Micro and Macro Environment Factors in Business.

Context Of Business

Table of Contents
INTRODUCTION...........................................................................................................................1
ESSAY.............................................................................................................................................1
Identification and discussion of micro and macro environment factors and its importance in
changing nature of modern business in the global environment. ...............................................1
Importance to individuals and organisation to manage responsibly, sustainably and behave
ethically in relation to cultural, social, environmental and economic issues. ............................2
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
The word business defines a platform where the activity of buying and selling of goods
and services take place between the companies. The various tools used by the company to grow
globally are, advancement of technology, setting growth stack strategy, effectively using the
marketing tools, efficiently following the content management system (CMS), corporate social
responsibility, ethical norms etc. Company should adhere corporate social responsibility and
ethics norms because it shows moral judgements about what's right and wrong (Bell, Bryman
and Harley, 2018). Every business is facing two major problems of macro and micro
environment. Macro environment includes Inflation, monetary and fiscal policy. Whereas
micro environment includes customers, suppliers, distribution channels, competitors.
ESSAY
Identification and discussion of micro and macro environment factors and its importance in
changing nature of modern business in the global environment.
The term micro means those factors or elements of a business that affect the performance
and decision making power of a company (Micro Environment Definition, 2019). There are
various factors affecting the organization are customers, distribution channels, competitors etc.
The changes can be explained by an example of BEER Company. While the processing of beer
the internal employees of the company can not taste the beer as drinking of beer can resist the
creative process while working. The famous brand CORONA also restrict it's employees to taste
while processing of beer. Where as in case of macro environment it includes inflation ,
fiscal policy etc.
The changes can be studies by an example of PEPSI Company. The company was
thrown out because the quantity of sodas is very high. The company came up after 16 years in
the market . The company had to reveal the secret recipe to remove the aligation, and can again
build the trust among the customers and can capture the market ratio. In both the cases it has
been seen that violation of micro and macro factors has a huge impact on the companies
business. Pepsi was thrown out of the market and came up with Lehar to capture the market and
trust of employees (Marlow and McAdam, 2015). Company has to make several changes in its
marketing strategies and recipes and also fulfils corporate social responsibilities. While in case
of beer company the restriction of having beer while processing is banned by the company to
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have productive results in the workplace also the ethics norms and corporate social
responsibilities are followed by the firm. The changes that occur in the global village due to
micro and macro environment plays a critical role in growth and expansion of the firm. The
fluctuation in the prices , and random changes in the product and services also affect any
company at a global level. The corporate social responsibility need to be followed by any
organization to sustain in the market. The ethical norms plays a tremendous role to gain
customers trust and faith. If a company carries out the terms and conditions effectively and
efficiently the organization can flourish at the global market (Phillips and et. al., 2015). The
chances to grow and expansion increases and the goodwill of the organization is created in the
eyes of the customers as well as in that country's government.
Importance to individuals and organisation to manage responsibly, sustainably and behave
ethically in relation to cultural, social, environmental and economic issues.
In the era of 21st century every individual organization (small or big organization) need to
follow ethical norms and corporate social responsibility to remain in the market of globalization.
Every organization has different ethical rules and regulations followed by them. Cultural, social,
environmental and economic issues all the factors has distinguish effect on the companies
regulations. Some of the companies use modern ethical terms whereas some uses traditional
ethical norms. Here, Linkedin, IBM, Apple,Zappos follows corporate social responsibilities to
create a healthy two way communication with it's customers or employees. APPLE company
also focus on environmental factors due to which firms is running on green energy. Firm is
trying to turn its business totally e-co friendly (Souto, 2015). It is creating a huge trouble for
other companies at a global level. The company came in the lime light with these step and
created a threat for the competitors. Economic problem means insufficient resources to satisfy
human wants and needs. LOREAL was started as a hair dye in the global platform and is
diversifying in various fields like shampoo, lipsticks, mascara, cream etc. The organization needs
to understand that human wants and desires are unlimited but the resources are limited in the
nature. Customers are hungry for new products in the markets but the companies should
understand the importance of environment. The excessive uses of natural resources can led to
exploitation. Many of the top companies is talking about cultural education should be done, but
IBM is the only company who educates its employees and round half billion dollars are spend on
their education (Vom, 2016). Out of these Apple is also one of the company who is well known
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for cultural responsibility as the company donates to charities and a GLOBAL VOLUNTEER
PROGRAM was launched in 2011.
CONCLUSION
As discussed above if any company focus on both micro and macro environmental issues
and follows all the ethical norms, terms and conditions affiliated by the government can run
smoothly. Organization follows all the social cultural responsibilities and turn out tmacro and
micro issues in their goals as advantages can help the business to grow and expand across the
globalization. In the above case all the drawbacks are turned into advantages due to which
companies growth and expansion are at a greater level. Business are able to sustain in the long
run and are earning profits at a maximum level. By these steps organization can fulfil the
customers needs and demands.
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REFERENCES
Books and Journals
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university press.
Marlow, S. and McAdam, M., 2015. Incubation or induction? Gendered identity work in the
context of technology business incubation. Entrepreneurship Theory and
Practice, 39(4). pp.791-816.
Phillips-Wren, G. E. and et. al., 2015. Business Analytics in the Context of Big Data: A
Roadmap for Research. CAIS. 37. p.23.
Souto, J. E., 2015. Business model innovation and business concept innovation as the context of
incremental innovation and radical innovation. Tourism Management. 51. pp.142-155.
Vom Brocke, J., Zelt, S. and Schmiedel, T., 2016. On the role of context in business process
management. International Journal of Information Management. 36(3). pp.486-495.
Online
Micro Environment Definition. 2019. [Online]. Available Through:
<https://www.marketingtutor.net/micro-environment-definition-factors-example/>.
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