Micro and Macro Environment Factors: Assignment

CONTEXT OF BUSINESS

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Discuss micro and macro environmental factors that changed the nature of modern business...1
Importance of managing sustainability and behaving ethically in relation to various issues......2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
The changing, dynamic and modern world brings drastic changes on the business and its
processes. Operating business on global level has become easier due to the availability and
advancement of technology. Every business organisation needs to adhere to business ethics and
corporate business responsibility. The present report explains about the micro and macro factors
of environment that brings impacts and changes to nature of modern business in global
environment. The report further explains about need for effectively managing the sustainability
on behalf of individual and organisation as well. Individuals and organisation can lead to solve
various issues and problems which are briefly described in the report.
MAIN BODY
Discuss micro and macro environmental factors that changed the nature of modern business
There are various factors that can bring effective changes and impacts on the business and
its environment. Micro business environment which surrounds organisation can be complex in
nature and it includes customers, employees, suppliers, competitors, marketing intermediaries
and general public (Nielsen, Asmussen and Goerzen, 2018). Organisation aims at building
effective relationship with its value delivery networks.
Customers are considered as the most important factor for business organisation as every
business aims at effectively serving end customers. Changing needs, demands and wants of
customers leads to bring impacts on the modern business in global environment. For example,
changing taste and preferences of customer makes McDonald’s to bring changes in its product,
services or business processes.
Business organisation may get impacted or influenced due to the competitors in market or
in global environment. For example, Marks & Spencer bringing changes in its delivery system or
marketing strategies or implemented new technologies bring impacts on the business of Tesco.
Therefore, Tesco also needs to bring effective changes in its business processes in order to gain
strategic advantages and sustain in global competitive markets. Thus, competitors are the factors
that can bring impacts business and change the nature of modern business.
Employees are considered as the important factor and asset of business organisation and
they can effectively change the nature of modern business environment. Burberry Company
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focuses on satisfying the demands of its employees so that they come up with innovative and
creative ideas that help business to grow and develop (Pan, Chen and Ning, 2018).
Macro environmental factors also lead to bring great impacts on the modern nature of
business. It includes demographic, economic, environmental, technological and political factors.
For example, demographic factor includes population level, age, sex, birth and death statistics,
education patterns may lead to bring impacts and influences on the modern nature of business.
Economic environment factor comprises of economic system, structural anatomy or
economic policies of country that may bring impacts on the business. Technological
environmental factor also brings great impacts on the modern nature of business as it influences
the business operations and activities. For example, technological advancements or up-gradation
brings influences on the working of business processes and operations (Saeed, 2019).
Importance of managing sustainability and behaving ethically in relation to various issues
Social responsibility refers to the obligation for taking decisions that helps in protecting and
improving society well-being and welfare. Individual and organisation needs to ensure that they
behave ethically and focus on maintaining sustainability. Ethical behaviour and managing
responsibility improves the social environment and bring benefits for both business and overall
society.
Ethical behaviour and sustainability can be defined as meeting present needs without
compromising ability for future generations regarding meeting their needs. Individual following
ethical behaviour and sustaining environment helps in achieving great benefits and solve various
issues related to environment. For example, Walmart implements zero waste initiative and makes
use of reused or recycled materials for packaging so that they can improve sustainability.
Individual and organisation can focus on reducing carbon footprints, water usage or water
wastage, packaging waste in order to minimise the issues related to environment and improve
sustainability (Abrahams, 2018). Individual and organisation needs to also focus on avoiding the
unnecessary disturbances to natural environment. Decision needs to be made by considering the
factors of sustainable development and ethical behaviour.
Social issues can be resolved by managing sustainability and adapting to ethical behaviour.
Individual and organisation focusing on managing responsibly and sustainably can improve
quality of life, benefits of community development and also provide equal opportunities. Proper
education and various sessions can make people understand the importance of sustainability and
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its positive impacts and effects on society, community and overall world. Individual needs to
focus on behaving ethically and nurturing natural environment and also behaving sustainably.
Organisation can effectively adapt to ethical behaviour and manage sustainability by following
various laws, ethics and regulations (The Environmental, Economic, and Social Components of
Sustainability, 2018).
Cultural sustainability refers to maintaining cultural beliefs, practices and heritage
conservation. Individual and organisation needs to focus on minimising the depletion of the
cultural heritages sites or places and maintain sustainability. The culture must provide value for
global benefits regarding ethical behaviour and sustainability rather than local benefits.
Organisation needs to develop its organisational culture in a way that its various stakeholders
effectively take participation in maintaining sustainability and behave responsibly and ethically.
Individual and organisation focusing on behaving ethically and responsibly can gain great
positive impacts. The business organisation managing its business operations responsible and
also following its social corporate responsibility can achieve development and growth of
business (Turker, 2018). Organisation can also gain benefits of saving its operational cost due to
focusing on reducing waste and eliminate unnecessary processes. Individual aiming at behaving
responsibly can gain benefit of improved quality of life and it can also save costs on various
aspects. The organisation focusing on sustainable development needs to spend on research and
development for reducing waste, removing unnecessary steps and also adapting effective and
ethical business practices.
CONCLUSION
Business organisation needs to have the ability for innovating rapidly and continuously
implementing the changes and improvements in the business and its related activities. Micro and
macro environmental factors lead to bring great impacts on the nature of business organisation.
Individual and organisation both need to effectively manage the sustainability and improve
ethical behaviours. Managing responsibly and sustainability helps in solving specific problems or
issues related to social, cultural, economical or environmental.
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REFERENCES
Books and Journal
Abrahams, D., 2018. Local economic development in South Africa: A useful tool for sustainable
development. In Local Economic Development in the Changing World (pp. 131-145).
Routledge.Nielsen, B., Asmussen, C. and Goerzen, A., 2018. Toward a Synthesis of Micro and
Macro Factors that Influence Foreign Direct Investment Location Choice. The Routledge
Companion to the Geography of International Business.
Pan, X., Chen, X. and Ning, L., 2018. The roles of macro and micro institutions in corporate
social responsibility (CSR) Evidence from listed firms in China. Management Decision. 56(5).
pp.955-971.
Saeed, K., 2019. Towards sustainable development: Essays on system analysis of national
policy. Routledge.
Turker, D., 2018. Global Challenges: Aligning Social Responsibility and Sustainable
Development Goals. In Managing Social Responsibility (pp. 161-176). Springer, Cham.
Online
The Environmental, Economic, and Social Components of Sustainability. 2018. [Online].
Available through: < https://soapboxie.com/social-issues/The-Environmental-Economic-and-
Social-Components-of-Sustainability >
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