Determining Micro and Macro Environmental Factors

The project report discusses the importance of understanding micro and macro environmental factors in a global business environment. It highlights the need for organizations to manage responsibility, sustainability, and ethical behavior in respect to social, cultural, economic, and environmental issues. The report concludes by emphasizing the significance of Corporate Social Responsibility activities in maintaining a positive brand image.

Context of Business
(Project-1)

Contents
INTRODUCTION.......................................................................................................................................3
Determine micro and macro environment factors that altered nature of modern business in global
environment.............................................................................................................................................3
Reasons for organizations and individuals managing responsibility, sustainability and ethical behaving
in respect to social, cultural, economic and environmental issues...........................................................5
CONCLUSION...........................................................................................................................................5
REFERENCES............................................................................................................................................7

INTRODUCTION
Global environment is termed as the combination of micro and macro environmental
factors which makes huge impact on the sustainability and profitability of business organization.
The present report discusses the influencing factors of micro and macro environmental factors
which forces modern organizations that are operated at global level to bring changes in their
business operations so as to achieve strong position in competitive global market. The project
also examines the purposes of an organization and individuals who performs ethically, socially
and responsibly with the respect to external environment.
Determine micro and macro environment factors that altered nature of modern business in global
environment
In the modern scenario where the competition in market is so high, the modern
organization facing challenges and issues due to fluctuations in global market environment. Such
environment consists of several elements or factors which can influence the management of an
organization (Anıl and Ficici, 2017). These elements cannot be easily tackled by the authorities
and powers of business. Factors which affect the functions of an organization internally are
known as micro-environmental factors whereas the external factors including fluctuations in
political and economical conditions are known as macro-environmental factors. Both these
factors forces modern businesses to make suitable alterations in their business activities and
functions on timely basis. These factors are briefly discussed as under along with its impact on
the modern business in global environment:
Micro-environmental factors:
These factors influences most to the functions of an organization but can be controlled
and tackled by the management through implementation of an appropriate strategies and policies.
Here are the some micro-environmental factors which can either adversely or positively affect
the modern businesses:
Customers are considered as lifeline of an organization. Organizations who are operated
at global level performs hard in order to strong their global presence in market and achieve huge
profitability. They tried to identify and fulfill the preferences, needs and requirements of targeted
people. For this, the management formulates an effective plans and strategies by which an

organization can survive and generate huge profits in comparison of their previous years. There
are several modern organizations such as ASOS, ASDA, Samsung and many more that spends
lots of money in market research in order to create strong relationship with their potential
customers and influences them in favor of their offerings.
Competitors are the one which increases competitions in market in order to meet market
needs and requirements on time. There are lots of organist ions who are engaged in same sector
and give tough competition to each other. For example, LG and Videocon. These both
organizations faces lots of challenges due to their competitive policies and strategies to sustain in
market for longer period of time. Thus, an organization who keeps updating their offerings on
timely basis will get success and defeat their rivals in competitive market (Burayidi, 2013).
Suppliers refers to people or an organisation who supplies goods to their clients on time.
An organization can sustain in market only if they have successfully maintain strong relationship
with their suppliers or vendors who supplied them adequate raw material at an effective prices
whenever the company feels shortage. The demands of products and services are changed on
frequent basis which requires organizations to deal with the changes that can be possible only if
they get adequate support from their loyal suppliers. Thus, every organizations are looking for
possible and trustworthy suppliers which can supply them quality, reliability and warranties on
their products either on credit or low prices.
Macro-environmental factors:
These factors largely affect the sustainability and profitability of modern business as it
cannot be controllable and manageable through forecasting. Such external factors include
political, economical, social and technological factors which are briefly discussed as under:
Political factors are related with fluctuations in political system which directly affect the
sales and sustainability of modern business organizations. For example, changes in political
system may increase tax rate on offerings of organizations which forces them to increase the
prices of their product which in results decreasing their existing customer base. Every modern
global businesses tried to operate its businesses in such a particular nation whose political
conditions are stable (Charfeddine, 2016).

Economical factors are related with the economic conditions of nation which directly
impacts on the buying behavior of people. Thus, it brings difficulties towards modern business
operated at global level to maintain their existing customer base by making suitable changes in
their existing plans and policies. For example, UK economy is continuously grown up due to
which lots of companies such as McDonalds, Nestle etc. are trying to reach their business at UK
after considering Brexit. But if the economy of UK goes down then these outside companies
may stop their operations in such nation due to facing heavy losses in their businesses.
Therefore, every business organizations firstly conduct research on growth of GDP of nations
and accordingly make decisions of their expansion so as to achieve growth and sustainability in
global market for longer period of time (Hacioglu, Dincer and Celik, 2012).
Reasons for organizations and individuals managing responsibility, sustainability and ethical
behaving in respect to social, cultural, economic and environmental issues.
At present in the global market, organizations get an adequate resources and raw
materials from society due to which it is compulsory for employees’ and organization to think
for the betterment of society instead of focusing on generating huge profits only. It is the social
responsibility of every organization whether operate at local or global level to conduct Corporate
Social Responsibility activities which makes positive impact on the brand image of company in
competitive market. In addition with this, organizations also required to engage in legal and
ethical conduct so as to prevent itself from any government interventions. For example,
discrimination at workplace or wrong advertisement by any organizations faces huge penalties
by government which reduces their market image and loyalty of customers (Vasilcovschi and
Georgescu, 2012).
CONCLUSION
It has been concluded from the above project report that business environment is complex
in nature which can affect the functionalities and sustainability of organizations due to which
management always tried to deal with various influencing factors through updating their plans
and strategies on frequent basis. Furthermore, it also important for an organization to perform
ethically and socially in order to maintain good brand image in market which in results in
increasing customer base and profitability.

CONCLUSION
It has been concluded from the above project report that there are various leadership
styles and management practices which can help an organization to achieve competitive
advantage in market environment. For this, the management need to choose one leadership style
according to the situations and competition so that desired objectives can be achieved within pre-
determined time period.

REFERENCES
Books & Journals
Anıl, A. R. and Ficici, A., 2017. The Emerging Market Manufacturing Business Groups (EMBGs) and
the Interplay between Innovation in Environmental Sustainability,
Digitalization, Internationalization and Corporate Governance Structures: The Case of Turkish Holding
Companies. Turkish Economic Review. 4(1). pp.55-65.
Burayidi, M. A., 2013. Downtowns: Revitalizing the centers of small urban communities. Routledge.
Charfeddine, O. B., 2016. Business environment-aware management of service-based business processes
(Doctoral dissertation, Université Paris-Saclay).
Hacioglu, U., Dincer, H. and Celik, I. E., 2012. Economic approach to conflict issue: Investment in post-
conflict situation for international business. International Journal of Business Administration.
3(5). p.1.
Vasilcovschi, N. and Georgescu, S., 2012. TRANSFORMATIONAL LEADERSHIP AND THE
ECONOMIC COMPETITIVENESS IN SHIPPING INDUSTRY TODAY. Analele Universitatii
Maritime Constanta. 13(17).
Warkentin, M., Sugumaran, V. and Sainsbury, R., 2012. The role of intelligent agents and data mining in
electronic partnership management. Expert Systems with Applications. 39(18). pp.13277-
13288.