Analysis of Business Environment and Ethical Considerations Report

This report provides a comprehensive analysis of the business environment, focusing on the identification and impact of both micro and macro environmental factors. It explores how factors such as customers, employees, political regulations, and technological advancements have chan...Read More

Context Of Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Identification Of Micro And Macro Environmental Factors That Changed The Nature Of
Modern Business In The Global Environment............................................................................3
Reason Behind The Importance Of Managing Responsibilities, Sustainability And Behave
Ethically......................................................................................................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
Business environment refers to the internal and external business environment which is
surrounded by Business. Business environment is an important aspect for any company which is
get affected by the company and also influenced the company too. It can help the company to
earn profits or it can even dump the company too. Company environment can never be same, it is
constantly changing with the passing time (Hamilton and Webster, 2018). Report will highlight
that how micro and macro environmental factors that affects and changes the business
environment. Report will also tell about the need of managing responsibility, sustainability and
ethical behaviour of organization.
MAIN BODY
Identification Of Micro And Macro Environmental Factors That Changed The Nature Of Modern
Business In The Global Environment
Micro Factors are those factors which are included in business and directly influence the
business. These factors can be controlled by business (Six Micro environmental Factors That
Illustration 1: Micro and Macro Factors
Source: The Impact Of Micro and Macro Environment
Factors on Marketing, 2019.

Affect Businesses, 2019). Some micro environmental factors are mentioned below which
changed the nature of business -
11 Customers – It is considered to be most important factors of the company. Without
customers, no company can run. In the past time, producers were used to dominant the
market. Whatever they produced, consumers have to consumed that. But, today
consumers are the one who dominant the market. Any demand for products and services
are created by only customers. Thus, business nature is now friendly and focus on
customers beneficial (Pope and et.al., 2016).11 Employees - Employees are considered to be most crucial asset for the company. In the
past time, Employees were used like machines. Companies just focus on their goals and
used employees as a way to achieve that goals. Thus, business nature was not good. But,
today Company focus on employees, their needs, their engagement and their participation
in business because now company thinks that if employees are not satisfied, happy and
motivated this will lead company to become failure. Thus, company tries to maintaining
good and friendly relationship with employees. This lead to business nature to become
friendly (Hillary, 2017).
Macro Factors are those factors which exist outside the business and directly influence
the business. These factors can not be controlled by business. Some macro environmental factors
are given below which changed the business nature -
11 Political Environmental Factor – In the past time, there was no government regulatory for
companies and business. This lead businessmen or entrepreneurs to run business with
wrong motive like earn more profits by providing low quality goods or services. Because
of this, economic conditions went wrong. But now government made so many rules,
regulations and laws regarding companies, employees, goods and services. This all lead
company to run smoothly and in legal ways. This make business nature proper and legal.11 Technological Environmental Factors – In the past time, Business process was so long
and tight. Even customers used to wait for their chance. Delivery of goods and services
was also slow. The gap between demand and supply was also huge because of slow
process of logistic system. But now, because of technological changes, everything is
change in a blink. Every business and company are using internet to attract customers.
They are using internet in making process fast and flexible. Not only this, company can

identify the demand of products by using unique technology and they do supply their
products at that place, where demand is high. This all lead business nature to become
better, advance and profitable (Reinhardt and et.al., 2017).
Reason Behind The Importance Of Managing Responsibilities, Sustainability And Behave
Ethically
It is important for the individuals and the organization to manage their responsibilities
and behave ethically. Because it helps the organization to retains good employees, enhances the
company's image, builds strong customer base, avoids legal issues, improves public relations and
maintains positive work environment in the organization. Also, it makes society better. If they do
not manage their responsibilities and behave ethically. This will lead to give rise to various
issues. The issues are as follows - Social and Cultural Issues, Environmental Issues and
Economic Issues etc.
Unethical behaviour and lack of corporate social responsibility will harm the business
goodwill and make it less appealing to stakeholders. They will stop using this company's
products and services. Profits will go down. Company will dissolve. It will affect the GDP and
growth of economy. Also, at international level, company as well as nation's reputation will harm
(Unit, 2015). Like this, Unethical behaviour and lack of corporate social responsibility can raise
economic issues. Thus, it is necessary for the company to behave ethical and follow CRM.
If company and its individual is using natural resources and doing their activities by
harming environment like cutting trees continuously, throwing wastage in water, harming
historical places, and increasing pollutions. This will lead to change in climate of nation and give
rise to natural disasters, which impact the population, nature and economy of nation.
Stakeholders will demand for closing the business. Thus, it is necessary for business to
sustainable of resources, manage their CRM and behave ethically (The Advantages of Ethical
Behaviour in Business, 2019).
Company should respect the social-culture values of individuals because it teaches
individuals to give priority to organizational goals above their personal objectives. Cultures are
the one factors that teaches individuals how to behave. If company do disrespect social-culture
value and doing ethical behaviours. This will lead cultural believer individuals to go to against
the business. Thus, it is necessary for company to do sustainable of resources, manage their
CRM and behave ethically (Hopkins, 2017).

CONCLUSION
From the above study, it has been summarized that Business environment is important for
business and it shapes up business nature. Study of business environment gives 2 environmental
factors. One is Micro factors which can be control so company can take measurable steps to
reduce the negative impact of micro factors. While, another factor is Macro factors which can
not control by business. Thus, business need to keep an eye on these factors and take measurable
impact to reduce the negative impact of macro factors. Business ethics, sustainable of resources
and management of corporate responsibilities is required to follow by business and individuals
so that company can sustain in long time.

REFERENCES
Books and Journals
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Hopkins, M., 2017. CSR and international development. In CSR and Sustainability. (pp. 88-108).
Routledge.
Pope, B.D., and et.al., 2016. Microenvironmental control of adipocyte fate and function. Trends
in cell biology. 26(10). pp.745-755.
Reinhardt, R., and et.al., 2017, June. Macro environmental analysis of the electric vehicle battery
second use market. In 2017 14th International Conference on the European Energy
Market (EEM). (pp. 1-6). IEEE.
Unit, B., 2015. Corporate social responsibility.
Online
Six Micro environmental Factors That Affect Businesses.2019. [ONLINE]. Available through:
<https://smallbusiness.chron.com/six-microenvironmental-factors-affect-businesses-
78023.html>
The Advantages of Ethical Behaviour in Business. 2019. [ONLINE]. Available through:
<https://smallbusiness.chron.com/advantages-ethical-behavior-business-21067.html>