Understanding Micro and Macro Environmental Factors

This assignment delves into the world of micro and macro environmental factors, exploring their impact on businesses and individuals. It discusses the importance of PESTLE analysis in understanding these factors and how they influence ethical behavior. The report also touches on the significance of social, cultural, economic, and environmental factors in shaping business decisions and individual actions.

Context Of
Business

Table Of Contents
INTRODUCTION...........................................................................................................................1
Micro And Macro Environmental Factors..................................................................................1
Reasons of why individuals and organizations should behave ethically in regard of social,
culture, economic and environment issues..................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Today's international and aggressive business environment continuously asks for innovation,
present understanding base is getting obsolete, continuously thriving for evolution in process
development (Kwon, and Cho.2017). Further, Globalization and commencing up of markets has
not only elevated competition but also has allowed businesses to operate in markets which were
considered prohibited. Thus, this report will highlight the micro environment factors like
customers, suppliers, competitors and employees etc. and macro factors which are evaluated on
the basis of PESTLE analysis. Eventually, the project will frame the reasons in which the
organization and individuals need to behave ethically and sustainability regarding the social,
cultural, economic and environmental factors.
Micro And Macro Environmental Factors
Micro environmental factors:
Customers: The customers are the crucial a part of any commercial enterprise as they
generally tend to draw and maintain maximum of the clients to generate sales. Thus, with the
changing business nature in global environment organizations should undertake an advertising
approach that attracts the customers and keeps the existing clients with the aid of contemplating
the wants and desires of customers.
Competitors: With the changing business nature in global context the competitors of a
could have a right away impact on business strategies. Thus, the organization should realize a
way to do an aggressive analysis of competitors and have a competitive advantage (Najam,
Runnalls, and Halle. 2016). An organization should understand, what services their competitor is
offering or the unique strategies their competitors are following and what benefits an
organization should offer to its customers which make them competitive.
Employees: With the increasing dynamic global business environment skilled personnel
can assist a corporation to gain organizational goals and objectives. Thus, the company should
conduct hiring procedure of skilled and intellectual employees and maintains regular and timely
education and development classes so that they can achieve the objective of organization in
changing global environment (Micro Environment of Business.2018).
Suppliers:With the changing business nature in global environment suppliers activities
affects the business approach, as they offer the materials for production. Thus, the organization
should produce improvement inside the supplier’s surroundings has an enormous effect on the
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operations of the corporation because in dynamic environment corporations can decrease their
supply value and increase their quality of products.
Macro Environmental Factors:
In dynamic business environment in context of global market, Macro Environment factors play
an essential role which is critically analyzed through PESTLE analysis:
Political: In changing dynamic environment, government regulations and guidelines
negatively affects the working of business in global market (Scanning the Environment: PESTEL
Analysis.2017). Thus, the organization should consider the political factors that largely
influences the company's operations like foreign trade, government changing policies, tax policy,
trade restrictions etc.
Economic: With the changing business nature in global context, economic factors have a
direct impact on long term operations of the company. Thus, before making any decisions
regarding the prices of the product, organization should consider various factors like interest
rates, exchange rate, inflation rate etc (Fozer, and et.al., 2017).
Social: Social factors includes the culture, traditions and customs that impacts the sales of
the company. Thus, with the changing business environment the company should consider
various factors like population, age, gender, attitudes of customers towards the product, lifestyle
of people etc. before making any decision regarding the product.
Technological: Organizations should consider various technological factors like R&D,
innovations and automation in the changing business nature as it enhance the goodwill of
company by promoting their products using various advanced techniques.
Environmental: In dynamic global business world, growing consciousness of the
potential impacts of climate is affecting how organization operates and the products they
provide. Thus, keeping in mind these factors, organization should undertake various practices
which include corporate social responsibility (CSR) and sustainability.
Legal: These factors includes discrimination laws, consumer protection laws, patent law
etc. Thus, in changing business environment companies should operate according to various laws
and ensures that the company working under the legitimate practices (Kwon, and Cho. 2017.).
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Reasons of why individuals and organizations should behave ethically in regard of social,
culture,economic and environment issues.
Social: Social factors includes lifestyles, population growth, quality expectations of
customers etc. Thus, for the organizations considering social factors are important to behave
ethically and sustainability as it helps the company in behaving ethically by producing those
products which fulfill the needs of the customers (Fozer, and et.al., 2017). Simultaneously, social
factors are important for individuals to behave ethically and in a sustainable environment as it
help them to follow the norms and customs which are set by the society.
Culture: Culture factors plays an essential role for the businesses to behave ethically as it
helps organization to operate according to the different cultures and group of people by
considering their aspects in respect of product. On the other hand, culture factor is important for
individuals to behave ethically and sustainability as it helps them to understand the changing
culture environment like demographic factors, customers preferences and diversified culture of
people etc, and help them to work according to those cultural traditions (Najam, Runnalls, and
Halle.2016).
Economic : Economic factors includes interest rates, inflation rates, consumer behaviour
etc. which is important for organisation to behave ethically and sustainability as it helps them to
decide the price of products keeping in mind the inflation factor. Simultaneously, it is important
for individual to behave ethically and sustainability as it helps them to cope up with the market
demand and purchasing power of the people.
Environmental: These factors includes green agenda, climate change, environmental
regulations, waste disposal etc. thus, these issues are important for an organisation to behave
ethically and sustainability as these environment policies helps company's in producing eco-
friendly products. On the flip side, these factors are essential for individuals to behave ethically
and sustainability as it helps them to keep the health of the customers by recycling the products
and adopting various waste disposal practices.
CONCLUSION
This report briefly summarizes about the micro and micro environmental factors in changing
business nature in context of global market. Further, the macro environmental factors have been
analyzed through PESTLE analysis. On the flip side, the assignment have also framed the
reasons in which the individuals and organizations need to behave ethically.
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REFERENCES
Books and Journals
Kwon, K. and Cho, D., 2017. Developing Trainers for a Changing Business Environment: The
Role of Informal Learning in Career Development. Journal of Career Development,
p.0894845317730641.
Najam, A., Runnalls, D. and Halle, M., 2016. Environment and Globalization: Five Propositions
(2010). The Globalization and Environment Reader, p.94.
Fozer, D. and et.al., 2017. Life cycle, PESTLE and multi-criteria decision analysis of CCS
process alternatives. Journal of cleaner production.147.pp.75-85.
Online
Micro Environment of Business.2018.[Online].Available
through:<http://www.yourarticlelibrary.com/business/micro-environment-of-business-6-factors-
of-micro-environment-of-business/23370>
Scanning the Environment: PESTEL Analysis.2017.[Online].Available
through:<https://www.business-to-you.com/scanning-the-environment-pestel-analysis/>
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