Role of Micro and Macro Factors in Influencing Modern Business

This report discusses the role of micro and macro factors in influencing modern business and the responsibility of individuals and organizations in managing operations ethically. It explores the impact of micro factors such as management, employees, machines, and competitors, as well as macro factors such as political, economic, technological, and legal factors. The report also highlights the ethical issues faced by organizations, including harassment and discrimination, fraud advertisement, and accounting practices. Additionally, it emphasizes the need for individuals and organizations to work ethically to maintain their reputation and long-term success.

Individual Essay

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Micro and Macro factors.............................................................................................................1
Need for individuals and organisation........................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Business environment is sum of external and internal factors which is effective and
significant for influencing business. There are two types of factors i.e. micro and macro
environment which affects business operations directly or indirectly. Micro environment are the
factors which are directly related to organisation. While macro factors are externally related to
business environment which are not in control of managers of association. In this report there is
discussion about role of micro and macro factors in influencing modern business and
responsibility of individuals and organisation in managing operations ethically to deal with
social, culture, economic issues.
MAIN BODY
Micro and Macro factors
These days business operates at international level, so it is important to consider changes
which are taking place in external environment (Ashjari and et. al., 2017). Business environment
component affects business operations in negative as well as positive manner. When managers
keep regular analysis, then it is easy to get positive outcome. International and external
environment components are discussed as under-
MICRO ENVIRONMENT:
Micro environment refers to components which are directly and internally related to
business. Hence they directly influence rate of growth at international level. Some factors are
discussed as under-
Management- Management of organisation refers to top level managers who are
planning, guiding and framing policies for growth of organisation. When they plan policies in
better and effective manner it is easy for association to work and perform activities in authentic
and relevant manner.
Employees- Employees are the workforce who works as per guidance of workers. For
instance: employees are not ready to work under new technique, then this affects efficiency of
overall organisation. Hence these days workforce plays crucial role in growth and development
of association in global market.
Machines- Machines are the source through which operations are performed. This is
medium which helps to conduct operations with more efficiency. When machines are not of
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latest technique, then this makes working efficiency low and creates hurdle in growth of
association of international organisation.
Competitors- Competitors are the parties in industry who serves in similar type of
products and services. These days there is much competition because many parties are dealing
same industry. For instance: in case of retail sector, there are many organisations which are
working such as TESCO, ALDI, ASDA, etc. These are competitors to each other. In
competition, there is impact on business operations of one another. Hence in modern business
context there is impact on operations of one organisation over other. Hence will operating
business operations and making policies, other firm's policies has to be analysed to make long
term existence in industry (Han and et. al., 2014).
MACRO ENVIRONMENT:
Macro environment are the factors which exist in whole economy. This does not talk
about particular region or sector (Utami and Lantu, 2014). This includes GDP, Inflation,
monetary and fiscal policies, etc. These are not in control of mangers of organisation but when
there is change in external environment managers are forced to alter their policies to maintain
smooth running of business. In order to analyse macro factors, political, economical, social,
technological, legal and environment concept has to be discussed.
Political factors- Political factors refers to the factors related to government policies such
as new regulations, custom, import export duties, etc. As compared to earlier days, these days
there is more impact on change in plans and policies of political factors which affects business.
Hence it is responsibility of managers to analyse it. For instance: there is difference in political
polices of UK and Asian countries, hence while operating at global level managers of
organisation has to be analyse each prospective. There is more strictness as compared to older
days regarding political concept. Active participation of political parties leads organisations to
change policies according to alteration in political norms and regulations. Hence in order to
perform business operations in effective and relevant manner, it is important to maintain changes
operations according to political policies.
Economical factors- Economical factor includes tax rate, interest rate, etc. which is
required to be considered while raising funds. This is the concept which is important to be
considered because finance is blood for working of company. As compared to older days, there
are different sources to raise at international level such as venture capital. Hence in this case
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manger has to plan operations and then finalise source of funds. For instance: export duty of
