Analysis of Business Environment Factors and Their Impact

This report provides a comprehensive analysis of the business environment, focusing on both micro and macro factors that influence business operations. It delves into the dynamic and changing nature of the global business environment, emphasizing the importance of understanding customer needs, stakeholder considerations, and the impact of political, social, environmental, and technological factors. The report also explores the need for organizations to manage responsibly, sustainably, and ethically, addressing the significance of social responsibility and ethical conduct in decision-making. It highlights the importance of considering these factors to improve overall performance and maintain stability within various business processes. The report concludes by emphasizing the need for businesses to properly examine these factors to effectively manage operations and ensure long-term success in the global market.

Context In Business

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
LO1 The dynamic and changing nature of business and the consideration of the future of
organisations within the global business environment................................................................1
LO2 The need for individuals and organisations to manage responsibly and sustainably and
behave ethically in relation to social, cultural, economic and environmental issues..................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
In business scenario, business might be understood as the effective ad arranged efforts of an
organisation to produce and supply goods and services to customer in order to produce profits
(Chang, Yeh and Liu, 2015). In today’s world’s modern business is dynamic so business entity
are required to spend more time on different aspect such as research and development so that
actual needs and trends of customer and market can be analysed in order to survive for long in
market. In this project, proper understandings of the micro and macro have been discussed. Apart
these, the determination of needs of an individual and an organisation to respond any issue are
described in this project.
MAIN BODY
LO1 The dynamic and changing nature of business and the consideration of the future
of organisations within the global business environment.
In recent time, almost every company is a part of business environment within which it
runs their operations. It is observed that no firm could function in isolation due to many elements
to forces that are closely surround business that is commonly termed as business environment. It
is mainly divided into two factors named micro and macro environment. Microenvironment has a
straight impression on the business happenings and on the other side macro environment are kind
of broad business environments that impact the business groups at large. With the dynamic
nature of environment it is very important for the manager to ensure these factor and analyse
them, properly has it have changed nature of companies operating at global level. These factors
are discussed below:
Customer: With the increasing demand and requirement of customer it is important for an
organisation to make sure that these needs are analysed in specific manner so that appropriate
goods are produced as per the requirements (Kew and Stredwick, 2016). They are consider to be
king for businesses as their demands keeps on changing it has also impact the business operation
of customer as companies have to look closely to their demands in order to manufacture relevant
product. For example, customer needs more advance feature in automobile, then manager of
Toyota needs to produce cars with high and advance technology that support to increase sales
and more number of customer are satisfied.
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Stakeholder: The business firm itself are an aggregate number of elements such as owner,
investors, employees, investor’s etc. that may impact the business operation. In case in
employees are not happy with the internal polices of Toyota management are liable to make
effective polices that will support to make employee involved more in operation to increase the
production level and improve profitability at global level. It is crucial micro factors that have
totally changed the concept of business entity to operate business at global level in order to
increase profitability and productivity.
Macro factors: The best manner to determine the macro factors is PEST analyses that help
to determine the impact of macro elements have changed the nature of modern business in global
environment.
Political: All those policies that are implemented by political parties of a nation are known
as political factors such as excises duty, inflation and deflation, tax policies. Sudden or planned
changes in these elements can affect the business operation of companies operation in particular
nation. In order to run business effectively at global level it is essential for the manager of
Toyota are required to consider these factors properly in order to manage and run business in
systematic manner to increase the profitability.
Social: It includes population growth rate, employment stability etc. that have a direct impact on
the business performance. In case if management of Toyota have properly considered these
factors than they will be able to produce product that can be purchased by every kind of
customer. Such as cheap rate economical vehicle that can be easily used by almost every person
at global level (Crane and Matten, 2016).
Environmental: Various those elements that are connected with environment of a nation
are termed as environmental factors such as climatic condition, weather etc. Management have to
consider these factors while manufacturing goods in order to make their fit for their customer
and environment.
Technological: This includes the use to latest technology and techniques to produce goods
as per the demands. For example, manager of Toyota needs to produce goods with the use of
advanced tool and technology that makes customer satisfied.
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LO2 The need for individuals and organisations to manage responsibly and sustainably
and behave ethically in relation to social, cultural, economic and environmental
issues
In present time, different issues have impact the business condition of companies. Therefore it is
crucial for internal management to make sure that these problems must be properly analysed and
resolved on specific time frame so that overall performance can be improved and profit could be
raised (Oldman and Tomkins, 2018). Morals and social obligation are essential issues for
directors and overall organisation as well so that productivity can be improved. The moral space
of conduct relates to estimations of good and bad with an organisation. Ethics and conduct are
typically guided by an esteem framework of companies so that issues can be resolved to maintain
stability within various process and operations. The theory of social responsibility and ethics
applies in both individual and group capacities. It should be incorporated into daily
actions/decisions, particularly ones that will have an effect on other persons and/or the
environment. In the larger, group capacity, a code of social responsibility and ethics is applied
within said group as well as during interactions with another group or an individual.
CONCLUSION
In the conclusion it has been stated that companies operating business at global level are
required properly examine the micro and macro factors so that business operation are
effectively managed.
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REFERENCES
Books and Journals
Chang, D.S., Yeh, L.T. and Liu, W., 2015. Incorporating the carbon footprint to measure
industry context and energy consumption effect on environmental performance of
business operations. Clean Technologies and Environmental Policy, 17(2), pp.359-371.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Kew, J. and Stredwick, J., 2016. Human Resource Management in a business context. Kogan
Page Publishers.
Oldman, A. and Tomkins, C., 2018. Cost management and its interplay with business strategy
and context. Routledge.
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