[PDF] The Marketing Environment

ESSAY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Macro and micro environmental factors that changed the nature of modern business in the
global environment......................................................................................................................3
Importance of individuals and organizations to manage social, cultural, economic and
environmental issues...................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
There are various factors that are changing the way a business operates. There are various
factors due to which success of business in this global environment is hindered. Due to these
factors it becomes difficult for organizations to manage all the social, cultural, economic and
environmental issues within an organization (Blanco and Cohen, 2017). This essay will lay
emphasis on all the macro and micro environmental factors that had changed the nature of
modern business in the global environment. It will also explain reasons for an individual and
organization to manage social, cultural, economic and environmental issues within an
organization.
MAIN BODY
Macro and micro environmental factors that changed the nature of modern business in the global
environment
There are various kinds of macro and micro environmental factors that work as main
factors in influence of decision making or creating strategies (Schaltegger and Burritt, 2017).
These factors have changed the nature of modern business in the global environment in many
ways.
Macro environment factors that have changed the nature of business are from PESTEL factors:
Political forces: All the businesses face some limitations due to many political factors. These
factors involve laws, political pressure groups and government agencies which influences the
nature of an organization (Campobello and et.al., 2017).
Economic Factors: This force relate to factors that affect the spending and purchasing power of
customers (Dierks and et.al., 2016). For example before expanding a business into a new country
organizations should gain knowledge about certain criteria such as GDP, import duty, tax,
inflation etc.
Social-cultural forces: These forces are based on factors that affect behaviour, values and
preferences of the society. These factors work as one of the main reason that affect the success of
a business and which changes the nature of modern business in the global environment (Castaño,
Méndez and Galindo., 2015).
Technological Factors: This force includes use of technology in manufacturing of new products
and for marketing opportunities. It is also one of the main factor in development of any business

(De Palma, Biziato and Petrova, 2017). These technological forces provide various opportunities
and challenges for the success of any business.
Ecological forces: This force includes all kind of natural resources which are important for
organization for doing business. Need of natural resources has also changed the way an
organization does business (Moon and et.al., 2016).
Demographic Forces: These are the forces that mainly relate to the people. They are the main
driving force of market development (Witkowski, Cheba and Kiba-Janiak., 2017). This large
force of demographic offers both challenges and opportunities to the business.
A micro environment factor that has changed the nature of business is:
Suppliers: If suppliers hold any kind of power then they can control the success of the business.
This can happen when they are one of the largest or only supplier of their goods or materials
(Blanco and Cohen, 2017). Like if the supplier is all formulating any sort of new policies for
regulating the new changing environment then this will impact business as well.
Customers: Customers who buy a product plays a major role which might affect the way an
organization does the business as it affects the marketing of services or product offered by the
company. The changing perspective of customers will be influencing the company and the way
in which they are dealing with situation as well. The new demand will create opportunities as
well as threat for company as then they need to regulate their work or policies according it that
only.
Competitors: Competition is present in any business or in any industry. It affects the profit of an
organization in many ways. As the number of competition increases the market share of the
organization decreases. In order to achieve competitive advantage business must update their
marketing and business strategies according to the competition (Nenonen and Storbacka, 2016).
Shareholders and investors: there one of the most important internal stakeholders of any
organization. Shareholder values influences the nature of any business (Nenonen, S. and
Storbacka, K., 2016).
These are the macro and micro environmental factors that affect and have changed the
nature of any business in the global environment.

