Micro & Macro Environmental Factors in Business

Added on - 17 Feb 2021

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CONTEXT OFBUSINESS
Table of ContentsINTRODUCTION...........................................................................................................................1Identification of micro and macro environmental factors that changed nature of modernbusiness in global environment....................................................................................................1Reasons for individuals and organisations managing responsibly, sustainably and behavingethically in relation to social, cultural, economic and environmental issues...............................3CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................4
INTRODUCTIONGlobal environment refers to the combination of micro environment and macroenvironment factors which have a major impact upon the course of modern businesses(Vasilcovschi and Georgescu, 2012). The present report explores the micro and macroenvironmental factors which lead to a change in nature of modern business within globalenvironment. Also, it includes the rationale behind individuals and organisations behavingresponsibly, socially and ethically in response to external environment.Identification of micro and macro environmental factors that changed nature of modern businessin global environmentIn today’s rapidly changing and competitive world, modern businesses are affected by anumber of factors which prevail within the environment of these entities. This environmentconsists of those elements which are under the control of management of a company and alsothose which can not be controlled by the confines of powers and authorities of business. Thecontrollable factors are called micro environmental while the uncontrollable factors are referredto as the macro environmental elements (Warkentin, Sugumaran and Sainsbury, 2012). In globalenvironment, the combination of both these factors together affects modern businesses and mayresult in a change in operations and functioning of an enterprise. Below mentioned is a detaileddescription of how these factors have changed the course of modern business working withinglobal environment:-MICRO ENVIRONMENT FACTORSThese factors affect the working of modern businesses on the basis of their size,capabilities, capacity, strategies which may or may not be able to deal with the impact of microenvironmental elements. Following are the factors which are covered under micro environmentalfactors of modern businesses:-Competitors:In today’s world,the competitive environment of modern businessescomprises of some basic things which companies have to take into consideration. Usually, incorporate world, no company (whether large or small) enjoys monopoly. In ordinary course ofbusiness, a company generally encounters competition from a number of firms that have apositive brand image and a high stake in marketplace. For instance: Philips TV faces immensecompetition from a number of companies in Colour Television market such as Videocon,1
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