Business Environment: Dynamic Nature, Future, and Ethics Report

This report provides an overview of the business environment, examining its dynamic and evolving nature. It analyzes both micro and macro environmental factors, highlighting their impact on organizational profitability and sales. The report delves into the importance of adapting to future changes, including technological advancements and digitalization, to maintain competitiveness. It emphasizes the need for businesses to manage responsibly, sustainably, and ethically, considering social, cultural, economic, and environmental issues. The report also discusses corporate social responsibility (CSR) and its positive effects on brand image, customer relationships, and employee morale. The report concludes by underscoring the significance of ethical behavior and compliance with regulations for long-term business success. It references several sources to support the analysis of the business environment.

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.................................................................................................................................................2
Need for individuals and organisations to manage responsibly and sustainably and behave
ethically ......................................................................................................................................2
CONCLUSION ...............................................................................................................................3
References........................................................................................................................................4

INTRODUCTION
Business environment is basically a sum total of all external and internal factors that
influence the organisation profitability and sales. As these both factor influence each other and
together impact the working of the business. As most of the external factor are uncontrollable
hence hinders the organisation. As in this report it will cover the dynamic and changing nature
of business and also the consideration of the future of the organisation within the global business
environment. At last it will discuss the need for individuals and organisations to manage
responsibility and sustainability and behave ethically in relation to social, cultural , economic
and environmental issues. Also it will states the example of macro and micro environmental
factor and also the meaning of corporate social responsibility and how it affect the business .
LO 1
Dynamic and changing nature of business and the consideration of future
As business is changing day by day as it impact the business in the positive way as it
helps to increase the productivity and efficiency of the organisation as there are many future
changes which need to be adopted by the business in order to give tough competition to the
business and achieve competitiveness. As by adopting advance technology it will help the
business to a large extent as it will help to bring the innovates and creativity in the business. As it
is very important for the business to invest large amount in research and development as by the
motive to bring new products and services. Also it is very important to digitalize the company as
it will help the customers in saving the time and resources. As it is very important to have
flexible work arrangement as it help to work in the easier manner. Also Artificial Intelligence
help the business to work in more effective manner with less human resources . As it will be
design to improve the customer experiences or streamline operations. As customers become
more comfortable with Artificial Intelligence. As business are making best by the help of
Artificial Intelligence as work is done by more accurately as with less human intervention.
Hence change is very important for the business and also all these factor must consider
for the future of organisation with the global business (Wirtz, Pistoia, Ullrich and Göttel, 2016).
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LO 2
Need for individuals and organisations to manage responsibly and sustainably and behave
ethically
Micro Environment factor affect the business internally. These are the factor which can be
control and manage by the management. As there are many factors such as -
Competitor - One of the most important factor of micro environment is competitor as it
affect the working of the business. As competition consist of many new things. As every
business faces intense competition . For example Tesco faces a tough competition from
Sainsbury. So it is important to have proper knowledge of needs and wants of the customers in
order to achieve competitive advantages.
Customers – One of the aim of the business is to gain profitability by serving and
satisfying the customers. As this factor can impact the efficiency of the business. As every
business is giving priority for satisfying customer and having knowledge about the customers
needs by the surveys.
Suppliers – The third affect the productivity of the business as it is very important to have
a strong relationship with the supplier as they provide major resources to the company. As in
recent trends company has lower there supply cost and increases their quality.
Marketing Intermediaries – They are the individual who helps the company in
promotion , selling and distributing the goods to the ultimate consumers. As they are the
middleman which affect the business operation and working .
Corporate Social Responsibility – It is the most important things which help the company to
build its image in the society and attract many of the customers and hence increase the
profitability and sales. As by fulfilling the corporate social responsibility it will help the business
to operate for the long run basis. And also it will help to build the strong relationship with the
customers. As many business create job opportunity so it will attract lots of customers and also it
will help to increase the brand image of the company. As by fulfilling the corporate social
responsibility it impact the business in positive manner. Also it will help the business to retain
the best talent as most of the people that they are the part of something big. As it helps to boost
the morale of the employees. As it is very important for the business to behave ethically by
complying all the regulation and also manage responsibly (Bell, Bryman and Harley, 2018).
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Macro environment factor – These are the factor which affect the business and can not be control
and manage by the management. As it impact the business operation and working. There are
mainly four type of macro factor such as -
Social factor – This factor affect the business to a large extent as these are the factor
which are uncontrollable as it include the preferences, needs , attitude and behaviour of the
customer which might affect the working of the business.
Economic factor - These are factor which affect direct to the operation of the business as
it include GDP , inflation rate , income level etc. as it is important for the business to have proper
knowledge (Souto, 2015).
Environment factor – As nowadays this factor is becoming very famous so it is very
important for the business to follow its corporate social responsibility.
Political factor – This factor is totally uncontrollable as the government can impose any
policy at any time hence it will affect the working of the business (vom Brocke, Zelt and
Schmiedel, 2016.).
CONCLUSION
From the above report it has concluded the dynamic and changing nature of business and
the consideration of the future of organisation within the global business environment. And
further it has concluded that micro and macro factor affect the business and its working and also
it is very important for the business to fulfil its corporate social responsibility .
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References
vom Brocke, J., Zelt, S. and Schmiedel, T., 2016. On the role of context in business
process management. International Journal of Information Management.36(3). pp.486-
495.
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university
press.
Souto, J.E., 2015. Business model innovation and business concept innovation as the
context of incremental innovation and radical innovation. Tourism Management.51.
pp.142-155.
Wirtz, B.W., Pistoia, A., Ullrich, S. and Göttel, V., 2016. Business models: Origin,
development and future research perspectives. Long range planning.49(1). pp.36-54.
Phillips-Wren, G.E., Iyer, L.S., Kulkarni, U.R. and Ariyachandra, T., 2015. Business
Analytics in the Context of Big Data: A Roadmap for Research. CAIS. 37. p.23.
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