Impact of Micro and Macro Environmental Factors on Business Operations

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Context of Business
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Table of Contents
Introduction......................................................................................................................................2
General background of the topic..................................................................................................2
Definitions of business environment, micro and macro environments and ethics of business
environment.................................................................................................................................2
Discussion........................................................................................................................................2
Different micro and macro environment factors..........................................................................2
The influences of these factors of the modern business in global environment..........................3
Examples of the effects of the factors..........................................................................................4
Ethical issues in a business environment.....................................................................................4
Importance of the business ethics in the business environment...................................................4
Example of the business ethics in different business organizations............................................5
Conclusion.......................................................................................................................................5
Main points..................................................................................................................................5
Subject of essay............................................................................................................................5
Recommendation and suggestion.................................................................................................5
Reference List..................................................................................................................................6
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Introduction
General background of the topic
This present context explains the different factors of a business enterprise. Those factors are very
important as it affects the modern operation of the business in the global environment. Another
vital factor is ethics of the corporate organization. The management and the business leaders of a
private enterprise try hard to manage and maintain the business ethics to fulfil their business
expectation in a global environment.
Definitions of business environment, micro and macro environments and ethics of business
environment
As opined by Harris and Roach (2017), various internal and external aspects are included in the
combination of the business environment. It influences various operating systems as well as
situations of the business enterprises. The laws and the economic trends and their improvement
are included in this aspect.
The micro environment is created by the nearby environment of the business enterprises.
Similarly, on the opposite era, the general and common environment of a business operation
which influences customers, elements and markets is named as the macro factors.
Some professional ethics examined and tested the ethical principles and the ethical morality of a
business organization. Those professional ethics are called the ethics of the business operation of
a company.
Discussion
Different micro and macro environment factors
Macro factors
Three macro factors can influence the business environment of a private enterprise. Those factors
are: Economical factor, Political factor and technological factor.
Economy can affects on the business environment of a private business organization. In this
present time, the globalization affects on the business operation of a business organization. The
international and global economy affects on the business environment (Akhtar et al. 2018).
Political factors can change the rate of the profit of a business operation. The export and import
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laws, income tax rate, sale tax rate and other lot of acts are changed by the political leaders.
Along with that, these factors and laws influences the product cost. A massive amount of
products can be produced in a very little time with help of the technological up gradation.
Micro factors
Media, competition and the customers are the three major micro factors that affects on the
business environment. Customers are the main pillar of the business enterprises (Murray et al.,
2017). The business leaders face lot of competition in the market place. Media helps in the
promotion and marketing job of a business operation.
The influences of these factors of the modern business in global environment
Macro factors
Macro factors are mainly the external factors such as buyers, suppliers and other social factors.
Economy: The global economy has been changed day by day. Thus, the business environment
has also been changed with the global economy. Globalization influences the business
environment.
Political: The government policies are changed and controlled by the political leaders. They
make decision about the export and import policy, sales tax policy and the income tax policy
(Epstein, 2018). In this way the product cost of the business environment can be changed by
them.
Technological: Productivity is controlled by the technological improvements. In this way, it can
increase the rate of profit of the business.
Micro factors
Every private organization has to face so much competition in the market place. The company
has to provide a better services and products in the reasonable price for surviving in the
competitive market. The customers are the main base of the rate of profit of any organization.
The organizations always try to promote their products and services to the common people. In
this way, media helps them to promote the products. Opportunities, strength, weakness,
customers and employees are also the external factors of business environment.
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Examples of the effects of the factors
Global economy faces some loss in previous few years. Due to the globalization, the business
enterprises also faced same loss in their business operation. The Marks and Spencer Company’s
rate of profit decreased during previous few years because, the government of UK has increased
the sales tax. Due to technological incompetence, the profit rate of the Marks and Spencer has
gone downwards. Therefore the company improved the technological support and managed the
chain of supply. It helps to increase the annual productivity and to decrease the production cost
in same time.
Hoffman is a very well known company of USA. This organization tries to expand their business
in new places. Therefore, they try to provide a better quality product in a reasonable price to the
customers. With help of this technique, they can survive in the competitive market and they also
can attract and retain the customers in same time. This company spends money to promote the
products that adds to its brand imagery and presence.
Ethical issues in a business environment
All of the business organizations follow some ethical morality and principals in the business
process and operation. As informed by Carmeli et al. (2017), these ethical principles and
morality helps to solve various ethical issues of the company. Mainly different organizations face
five major ethical problems such as: harassment, discrimination, social media problem, health
and safety problem, technological problem and accounting problem.
Importance of the business ethics in the business environment
Employees of the business enterprises work hard to provide a better services and products to the
customers. With help of this, the companies make profit and give remuneration to the employees.
The employees’ salary related problems are included in the accounting issues (Hahn et al. 2015).
The misbehaviour of the managers and the leaders is included in the harassment and
discrimination issues. Male female discrimination can also make some ethical issue in the work
place. The company should make the ethical principles that try to look after the development and
growth of the employees.
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Example of the business ethics in different business organizations
Coca Cola Company, Marks and Spencer Company are the very famous company of the worlds.
These companies also create some ethical morality and principal, by which they can provide a
safe, secure, healthy, fair and transparent work environment to the employees. The employees
are benefited by the company for their hard work. No any case of discrimination or harassment is
tolerated in these companies. Managers and the leaders always discuss about the work plan with
the employees. The companies also provide some insurance for the employees.
Conclusion
Main points
In this context, it can be concluded that, technological, political and economical factors can
change the business environment of any business organization. Some micro factors such as
media, customers and competitive market also affects on the business environment. The
professional ethics are very important for the business organization.
Subject of essay
This present research is focused on the various factors that influence the business operation. Both
macro and micro factors and the business ethics and principles can influence the business
operation. Globalization directly can change the business process of an organization.
Recommendation and suggestion
It can be suggested and recommended that, the business managers and the business leaders
should very conscious about the technological, economical and the political factors. They also
have to develop and improve the quality of the product to survive in competitive market. Every
company should create a proper morals and principles to resolve the ethical issues.
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Reference List
Akhtar, P., Khan, Z., Frynas, J.G., Tse, Y.K. and Rao‐Nicholson, R., 2018. Essential micro‐
foundations for contemporary business operations: Top management tangible competencies,
relationship‐based business networks and environmental sustainability. British Journal of
Management, 29(1), pp.43-62.
Carmeli, A., Brammer, S., Gomes, E. and Tarba, S.Y., 2017. An organizational ethic of care and
employee involvement in sustainability‐related behaviors: A social identity perspective. Journal
of Organizational Behavior, 38(9), pp.1380-1395.
Epstein, M.J., 2018. Making sustainability work: Best practices in managing and measuring
corporate social, environmental and economic impacts. Routledge.
Hahn, T., Pinkse, J., Preuss, L. and Figge, F., 2015. Tensions in corporate sustainability:
Towards an integrative framework. Journal of Business Ethics, 127(2), pp.297-316.
Harris, J.M. and Roach, B., 2017. Environmental and natural resource economics: A
contemporary approach. Routledge.
Murray, A., Skene, K. and Haynes, K., 2017. The circular economy: An interdisciplinary
exploration of the concept and application in a global context. Journal of Business
Ethics, 140(3), pp.369-380.
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