Business Context: Macro, Micro Factors, Sustainability Report

This report delves into the context of business, analyzing the influence of macro and micro factors on organizations in a global perspective. It utilizes PESTEL analysis to examine political, economic, social, technological, environmental, and legal factors. The report also explores the impact of micro factors such as customers, employees, distribution channels, and competition. Furthermore, it addresses the management of social, economic, cultural, and environmental issues with a focus on responsibility, sustainability, and ethical considerations. The conclusion highlights the significance of these factors in strategic planning for globalization and emphasizes the importance of ethical behavior in navigating business challenges.

Context of Business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
Influence of the macro and Micro factor on organization's nature in global perspective...........1
LO2..................................................................................................................................................2
Management-al Need Of The Social, Economic, Cultural And Environmental Issues With
Responsibility, Sustainability And Ethically..............................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Globalization is a process in which an organization or a business influence the
international market and start operating on international level. As the time is changing and the
technology is growing makes the globalization of a company easier and faster. This study gives
the information of effect of different factors that affect the business of the Marks and Spencer.
This report is consists the study of external and internal factors that are changing the nature of
the Morden business in the global market. This study also gives the brief about an organization
to manage the social, cultural, economical and environmental issues with responsibility,
sustainability and ethically.
LO1
Influence of the macro and Micro factor on organization's nature in global perspective.
Influence of Macro factors on Nature of Organization
For the study of the external factors PESTEL analysis is conducted.
1. Political Factors- Political factors comprise trade treaties and the agreements between
the different nations. The political policies related to the Import quotas, tariffs and
excessive duties makes the business difficult. These factors lead the business to extra
expenses and it will reduce the company profit (Beck, 2018).
2. Economic Factors- Economic crisis, recession and inflation affect the business. These
type of conditions are not ideal for any business. The taxation policies of the government
force the organization to change their economic structure in global context.
3. Social Factors- The beliefs and thinking of the customer and employee majorly affect
the business by changing the employee-employee and employee-consumer relation. This
is directly connected to the company profit. If the Cultural beliefs of the employees and
customer are not respected, it could ruin the company brand value.
4. Technological Factors- Advancement in the technology can help the organization to
reduce the cost of labour and improve the speed of production, this can improve the
company profit a globally (Hirst, Thompson and Bromley, 2015).
5. Environmental factors- The environmental issues and acts of nation can keep the
resources limited for the organization it will force the company to buy expensive raw
material. The rule like Plastic ban can affect the packaging process of the company.
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6. Legal Factors- The different laws like minimum wages, health and safety, equal
opportunity force the company to change its policies and structures. This is difficult for
the organization to work with different policies and structures (Hamilton and Webster,
2018).
Affect Of Micro Factor On The Nature Of The Organization
1. Customer– No company can generate the profit without attracting the customers. For
better marketing process the company need to know the customer. Building a customer
base is most important to generate good revenue.
2. Availability of Employees- The availability of well motivated and qualified employees
lead the organization to generate vital profit and success. For this company have to pay
more to attract the skilled workers globally (Bah and Fang, 2015).
3. Distribution Channel and Suppliers- For global perspective the company need good
quality raw material at low price and efficient distribution channel to maintain the profit
of the business. This might need to import the goods from international level. The
company can gain the trust of the customer by provide the good quality product in short
time period.
4. Level of Competition- High number of the competitor means the high demand of the
product. To perform better and earn the profit company need to match the competition to
the competitors in the global market. To compete with local competitor the organization
need to conduct the market survey to know the market condition and launch the product
accordingly (Schaltegger and Burritt, 2018).
LO2
Management-al Need Of The Social, Economic, Cultural And Environmental Issues With
Responsibility, Sustainability And Ethically
Social
For the social issues the company need to focus ethically on the behaviour of the
employee and the customer to retain them. If the customer are satisfied with the company
product ethically then it will be positive for marketing of the company product. And, for the
ethical behaviour of an individual or an organization lead to the employee satisfaction, and
motivate them to perform better. The customers are growing more health conscious, if the
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company takes the responsibility of the consumer health it will increase the trust of the consumer
in the organization and improve the sales and develop a customer base (Singh, 2018).
Economic
In the time of economic crisis and recession, it is need of a company to behave ethically
to its employees and customer and take the responsibility of its employees and retain them. By
this the company earns the loyalty of the employees and increase their belief in the organization.
Cultural
The cultural belief are associated with the human behaviour. It is responsibility of the
organization to behave ethically to its employees and respect their beliefs and work accordingly.
By taking the responsibility of the cultural values of the employees and customer can help the
organization to grow their belief in the organization. This will help the organization to perform
better and achieve the company goals.
Environmental
For the environmental issue, it is responsibility of the company to work with the
sustainability to save the nature. The natural resources are limited and it is responsibility of the
company to consume them efficiently. To solve the environmental issues with the ethical
behaviour, the organization can gain Improved belief of the customer and employees. This will
retain their attraction for the company.
CONCLUSION
This report gives the information about the effect of the external and internal factors on
the nature of the organization in the global context. By this study of internal and external factor,
the growth of the organization can be predicted. This study helps to plan the strategy for the
globalization of an organization. This report also gives the brief about the behaviour of the
organization and conclude that, how an organization can deal with the social, economical,
cultural and environmental issue with responsibility, sustainability and ethical behaviour.
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REFERENCES
Books and Journals
Bah, E.H. and Fang, L., 2015. Impact of the business environment on output and productivity in
Africa. Journal of Development Economics. 114. pp.159-171.
Beck, U., 2018. What is globalization?. John Wiley & Sons.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hirst, P., Thompson, G. and Bromley, S., 2015. Globalization in question. John Wiley & Sons.
Schaltegger, S. and Burritt, R., 2018. Business cases and corporate engagement with
sustainability: Differentiating ethical motivations. Journal of Business Ethics. 147(2).
pp.241-259.
Singh, A.K., 2018. Ethical Business Practices and Improving Business Performance. GST
Simplified Tax System: Challenges and Remedies. 1(1). pp.202-206.
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