Impact of Macro and Micro Environmental Factors on Modern Business

Context Of Business

Table of Contents
Introduction......................................................................................................................................1
Main Body.......................................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

Introduction
Global environment is defined as segregation of micro as well as macro environmental
factors that creates a major influence on modern businesses. The activities in which products or
services are exchanged with money is referred to as business (Anıl and Ficici, 2017). Rationale
behind this is to earn profit. This report comprises of macro and micro environmental factors that
has created alterations within the ways modern business operate their services in global
environment. Along with this, it also contains rationale behind organisations and individuals
behaving socially, ethically and responsibly within the external environment.
Main Body
Within rapidly evolving as well as competitive world, modern business is influenced by
ample number of factors that prevail in environment where these entities furnish there services.
This comprises components which can be controlled by management of firm and also those that
might not be controllable as well as are confined to authorities & power of business. The factors
which can be controlled are denoted by micro environmental while the one which are
uncontrollable are referred to macro environmental factors. Within the global environment,
aggregation of these factors creates impact on modern business and might result within
alterations in operations and functions that are being carried out by an enterprise. These factors
are illustrated here in context of global environment. Micro environment factors affect the
working of modern business depending on their capacity, capabilities, strategies and size that
may or may not be handled. These comprises of certain factors they are illustrated beneath.
Competitors, within competitive environment, modern business possess certain basic
things which firms have to take into consideration while rendering their services. Within the
corporate world, organisation faces competition from various firms those have affirmative brand
image as well as possess higher stake within marketplace (Burayidi, 2013). For an instance,
APPLE faces a high competition from Microsoft, Dell, Lenova and hp. Such kind of brand
rivalry persuades modern businesses for adopting to unique as well as creative strategies which
will provide them competitive edge among their rivals who render their services in same sector.
Customers are the important entities which are present within global market environment who
strives for earning profit via accomplishment of preferences, demands and needs of individuals.
Firms now formulate the strategies by which they can carry have profitable sales rather than just
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