Understanding the Dynamic Nature of Business in the Global Business Environment

This report explores the dynamic nature of business within the global business environment and the need for ethical behavior. It discusses the impact of political, social, technological, and economic factors on businesses and emphasizes the importance of sustainability and ethical practices in relation to environmental issues.

Context of Business

Table of Contents
INTRODUCTION...........................................................................................................................3
L O 1................................................................................................................................................3
Understand dynamic nature of business within global business environment............................3
L O 2................................................................................................................................................4
Need to behave ethically..............................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The term business means that an enterprise or an organization is involved in professional,
commercial or industrial activities. It can also defined as the organized activities and efforts of
people to develop and offer goods and services to customers. The Report will outline dynamic
nature of business, need for organization and individuals to behave ethically in relation to social,
environmental and economic issues.
L O 1
Understand dynamic nature of business within global business environment.
The term global business refers to the environment in various sovereign countries with
the factor exogenous to the environment of domestic country of the organization that influences
decision-making on capabilities and use of resources of the business. Modern business is
dynamic and continuous change is required to remain competitive. These changes forces
companies to spend amount on research for responding towards the changes in global business
environment.
Businesses such as Tesco, Sainsbury etc. are affected by the external business
environment as much as they are affected by the companies of competitors. There are various
global factors that are influencing the businesses of organizations such as political, legal,
technological, social and economic factors. Management of the organization should have
understanding of these factors because they play an important role while developing different
types of strategies (Davis and Challenger, 2015).
External environment -
No company is large enough to create significant changes in external environment.
Global level of competition is an uncontrollable factor in external environment. There are some
situations in which the business can influence external events through business strategies. For
example – There are major pharmaceutical companies that has become successful in getting
Food and Drug Administration to improve the process of approval for new drugs.
Political -
One of the major factor for the managers to focus in day to day business activities is
political climate. Such as different laws passed by government, general political stability,
government activities are changing day by day. For example – Company like General Electric

will examine political environment before deciding to open a new manufacturing plant in a new
country such as quotas, import tariffs, export restrictions etc.
Demographic -
It helps businesses to define the markets for specific products and also helps to evaluate
composition and size of the sales force. Such as gender, age, ethnicity, race etc. Businesses are
required to deal with unique shopping experience of different categories of clients.
Social -
There are various social factors such as lifestyle, attitudes, ethics and values of the people
regarding where, how and when to buy products and services. These factors also changes as
individuals move through various life stages. A renewed focus on ethical behaviour in the
business at different levels has employee's and managers alike finding right method when it
comes to gender inequality etc (Colovic and Lamotte, 2015).
Technological -
It impact the strategies of company as they offer opportunities to business for adopting
new inventions, innovations etc. Organisations are required to consider latest technological
developments that help business to gain competitive advantage.
L O 2
Need to behave ethically.
The individual and business are required to manage sustainably and ethically in relation
with different environmental factors.
Social – The theory of social responsibility is based on systems of ethics in which actions and
decisions of individual and organization should be ethically validated before proceeding at
further stages. Companies should behave in ethical manner (Barac and et.al, 2016). It should
incorporate ethics regarding corporate social responsibility into daily decisions that will impact
on other people or environment. Maintaining social responsibility within the business helps to
ensure integrity of environment and society are protected. Management training should be
provided so that, management and employee's will act in sustainable and ethical manner that
helps to resolve social issues.
Economic -
The individuals and organization should behave in sustainable and ethical manner in
relation with economic issues. Ethical behaviour is directly linked with economic issues.

Organizations such as government organization should adopt ethical practices. Ethical behaviour
of business deals with confidential information, competing with other companies for projects and
serving as many stakeholders like customers, government, suppliers by adopting ethical practices
(Hamilton and Webster, 2018). Companies should follow all the ethics while recruiting
employee's in the organization. This will help to resolve the problem of unemployment in the
country that will support development of economy. For Example – Company such as Tesco
should conduct training programmes that helps individual and business to comply all the ethical
standards. This will also help to develop ethical culture for all the employee's and stakeholders.
Moreover, business should adopt ethical practices for optimum utilization of the resources this
will offer advantages to economy as well as to businesses.
Environmental -
There are various types of environmental issues that are related with environment in
which company exists. One of the best way to create positive impact on environment is by
adopting sustainable policies and practices in relation with energy issues (Prajogo, 2016).
Companies should use renewable sources of energy and efficient light bulbs and appliances that
will help to reduce negative impact on environment. It will also offer benefits to business such as
reduction in cost of operations etc. Further, it is the responsibility of employee's as well as
management to adopt ethical practices. This will help to create new opportunities on repairing
the current damage to the environment and also developing advance technologies that support
people to perform business activities without creating negative effect on the environment.
CONCLUSION
From the above Report it has been concluded that, ethical and sustainable behaviour is
very important for the business as it helps to make judgement regarding wrong and right.
Corporate social responsibility and ethical behaviour provides various benefits to society,
economy, environment as well as for the business. Further, it has been analysed that global
business environment is very dynamic and business have to respond to political, social,
technological environment etc. while developing strategies.

REFERENCES
Books and Journals -
Barac, K., and et.al, 2016, March. The capability and competency requirements of auditors in
today's complex global business environment. ICAS.
Colovic, A. and Lamotte, O., 2015. Technological Environment and Technology
Entrepreneurship: A Cross‐Country Analysis. Creativity and Innovation Management. 24(4).
pp.617-628.
Davis, M.C. and Challenger, R., 2015. Environmentally sustainable work behavior. Wiley
Encyclopedia of Management. pp.1-3.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Huber, L.R., Sloof, R. and Van Praag, M., 2017. The effect of incentives on sustainable
behavior: evidence from a field experiment. Labour Economics. 45. pp.92-106.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.