Context Of Business Assignment PDF

Context Of Business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
Understanding the dynamic and changing nature if business ....................................................1
LO 2.................................................................................................................................................2
Importance of managing sustainability, responsibility, ethics in relation to environmental,
social, cultural and economic issues...........................................................................................2
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Business may be defined as an economic system where goods and services are exchanged
for money and business activity is depends upon the micro and macro environment in which the
business operates (Ahokangas and et.al., 2016). This report discusses about the macro and micro
environmental factors which changed the nature of modern business. Present report also includes
that importance of managing the responsibility, sustainability and why organisations have to
behave ethically in relation to cultural, social, economic and environmental issues.
LO1
Understanding the dynamic and changing nature if business
There are various micro and macro environmental factors which have changed the nature
of modern business in the global environment some of these factors can be summarised below:
Micro environmental factors
Customers: With the advancement in technology and collaborations it has become really easy to
build a product or a service but it has become equally difficult to sell these products and services
to customers which means it has become really difficult for the organisations to create, increase
and sustain customers (Holotiuk and Beimborn, 2017). Customer's level of satisfaction has
grown therefore managers of the organisations have to pay strong attention towards customers
dimension of task environment as it is the customer's purchases which keeps the organisation
alive.
Suppliers: Suppliers are those persons who supply raw materials or inputs to the organisations,
is the quality and reliability which have an impact on the smooth functioning of a business.
Organisation have to maintain good relationships with the suppliers in order to keep steady flow
of inputs in an organisation.
Market intermediaries: Market intermediaries are those individuals which help in promoting,
selling as well as distributing of goods to final consumers which includes middle man, markting
service agencies, physical distributors, etc which have changed the modern business and are
really important for the survival of a business.
Competitors: Competition is growing in every business sector, in the present world the
competition has grown to such an extent that it has forced the companies to changes their
business policies.
Macro Environmental Factors
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Economic factors: These are the factors which have the bearing on the functioning of business
unit. Various factors which have changed the nature of modern business are interest rate,
inflation, exchange rate, unemployment, etc (Guy, 2017).
Socio-cultural factors: This is the major factor which have changed the nature of business these
factors includes values, customs and demographic characteristics of society in which a particular
company functions are made of socio-cultural dimension and it has become important for the
managers to study these factors so the products and service should be appreciated by the society.
Technological factors: This is the major factor which have changed the modern business as
technology is up grading at very fast rate and any organisation which fails to cope up with
technological changes is impossible for the organisation to survive.
Political factors: These factors refers to the government laws, country to country relationships,
business-goverment relationships and also the overall legal and political structure of the country
(Crane and Matten, 2016). It has become essential for the organisation to maintain a good
business-goverment relationships which is important for the growth and profitability of the
organisation.
International factors: Each and every organisation is affected by the international factors which
means that an organisation which is involved in the business in other country and is affected by
the international factors.
LO 2
Importance of managing sustainability, responsibility, ethics in relation to environmental, social,
cultural and economic issues
Responsibility of an individual or an organisation is closely linked to sustainability and
sustainability is all about the environmental, social and economic challenges and issues which
includes sustainable consumption, sustainable resource use and developing a sustainable
economy and society (Castillo and et,al., 2017). It is important to manage because it has become
really important for the organisation to address the social, cultural, environmental and economic
issues. Building the strong relationships with the customers will result in the success of a
business and having a social responsibility policies help the organisation in dealing the with
various social issues as some customers are willing to pay extra for a product when they come to
know that it is for the benefit of the society. It will help to develop a positive relationship with
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various customers and also help in dealing with various social and economic problems of the
society.
It is important for individuals and organisations to manage responsibility because every
business operating in a society have some responsibilities towards society and these
responsibilities help the organisation in building a strong image, engage customers, retaining of
the talent and also help the companies to stand out from the various types of competition (Kolk,
2016). Organisation are have got some responsibilities towards the society and the environment
in which the company operates if the organisation and the individuals of the company ignores its
responsibilities it will result in the loss of a business so it is important for an organisation to
manage its responsibilities. A business can not succeed in a particular local community if the
community is struggling, company has to support the community by providing charities, support
to the environment and should get engaged to various social, cultural and environmental
programs (Merrill and Garland, 2016). This will help the company in building strong and healthy
communities which in turn will help in building a strong business for a company. Another reason
is that it will empower the employees and encourages employee buy-in, as employees of an
organisation want that organisation should provide something to the environment which brings
employee satisfaction and will also increase the employee productivity (Rhett, 2018). An
organisation behaving ethically will increase the demand of the customers for the companies
which play a larger role in improving the world around the organisation this will result in the
success of the organisation's business.
CONCLUSION
It can be concluded from the report that micro and macro environmental factors have a
strong impact on the organisation. There are various factors which have changed the nature of
modern business and these factors keep on changing at vary fast rate which an organisation
needs to consider. Present report also concludes that it is important for an organisation to manage
sustainability, responsibility and have to behave ethically in order to operate the business
successfully and is important for its survival.
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REFERENCES
Books and Journals
Ahokangas, P and et.al., 2016. Future micro operators business models in 5G. The Business &
Management Review. 7(5). p.143.
Castillo, P. A and et,al., 2017. Applying computational intelligence methods for predicting the
sales of newly published books in a real editorial business management
environment. Knowledge-Based Systems. 115. pp.133-151.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Guy, S., 2017. Framing environmental choices: Mediating the environment in the property
business. In The business of greening. (pp. 54-77). Routledge.
Holotiuk, F. and Beimborn, D., 2017. Critical success factors of digital business strategy.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Merrill, D. and Garland, M., 2016, February. Merge-based sparse matrix-vector multiplication
(SpMV) using the CSR storage format. In ACM SIGPLAN Notices (Vol. 51, No. 8, p.
43). ACM.
Online
Rhett, P., 2018. 5 Reasons Why a CSR Program Can Give Your Company a Competitive Edge
with Millennials. [Online]. Available Through:
<https://www.inc.com/jon-fine/mailchimp-ben-chestnut-founders-house-founders-
project.html>.
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