Solved Context Of Business Assignment PDF

CONTEXT OF BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Micro and macro environmental factors......................................................................................1
Reasons for managing responsibly, sustainably and behaving ethically in relation to social,
cultural, economic and environmental issues..............................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
With advent of globalization and technological advancements, it is important to maintain
the reliability and transparency to control the micro and macro environmental factors. It has
become easier to evaluate the overall impact on driving the success of businesses. However,
ethical standards might get compromised and affect the working cultures. This assignment is
based on understanding the dynamics of the modern business to sustain the competition at the
global and local marketplaces. It also examines the corporate social responsibility concept at
workplace. This would assist in managing the works with responsibility to bring changes at
sustainable and socio-economic manner.
MAIN BODY
Micro and macro environmental factors
It is clearly demonstrated that business dynamics is based on the micro and macro
environmental factors and is necessary to understand the global concepts for conducting
businesses in effectual manner. Herein the micro factors reflect upon the internal workings of the
business environment and additionally, it focuses on managing the macro parameters in terms of
political, socio-economic, environmental and cultural issues.
Furthermore, micro environment factors such as customers, employees, shareholders and
media. Customers play vital role in maintaining the demand-supply of the products or services
in the marketplaces. They directly impact the success of any product or service and direct the
changed nature of modern business in the global environment. For e.g. Tesco focuses on
discounts or special offers to attract customers and gain competitive advantages over their rivals
like ASDA etc. In addition, employees are company specific whose motive is to bring
innovation by optimising the resources and requirements of the involved people. Media has the
capability to either put the company's value at risk or improve it by generating news in relation to
revenues, profits or any scams. Moreover, the Shareholders make the decisions through
monetary gains and this directly depends on changing business factors like type of product,
targeted market (Testa and et.al., 2016). These micro environmental factors help in assessing the
workplace environment.
In regard to this, macro environmental factors involves number of impacts which help the
organizations to maintain brand value and reputation in the global markets. Economic factor
includes about the fluctuations in the inflation rate which affect the marketing strategic planning
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to be adopted by companies. For e.g. With Brexit, the pound sterling value is fluctuating and has
affected the host companies drastically in EU and other marketplaces. Technological factor has
emphasized on using the digital platforms and various information systems for better
accessibility in reaching the target markets and the customers' base. This would give the
companies an opportunity to attract the customers' easily and at affordable levels.
Environmental factor shed light on bringing sustainability factor by using methods and
techniques like waste water management, recycling, etc. to attain the carbon footprint. It also
adds on promoting the use of organic materials and banning the use of plastics to minimise the
pollution levels and following the guidelines framed under the Corporate Social Responsibility
(Schaltegger and Burritt, 2017). Political factors there are the various factors which changed the
nature of modern business as the political situations in different countries keep on changing on
the continuous basis which have both positive and negative impact on the business of an
organisation for example different policies of the government like tax and tariff which a
government levies falls in the category of the political factors (PESTLE Analysis, 2019). Political
factors determines the extent to which the government may have influence on the economy of
certain business of an industry. For example Brexit will have the huge impact on the business of
an organisation, if UK makes the exit from EU it will bring the huge changes in the business
there will be no free movement of people between UK and other European nations, there change
in the exchange rates between UK and other European nations. Social factors this is the major
factor which have changed the nature of modern business as customers needs and preferences
keep on changing continuously and it has become important for the companies to satisfy them in
order to keep them attracted towards the products or services. An organisation have keep a track
on the changing customers needs and preferences which keep on changing based upon changing
life trends, cultures, customer attitudes, beliefs, etc. which have an effect on the demand for the
products and service of the company. So this factors is responsible for bringing major change in
the modern business in the global environment. Legal Factor these are the legislative changes
which occur from time to time which have a huge impact on the business of an organisation.
There has been huge changes within the legal factors which has successfully changed the modern
business of the world for example if any regulatory body of any country will set up a regulation
for an industry then regulation will have an impact on the operations of the business like on its
economy and profits.
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Reasons for managing responsibly, sustainably and behaving ethically in relation to social,
cultural, economic and environmental issues
In order to manage responsibility, sustainability and behaving ethically in relation to various
environmental, social cultural and economic issues the reasons are that it may bring many
benefits for the individual and for the organisation it can help the company in achieving the
competitive advantage and more profits. It can also help the individuals to get satisfaction from
the job they are doing and for the organisation it grows the image of the company (Chris, 2018).
Behaving ethically will help in smooth functioning of the organisation and can also gain the
competitive advantage in the competitive world. For a business it is not always to gain profits, it
is the responsibility of the owners of the business to contribute towards the society which in turn
will be benefited for making such contributions. While, managing the sustainability an
organisation must provide jobs which can help in raising the economic standards of the people
where the business operates which can bring more stability to the business and organisation can
achieve its long terms goals in the future (Ellie, 2018). So, it is important for the organisation and
individuals to make contribution towards addressing social, economic, cultural and
environmental issues.
CONCLUSION
It has been summarised that globalised business environment has benefited companies to
connect and expand their products or services by targeting the specific marketplaces. Moreover,
it shed light on the micro and macro analysis respectively to gain insights on the changing
dynamics in the business environment. It can also be concluded that it is important for the
organisation to make contributions towards which in turn will benefit the organisation.
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REFERENCES
Books and Journals
Aradska, J and et.al., 2015. Gel‐free mass spectrometry analysis of Drosophila melanogaster
heads. Proteomics. 15(19). pp.3356-3360.
Morris, A. and Metternicht, G., 2016. Assessing effectiveness of WEEE management policy in
Australia. Journal of environmental management. 181. pp.218-230.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues, concepts
and practice. Routledge.
Spence, L. J., 2016. Small business social responsibility: Expanding core CSR theory. Business
& Society. 55(1). pp.23-55.
Testa, F. and et.al., 2016. Factors affecting environmental management by small and micro
firms: The importance of entrepreneurs’ attitudes and environmental
investment. Corporate Social Responsibility and Environmental Management. 23(6).
pp.373-385.
Online
PESTLE Analysis. 2019. [Online]. Available Through: <https://pestleanalysis.com/what-is-
pestle-analysis/>.
Chris, H. M. 2018. Why is social responsibility important to a business. [Online]. Available
Through: <https://www.investopedia.com/ask/answers/041015/why-social-
responsibility-important-business.asp>.
Ellie, C. 2018. The Importance of Corporate Social Responsibility for Your Business. [Online].
Available Through: <https://www.investopedia.com/ask/answers/041015/why-social-
responsibility-important-business.asp>.
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