Micro and Macro Environmental Factors

The assignment provides an overview of micro and macro environmental factors that affect the nature of modern business in a global environment. It includes discussion on supplier, customer, market intermediaries, competitors as micro environmental factors and political, technological, social, and economic factors as macro environmental factors. The essay also highlights the importance of responsible and sustainable management, as well as ethical behavior towards social issues for maintaining better relationships with stakeholders.

ASSIGNMENT 1

Contents
INTRODUCTION.....................................................................................................................................3
Main body.........................................................................................................................................3
Micro environmental factor..............................................................................................................3
Macro environmental factors:............................................................................................................4
Organisation need to manage responsibly and sustainably and behave ethically in relation due to the
social issue.........................................................................................................................................5
CONCLUSION.....................................................................................................................................5
REFERENCES..........................................................................................................................................6

INTRODUCTION
Business environment includes those Factors which may or not be under the control
of the organisation but they can affect the performance and growth of the company. it
involves micro environmental factor such as customer, supplier, competitor and market
intermediaries and the macro environmental factor such as technological, political,
economical and social factors (Andersson, Dasí, Mudambi and Pedersen, 2016). This essay
presents the macro and micro environmental factor which affect the nature of the modern
business in the global environment. In this we will also discuss why organisation and
individual need to manage responsibly, sustainably and behave ethically towards the social,
cultural and environmental issues.
Main body
Micro environmental factor: it includes those factors which affect the nature of
the modern business in the global environment such as suppliers, customers, market
intermediaries and competitors
Supplier: it is the important factor of every business firm because it provides the raw
materials and components. Suppliers influence the nature of the modern business in the
global environment because a smooth and efficient working of the firm requires the better
supply of the raw materials.
Customer: success of every industrial establishment is largely depending on its customers
because sales of the product and service are critical for firm’s survival and growth. Customer
influence the nature of the enterprise in the global environment because the need of the
consumers changed regularly and it is not possible for a firm to provides the products and
services according to the requirement of the firm.
Market intermediaries: it plays an important role in the selling and distributing the product
of the firm to consumers. Market intermediaries also influence the nature of the modern
business in the global environment because market is directly link with the enterprise.

Business can effectively produce the goods and services through this factor to consumers
(Brink, 2017).
Competitors: it also influences the nature of the modern business in the global environment
because different firms in an industry compete with each other for sales of their products in
the market place to the consumers for maximising their profitability and productivity of the
firm. Firm produce better quality goods and services at competitive price to consumers.
Macro environmental factors: it involves those factors which determine the
opportunities for the enterprise to expand their business globally and also shows the threat
which are consider as a restriction on the expansions of the business. It includes factors which
influence the nature of the modern business in the global environment such as political,
technological, social and environmental factors (Kennedy, 2016).
Political factor: it has great impact on the growth of the firm at the global due to instability
of political parties and their rules and regulation as well as policies which affect the business
operations at the state and national level. Business is closely related with the government due
to its interference in the business policies of the firm. It affects the nature of the modern
business in the global environment because at the global level companies needs to make their
policies and regulations according to their local government which consumes high cost and
affect the profitability of the firm (Grzelak and Ghajar, 2017).
Technological environment: the nature of the modern business in the global environment is
largely influence by the technological factor due to the technological advancement. The
technological development plays a significant role in enhancing the competitive strength of
the company at the global level because the nature of the technology used for the production
of goods and services which is responsible for the success of the modern business.
Social factor: it plays an important role in the success of every industrial unit because it is
the ability of the company to relate its operations and policies to the social environment in
way that are mutually beneficial to the company as well as society. It influences the nature of
the modern business in the global environment due to the changes in the trend and life style
of the customers which affect the productivity as well as the profitability of the firm.
Economical factor: it includes the type of the economic system which exists in the country.
It also affects the nature of the modern business in the global environment due to the foreign

trade and investment policies of the government. It also involves the interest rates which
affect the profitability of the firm (Sae‐Lim and et.al., 2016).
Organisation need to manage responsibly and sustainably and behave ethically in
relation due to the social issue because the success of the company is largely depending
on its society and company consider the impact of its action on the society and it is the duty
of the business firms to protect the social interest by doing the social well-being activities.
Social responsibility is related with the ethics and the discipline of ethics deals what is good
and bad. Organisation need to manage sustainably and responsibly the cultural issue for
maintaining better and healthy environment at the work place which results in the high
profitability and productivity of the firm. Organisation need to behave ethically in relation to
environmental issue for promoting their business in the market place, if company produce the
products which affect the environment in the negative way or affect the health of product, it
results in decreasing the brand value of the business (Van Wormer and Besthorn, 2017).
Every individual need to manage responsibly and sustainably and behave ethically towards
the social and cultural issues for maintaining better relationship with the other member of the
society and better relationship essential for working together towards the attainment of the
common goal. In the organisational context better employee relationship leads to the higher
productivity and profitability of the enterprise. Individual needs to behave ethically towards
the social and cultural issue for making healthy environment at the work place in the business
unit.
CONCLUSION
The above essay has been summarised with that the macro and micro environmental factors
affect the nature of the modern business in the global environment. For example, it includes
the customer factor which affect the growth of the firm because the need of customers in
terms of products change regularly and for customer satisfaction organisation need to produce
product and services according to the requirement of the consumers which can be possible
only through the market survey and this procedure consumes more time and cost which
decrease the profitability of the firm.

REFERENCES
Books and journals
Andersson, U., Dasí, Á., Mudambi, R. and Pedersen, T., 2016. Technology, innovation and
knowledge: The importance of ideas and international connectivity. Journal of
World Business. 51(1). pp.153-162.
Brink, C.H., 2017. Measuring political risk: risks to foreign investment. Routledge.
Grzelak, C.A. and Ghajar, C.M., 2017. Metastasis ‘systems’ biology: how are macro-
environmental signals transmitted into microenvironmental cues for disseminated
tumor cells?. Current opinion in cell biology. 48. pp.79-86.
Hammel, J and et.al.,2015. Environmental barriers and supports to everyday participation: a
qualitative insider perspective from people with disabilities. Archives of physical
medicine and rehabilitation.96(4).pp.578-588.
Kennedy, A.M., 2016. Macro-social marketing. Journal of Macromarketing. 36(3). pp.354-
365.
Pisano, I. and Lubell, M., 2017. Environmental behavior in cross-national perspective: A
multilevel analysis of 30 countries. Environment and Behavior. 49(1). pp.31-58.
Sae‐Lim, P and et.al.,2016. A review of genotype‐by‐environment interaction and micro‐
environmental sensitivity in aquaculture species. Reviews in Aquaculture. 8(4).
pp.369-393.
Van Wormer, K. and Besthorn, F., 2017. Human behavior and the social environment, macro
level: Groups, communities, and organizations. Oxford University Press.