Macro Environment , (Pest)

Analyze the impact of global factors on UK business organization .
Global Factor
Global Factors can be defined as the environmental factors that affect the organization at global level. These factors can also be known as PESTEL (macro-environment).
Organization’s future is linked to an increasingly global environment.
Analyzing how global factors impact on UK business organization
Political factors and legal factors
Government policy affects the whole economy as well as business organization. Stability of government policy, constitutional issues and stability of country (no war) are great issues in making business decision. Strategies and investment decision of business organization largely depend on International trade policy, quota and sanction. Every UK business organization must comply law & regulation (e.g. company law, tax law, labour law, Foreign direct investment law) set by UK government. Changes in these factors have great impact on operation of UK business organization and this may lead to changes in business strategy.
Economic Factors
Sale and profit of business depend on disposable income, consumers’ buying power and spending pattern which can be determined by level of economics development and economic systems (market, centrally planned or mixed).
Exchange rates, interest rates and inflation rates are also key factors in to consider in making business decision such as purchase from which country, deciding discount percentage, investment. Profit and loss of a business and growth rate is largely depend on economic factors.
Social Factors
In marketing perspective Social factors are typically important. Social factors have to be taken account especially in marketing, segmenting, targeting and positioning. Quantity of sale is largely depending on population, birth rate, average age, gender, family structure and ethnicity. Changes in these social factors directly impact on sale of business. E.g. In developed country, Life expectancy become