Business Environment and Sustainability Report

The assignment provides an in-depth analysis of the business environment, including PEST analysis, and highlights the importance of sustainability in a company. It also emphasizes the need for businesses to be responsible and ethical in their practices, particularly regarding social, economic, cultural, and environmental issues.

Context
of Business

Table of Contents
INTRODUCTION...........................................................................................................................1
Task .................................................................................................................................................1
1. Identify and discuss micro and macro environmental factors that in your view, changed
nature of modern business in the global environment................................................................1
2. Discuss the reasons why you think it important that individuals and organisations to
manage responsibly, sustainably and behave ethically in relation to social, cultural, economic
and environmental issues............................................................................................................2
Conclusion ......................................................................................................................................3
REFERENCES................................................................................................................................4
Business Environment. 2017.[ONLINE] Available through
:<https://www.toppr.com/guides/business-environment/>..............................................................4

INTRODUCTION
Business environment is a atmosphere surrounded to business and it direct affect to performance
of business and it also affects to productivity as well as profitability. Environment is of two type
one is internal and second is external. Internal environment direct and closely related to business
activities and it includes different factors like customers, suppliers, competitors etc and external
environment is a non control able factors that create barriers in achieve organizational goal. It
includes different factors like political, economic, and social and technological factors. This
report will be cover that environment and its impact on business (Bocken, Rana and Short,
2015).
Task
1. Identify and discuss micro and macro environmental factors that in your view, changed nature
of modern business in the global environment.
Business environment is of two type like micro and macro:-
Micro environment – it means that internal factors that direct affect to performance and
it is control able like competitors, suppliers, intermediaries and customers. It also affects in
regular basis.
Competitors – it is a major factor of micro environment and its majorly affect to
business because if competitors in market present with same product and same size so its effect
on sales and customers divided. So its direct put effect on productivity and profitability of
business.
Suppliers – this factors also direct affected to business because suppliers provide raw
material and resources that helpful in production. So every organization keep only limited
supplier and if it shut down their business so it direct affected to business (Calabrese, 2018).
Customers – organization has many types of customers like individuals so if competitors
organization give more reasonable rates to customers so its direct affect to performance of
organization because customer attract with lower rates and organization has to also evaluate
market condition like customer choice, fashion and trend.
Intermediaries – it is also a internal factor that affect closely to performance of
organization because mediator is a person that make breach between manufacturer and customer
and it includes like whole seller and retailer. It affects when competitor organization give more
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attention to suppliers and if one mediator work with two organization so it also attract from more
paying organization (Likoko and Kini, 2017).
Micro environment – it means external factors that affect to performance and its not
control by anyone so its direct affect to decision making and its factors evaluate through PEST
analysis. Its stand for P- political, E- economic, S- social and T- technology.
Political factors – its a external factors that include government policies, tax and
instability in political parties. Through these things organization majorly affected because if tax
rate is increase so organization has to pay more money as tax and if political party frequently
change so different type of policies follow and change also (Igliński, 2016).
Economic factors – it is also majorly affect to organization and it includes economic
growth, interest rates and inflation. So if inflation is increase and if interest rate increase so its
direct affect to performance of business and it creates difficulties. Exchange rate also include in
economic factor and its effect on foreign trade because its create barrier for export and import.
Social factors – this factor include customers taste, choice, fashion and trend so if these
all changes occur frequently so it creates difficulties for business. Because organization has to
fulfill needs and provide satisfaction through produce according to customer choice and stored
material waste due changes occur.
Technological factors – this factors highly affected to business because day by day
technology is increasing and organization has to establish new technology and innovations for
improve and develop their products so it consume more money and time and also require provide
training to all employees (Reyes, Roberts and Xu, 2017).
2. Discuss the reasons why you think it important that individuals and organisations to manage
responsibly, sustainably and behave ethically in relation to social, cultural, economic and
environmental issues.
Individual and organization both has responsibilities that establish relation with social,
cultural and ethical. Individual includes employees, stakeholders etc.
Social issues – due to changes in fashion, choice etc so its important for individual and
organization both responsible for satisfy needs of customers. Sustainable is also work for
promote product of organization on right place according to customer needs. Both has to ethical
behave with customers and give respect to customer through respect, honesty and equality.
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Cultural issue – individual and organization both are responsible for understand work
culture, language and law while producing. Both are Sustainable about cultural issue because
they has to manage beliefs and practices. Ethical behave about culture that individual and
organization has to knowledge about speak and interact with people according to working
culture.
Economic issue – organization and individual are responsible for meet their objective
that in issue of economy like inflation and exchange rate. Both are sustainable about save
resources for future generation and also fulfill customer needs. Ethical behave about economy
issue is that uses resources and perform with corporate social responsibility.
Environmental issue – both are responsible that reduce uses of hazardous things that
hygienic for environment. It also sustainable about care of pollution and natural resources. It has
ethical behave about environment issue is that they keep clean their workplace and also care of
people health so it has to recycle of waste (Business Environment, 2017).
Conclusion
From above study it has been summarized that business environment is affected to all
over performance of business that create barrier in making decision and micro and macro
environment and includes many factors that affect to performance and meet objective. This
report also covered that individual and organization both are responsible, sustainable and ethical
behave about social, economic, culture and environmental issue. So through this both are
responsible for save natural resources for future generation and fulfill customer needs. It also has
to take care of pollution and recycle wastage. Report also covered that PEST analysis and it is a
tool of evaluate external factors that affects to business.
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REFERENCES
Books and Journals
Bocken, N.M.P., Rana, P. and Short, S.W. 2015. Value mapping for sustainable business
thinking. Journal of Industrial and Production Engineering. 32(1). pp.67-81.
Calabrese, M. et.al., 2018. From mechanical to cognitive view: The changes of decision making
in business environment. In Social Dynamics in a Systems Perspective (pp. 223-240).
Springer, Cham.
Igliński, B. et.al., 2016. Renewable energy production in the Łódzkie Voivodeship. The PEST
analysis of the RES in the voivodeship and in Poland. Renewable and Sustainable
Energy Reviews. 58. pp.737-750.
Likoko, E. and Kini, J. 2017. Inclusive business—a business approach to development. Current
opinion in environmental sustainability. 24. pp.84-88.
Reyes, J.D., Roberts, M. and Xu, L.C. 2017. The heterogeneous growth effects of the business
environment: firm-level evidence for a global sample of cities. The World Bank.
Online
Business Environment. 2017.[ONLINE] Available
through :<https://www.toppr.com/guides/business-environment/>
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