Economic and Financial Management Development

The present report is based on company Maplin which is an online retailer dealing in electronic goods and is headquartered in UK. The present report will start by outlining the economic impact on the business with help of different types of tools of environment analysis. Further the report will highlight the impact of these factors over the company and the reason for its failure. In the end some recommendations are being made for the improvement.

ECONOMIC IMPACT ON BUSINESS COMPANIES

Macro environment analysis

The macro environment is defined as the forces which are external to the company and are out of control of the company. these are the factors which impacts the working of the company to a great extent. This is majorly due to the reason that the business operates in the external environment and any change taking place there impact the operations of the company. for analysing the macro environment, the tool used is the PESTLE analysis. This is a tool which help the company in analysing all the factors which are included in the external environment and includes following-

• Political- This includes the changes taking place within the political structure and policies of the government of the country and the regulating bodies.
• Economic- These are the factors which are relating to the economy of the country whether be it economic cycle like recession, inflation, changes in foreign exchange rates, interest rates of bank and all other economic factors (Pelto, 2019).
• Social- This includes the changes taking place within the attitude, perception, values of the people relating to the product and services of the company.
• Technological- This factor includes the changes taking place in the sector of technology. This includes any advancement or upgradation which takes place within the technology and related equipment and machines (Ferri, 2019).
• Legal- This includes all the laws and rules and regulation which are applicable over the working and operations of the company.
• Environment- this includes the factors relating to the protection of the environment and which needs to be considered by the company to a great extent. Order assignment help from our experts!

Micro analysis

This includes the analysis of the internal environment of the company and what is the impact of it over the working of the company. For analysing the micro environment of the company, the technique of SWOT analysis is used as this help in analysing the internal capabilities and weak points of the company. This includes the following steps-

• Strengths- These are the capabilities or the good points which the company is having and which adds to the profitability of the company.
• Weakness- These are the limitation or the negative points which are internal to the company and which hampers the growth and development of company.
• Opportunity- These are the chances of development and growth which are present in the external environment which can be used by the company in developing itself.
• Threats- These are the factors of the external as well as internal environment which either restricts or limits the growth of the company.

Impact of factors on business operations

All the factors of these two techniques that is PESTLE and SWOT analysis impacts the working and operations of the business to a great extent. If the changes in these factors are positive then this help the company in growing and developing (Stoffregen, Giordano and Lee, 2019). In the similar way, if the changes in these factors are negative then this will impact the working in negative way and will not promote growth and development of th

UPTO51%

Avail The Benefit Today!

To View this & another 50000+ free

Enter Email

Submit