Dynamic and Changing Nature of Business

This report discusses the dynamic and changing nature of business, highlighting the significance of micro and macro environmental factors. It explains the internal (micro) factors such as public, suppliers, marketing intermediaries, customers, and competitors, and external (macro) factors like economic, technological, social, and legal environments. The report also emphasizes the need for individual and organizational collaboration to meet customer demands, follow laws and regulations, and analyze economic conditions for business success.

CONTEXT
OF
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Dynamic and changing nature of business...................................................................................3
LO2..................................................................................................................................................6
Need of individual and organization............................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment consist of internal and external factors which affect the growth of
business. These factors are responsible for achieving business objectives within specified time.
Business depends on nature, size and emerging current trends in society. This report includes a
report on dynamic and changing nature of business and also framed the importance of individual
and organization to have successful business global environment.
LO1
Dynamic and changing nature of business
Dynamic changes in business lead to refinement in
strategically activities or events of organization to make the product or service efficient.
Organization prior to customer’s demands, expectations and needs and their focus is to satisfy
customers in each and every manner (Pearson, 2017). Future of organization depends on the
activities done in past and present and these depend on micro and macro environmental factors.
These factors change the modern nature of business and lead them to more productivity and
market share.

Micro factors – in these factors are of internal types in organization. There are approx five
micro- environment factors which are explained below:
1. Public – it refers to a group who give opinions regarding business products or simply
feedback process. Public try products of all brands and then come to a conclusion for best
brands. Pubic opinion n matters a lot for growth of organization (Teece, 2018). Public see
all the features regarding environment friendly products, effective quality at low cost.
2. Suppliers – These suppliers provide services to company like raw materials, tools for
manufacturing process. Supply quality refers to the smoothening and productivity of
company in a sufficient and effective manner. It is the responsibility of supplier to supply
the materials and product to company on time so that company can meet their deadline on
Business environment 1
Source: (Difference between Micro and Macro
Environment 2017)

time and helpful in enhancing their network. Company reserve adequate stock of
materials in advance so that supply of material do not lack in any circumstances.
3. Marketing Intermediaries – These are the firm which helps company to advertise,
promote and sell the products in large manner to have more profitability. For example, In
insurance company like Aviva, agents are made in between customers and managers for
bringing more customers for selling insurance policies.
4. Customers – Every organization faces problems in selling of products to customers.
Every type of customer present in environment and company keep in mind to fulfill
demands of customer. It can be in terms in price, quality, quantity, maintenance, etc. so
company should maintain quality of products within specified cost so that every customer
can afford to have such type of products. It increases relative profitability of company.
5. Competitors – To have effective productivity and profitability, it is necessary to analyze
the competitive market. It gives information regarding other favorable brands which help
to make strategies against them to win competition. For example, in electronic market to
sell television to customers it is important to analyze features of other branded television
and what customer likes most. Then, manufacture the product accordingly to have
effective and efficient sale. It is enhanced by having attractive advertisements campaigns
which grasp people attention.
Macro-factors – These factors refers to outside the organization but effect the growth. There are
four macro factors in business environment which are explained below:
1. Economic environment – This factor constitute of all economic conditions that made on
a product for its marketing and selling. Like investment rate, inflation rate, growth rate
are parts of economic factors on which price of products are set. Overall measurement of
profitability for company depends on economic conditions of nation.

2. Technological environment – Technology refers to the application of knowledge that
put into daily life. Nowadays every being is surrounded by technology and all are getting
habitual of it (Banica, 2015). To being new technology in company, it requires skilled
and talented employees to implement techniques. Advancement in manufacturing process
lead to increase in price of productivity which affect the sales of product. Ut it helps to
spread network globally. Research and development department is responsible for
implementing technologies in organization.
3. Social environment – This factor refers to customer’s attitude, behavior, desire,
expectations, demands and needs in society. For effective and efficient business, it is
necessary to know customer taste, preferences, traditions and customers for better selling
of products. This factor also includes communication part between sellers and buyers. It
is important to have communication in local language so they can understand the feature
very well. it makes a unique strategy against other brands to win competition.
4. Legal environment – nation government makes some rules and regulations for safety and
security of citizens. These laws can be made for production, technological, marketing or
selling (Bocken and et.al., 2015). Like for cosmetic industry, rule is made not to use
harmful chemicals that affect the skin of people. So such legal laws are mandatory to
follow by every organization. It regulates the behavior of mangers toward the customers
for effective and efficient products by maintaining quality.
LO2
Need of individual and organization
Individual and group of individual in organization both plays important role. Like in
social business environment it is necessary to know customers demands for the success of
organization (Quinlan and et.al., 2019). And this information is brought down by individual and

they are responsible for meeting customers’ desire. Further in legal environment, organization
need to mandatory follow the rules and regulation made by government. But this is successful
when individual cooperates with organization and maintain products quality within legal laws.
Further in economic environment, to win competition against other brands, it is necessary to
analyze information regarding economic conditions of nation (Schaltegger and et.al., 2016).
These economic conditions benefits to customers also when there is low currency rate. Products
should be environment friendly so that they do not affect the health of people and makes them
secure to use.
CONCLUSION
This report summarized about micro and macro factors that changes the modern nature
and affects business global environment. These factors are described and related them with
dynamic and changing nature of business. It identified the needs to maintain relation between
individual and organization in terms of social;, cultural, economic and environmental issues. It
can be concluded that business environment leads to the analysis of factors which influence
growth of business.

REFERENCES
Books and Journals
Banica, L. and Hagiu, A., 2015. Big data in business environment. Scientific Bulletin-Economic
Sciences. 14(1). pp.79-86.
Bocken, N.M.P. and et.al., 2015. Value mapping for sustainable business thinking. Journal of
Industrial and Production Engineering. 32(1). pp.67-81.
Pearson, R., 2017. Business ethics as communication ethics: Public relations practice and the
idea of dialogue. In Public relations theory (pp. 111-131). Routledge.
Quinlan, C. and et.al., 2019. Business research methods. South Western Cengage.
Schaltegger, S. and et.al., 2016. Business models for sustainability: Origins, present research,
and future avenues.
Teece, D.J., 2018. Business models and dynamic capabilities. Long Range Planning. 51(1).
pp.40-49.
Online
Surbhi. 2015. Difference Between Micro and Macro Environment. [Online]. Available through.
<https://keydifferences.com/difference-between-micro-internal-and-macro-external-
environment.html>.