Macro factors affecting business environment

Context
of
business

Table of Contents
INTRODUCTION...........................................................................................................................1
ASSESSMENT................................................................................................................................2
Macro environmental factors that changed the nature of modern business in the global
business environment..................................................................................................................2
The reasons that its important for individual and organisation to mange the responsibly,
sustainably and behave ethically in the relation to social, culture, economics and
environmental issues...................................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES ...............................................................................................................................5

INTRODUCTION
A context of analyses the business is a process to analyse the environment which a business and
operates the business and it can define as the goods and services of the organisation can be
exchanged in order to earn money. It mainly focuses on the macro environment factors that view
the changed in the nature of modern business in the global environment. This report will study
the importance of individual and organisation to manage the responsibly, sustainably and behave
ethically in the relation to the culture, social, economic and environmental issues (Westman,
2018.).
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ASSESSMENT
Macro environmental factors that changed the nature of modern business in the global business
environment.
PESTLE analyses
Political factors:- Political factor influence the changed in nature of modern business in the
global business environment that its important to have political stability it gives profitability to
the business and the taxations policies, tax policies, fiscal policies and so on. Political factor that
impact the modern business is need to able and respond the current and anticipated the
legislation of future and have to adjust the policies of business according to political factor. The
negative impact for the modern business is that when the tax rate increases than it creates
pressure on the business and decrease the profitability from which it raises the cost of the
products, which tends the negative factor for organisation(Leblang, 2018.).
Economic factor:- Economic factor have a significant effect the modern business in the global
environment that includes the inflation rate, economic growth of the business, exchange rate s
and interest rate of the business. Its necessary to have good economic condition of the business
because it affects the financial strategy. It fulfils the demand and deals with the environmental
factors which affect the demand and performance of the organisation. The economic factor it
fluctuates the rate of economy which gives negative impact on the businesses and when the
economic stability drive in a constant way than it positive impact on the business.
Social factors:- Social factor of the changed in the nature of the modern business in the global
environment. It works according to the taste and preference of the customers. It's a positive
impact when the demand of the customers fulfil by the organisation then it retains the customers
and increase the profitability and the negative impact for the organisation when the taste and
preference of the customers are changed and organisation doesn't accept the changes than it
affect the consumers and market position of the organisation.
Technological factors:- Day by day changes in the technology gives so many impact on the
ways to market the products. It includes the new technology to produce the goods and services,
distributing the products and new ways to communicate the targeting markets. The positive
impact of the technological factor is it gives so many easy technological ways which decrease
the work load of the employees and on the other hand the negative factor of the technological
factor on the modern business in the global business environment is it consume so much time to
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give training and learning to the employees about new technology and also the cost of the
business is also increases(Beatty, Samuelson and Abril, 2018.).
Legal factors:- The legal factors of the modern business in the global environment includes all
the laws, policies of the organisation. It increases the revenue when the company trade the orders
successfully. The positive impact of the legal factors is it gives health and safety law for the
employees which gives security to the employees and also the safety of the products labelling
and manufacturing and the negative impact of the legal factor in the business is changes of laws
such as the health and safety laws.
Environmental factor:- Environmental factor of the modern business in the global environment
includes the pollution targets, raising the scarcity of the raw materials. The negative factor of this
factor is it directly affect the raw material and overall production level of the retail industry
because from the changes in the environment or climate.
The reasons that its important for individual and organisation to mange the responsibly,
sustainably and behave ethically in the relation to social, culture, economics and
environmental issues.
Social:- For individuals it focuses of the all type of improving and maintaining the
quality and quantity of the needs of the current members and which also support the future
generation by optimally and maintaining the using of the resources which maintain and continues
a healthy community and society.
And for the organisation its important to have a social sustainability because it easily
effects the relationship of the business with the society and the different components such as the
customers, stakeholders etc. it is a way to identified and mange the impacts of the organisation
with the various features of the social culture like employees, local societies and customers.
Culture:- It is mainly defined as the set of values, morale, methods, beliefs and collection of the
knowledge of the human. The transmission of the cultural sustainability of these characteristics
for the younger and future generation(Hamilton and Webster, 2018).
Economic:- The aim to maintaining the capital intact and includes the efficient use of assets to
continue and maintain the business revenue over time. The important purpose of the economy is
that the energy and matter.
On the other hand the organisation maintain and manage the stable and high level of the growth
of economy which includes the quality of the services and products.
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Environmental:- The only aim and important to improves the human welfare from which it
protects the natural resources such as the air, land, minerals etc.
And for the organisation its important to take care of the environment because from
environment it provides the resource and it's the responsibility of the business to pay back to the
environment. If the sustainability in the environment will achieve the positive outcomes than the
needs of the customers will be satisfied(Westman, 2018.).
CONCLUSION
The above study conclude that the changes are important for the development and growth of the
business. It describes the macro environmental factors of modern business in the global
environmental which helps to achieve the success of the business. It highlighted some points of
the social, culture, economic and environmental sustainable and responsibly of the individual and
organisation.
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REFERENCES
Westman, M., 2018. Positive Effects of Sustainability in Buisness.
Leblang, D.A., 2018. Political Capacity and Economic Growth 1. In Political capacity and
economic behavior (pp. 109-125). Routledge.
Beatty, J.F., Samuelson, S.S. and Abril, P.S., 2018. Business law and the legal environment.
Cengage Learning.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
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