Business Environment Factors and Sustainability

This assignment explores the concept of business environment and its impact on organizational decision-making and performance. It discusses micro and macro factors, including economic, cultural, and environmental issues that organizations must consider for sustainable growth and future generations. The study also highlights the importance of ethics in managing these factors to ensure corporate social responsibility.

Context
of Business

Table of Contents
INTRODUCTION...........................................................................................................................1
Task .................................................................................................................................................1
1. Identify and discuss micro and macro environmental factors that in your view, changed
nature of modern business in the global environment. ............................................................1
Business Environment, 2017...........................................................................................................2
2. Discuss the reasons why you think it important that individuals and organizations to
manage responsibly, sustainably and behave ethically in relation to social, cultural, economic
and environmental issues............................................................................................................3
Conclusion.......................................................................................................................................4
From above study it has been summarized that business environment affect all activity of...........4
organization like performance and decision making. It is two type of environment like micro and
..........................................................................................................................................................4
macro it called internal and external factors respectively. So organization evaluate environment. 4
time to time for protect their decision making and performance. It also covered that organization
and individual has to take care of environment and culture for future generation..........................4
REFERENCES................................................................................................................................5
Business Environment. 2017 [ONLINE] Available through
:<https://study.com/academy/.../what-is-business-environment-definition-factors-quiz.ht.>.........5

INTRODUCTION
Business environment means that business is surrounded from environment and its affect to
performance and decision making of organization. It includes internal and external factors as
well as micro and macro factors that impact business in positive and negative way. It is more
important aspect of any business. Factors include customers, suppliers, competitors and political,
technology, economic and social factor that affect orgtanization. This report will be cover
environment of business and impact of them (Alsaaty, Zenebe and Sengupta, 2016).
Task
1. Identify and discuss micro and macro environmental factors that in your view, changed nature
of modern business in the global environment.
Business environment is part of business because it is surrounded from many factors of
environment. So it has two type like micro and macro.
Micro environment is direct relate to firm operation and its factors competitors,
suppliers, market intermediaries and customers and all of these influence regularly.
Competitors – it majorly affects to organization because if increase competitors in market with
same product and same size so customers divided with different competitors. So company make
different kind of product and services for promote and improve their selling. So its also affect to
global business.
Suppliers – it is also influence to organization because it provides raw material, human resource
and technology etc and every organization has only one supplier so if supplier will shut down
their services so it affects business. So organization has to keep in touch with different suppliers
and evaluate their condition time to time.
Customers – it includes whole sellers, retailers and domestic customer so it very important for
every business. So organization has to evaluate market condition like customer choice, fashion,
trend etc because all things frequently change so its affect to business that provide satisfaction to
customers through fulfill their need (Clarke and Xu, 2016).
Market intermediaries – it includes whole seller retailer and agents and all these mediators
between manufacture to customer. It all affects to business because if one suppliers working with
two company so it attract with that company who give more benefit. So it affect all organization
because they has to make stability of mediator pay more money to them.
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Macro environment is external factors that affect organization performance and it is
uncontrollable. It also affect its decision making and it includes political, economic, social,
technological factor.
Political – it is a external factor of business and it includes that policies of government political
instability, tax policy, labor law etc. so through all these things organization affect majorly
because if tax rate increase so organization has to give more rates as tax and if political party
change frequently so its also affect to business because it has to follow according to change rules
by political party. But it is also good thing because organization follow all rules and make
discipline(Jeffers, 2016).
Economic – it is also impact to business and its includes economic growth, interest rates,
inflation etc. so it impact to business because if inflation rate increase in economy so it creates
difficulties for organization as well as consumer. Exchange rate also create barrier in foreign
trade because if exchange rate increase so it can't do trade it affects economy growth of country.
Social – Its also a major factor because customer need, choice, fashion and trend change
frequently so organization has to also change their product for provide satisfaction to customer
through fulfill their needs for attract customer so its create wastage in big quantity and its affect
to environment of business.
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Illustration 1: macro factors
Business Environment, 2017

Technological – Now a days technology and innovations increase day by day so organization
has to adopt and establish new technology for improve their product and beat competition so it
consumes more cost and time and also has to provide training to their employees.
2. Discuss the reasons why you think it important that individuals and organizations to manage
responsibly, sustainably and behave ethically in relation to social, cultural, economic and
environmental issues.
Individual and organization has responsible for relation of social, cultural, economic and
environmental issues and it is also important. Because individual like employees, stakeholders
etc and organization has to manage all below things:-
social issues because choice and trend, consumer issues etc so it is necessary that they
has to produce according to them for fulfill their need and that is it responsible for that. Its
sustainable because organization has to promote their product on well place and knows about
customer needs. Ethical behave is important because organization has to follow and respect
moral like honesty, fairness and equality etc (Leese and Ivanov, 2018).
Cultural issue means that language, law politics etc so organization has and its
individual has responsible to keep in mind all these issue while production. Its sustainable about
cultural issues because its necessary that manage cultural belief and practices. It ethical behave
about culture is also necessary because organization and individual has to knowledge that how to
speak and interact with people.
Economic issue includes exchange rates and inflation and interest rate it also responsible
for them and it manage and meet their objective. It also sustainable for that because organization
has to fulfill customer needs but also sustain natural resources for future generation. Ethical
behave about economy that follow corporate social responsibility and use resources in
sustainable way.
Environment issues organization responsible for protect environment like store of
wastage and recycle and hazardous substance prevent. It sustainable also because it take care of
pollution and natural resources etc. Ethical behave also include care about nature and also
benefit of organization (Shekshnia, Ledeneva and Denisova-Schmidt, 2017).
All above factors impact business performance and its create barrier for global trade.
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Conclusion
From above study it has been summarized that business environment affect all activity of
organization like performance and decision making. It is two type of environment like micro and
macro it called internal and external factors respectively. So organization evaluate environment
time to time for protect their decision making and performance. It also covered that organization
and individual has to take care of environment and culture for future generation.
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REFERENCES
Books and Journals
Alsaaty, F., Zenebe, A. and Sengupta, S. 2016. The Influence of Some Macroeconomic Factors
on the Growth of Micro Firms in the United States. Available at SSRN 2775339.
Clarke, G., Li, Y. and Xu, L.C. 2016. Business environment, economic agglomeration and job
creation around the world. Applied Economics. 48(33). pp.3088-3103.
Jeffers, A.E. et.al., 2016. Ethical Implications of Sustainability Initiatives in
Corporations. SGBED wishes to recognize the following sponsors. p.1048.
Leese, R. and Ivanov, A. 2018. Electrochemical micromachining: review of factors affecting the
process applicability in micro-manufacturing. Proceedings of the Institution of
Mechanical Engineers, Part B: Journal of Engineering Manufacture. 232(2). pp.195-
207.
Shekshnia, S., Ledeneva, A. and Denisova-Schmidt, E. 2017. Managing business corruption:
Targeting non-compliant practices in systemically corrupt environments. Slavonic &
East European Review. 95(1). pp.151-174.
Online
Business Environment. 2017 [ONLINE] Available through :<https://study.com/academy/.../what-
is-business-environment-definition-factors-quiz.ht.>
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