Analysis of Business Environment and Ethical Considerations Essay

This essay delves into the complexities of the modern business environment, examining both micro and macro environmental factors that shape organizational strategies. It highlights the critical importance of understanding these factors, including suppliers, customers, competitors, and external influences like political, social, and economic conditions. The essay emphasizes the need for organizations to conduct thorough market research and adapt to changes in technology, customer preferences, and government policies. Furthermore, it underscores the significance of ethical behavior for both individuals and business organizations, arguing that ethical practices are crucial for building a strong brand image, fostering customer trust, and achieving sustainable growth. The essay concludes that organizations must effectively manage both internal and external environments to achieve their long-term goals and maintain a competitive edge.

ESSAY

Table of Contents
INTRODUCTION...........................................................................................................................1
Micro and macro environmental factors which resulted in change of modern business............1
Importance of ethical behaviour for individuals and business organisations.............................2
CONCLUSION................................................................................................................................3
REFERENCES ...............................................................................................................................4

INTRODUCTION
Global business environment is the combination of various micro and macro which
directly or indirectly affects and influence the working of the organisations. It has been
witnessed that rapid changes have taken place in the internal and external environment of the
business. So to overcome this situation the market conditions can be analysed using various
techniques and methods in the systematic manner(Craig and Campbell, 2012). This essay will
cover the micro and macro environmental factors which are affecting the international and
domestic market. The essay will also include the major reasons behind the ethical behaviour of
the individual and organisations.
Micro and macro environmental factors which resulted in change of modern business.
Business environment comprises of various factors which changes the pre decided plans
and strategies of the organisation. It has been noticed that rapid changes takes place in the
modern business environment. The changes generally takes place in technological, social and
economical environment. To manage these changes it is the duty of the various organisations to
analyse the market by conducting research. As these research will help in knowing the pros and
cons of the recent market trends. Market research can be done for knowing the needs and
preferences of the customer's, competitors strategy and market trends. As after knowing the
results plans can be made to gain competitive advantage in the market(Henriksen, Stambulova
and Roessler, 2010). The management of the organisation must gather relevant information
regarding the micro and macro environment. As by doing this long and short term plans can be
made and sustainability will be easily achieved.
Micro environmental factors include suppliers, customer's, competitors, etc. These factors
directly affect the working and management of the various companies. Customer's are the most
important part of the micro environmental factors. So the main focus of the organisations must
be on satisfying their need and demands. As they will directly lead to increase in sale and
profitability of the organisation. Many business organisations in the modern environment have
already made necessary changes in its plans and strategies for satisfying its customer's and
increasing the profit. Companies can also conduct competitor analysis for knowing the
competitors strategies and action plan for the future. This analysis is generally conducted after
regular intervals because it gives better and accurate outcome.
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Where as macro environmental factors consist of political, social, legal,etc. Factors which
are external to the business. These factors are generally uncontrollable because rapid changes
takes place in these factors. Technological factors in this generally affects the working of
businesses because modern working environment generally requires latest technology for
achieving the goals and objectives in the effective and efficient manner. This can be done by
using the available resources in the optimum manner(Hernaus, 2011). Various economic factors
such as change in inflation rate, taxation policy and interest rate also influences the working of
modern business. If the organisations do not want their business to get affected than they must
focus on following the rules and laws in the proper manner. Change in government polices can
also influence and affect the business in negative manner. So it is very much necessary for every
organisation to manage their strategies as per the need and trends of the modern business
environment.
Importance of ethical behaviour for individuals and business organisations.
It is essential for the individuals and organisations to behave in the ethical manner for
achieving the business objectives in the coordinated manner. Ethical behaviour is concerned with
responsibilities of various organisations towards the society in this business operations is being
conducted. Every business organisation must perform its CSR activities after analysing the
market conditions and demand of the potential customer's(Papadopoulos and Martín Martín,
2011). It has been observed that customer's are becoming more conscious and concerned about
the safety of the environment. So keeping this factor in mind business organisation can make the
strategies. If the organisation fails in doing this than chances and risk of loss and decrease in
revenue of the companies might increase. Good ethical behaviour will directly lead to growth
and profitability of the organisation because companies will be able to create good brand image
in the mind of the customer's. Available resources will not be wasted if the management of the
organisation is successful in making better plans for the activities and performance(Hotho and
Champion, 2011). There are several legal legislation and obligations which are to be followed
by the individuals and business organisation. This is because if it is not done than the ethical
activities will be affected and the individual and organisational goals will not be achieved. As a
good ethical behaviour organisation can perform some social activities by providing free
education to the poor children, can provide food, shelter and other facilities to the needy or
homeless families. It is also very much necessary for the organisations to respect the culture and
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values of the society in which the business activities is going to be conducted. If the cultural
values are not taken into consideration than customer's will start loosing faith and trust in the
company. This will directly result in decrease and profitability in the sale of the
organisation(Lyasnikov and et. al., 2014). So organisations and individuals must focus on
improving its ethical behaviour in the effective and efficient manner.
CONCLUSION
From the above essay it can be concluded that in order to achieve the long and short term
goals plans can be made by using the analytical methods and techniques. There are various
factors which can directly help in growing and enhancing the business and there are also some
factors which can lead to negative impact on the business. So it is the duty of the organisation to
manage the macro and micro environment in the best possible manner. If it is not done the
business might suffer loss and will also starts loosing its valuable customer's.
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REFERENCES
Books and journals
Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.
Henriksen, K., Stambulova, N. and Roessler, K.K., 2010. Successful talent development in track
and field: considering the role of environment. Scandinavian Journal of Medicine &
Science in Sports. 20. pp.122-132.
Hernaus, T., 2011. Business trends and tendencies in organization design and work design
practice: identifying cause-and-effect relationships.
Hotho, S. and Champion, K., 2011. Small businesses in the new creative industries: innovation as
a people management challenge. Management Decision. 49(1). pp.29-54.
Lyasnikov, N., and et. al., 2014. The national innovation system: the conditions of its making and
factors in its development. Life Science Journal. 11(6). pp.535-538.
Papadopoulos, N. and Martín Martín, O., 2011. International market selection and segmentation:
perspectives and challenges. International Marketing Review. 28(2). pp.132-149.
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