The Impact of Micro-Financial and Ethical Compliances on Business InTRODUCTION

Context of Business

INTRODUCTION
The definition of context of business is vast and inclusive which consists of future trends,
impact and relationship between a business with and the wider world (Charter, 2017). Corporate
Social Responsibility and ethical compliances add more years in the existence of a business.
These two may be non-financial in nature, but have great impact on various stakeholders
including key people. The report covers influence of micro and macro environmental factors on a
globalised business and importance of managing organizations in an ethical and sustainable way.
Identification of micro and macro environmental factors and its contribution in changing modern
business globally
The business environment is changing with a rapid pace across the globe. In such
scenario, it becomes imperative for managers to understand forces responsible, so that quick
modification within the organization can be made to cope up with ever-changing environment.
There are two main factors viz (Hillary, 2017..). Micro and macro which influence a business to
a great extent. The various environmental factors that changed nature of modern business in
global are as follows:
 Micro factors:
1. Suppliers: The constant need of providing high quality goods have made organizations
to have development in supplies of raw material. This in global business is possible
through multiple suppliers.
2. Competitors: Cut throat competition has made entities to study and analyse strategies
used by its rivals have to outperform them in international market to provide better
goods and services that other similar firms.
3. Customers: Buyers change their choices and preferences very quickly. The profitability
and sales depend upon customers. It may be consumer, business and reseller markets to
whom goods are sold. Therefore, companies have to understand need of each of them.
 Macro factors:
1. Economic factors: The economic trends such as international transactions, government
policies, inflation and many more. These affect sales of finished goods in an economy.
Hence, each aspects must be considered in globalised market. The taxation system,
inflation rate, employment rate and industry trend must be understood to make strategies.
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