Context of Business Report

This report analyzes the micro and macro environmental factors that impact modern businesses operating in a global environment. It discusses how these factors influence business operations and the importance of ethical and sustainable practices for organizations to thrive in a responsible manner.

CONTEXT OF
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................3
Micro and macro environmental factors that changed nature of modern business in global
environment............................................................................................................................3
Individuals and organisations managing responsibly, sustainably and behaving ethically in
relation to social, cultural, economic and environmental issues............................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Global environment consists of micro and macro environment factors that has great
impact on the business operations. The following constructed report will discuss the micro and
macro environmental factors which has a impact on the nature of modern business operating
within the global environment. It will also discuss the need to behave responsibly, ethically and
socially by the individuals and the organisations in the external business environment.
Micro and macro environmental factors that changed nature of modern business in global
environment
As, the world is changing with a very fast pace in all the manners, the buisness
organisations are also facing changes in their nature and also there are many factors which has a
direct impact on the modern business activities in the global envrionment. Some factors can be
controlled by the management and in case of some other factors business organisation has no
control on them (Warkentin, 2012). The factors which can be controlled are the micro
environment factors and uncontrollable actors are the macro environment factors. Both these
factors has a role to play in affectring the modern business operations executed on the global
platform. The imkpact of these factors are expalined as follows:
Micro Environment Factors
The micro environment factors affects the business operations on the grounds of the
business size, capacity, capapbilities, strategies. These elements deals with the impact of micro
environment factors of the modern business which are as follows:
Competitors: In this rapidly changing world, the competitive environment of the modern
business consists of very common terms which are required by the organisations to take into
considerations in their daily business operations. In, the business environment there are hardly
companies present which enjoys monopoly in the market. The business companies generally
face competition from their rivals who deals in the same products and services. For example,
samsung mobiles faces huge competition from the rivalry companies like nokia, oneplus, apple,
etc. This intense competition leads in constructing effective strategies to cpature the large market
share and increae their profitablity.
Suppliers: The organisations executing their functions in the market requires materials
and raw items to turn them into finished products and this process can only be fulfilled with the

help of the suppliers. They help in providing business organisations with the adeqaute resources
that will be required for carrying out the business activites effectively. The organisations are
required to search the potential suppliers with the proper balance of reliability in delivery,
quality, effective cost, credit facility. This has direct impact on the functioning of the business
operation in the modern business environment.
Customers: The business organisations in the global environment strive to earn more and
more profit by providing the customers with good quality products and services. The change in
the business nature has made the business organisations to formulate strategies to increase the
sales of the organisations profitably. The modern business organisation like TESCO, ALDI,
General Motors, etc. Of different business sectors aim to attract the cusotmers in effective
manner to increase their market share (Moore, 2015).
Macro Environment Factors
The macro environment factors are the external factors that has a great impact on modern
business operations and they include political, social, legal and technological factors which are
as follows:
Political Factors: These factors consists of the elements that are imposed by the political
condition of a particular nation and theor impact on the business operations. The business
organisations working on a global platform are required to analyse the political scenario of that
particluar nation in which they are planning their business operations. For example, if a business
organisation is planing to exapand their business in Uk it must analyse the Brexit aspect and all
other apects in their political environment.
Economical Factors: The economic conditions of a country has a great impact on
affecting the business operations. For example, economic stable countries will provide great
opportunities to business organisations to grow in effective manner in compared with the
unstable economic countries.
Technological factors: These factors impact the modern businesses in the global
environment as these factors are changing rapidly. The use of technological factors in the past
years were very less as compared to today's time as their use has increased with the assistance of
social media, artificial intelligence, etc. these factors helps in maintaining the business operations
in effective manner and helps in producing good quality items for the customers.

Legal factors: These factors has a great impact on the business organisations as they
consists of rules and regulations which are constructed to execute the business operations in
appropriate manner (Ashjari, 2017).
Individuals and organisations managing responsibly, sustainably and behaving ethically in
relation to social, cultural, economic and environmental issues
The business organisations are executing their business operations with the help of
materials and resources from the society. So, they are required to work in the interest of public
and the society in effective manner. The individuals and organisations are required to follow the
responsibility of behaving ethically in their buisness operations and to consider the corporate
social responsibility (CSR) as these actions represents the efforts made by the organiation in
accordance to make betterment in the society and environment. The issues faced by the
individual and organisations in the ethical considerations are expalined below:
Harassment and discrimination at workplace: the issues are related with the
harassment and discrimination with the employees at the workplace. This issues are required to
be taken care of to construct a effective working environment.
Fraud advertisement: these activities are taking place with the objective of attracting
the customers with ill means and are leading in generating unethical ways in the market.
Accounting: the ethical issues can also be affected by accounting in the business
environment. The organisations are required to conduct the accounting procedure in effective
manner as it provides clear and accurate information of the organisation performance.
The individual and organisations following these responsibilities effectively also leads in
reducing less interventions with the government and the legal authorities and assist in conducting
business operations in more profitable manner (Charfeddine, 2016).
CONCLUSION
From the above given report, it can be concluded that the global business environment
consists of micro and macro factors which has a great impact on the business operations and
functioning of modern business organisations in the global market. The report also includes the
need for individual and organisations to responsibily execute the ehtical and social responsibility
act for the proper functioning of the buisness operations.

REFERENCES
Books and Journals
Ashjari, M. and et. al., 2017. Voltammetric analysis of mycophenolate mofetil in pharmaceutical
samples via electrochemical nanostructure based sensor modified with ionic liquid and
MgO/SWCNTs. Journal of the Taiwan Institute of Chemical Engineers. 80. pp.989-996.
Charfeddine, O. B., 2016. Business environment-aware management of service-based business
processes (Doctoral dissertation, Université Paris-Saclay).
Han, J. K. and et. al., 2014. Analysis of (Ba, Ca, Sr) 3MgSi2O8: Eu2+, Mn2+ phosphors for
application in solid state lighting. Journal of Luminescence. 148. pp.1-5.
Warkentin, M., Sugumaran, V. and Sainsbury, R., 2012. The role of intelligent agents and data
mining in electronic partnership management. Expert Systems with Applications.
39(18). pp.13277-13288
Hillson, D. and Murray-Webster, R., 2017. Understanding and managing risk attitude.
Routledge.
Moore, S. A. and et. al., 2015. Effects of alpha-amylase reaction mechanisms on analysis of
resistant-starch contents. Carbohydrate polymers. 115. pp.465-471.