Micro and Macro Factors - Doc

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Context of Business
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1.Micro and macro factors that have changes the nature of modern business..........................1TASK 2............................................................................................................................................1P2. Identifying need for organisations and individuals to behave in an ethical manner inrelation to social, cultural and environmental issues..................................................................1CONCLUSION................................................................................................................................2REFERENCES................................................................................................................................3
INTRODUCTIONBusinesses today are made up of a number of complex and critical activities withoutwhich functionality of an organisation cannot be determined. Every business today comprises ofa number of activities and processes. Also they need to function in an effective manner bystudying various internal as well as external business factors (Brocke, Zelt and Schmiedel,2016). This report has been framed on ZARA SA which is a Spanish fashion retail sectorbusiness concern. It has its headquarters in Arteixo, Gaicia and was founded in the year 1975.Furthermore, this report combines various elements such as study of micro and macroenvironmental factors along with issues related to social , ethical and behavioural contexts aswell.TASK 1P1.Micro and macro factors that have changes the nature of modern business.Macro-environment factorsThese are external environment factors which are beyond the control of organisation.Macro factors also influence decisions while formulation of marketing strategies. This consist ofsix factors also called as DESTEP model. These factors affect business of ZARA which aredescribed below:-Demographic factors-These factors are related to people. These include age, gender,size, income, and occupation. Demographics offer diverse opportunities and challenges forbusiness. Their is vast change in demographics so ZARA should focus on market analysis andthan do further manufacturing according to customer needs.Economic factors- Economic factors and profitability have close relationship onbusiness. Various economic factors are tax rates, labour cost, government policy, and interestrates. If economic activities decline ZARA can sell products at affordable prices as purchasingpower of customers decline.Socio-cultural factors- Social- culture factors affect society's values, ethics, preferenceand behaviour (Bell, Bryman and Harley, 2018). These factors plays vital role in success ofcompany. Company have to follow social trends and fulfil social responsibilities. As, cultureinfluences buying decisions so, ZARA introduces new products after proper market research.1
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