Impact of Macro and Micro Environmental Factors on Modern Business

The assignment explores the importance of individuals and organizations behaving properly in order to meet the needs and demands of a modern business. It highlights the significance of considering macro and micro environmental factors, including ethical, social, cultural, and economic behavior, in order to ensure the effective rise of a modern business.

Context of Business

TABLE OF CONTENTS
MAIN BODY...................................................................................................................................3
Impact of macro and micro environmental factors on modern business....................................3
Importance of individuals and organizations to behave properly...............................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

MAIN BODY
Business can be termed as an activity that is effectively based on the environmental
factors that impacts the performance of a firm. The micro and macro environmental factors are
the key influencer that moulds the execution of business activities to a greater extent.
This report will lay an emphasis on the macro and micro environmental factors that are
been taken in consideration by a modern business and thus impacts the sales and overall
productivity of a business enterprise.
Impact of macro and micro environmental factors on modern business
PESTLE analysis
 Political: A modern business enterprise is effectively requires considering the political
factors that are been placed within the enterprise. Any new policy or act can be placed
that can impact overall operations of a modern business (Gao and et.al., 2017). For
example, exit of Britain from EU that is Brexit has influenced business, strategies,
direction shaping of modern organization.
 Economic: Financial factors are required to be placed in consideration by the firm that
will impact the execution of business operations. Businesses are required to look after the
proper planning of the financial strategies and operations in order to look after
sustainability of productivity and revenue generation of the firm. Brexit and globalization
will help modern businesses to flourish in most effective and significant manner.
 Social: With the passage of time, Modern business enterprises have emerged their
understanding towards society. To deal with global buyersbuyers’ modern organizations
are focused on implying to corporate social responsibility which is one of the major
influencing factors that impacts the nature of modern businesses on a global level.
 Technological: With the advancement and digitization of business, latest and innovative
business activities can be followed. Besides this, the usage of the latest technology will
help the organisationorganization in multi fold manner (Schaltegger and Burritt, 2017). It
will not only help in saving time and efforts that are implied within the
organisationorganization. Besides this, it helps modern organizations will help in getting
a clear insight of the ongoing market trends.

 Environmental: The Modern businesses are opting to move towards the organic and
environmentalenvironmentally friendly approach that helps the organisationorganization
to have a good share of customer satisfaction level and thus helps in meeting the
operational needs of the organisationorganization. The modern organization are focused
managing ecofriendly business process in order to prevent global environmental concerns
like global warming, red alarm, increasing carbon footprints, etc.
 Legal: Different legal obligations and considerations are required to look after the proper
planning of the business operations and activities that will help in following of certain
laws and legal obligations which will help in meeting the operational objectives of the
organisationorganization.
Internal environmental factors:
 Suppliers: This is the major influencing factor that have changed the pursuit of running
out the business operations in an organisation. Firms are effectively required to look after
the proper planning of business operations.
 Customers: Buying power and maintaining the operations of the organisation that will
help in proper assessment of their needs and demands and provide the organisation with
proper services accordingly (Akhtar and et.al., 2018).
 Competitors: They will help the management of the organisation to draft out proper
policies that will help in improving the performance of the firm.
 Employees: Organization'sOrganizations can opt for incorporation of the global culture
in order to manage the workforce from different cultures.
Importance of individuals and organisations to behave properly
For the proper growth and development of the organisationorganization, individuals
including the managers, leaders and employees along with the organisationorganization as whole
are required to look after the proper assessment of the business operations that will impact the
sales of the operations. The social, cultural, economic and environmental factors that are been
carried out within the firm will help in proper assessment of the business operations that impacts
the sales of organisationorganization.
Such practices of maintaining the organisationalorganizational and operational ethics will
help the organisationorganization as well as an individual to carry out the operations and setting
up of the operations in much suitable way (Coviello, Kano and Liesch, 2017). This will help in

improving the sustainability of the business operations and thus, will lead the firm to improve the
overall performance of the organisationorganization. This will also help in enhancing the sales
and meeting up of business activities and other operations in most significant and suitable
manner. Following of legal obligation, respecting the workforce diversity and analyzing the
economic trends to plan the strategies will help the firm to improve the sales and core
compatibility of the organisationorganization.
CONCLUSION
Based on the above assessment and evaluations, this can be said that the proper planning
of the operations will help in meeting the needs and demands of the organisation. The macro and
micro environmental factors with the ethical, social cultural and economic behavior will help in
suitable rise in effectiveness of a modern business to a greater extent. This will help the
organisation to meet the operational requirements and customer's needs in most effective and
suitable way.

REFERENCES
Books and Journals
Coviello, N., Kano, L. and Liesch, P.W., 2017. Adapting the Uppsala model to a modern world:
Macro-context and microfoundations. Journal of International Business Studies. 48(9).
pp.1151-1164.
Akhtar, P. and et.al., 2018. Essential micro‐foundations for contemporary business operations:
Top management tangible competencies, relationship‐based business networks and
environmental sustainability. British Journal of Management. 29(1). pp.43-62.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues, concepts
and practice. Routledge.
Gao, Y. and et.al., 2017. Managerial ties and product innovation: The moderating roles of macro-
and micro-institutional environments. Long Range Planning. 50(2). pp.168-183
Online