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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