A Report on the Context of Business: Environmental Factors Analysis

This report provides a comprehensive analysis of the business context, focusing on the micro and macro environmental factors that influence modern business operations in the global environment. It identifies and discusses key micro factors such as customer impact, employee availability, and competition, along with macro factors including socio-cultural and economic conditions. The report emphasizes the importance of responsible, sustainable, and ethical management practices for individuals and organizations, particularly in relation to social, cultural, economic, and environmental issues. The analysis highlights the need for businesses to adapt to changing customer demands, economic fluctuations, and societal expectations to ensure long-term success and sustainability. The conclusion summarizes the key findings and emphasizes the importance of continuous market and workplace evaluation for effective business strategy development. References to relevant academic sources support the analysis.

Context
Of
Business

Table of content
INTRODUCTION........................................................................................................................................3
TASK.............................................................................................................................................................3
1. Identify and discuss micro and macro environmental factors that in your view, changed nature of
modern business in the global environment...............................................................................................3
2. Discuss the reasons why it important that individuals and organisations to manage responsibly,
sustainably and behave ethically in relation to social, cultural, economic and environmental issues.......4
CONCLUSION............................................................................................................................................4
REFRENCES...............................................................................................................................................6

INTRODUCTION
Business refers to economic system in which an organization exchanges there goods, services as
well as money in order to operation business in effective manner. While conducting business
operation and function in appropriate manner an organization must conduct evaluation and
analysis of market as well as workplace (Jazdi, 2014). By which they able to design and develop
strategies according to demand and need of consumers and employees. Along with this, they able
to motivate and encourage their employees in effective manner. Topics covered in this
assignment are micro and macro factors which change nature of modern business at global level.
Moreover it explain importance why an individual and organization mange responsibilities and
sustainability in effective manner.
TASK
1. Identify and discuss micro and macro environmental factors that in your view, changed nature
of modern business in the global environment
There are various factors which influence change in nature of a modern business at global
market. It can be micro factors or macro factors which are affecting business functions and
operations. Micro factors are small forces which affect business operating at a global or local
level. Whereas macro environmental factors refers to broader context that affect business
activities of an organization. There are some major micros and macro environmental factors
which affect business operations at global level, which are explained below:-
Micro Environmental factor- Impact of customers: Nature of a business gets influence due to change in customer’s
impact or demand. This is so when an organization expand or decide to run business at
global basis they have to do market evaluation so that they can understand need and
demand of customers according to particular place or country. By this they able to attract
and design product in effective manner which help in running business in effective and
efficient manner (Sandkuhl, Koç and Stirna, 2014). Modern organization also updates
their business functions and operation according to customers need and demand.
 Availability of employees: Employee is one of the important and major factors which
help in accomplishing of work and attaining goal in effective manner. By this an
organization able to produce product and services according to customers by which they
get attracted and there is enhancement in sales as well as profitability. It is necessary for
modern organization to recruit skilled and creative staff which help them in attain their
goal and objectives in effective and appropriate manner.
 Competition level: Level of competition also affects business of modern business this is
so because management of a company has to update or change their strategies and plans
according to competitors. By this they able to survive in the market in effective manner
and attract customers to purchase their products and services.
Macro Environmental factor-

 Socio Culture factor: It refers to those factors which are related to need and demand of
society or consumers in order to fulfil demand. It is responsibility of manger and leader
of modern organization to conduct evaluation and analysis of market on regular basis so
that they able to identify need and demand of consumers in effective manner. Through
which they can design as well as develop products and services in proper manner that
help in expanding and running business appropriate and efficient manner.
 Economic factor: It refers to factor that is related to economic condition of country,
company and customers. It includes various factors in it such as GDP of a country,
purchasing power of customers, gross profit of a company and many more (Cheng, Yip
and Yeung, 2012). These factors also influence operations and functions of modern
business. So it is role and responsibility of manger and leader of an organization to
develop product, services and strategies according to economic condition of a country,
customers and country.
2. Discuss the reasons why it important that individuals and organisations to manage responsibly,
sustainably and behave ethically in relation to social, cultural, economic and environmental
issues.
To run and operate business it is necessary for management as well as employees to
follow all rules and regulation so that all operations and functions will conduct in proper manner.
This is so because by it an organization able to conduct their wok in effective and appropriate
manner in order to attract more customers as well as investors. Along with this, they also able to
accomplish wok in effective manner and attain goal and objectives in efficient and effective
ways. To conduct business appropriate manner company’s mangers and leaders has to conduct
evaluations of social as well as cultural factors by which they able to know about need and
demand of customers and society (Bell, Bryman and Harley, 2018). Then accordingly they can
develop and create designs and plans for producing products and services in proper manner
which satisfy need of their potential customers. An organization also ensure and take care of
economical factors while developing product and services, this is so because if economic
condition of country is not good and company produce expensive product. Then there is no one
who can purchase their products which will directly affect profitability ratio, market shares and
customers base of company. Along with this company must also take care of environmental
factors while producing there product and services, that they will not pollute environment. For
this company must use organic and natural product which is environment friendly as well as skin
friendly. By evaluation and considering all these factors an organization able to run and sustain
their business for a long time in effective and appropriate manner.
CONCLUSION
From the above discussed point it can be conclude and analysis that for running and
expanding business in effective as well as appropriate manner, an organization need to conduct
market and workplace evaluation on regular basis. This is so because by it they able to develop
and produce products and strategies in effective and appropriate manner in order to attract
customers and encourage them for purchase products and services. Along with this, it also

necessary for an organization to conduct analysis and evaluation of micro as well as macro
factors. So that they can develop strategies and plans accordingly in efficient manner.

REFRENCES
Books and journals
Jazdi, N., 2014, May. Cyber physical systems in the context of Industry 4.0. In 2014 IEEE
international conference on automation, quality and testing, robotics (pp. 1-4). IEEE.
Sandkuhl, K., Koç, H. and Stirna, J., 2014, May. Context-aware business services: technological
support for business and IT-alignment. In International Conference on Business
Information Systems (pp. 190-201). Springer, Cham.
Cheng, T.C.E., Yip, F.K. and Yeung, A.C.L., 2012. Supply risk management via guanxi in the
Chinese business context: The buyer's perspective. International Journal of Production
Economics. 139(1). pp.3-13.
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university press.
Moon, J. and Kim, D., 2013, June. Context-aware business process management for personalized
healthcare services. In 2013 IEEE International Conference on Services Computing
(pp. 757-758). IEEE.