Micro and macro environmental factors that changed nature of modern business in the global environment

This paper discusses the micro and macro factors that have changed the nature of modern business on the global platform. It explores the impact of factors such as human resources, distribution channels, technology, social factors, and political environment.

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“Micro and macro environmental factors that changed nature of modern business in the
global environment”
In the changing business environment, it has been examined that there is a drastic change in
context to managing the activities of the company. Just because of the availability and
advancement in the technology it is easy for the companies to conduct the activities on the global
platform. In this paper, the discussion will be made on the micro and macro factors that have
changed the nature of the companies on the global platform.
There are different micro factors that changed the nature of modern business on the global
platform. One of the factors relates to human resources. It can be said that the employees are
considered as an asset of the company and they are considered as the driver the activities of the
business. Earlier, the companies have to face challenges at the time of recruiting the skilled
employees but on the other now it can be easy for the company to appoint the candidates who
have basic knowledge towards the work. The availability of motivated and qualified workers for
the business can help in attaining economic success. Employees are the one who manages the
activities in the workplace Therefore, it can be stated that one of the micro factors that changed
the nature of the business is employees as now companies operate on the global platform and
they want more skilled employees as compared to the earlier times (Bratton and Gold, 2017).
Distribution channels and suppliers can be considered as the next micro factor that changed the
nature of the business. It can be said that presently there are different sources through which the
distribution of the products and services to the customers is convenient. Earlier, there was no
wide scope of distributing the products and services but now there are online companies who are
distributing the products by giving the facility to the customers of the home delivery. This has
positively impacted the overall sales of the products and services offered by the companies in the
market. In the present situation, the companies follow proper distribution channel in which the
manufacturers rely on the suppliers and resale companies rely on the wholesalers to transport the
products in the market (Bringezu and Bleischwitz, 2017).
Technology also comes under the category of the micro factor. In comparison to the earlier
scenario, the technology used by the companies in the present scenario is more advanced. It has
changed the working pattern and also reduces production time. With the use of latest
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technologies, it is now easy for the companies to focus on delivering the products or the services
at low cost and also in less time. Earlier, there was less use of technology so at that time the
companies face difficulty in expanding the market in the global environment (Gürhan-Canli,
Hayran, and Sarial-Abi, 2016).
The macro factor environmental factor that changed the nature of the business on the global
platform is related to social factor. In modern business, the social and cultural forces influence
the welfare of the business concern in the long run. The nature of the goods and services in
demand also depends on emphasizes the changing habits and customs of the individuals in
society. It has been seen that with the rise in the population the demand for the products has also
been enhanced. In the present era, the demand for packaged products has been enhanced.
Therefore, it can be stated social factor affected nature in relation to the production pattern of the
companies (Lasserre, 2017).
Political environment also brought a drastic change in the global business environment. Earlier,
there were less regulations but in the present world, the intervention of the government is more
which create difficulty for the companies to manage the activities on the global platform.
Political stability is also one of the essential aspects that changed the nature of the business and
impacted the functioning of the companies. The businesses in the present era have to follow the
set rules and regulations by the government before starting the activities in the market, so it has
enhanced the pressure on the companies to work in an ethical manner (Rosenau, 2018).
There are various reasons in which it is important for the businesses and individuals to manage
responsibly, sustainably and behave in an ethical way. One of the reasons is related to a high
level of competition in the market. In the present scenario, the competition level has been
enhanced which create difficulty for the business to attain growth in the highly competitive
market (Upward and Jones, 2016). So, to compete in the highly competitive market it is
necessary for the companies or the individuals to focus on considering the social, cultural,
economic and environmental issues as it will help to attain the large market and also boost the
profits in the market. Due to the high level of competition faced by the companies in the market,
it is important to behave ethically as it will help in boosting sustainable growth (Harris and
Roach, 2017).
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Employee retention can also be one of the reasons that are related to the micro issue. This major
issue can be resolved by considering CSR Practices. In this case, it is important for the
companies to focus on developing the employee's development policies as it will help to boost
their skills which will lead to work-life balance of the employees in the workplace. If the
companies work in an ethical manner, then it will assist the employees is exercising their rights
in the workplace and also boost enhance their engagement level towards the activities (Smith, El-
Anis and Farrands, 2017).
So, it can be concluded that these factors should be kept in micro and macro factors that have
changed the nature of the companies on the global platform such as human resources,
distribution channels, and suppliers, technology, environmental and social factor. These factors
assist the companies in boosting their operations on the global platform.
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References
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Bringezu, S. and Bleischwitz, R., 2017. Sustainable resource management: global trends, visions
and policies. Routledge.
Gürhan-Canli, Z., Hayran, C. and Sarial-Abi, G., 2016. Customer-based brand equity in a
technologically fast-paced, connected, and constrained environment. AMS review, 6(1-2), pp.23-
32.
Harris, J.M. and Roach, B., 2017. Environmental and natural resource economics: A
contemporary approach. Routledge.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Rosenau, J.N., 2018. Turbulence in world politics: A theory of change and continuity. Princeton
University Press.
Smith, R., El-Anis, I. and Farrands, C., 2017. International political economy in the 21st
century: Contemporary issues and analyses. Routledge.
Upward, A. and Jones, P., 2016. An ontology for strongly sustainable business models: Defining
an enterprise framework compatible with natural and social science. Organization &
Environment, 29(1), pp.97-123.
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