Globalisation of The Modern Business

This report is on the "impact of macro and microenvironment factors on business". We will discuss here the role of organisations and individuals in managing cultural, social, environmental and economical issues. In globalization, the modern business nature is affected by several microenvironmental factors. For instance, the competitors, customers, shareholders, suppliers, and distributors are key microenvironment elements. With globalization, the distribution channel of the companies is expanding at a great rate and rapidly.

Context Of Business

TABLE OF CONTENTS
Impact of macro and micro environment factors on nature of modern business ...........................1
Role of organisations and individuals in managing cultural, social, environmental and
economical issues ............................................................................................................................2
REFERENCES ...............................................................................................................................4

Impact of macro and micro environment factors on nature of modern
business
Micro factors:
In the globalisation the modern business nature is affected by several micro
environmental factors. These factors can be considered as the factors which are closely related to
the organisation and are an integral part of its functionality. For instance the competitors,
customers, shareholders, suppliers and distributors are key micro environment element. With the
globalisation the distribution channel of the companies is expanding with great rate and rapidly
(Alfaro, 2016). In order to widen this distribution and supplier network businesses are using
advanced technology and management strategies so that they can achieve their targets.
As compare to earlier most of the services of modern business are personalised and
customised as per the needs of customers. For instance ranging from the product design to
feedback mechanism all strategies of business depends upon consumers. Since the competition is
at peak in the global business market, companies cannot deny the fact that without changing
business plans as per the trends and needs of customers their survival is impossible. Though the
competitive analysis has been always important in business but with globalisation the companies
are also facing threats of domestic as well as international businesses (Abrham and et.al., 2015).
Macro Factors:
Political: The political measures will impact the setting up of business policies and various
business operations that will impact the overall performance of business organisation. The
setting up of trade policies, maintaining the operational capabilities and handling the business
functions will also influence the performance.
Economic: This will help in setting up of the financial policies and the factors that will impact
the overall operations of the organisation. This will help in improving the performance of the
organisation in most effective way (Welford, 2016).
Social: The unemployment rate, cultural backgrounds and other factors are the major elements
that will help in improving the setting up of effective business measures at the workplace. An
organisation is required to effectively set the connection with its customer of social level to have
a good execution of operations.
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Technological: Any sort of technological glitch or failure will influence the overall performance
of the organisation on a higher and wider scale. Organisations are required to place suitable
polices and other measures that will help in meeting functional requirements of the firm.
Environmental: the organisations are required to look after suitable CSR operations like
decrease in pollution, usage of organic good and recycling are few factors hat will positively
influence the sales and setting up of organisation on higher scale (Epstein, 2018).
Legal: Organisations are required to follow legal obligations that will help in setting up of
proper rise in overall functionality and maintaining of other operational measures in most
effective way. Following of laws and obligations will ensure the hassle free operations of the
firm.
Role of organisations and individuals in managing cultural, social,
environmental and economical issues
To address several business issues it is essential for individuals and business
organisations to behave in an ethical and responsible manner. The social and cultural issues can
affect the continuity of business. Thus if these issues are not managed with responsibility
business organisation may suffer the opposition from people (Baumgartner and Rauter, 2017).
Similarly with the increasing awareness of the environment sustainability it has become vital for
the companies to consider their corporate social responsibility for the long term success.
However it is not possible to achieve without ethical considerations. It cannot be denied that the
key goal for the organisations is to achieve profits.
Thus the ethical consideration from the business service providers can help them to
develop and manage economical perspective in a better way. For example many business
companies are using environment friendly packaging so that they can contribute to environment.
The decision is accepted by individuals as well as companies (Epstein, 2018). It inspires people
that when such successful organisations are paying attention to the environmental issues then
they must also do the same. The role of individuals cannot be neglected in managing cultural and
social issues. Since the individual staff members of organisation have in depth knowledge of the
culture and social values of a region they can provide better suggestion in decision making.
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For instance the marketing strategies without bringing culture into knowledge cannot be
successful. The organisation has responsibility towards the social and economical issues because
these issues also influences the performance of organisation (Welford, 2016). The organisation
cannot perform well in an era of economic stability. Thus it is essential that the economic
situations must be analysed with responsibility and without any careless approach.
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REFERENCES
Books and Journals
Abrham, J. and et.al., 2015. Factors that influence the competitiveness of Czech rural
SMEs. Agricultural Economics. 61(10). pp.450-460.
Alfaro, L., 2016. Gains from foreign direct investment: Macro and micro approaches. The World
Bank Economic Review.30(Supplement_1). pp.S2-S15.
Baumgartner, R.J. and Rauter, R., 2017. Strategic perspectives of corporate sustainability
management to develop a sustainable organization. Journal of Cleaner Production. 140.
pp.81-92.
Epstein, M.J., 2018. Making sustainability work: Best practices in managing and measuring
corporate social, environmental and economic impacts. Routledge.
Welford, R. ed., 2016. Corporate environmental management 2: Culture and organization.
Routledge.
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