Micro and Macro Environmental Factors Assignment

CONTEXT OF BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
Identification of micro and macro environmental factors that changed nature of modern
business in global environment....................................................................................................1
Reasons for individuals and organisations managing responsibly, sustainably and behaving
ethically in relation to social, cultural, economic and environmental issues...............................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Global environment refers to the combination of micro environment and macro
environment factors which have a major impact upon the course of modern businesses
(Vasilcovschi and Georgescu, 2012). The present report explores the micro and macro
environmental factors which lead to a change in nature of modern business within global
environment. Also, it includes the rationale behind individuals and organisations behaving
responsibly, socially and ethically in response to external environment.
Identification of micro and macro environmental factors that changed nature of modern business
in global environment
In today’s rapidly changing and competitive world, modern businesses are affected by a
number of factors which prevail within the environment of these entities. This environment
consists of those elements which are under the control of management of a company and also
those which can not be controlled by the confines of powers and authorities of business. The
controllable factors are called micro environmental while the uncontrollable factors are referred
to as the macro environmental elements (Warkentin, Sugumaran and Sainsbury, 2012). In global
environment, the combination of both these factors together affects modern businesses and may
result in a change in operations and functioning of an enterprise. Below mentioned is a detailed
description of how these factors have changed the course of modern business working within
global environment:-
MICRO ENVIRONMENT FACTORS
These factors affect the working of modern businesses on the basis of their size,
capabilities, capacity, strategies which may or may not be able to deal with the impact of micro
environmental elements. Following are the factors which are covered under micro environmental
factors of modern businesses:-
Competitors: In today’s world, the competitive environment of modern businesses
comprises of some basic things which companies have to take into consideration. Usually, in
corporate world, no company (whether large or small) enjoys monopoly. In ordinary course of
business, a company generally encounters competition from a number of firms that have a
positive brand image and a high stake in marketplace. For instance: Philips TV faces immense
competition from a number of companies in Colour Television market such as Videocon,
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