be used as a tool by companies to better understand of the macro- environment they are operating in.

I am going doing this to look at the external factors affecting a business and what advantages/disadvantages there may be and if it affects the company in the long term.

External environment refers to external aspects of the surroundings of business enterprise, which have influence on the functioning of business. The external environment can provide both facilitating and inhibiting influences on organizational performance. Key dimension of the external environment principally consists of a micro environment and a macro environment.

The market environment consists of both the macro environment and the micro environment. On macro environment the firm need to follow it and they can’t to control it. It consist variety of external factors that is economic, social, political, legal and technological. In the macro environment the firm should analyze national political issues, culture and climate, key macroeconomic conditions, health and indicators (such as economic growth, inflation, unemployment, etc.), social trends/attitudes, and the nature of technology's impact on its society and the business processes within the society. The microenvironment refers to the internal environment of the company such as consumer/customer, Supplier, competitors, the media (public) and in

External analysis of general environment will be done using PESTEL which refers to how the political, economic, social, technological, environmental and legal environment affects an organization. Below will be a diagram of PESTEL, followed by a brief explanation of each factor and their examples.

Aggregate Growth Rates. Low or declining aggregate growth rates often weaken the debt-servicing capacity of domestic borrowers and contribute to increasing credit risk. Recessions have preceded many episodes of systemic financial distress.

THE POLITICAL ENVIRONMENT: The critical concern Political environment has a very important impact on every business operation no matter what its size, its area of operation. Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it. And the most crucial & unavoidable realities of international business are that both host and home governments are integral partners. Reflected in its policies and attitudes toward business are a governments idea of how best to promote the national interest, considering its own resources and political philosophy. A government control's and restricts a company's