Business Environment: Micro and Macro Factors

The assignment provides a detailed analysis of the business environment, focusing on both micro and macro factors. It emphasizes the importance of considering these factors in the functioning of a company. The discussion also highlights the responsibility of individuals and organizations to behave ethically and sustainably in terms of cultural, social, economic, and environmental issues.

Context of business 1

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Micro and macro environmental factors that changed nature of modern business in the global
environment.................................................................................................................................1
Need for individual and organisation to manage responsibly and sustainably and behave
ethically in relation to social, cultural, economic and environmental issues..............................2
CONCLUSION................................................................................................................................3
REFRENCES...................................................................................................................................4
.........................................................................................................................................................4

INTRODUCTION
Business environment is collection of external and internal factors like employees,
customers needs and expectations, management, suppliers, clients, owners, innovation in
technology, government activities, economic changes and so on. All these factors have wide
impact on organisation in direct or indirect manner. There are two type of business environment
micro and macro which will be discussed in this assignment (Sun and et.al., 2016). Along with
their factors which change nature of modern business in the global environment. Moreover,
individual and organisation have to manage responsibly, sustainably as well as behave ethically
in relation to social, cultural, economic and environmental issues.
MAIN BODY
Micro and macro environmental factors that changed nature of modern business in the global
environment.
Every company is part of business environment in which they are operating. Their is no
such organisation that can function individually because there are several factors which directly
or indirectly surrounded with business, this is known as business environment. This is divided
into two categories i.e., micro and macro environment (Philipov, Liefbroer and Klobas, 2015).
These two have factor affect nature of modern business in the global environment. Explanation
are as follows :-
Micro Environment – It is the environment which have direct contact with organisation
as well as may give impact on day to day activity of the business. Moreover, micro environment
is associated with a small area in that company functions and they have short term influence on
the business activities. There are several elements which included in micro environment such as
suppliers, competitors, customers, marketing intermediaries and organisation itself. All these
have their impact on modern business at global level. These are as follows :-
 Customers/consumers – They are the one who purchase products or services from
company for their own consumption. Every nation have their different culture and
religion as well as taste and preferences of customers which must be kept in mind by the
firm while production and selling of commodities. So that customers will be satisfied and
result in increasing sales within global environment.
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 Competitors – Business environment is full of competition every organisation have their
competitors. As business will expand within global environment level of competition will
also increase. Thus, firm have to go with some innovative product at worldwide level so
they can sustain in market for long duration.
Macro Environment – It is the environment within economy which influence
performance, working, strategy and decision making of all the business at the same time is
known as macro environment (Mbwambo and et.al., 2018). Moreover, it is dynamic in nature
which means respective environment keep on changing. Variables which exist in it are
technology, legal &political environment, population & demographic, socio-culture and so on.
All these have impact on the modern organisation at global level are as follows :-
 Legal factors – Every nation have their legal rules and regulation which must be
followed by organisation when they are dealing at global level. Sometimes these become
barriers in business expansion. If these will not be Implemented by companies in proper
manner then fine will be charged by legal authorities.
 Socio-culture – Along with this, culture vary from country to country so organisation
have to produce production and services after keeping in mind culture of particular
nation.
Need for individual and organisation to manage responsibly and sustainably and behave ethically
in relation to social, cultural, economic and environmental issues.
Yes, it is the responsibility of individual and organisation to mange their responsibility,
sustainability as well as behaviour ethically in term of social, cultural, economic and
environmental issues. Explanation of these are as follows :- Social – Individual and organisation both are accountable for fulfilling their civic duty
which must be beneficial for the entire society. For an company social responsibility and
ethical behaviour is to provide fair wages as well as salary to staff member with good
working environment (Yawar and Seuring,2017). Along with this, provide social welfare
services to general public. On the other hand individual should have set of beliefs
towards right or wrong.
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 Cultural – Organisation have to keep in mind culture of every nation while offering
goods and services (Burnham and Harris,2018). Whereas, individual should not have to
forgot their culture if they went to other nation. Economic – Organisation are fulfilling economic responsibility and behave ethically
towards its through development, providing job opportunities and raising living standards
of people (Greene and et.al., 2016).
 Environment – Towards environment both individual and organisation have some
responsibility as well as ethics which they have to fulfil. Thus, company have to keep in
mind environmental factors while production that it is not harming any natural elements
(Miller,Shemer and Semiat, 2015). Whereas, individual also have some responsibility as
well as ethical behaviour towards environment which must be fulfil by them through
growing plant, less water and air pollution.
CONCLUSION
From the above discussion it has been concluded that, business environment is of two
type micro and macro which have wide impact on the working of company in negative as well as
positive both manner. Thus, association have to keep all these factors in mind so that it will not
give negative impact on the working. Along with this, it is responsibility of individual and
organisation to be responsible, sustainable and behave ethically in terms of cultural, social,
economic and environmental issues.
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REFRENCES
Books and Journal
Sun, S. and et.al., 2016, May. Propagation path loss models for 5G urban micro-and macro-
cellular scenarios. In 2016 IEEE 83rd Vehicular Technology Conference (VTC Spring)
(pp. 1-6). IEEE.
Philipov, D., Liefbroer, A. C. and Klobas, J. E. eds., 2015. Reproductive decision-making in a
macro-micro perspective. Dordrecht: Springer Netherlands.
Mbwambo, J. and et.al., 2018. Addressing the Micro-and Macro-Environmental Vulnerabilities
to HIV of People Who Inject Drugs in Tanzania: A Case Study of the Muhimbili
Medication-Assisted Treatment Clinic. In Structural Dynamics of HIV (pp. 45-63).
Springer, Cham.
Yawar, S.A. and Seuring, S., 2017. Management of social issues in supply chains: a literature
review exploring social issues, actions and performance outcomes. Journal of Business
Ethics. 141(3). pp.621-643.
Burnham, J. and Harris, Q., 2018. Cultural issues in supervision. In Perspectives on supervision
(pp. 21-41). Routledge.
Greene, C. and et.al., 2016. Economic Issues in the Coexistence of Organic, Genetically
Engineered (GE), and Non-GE Crops (No. 1476-2016-121003).
Miller, S., Shemer, H. and Semiat, R., 2015. Energy and environmental issues in desalination.
Desalination. 366, pp.2-8.
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