Introduction: Managers and leaders in organisations may be expected to monitor and measure the performance of an organisation to for fill its aims and objectives. Analysis of business performance,...

Executive Summary
The present module of the course work related to the Economic and Financial Management. It is often said that finance is the life blood of any business and Economics is often regarded as the mother of finance. Therefore, for a success of any business it is very important that the business has complete understanding of the economic environment in which it is operating. The module concentrated on the study of various components of the macroeconomic environment and microeconomic environment. The study of the macroeconomic environment includes various components like political, social, economic, environmental, legal, and technological. The micro economic environment involves the in depth study of the factors that affect the demand and supply of the firm. The study of microeconomic environment hence concentrates on the identification of the strengths, weaknesses, opportunities and threats. The present project starts with the introduction of the concept, the components of the external and internal economic environment of business. The company chosen for the in depth analysis is Mothercare. The company is six decades old and in the year 2019 it came on the verge of closing down many of its retail stores. The study further highlighted the company failed because it could not keep the pace with the ever changing dynamic business environment.
TABLE OF CONTENT
1. Introduction…………………………………………………………………2
2. Economic Impact on Business Organizations…………………………….....2
3. Impact of Micro and Macro Economic Environment on Mothercare……….4
4. Recommendation…………………………………………………………….5
5. Conclusion…………………………………………………………………...6
6.
INTRODUCTION
A business cannot run successfully without thorough understanding of the economy in which it is operating. Every business needs to scan its external and internal environmental factor so as to frame its policies for growth with the following methodology:
1. PESTLE: A thorough analysis of the business environment where P for Political, E for Economic, S for Social, T for Technological, L for Legal and E for Environmental.
2. SWOT (Strength, Weaknesses, Opportunities, and Threats): To survive in the competitive environment, it is very important that a business recognizes its strengths and weaknesses in relation to the environmental opportunities and threats.
3. Porter’s five forces model: It is really important that a business analysis it’s competitive environment diligently to be successful.
This report attempts to highlight the importance of the scanning of the business environment and how the economic factors affect the business with special reference to the company- “MOTHERCARE”.
ECONOMIC IMPACT ON BUSINESS ORGANISATIONS:
The analysis of the external environment of any business is an important activity that cannot be ignored at any stage of business operations. This is because the external environment is dynamic, complex and uncertain. Also, the success and failure of any business to a large extent depends on its ability to identify the potential opportunity or threat in the environment and plan the business policies and strategies...