Canada and Europe is different, hence while operating at international level, it must be
considered for smooth running of business.
Technological factors- Technological changes are taking place in external environment
with rapid speed such as use of social media, artificial intelligence, etc. There is use of less
technology in past years but as competition is increasing and consumers are more choosy, so
technological changes are important for maintaining business operations in effective and
significant manner and provide satisfactory services to consumers (Hillson and Murray-Webster,
2017). There is requirement of training to employees regarding new technique. This helps
employees to work efficiently under dynamic environment. In case of electronic, initial days
LCD is used while these days there is trend of Smart TV this is because of technological
changes, hence it must be considered by managers of organisations while dealing at international
level.
Legal factors- Legal factors refers to legal laws and regulations such as labour law,
safety and security regulations, etc. These regulations must be followed by organisation to
reduce possibilities of getting indulge in court case. In current era, there is requirement of
expertise who have knowledge about legal laws and regulations and timely update about changes
in legal aspects. For instance basic pay rate is changed under legal aspect, then expertise
provides knowledge about it to managers and pay scale of workforce has to be revised.
ETHICAL ISSUE IN BUSINESS ENVIRONMENT
These days there are many issues which organisations are facing under ethical
consideration. Some ethical issues faced by organisations are discussed as under-
Harassment and discrimination at workplace- These days there is ethical issues related
to harassment and discrimination at work place. There are some organisation under which there
is discrimination on the basis of caste, gender, etc. which affects working environment of
company.
Fraud advertisement- Marketing plays important role in attracting consumers to
purchase product and services. There are different platform such as social media, television, etc.
which provides information about products and services to society. There is ethical issue of
providing fraud, fake information to consumers. For instance: big size product, hiding of safety
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measures, etc. are examples of advertisement ethical issues (Moore and et. al., 2015)(Nebbak and
et. al., 2017).
Accounting- Accounting also make ethical issues in business environment. Accounting is
the stream which provides complete information about accounting concepts of financial data to
stakeholders. Fr instance: if accounting policies are not used consistency and reason is not clear
then this affects disclosure of financial information such as revenue, profits, reserves, etc.
Need for individuals and organisation
It is the responsibility of managers of the companies to accomplish their working
processes in an ethical manner which should not harm the intention of anyone covered under
their supply chain. It is important to do so because the every organisation is established in some
social environment and it becomes their responsibility to consider the interest of the society also.
Customers covered under social aspect are the one who are purchasing the products of company
and creating demand of the products of the company (Sacks and Melby, 2015). Furthermore
there is a need to work ethically because unethical working can only benefit the company for a
short period of time but considering about long term unethical working will impact badly on
image of the company in the market which will directly impact on their loss of sales and revenue.
So in order to eradicate these ill effects in the business environment, every company should
perform their activities considering the ethical ways of working that help in their growth and
development.
CONCLUSION
From the above discussion, it is clear that micro can be analysed by mangers of
association so they can corrective actions to deal with it, while macro environment are not in
control, so managers are forced to alter their plans ad policies. CSR activity is mandatory for
organisations as well as individuals because these days government interference is more, so with
CSR activities, it is easy perform activities in ethical form.
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REFERENCES
Books and Journals
Ashjari, M. and et. al., 2017. Voltammetric analysis of mycophenolate mofetil in pharmaceutical
samples via electrochemical nanostructure based sensor modified with ionic liquid and
MgO/SWCNTs. Journal of the Taiwan Institute of Chemical Engineers. 80. pp.989-996.
Han, J. K. and et. al., 2014. Analysis of (Ba, Ca, Sr) 3MgSi2O8: Eu2+, Mn2+ phosphors for
application in solid state lighting. Journal of Luminescence. 148. pp.1-5.
Hillson, D. and Murray-Webster, R., 2017. Understanding and managing risk attitude.
Routledge.
Moore, S. A. and et. al., 2015. Effects of alpha-amylase reaction mechanisms on analysis of
resistant-starch contents. Carbohydrate polymers. 115. pp.465-471.
Nebbak, A. and et. al., 2017. Comparative analysis of storage conditions and homogenization
methods for tick and flea species for identification by MALDI‐TOF MS. Medical and
veterinary entomology. 31(4). pp.438-448.
Sacks, D. L. and Melby, P. C., 2015. Animal models for the analysis of immune responses to
leishmaniasis. Current protocols in immunology. 108(1). pp.19-2.
Utami, R. M. and Lantu, D. C., 2014. Development competitiveness model for small-medium
enterprises among the creative industry in bandung. Procedia-Social and Behavioral
Sciences. 115. pp.305-323.
Online
The 5 Biggest Ethical Issues Facing Businesses. 2019. [Online]. Available through:
<https://www.floridatechonline.com/blog/business/the-5-biggest-ethical-issues-facing-
businesses/>.
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