Importance of individuals and organizations to manage social, cultural, economic and
environmental issues
These factors due which need for individuals and organizations to manage sustainability,
responsibly and behave ethically in relation to social, cultural, economic and environmental
issues' comes into picture:
Social: Social issues are important to be managed both responsibly and sustainably as it
helps the organization in achieving human or employee relationship at all levels in the
organization. By maintaining and managing all the social issues social relationships and
interaction among employees can be encouraged to any scale, it can also help in achieving the
degree of coexistence among all the staff members, employees with different income, position,
gender etc. it not only helps the organization and individuals in creating and maintaining a
sustainable environment but also helps in promoting positive values within an organization
(Epstein., 2018). All the social ethical issues are important to be identified as it might be
beneficial for both the employees and for business as if relationship among employees will be
maintained then work efficiency of employees will help the business to grow. It also helps in
implementing marketing strategy of the company.
Cultural: Cultural issues are also important to be maintained and managed within an
organization to maintain the cultural values by building both physical and social environment
where physical environment includes organization building, resources etc. and social
environment is explained as above. Maintain and managing culture helps and individual and an
organization in improving and increasing creativity, diversity etc. This management of cultural
issues also helps an organization in running a business ethically. Cultural ethical issues should
also be identified as it maintaining morals and values of an organization and in maintaining
attitude of the employees (Chell and et.al., 2016).
Economic: Creative and effective use of economic resources of a company can help an
organization in building a sustainable environment where efficient use of energy, resources for
achieving goals and objectives of the company. It is also important to resolve economic issues
as it helps in overall growth of an organization (Babe, 2018). Economic ethical issues disturbs
the financial visibility of an organization which affects their business as well as efficiency of
their employees.

Environmental: management of environmental issues is important in achievement of
sustainability within an organization as it helps in reducing overall pollution. This can be
achieved by reducing excessive use of resources (Witkowski, Cheba and Kiba-Janiak, 2017).
This will help the organization in achieving environmental sustainability, reduce use of
resources, reduce the overall production cost etc.
CONCLUSION
From the above essay it has been summarized that various macro and micro
environmental factors affect the way a business is done by organizations in many ways and the
way business operates in today's modern world. This factors can be a cause of both success or
failure of a business in the global environment. This essay also explains the way social.
Economic, cultural and environmental ethical issues affect an individual and business. This essay
also explains the importance of managing these issue in order to achieve ethics and sustainability
within an organization.

REFERENCES
Books and Journal
Babe, R.E., 2018. Communication and the Transformation of Economics: Essays in information,
public policy, and political economy. Routledge.
Blanco, J.M. and Cohen, J., 2017. Macro-environmental factors driving organised crime.
In Using Open Data to Detect Organized Crime Threats (pp. 137-166). Springer, Cham.
Campobello, D., and et.al., 2017. An integrated analysis of micro-and macro-habitat features as a
tool to detect weather-driven constraints: A case study with cavity nesters. PloS
one. 12(3). p.e0174090.
Castaño, M.S., Méndez, M.T. and Galindo, M.Á., 2015. The effect of social, cultural, and
economic factors on entrepreneurship. Journal of Business Research. 68(7). pp.1496-
1500.
Chell, E., and et.al., 2016. Social entrepreneurship and business ethics: Does social equal
ethical?. Journal of business ethics. 133(4). pp.619-625.
De Palma, M., Biziato, D. and Petrova, T.V., 2017. Microenvironmental regulation of tumour
angiogenesis. Nature Reviews Cancer. 17(8). p.457.
Dierks, R.M.L., and et.al., 2016. Macro-economic factors influencing the architectural business
model shift in the pharmaceutical industry. Expert review of pharmacoeconomics &
outcomes research. 16(5). pp.571-578.
Epstein, M.J., 2018. Making sustainability work: Best practices in managing and measuring
corporate social, environmental and economic impacts. Routledge.
Moon, S.S., and et.al., 2016. Erratum to: Ecological Factors of Being Bullied Among
Adolescents: a Classification and Regression Tree Approach. Child Indicators
Research. 9(4). pp.1161-1161.
Nenonen, S. and Storbacka, K., 2016. Driving shareholder value with customer asset
management: Moving beyond customer lifetime value. Industrial Marketing
Management, 52, pp.140-150.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues, concepts
and practice. Routledge.

Witkowski, J., Cheba, K. and Kiba-Janiak, M., 2017. The macro-and micro-environmental
factors of decisions of production facility location by Japanese companies in Poland.
In Forum Scientiae Oeconomia (Vol. 5, No. 1, pp. 43-56).