Business Environment: Micro, Macro Factors, Ethical Management Report

This report delves into the context of business, examining both micro and macro factors that influence business operations. The micro factors discussed include suppliers, shareholders, and employees, highlighting their impact on business growth and the importance of ethical considerations in managing relationships with these stakeholders. The macro factors, such as political, technological, and economic elements, are also analyzed, emphasizing the need for businesses to adapt their strategies to changing external conditions. The report underscores the significance of individuals and organizations in managing business responsibly, sustainably, and ethically, particularly in light of globalization. It highlights the role of government and employees in addressing social, cultural, and economic issues, promoting ethical conduct, and fostering long-term relationships with consumers. The conclusion reinforces the importance of adaptability, ethical practices, and sustainable operations for achieving success in the global business environment.

Context of business
(Project 1)

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Micro and macro factors.............................................................................................................1
Importance of individual and organisations in managing responsibly, sustainably and behave
ethically in social, culture and economic issues..........................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Business refers to the group of economic activities such as regular production,
distribution, etc. in order to satisfy consumers desire. In industry, these days, there are many
changes which are taking place, hence it is important to regular analyse changes which are taking
place in environment. In this report, there is discussion about micro and macro factors changed
in modern business and importance of individuals and organisations in managing business
operations in ethically and sustainable (Azadeh and et. al., 2016).
MAIN BODY
Micro and macro factors
Micro factors refers to the components which are directly related to business operations.
There are many parties which are directly related to business such as suppliers, consumers, etc.
In modern era, there is effect of these factors on business growth and development. Some micro
environment factors are discussed as under-
Suppliers are the people who provide material for conducting business operations in
smooth and relevant manner. In past years, there was less suppliers as compared to recent
market. But in current market at global level, there are different suppliers who provides product
and services to organisation. Hence there is more competition in market. Suppliers of modern
business use various techniques such as discounts, offers, credit policies to maintain their sales.
Shareholders are the people who have stake in organisation in the form of shares. In
current market, there is requirement of more funds to expand business at international level.
Hence there is more scope of raising funds through share capital in current market. As compared
to past years, shareholders are more aware and have more interest in operations. Hence in current
market, organisations are working in ethical manner to maintain good relations with
shareholders.
Employees are the core asset for organisation in order to maintain same brand image in
industry. In past years, employees works to get monetary benefits, while in current environment,
they need non monetary benefits as well (Liefbroer and et. al., 2015). These days consumers
wants familiar environment in organisation, implementing new and innovative approaches, etc.
This makes modern environment employees different from past years.
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Macro environment refers to the factors which are indirectly related to business but
affects business growth and development. Macro factors can not determined but with change
managers of association has to alter their business plans and policies.
Political factors includes role of government in conducting business operations. As
compared to past years, there are many spams, scandals, etc. taken place hence role of
government increases. In order to expand business at international level, there is crucial role of
government because of legal responsibilities such as business registration, export import duties,
etc. In current global market there is difference in policies of government as per change in
political parties, hence managers has to plan policies accordingly.
Technological factor takes about changes which are taking place in business
environment. As compared to older days, there is more technological development taking place
such as use of social media sites (Loredo Abdalá, 2019). As there is competition at global level,
so in order to compete with other firms, it is essential to accept technological changes. When
new machine is implemented in organisation, there is requirement of training. While in past
years, there is no frequent technological changes and training is not required.
Economical factor refers to tax rate, inflation rate, GDP, etc. These factors are not in
control of managers and there is different economic rates as per change in geographical region.
In current market, these rate affects business operations. For instance: if managers are thinking to
expand business in Ethopia and there is frequent changes in economic rate, then this affects
decisions of managers. Hence in current market proper planning related to economic rate has to
be done.
Importance of individual and organisations in managing responsibly, sustainably and behave
ethically in social, culture and economic issues
In current business environment, there is more scope of growth because of globalisation
policies (Toro and et. al., 2015). But at the same time, there are issues in working style of
organisation. For instance: organisation is not paying actual remuneration to work force, quality
of product and services is not up to the mark, etc. These issues affects business environment and
it also hampers growth and development of association. It is essential to make strategies to
overcome it. Government plays vital role to reduce social, culture and economic issues of
association. But at the same time policies of association and employees has to give best.
Employees are the factors which communicate and interact with society on the behalf of
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organisation. Hence they have take measures through which cultural social and economic issues
in environment can be minimised.
Individuals refers to the personnel which are working in organisation. Employees has to
keep their morale high. They must consider best way through which society development is
possible (Marra, 2017). In case of any issue in working of any workers regarding ethics then they
must be fired. With working in sustainable manner, quality of product and services are up to the
mark. When employees consider social factors, then it is easy to work with employees from
diversified background. When employees consider all cultural values of consumers, so this helps
to maintain long term and relations with consumers.
Organisation has some ethics, code of conduct, rules regulations within which they work.
When these protocol are clear and free from social, cultural and ethical issues, then helps to
maintain brand image in industry. Association is working in ethical manner so government
interference is less which helps to expand business and consumers are loyal with product and
services. Hence with conducting operations in ethically and sustainable manner brand image can
be maintained in market.
CONCLUSION
From the above discussion, it is clear that micro factors can analyse by managers because
they have influence on operations at global level. As competition is more at international level,
so innovative techniques has to be implemented. This helps to outshine at global environment.
Due to change in political policies, operations of organisation has to be altered. Hence macro
factor changes can not interpreted. At last it is concluded that employees as well as organisation
has to work for performing operations in ethical and reliable manner.
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REFERENCES
Books and Journals
Azadeh, A. and et. al., 2016. Optimization of healthcare supply chain in context of macro-
ergonomics factors by a unique mathematical programming approach. Applied
ergonomics. 55. pp.46-55.
Liefbroer, A. C. and et. al., 2015. Reproductive decision-making in a macro-micro perspective:
A conceptual framework. In Reproductive decision-making in a macro-micro
perspective (pp. 1-15). Springer, Dordrecht.
Loredo Abdalá, A., 2019. Child abuse: risk factors associated with the macro and
microenvironment in a suburban zone within Mexico City.
Marra, M., 2017. Micro, meso, and macro dimensions of change: a new agenda for the
evalutation of structural policies. In Evaluating the Complex (pp. 109-134). Routledge.
Toro, R. and et. al., 2015. Relationship between lipoprotein (a) and micro/macro complications
in type 2 diabetes mellitus: a forgotten target. Journal of geriatric cardiology: JGC.
12(2). p.93.
Online
microenvironment. 2019. [Online]. Available through:
<http://www.investorwords.com/19313/microenvironment.html>.
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