Macro and Micro Environmental Factor: Essay

Individual Essay

ABSTRACT
The essay has been defines that macro and micro environmental factor affect the overall
performance of the firm. It includes various factors which are directly linked with the
productivity of the firm. Macro factors includes supplier, customer, market intermediaries and
competitors whereas micro environmental factors involves various factors such as technological,
political, social and environmental factors. From the study it is find out that every organisation
need to perform various social activities such as working towards the corporate social
responsibilities, for improving the brand image of the company.

Table of Contents
INTRODUCTION...........................................................................................................................1
Main body...................................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
A business unit is the important part of the society and business environment which helps
the organisation in the accomplishment of the organisational goal. The macro and micro factor of
the business affect the company at very large extent and also change the nature of enterprise in
the global environment. Therefore, the success of the organisation largely depends on its
adaptability to the environment. The sainsbury's is the largest retailer of merchandise in the UK.
This assignment defines how macro and micro business factor affect the nature of modern
business organisation in the global environment.
Main body
Micro environmental factors influence the nature of business and comprises the forces
which are close to the company that affect its ability to serve the goods and services globally to
consumers. It includes various factors such as suppliers, customers, marketing intermediaries,
public and competitors.
Suppliers: it plays an important role in supplying the raw materials and components to
the enterprise. It changes the nature of the modern business in global environment because
development in the process of supplying goods and services can have a great impact on the
business of the company and marketing operations which results in the supply shortage and
labour strikes because organisation has to change their procedure of getting raw materials from
suppliers and this changes consumes the high cost which affect the business in global
environment. (Sihvonen and Partanen, 2016).
Customers: Customers also affect the nature of the modern business in the global
environment because each customer market in global environment has its own characteristics and
requirements. The success of every company is largely depends upon its ability in terms of
providing goods and services to consumers effectively.
Marketing intermediates: Every modern business use various tools for providing their
goods and services to consumers. It involves advertising agencies, market research and surveys
which promote the business in the global market. The nature of marketing intermediates is
dynamic which influence the business firm at very large extent in terms of adopting new
procedures of market analysis.
Competitor: The nature of modern business is influenced by the competitors in the
global environment because every competitors have the substitute and complement for the
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product and services of the firm and they supply these products on the competitive prices to
consumers.
Macro environment: The macro environment consists of the larger factors which affect
the nature of the modern business firms in the global environment and also affects the whole
micro environment of the business unit.
Technological factor: This factor affect the resources of the economy that are converted
into output. Technological factor affects the nature of modern business in the global environment
because changes in technology takes place regularly which influence the production methods and
processes in which raw materials converted into the products. (Lin, Su and Higgins, 2016).
Economic environment: It defines all of those factors which have a bearing on the
functioning of a business firm. There is close relationship between modern business and its
economic environment which influence the nature of the modern business unit due to changes in
the interest rate and economic rate (Mose, 2016).
Political environment: Political environment also affect the business in the global
environment because this environment have various implications on the various levels such as
international, national and regional level. If, there is an instability in the political environment it
affects the business at the global environment because organization have to change their policies
according to the changing policies of the government.
Social factor: Social factor affect the nature of the business in the global environment
because at global environment every countries culture is different from the companies'
environment and the customer attitude and values also change the demand and supply of the
business units (Kennedy, 2016).
Organization need to manage responsively, sustainably and behave ethically towards the
social, cultural, economic and environmental issues for gaining desired level of profit from the
local communities. It is the main role of organization which protect and improve the welfare of
the societies in the social, economic and environment of the company (Grayson and Hodges,
2017). Organization need to maintain the social, cultural and environmental issues for creating
favourable public images. Organization needs to behave ethically towards the social, cultural and
environmental issues because it helps the management to take better decision and also forces a
management to take various aspects such as economic, social and ethical in making decision.
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Environment issues also become a major problem for a business because the society moving
towards a greater concern for natural environment and organization need to manage their internal
environment accordingly for making its self as a leading company in the market place.
Organization need to manage sustain-ably, responsively and behave ethically towards the social
issues through the ability of the business which relate it to operation and policies to the social
environment on way that are mutually beneficial to the company and society. The success of
every organizational is largely depends upon the various factors such as social, cultural,
economic and environmental. The corporate social responsibility helps the organization in
building a brand image of the company which results in better global presence with better value
of the company. Improvement in the social environment benefits to both society and business at
vary large extent in positive manner (Eizenberg and Jabareen, 2017).
Individual needs to manage responsibly, sustain-ably and behave ethically towards the
social cultural and environmental issues because it is being accountable for his actions and being
conscious about the impact of action on others such as communities and environment. Individual
also manage sustain-ably towards social issues for maintaining balance between economic
growth and the welfare of the society and the environment. This procedure reflects the positive
impact on the development of the society through individual contribution.
CONCLUSION
The above essay has been summarized that the micro factor such as supplier, consumers,
competitors and the macro factor such as political. Environmental, economical and social factor
affect the nature of modern business on the global environment in terms of positive as well as
negative manner. It includes political factor which affect the global expansion of the business on
a negative manner due to the instability in the rules and regulation of the political policies.
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REFERENCES
Eizenberg, E. and Jabareen, Y., 2017. Social sustainability: A new conceptual framework.
Sustainability. 9(1). p.68.
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Kennedy, A.M., 2016. Macro-social marketing. Journal of Macromarketing. 36(3). pp.354-365.
Lin, H.F., Su, J.Q. and Higgins, A., 2016. How dynamic capabilities affect adoption of
management innovations. Journal of Business Research. 69(2). pp.862-876.
Marshall, D. and et.al., 2015. Going above and beyond: how sustainability culture and
entrepreneurial orientation drive social sustainability supply chain practice adoption.
Supply Chain Management: An International Journal. 20(4). pp.434-454.
Mose, A., 2016. ANALYSIS OF MACRO AND MICRO ENVIRONMENT ON THE
MARKETING STRATEGY FORMULATION AND THE INFLUENCE TO THE
COMPETITIVE ADVANTAGE (CASE STUDY). Academy of Strategic Management
Journal. 15.
Sihvonen, S. and Partanen, J., 2016. Implementing environmental considerations within product
development practices: a survey on employees' perspectives. Journal of Cleaner
Production. 125. pp.189-203.
Van Wormer, K. and Besthorn, F., 2017. Human behavior and the social environment, macro
level: Groups, communities, and organizations. Oxford University Press.
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