Impact of the Business Environment on Organizations: A Report

This report provides a comprehensive analysis of the business environment, focusing on its dynamic and changing nature. It examines the importance of adapting to evolving customer needs and technological advancements, emphasizing the role of research and development and innovative service modifications. The report delves into both micro and macro environment factors, detailing the impact of competitors, customers, public perception, and suppliers. It also explores the significance of Corporate Social Responsibility (CSR) in enhancing brand image, creating job opportunities, and promoting ethical behavior. Furthermore, the report discusses the influence of social, economic, environmental, and political factors on business operations. The conclusion summarizes the key findings, highlighting the interconnectedness of these factors and the necessity for ethical and sustainable business practices.

Context of business

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
Dynamic and changing nature of business and the consideration of future...........................1
LO 2 ................................................................................................................................................1
Need for individuals and organisations to manage responsibly and sustainably...................1
CONCLUSION ...............................................................................................................................3
References........................................................................................................................................4

INTRODUCTION
Business environment means all the sum of external as well as internal factor that affect the
concern to a ample level as it impact the organization to its profitability and operation . As
internal and external factor jointly contact the working of the enterprise. As most of the external
factor are uncontrollable whereas internal factor can be control. As in this report it will cover the
dynamic and changing nature of business and also the consideration of the future of the
organization with the global business. And also it will state all the micro environment factor that
affect the on the job of the business enterprise and also all the macro factor that are beyond the
control of the business. It will also discuss the corporate social responsibilities that are very
important for the business.
LO 1
Dynamic and changing nature of business and the consideration of future
It is very important for the business to change according to time and the need of the
customers as needs and preferences of the people are changing. As in the changing environment
and increasing competition it is very important for the business to change itself and bring
innovative ideas (Kew and Stredwick, 2016). As in future it is crucial to bring advance
technology as to give intense competition to the competitor . As it is crucial to spend on the
research and development in order to work in the effective way. It is important to modify all the
services so that it help the customers to give many options and it help to make every thing easy
for the customers. As now days company are more using Artificial Intelligence in order to make
simple and easy work as it minimise use of labour an make the work more systematic. Also
company is using many methods and technique ton make it in future within the global business
environment.
LO 2
Need for individuals and organisations to manage responsibly and sustainably
There are basically two types of factor that impact the business to a large extent as it impact the
efficiency and operation of the business.
1

As micro environment factors are manage and can be control by the business and they
are also known as internal factor as it affect the business working internally. As it include many
factors such as -
Competitor – As competition plays an important role as it effect the business as there are many
factor which affect the working of the business. As it is important to have proper kinowledge of
the competitor so to gain competitive advantages. As by the intense competition it affect the
profitability and sales of the business. For example Zara has tough competition with the H&M
as it improve the working of the company (Lubberink and et.al., 2017).
Customer – As by earning the profitably and increasing the sales it is very important to serve the
customers as they are known as the king of the market. As most of the business consider their top
most priority in satisfying the customer and making them happy. As it is important to make good
relation with them as customer has the ability to impact the sales of the business.
Public – the third factor are public as it also impact the business efficiency as it affect the
working . As it is important for the business to fulfil their responsibility against the public in
order to smooth flow of business.
Supplier – the last factor is supplier as these are the person who supply resources as it is very
important to maintain a strong relationship with the supplier as they directly affect the
productivity and operation of the business.
Corporate Social Responsibility – As by fulfilling the corporate social responsibility it gives
positive impact to the working of the business. As it is very important to fulfil the corporate
social responsibility as it helps to increase the brand image of the company as it attract a large
number of business (vom Brocke, Zelt and Schmiedel, 2016). As for example business create
many job opportunity in the society and ultimately it will create an positive image in the society
and hence many number of customer will associate with brand. As corporate social
responsibility also include to work in the minimum wastage and also to reuse the wastage so that
it help to work in the systematic manner. Also the third important to behave ethically is that the
business will retain large number of talented people. And also it will help the employees to
behave in the ethical manner hence it will increase their morale.
Micro environment factor are the element which can not be activity and carry off . As it
affect the business externally. As it basically include four part such as -
2

Social factor - This component includes taste , preferences, attitude and believe of the
customers. As the taste and preferences of the customers changes so it will affect the business
working (Gummesson, 2015).
Economic factor – the second factor that directly impact the profitability of the business
is economic factor. As it include inflation level , employment level and GDP . As if the GDP is
not stable then it will change the impermanent of the business.
Environment factor – The third factor which is very popular is environment factor as it is
very important for the business to fulfil their responsibility against the society. As if the business
fail to do so then it affect the marque representation of the establishment.
Political – In this it include government policies and procedures. As if the policies are not
in favour that it will affect the wotki8ng of the company (Souto, 2015).
CONCLUSION
From the above study it has sum up all the systematic and ever-changing nature of
concern and the intellect ion of the future of the organization with the planetary concern
environment. It has also concluded al the micro and macro environment factor which affect the
operation of the organization. And also it has stated that it is very crucial for the business to act
in the ethical manner.
3

References
4