Essay on Micro and Macro Environmental Factors: Virgin Group Analysis

This essay provides a comprehensive analysis of the micro and macro environmental factors affecting the Virgin Group, a UK-based multinational corporation. The essay begins by examining micro factors such as customers, competitors, employees, suppliers, and shareholders, highlighting their impact on the organization's performance and ethical considerations. It then delves into macro environmental factors, including political, economic, social, technological, environmental, and legal aspects, discussing their influence on Virgin Group's business operations and CSR activities. The essay emphasizes the importance of understanding both individual and organizational needs to behave ethically, considering social, cultural, economic, and environmental factors. The analysis underscores the significance of ethical business strategies, market research, and global trade policies. Finally, the essay concludes by summarizing the critical role of these environmental factors in shaping the sales, ethical implementation of CSR measures, and overall efficiency of the Virgin Group.

INDIVIDUAL ESSAY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Micro factors...............................................................................................................................1
Macro environmental factors......................................................................................................1
Understanding the individual and organisational needs to behave ethically..............................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Execution of the business operations and maintaining performance is a major see through
that is required to look after effectively by an enterprise. Maintaining ethics and the CSR
operations by the organisation will impact the sales and overall profitability of an enterprise.
Sustaining the CSR and ethical performance of an enterprise. The proposed report is presented in
regard to UK based MNC enterprise, Virgin Group. The report will cover the details of micro
and macro environmental factors with the needs to be met by individuals and organisations to
have an ethical behaviour relayed to social, cultural, economic and environmental factors within
organisation.
MAIN BODY
Micro and macro environmental factors of modern organisation in global era
Micro environmental factors
Customers: With the changing in the global scenario’s buyers are becoming aware about
innovation and advancement in products and services. This has become crucial point of concern
for the organisation to manage improvement in services with regard to quality and manufacturing
of products and services.
Competitors: The competitors are the major elements that will impact the performance
of an organisation. The MNC Like Virgin Group is required to monitor competitors’ market and
CSR approaches and make in their strategies accordingly (Song and et.al., 2018). they will look
after the proper planning of the operations and carrying out of its CSR operations by maintaing
the corporate culture and innovation by the organisation.
Employees: In the modern times, enterprises are required to keep a check on their human
resource that will help the organisation to carry out the suitable rise in the productivity of the
selected organisation. Maintaining the employee satisfaction level, developing a trust towards the
MNC and providing them effective recognition is very important for the firm. It helps in
improving the brand equity and helps in carrying of the consumer supportive approaches
effectively.
Suppliers: A good relation with suppliers is required to be maintained in order to ensure
the hassle free and effective operations carried out by the firm. It also supports in proper rise in
the efficiency of the organisation to perform their business operations. This helps in developing a
trust level within the organisation and hence will help in carrying out of modern business
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operations to meet employee expectations. Besides this, it will also help in maintaining the ethics
and business principles.
Shareholders: The shareholders of Virgin group will look after the proper investment
and their returns that will help in proper planning of the operations that will help in proper
assessment of the business operations in an effective way (Zeng and et.al., 2017). the basic
initiatives of CSR are carried out by the organisation that includes social promotion, corporate
social marketing, voluntary and philanthropic activities that will help in carrying out their
business operations and gain a competitive advantage of applying CSR policies.
Macro environmental factors
Political: The political difference all around the globe like constant elections, Brexit, etc will
impact the business operations in the future scenario. An organisation is required to look after its
business operations that will help in planning of CSR activities by the MNC on a global
environmental level in various countries. This includes the following of the business principles
and regulations of different countries on business. In order to execute its business effectively all
around the world, the organisation is required to see through sustainability of political
environment and polices for economic development.
Economic: Inflation rates, recession and decrease in the valuation of many currencies is a major
factor that impact the carrying out of the operations and business activities on a wider scale. This
will help in leading the rise in overall functionality of the organisation in a market (Doming and
et.al. 2015). The variation in spending power of people around the globe is a major factor that is
required to be looked after by the organisation. Other than this the difference of living standard
around the world may lead to rise in demand and profitability of the company. Also, the change
in interest and wage rates and difference in GDP growth of the company will lead to deciding the
busienss policies of an organisation accordingly.
Social: The cultural and demographical factors as well as the social economic measures which
are been carried out by the firm will influence the sales and other business operations of the
organisation. This factor is essential for an enterprise to carry out the CSR operations. Virgin
Group us required to leek after the proper planning of their global operations in accordance to
cultural and religious practices of the countries around the globe. These ideologies will impact
the consumer's perception towards a brand, the time and resources utilized by an enterprise and
maintaining the well being measures of the organisation on global level.
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Technological: Maintaining of the data security and unavailability of the proper data
management tools is severe threat to the ethical functioning of the organisation. This will help in
carrying out the operations and thus will lead to rise in meeting the operations which will help in
handling of business operations and other factors. Implementation of the innovation and
technological advancement will help in carrying out the proper innovations for meeting
significant demand of their customers and organisation.
Environmental: The focus on sustainability and environmental concerns are rising day by day.
In such case, organisation can opt of the usage of organic products and cutting down its carbon
footprints and to mitigate global warming.
Legal: The trade union policies of different countries and employment laws are required to be
followed out that will help in carrying out the operations in an effective way. This will help in
setting up of the legal guidelines which will help in managing ethical working in global
environment like compliance with employment legislation, Data protection Act, etc.
Understanding the individual and organisational needs to behave ethically
In order to ensure the proper and effective ethical functioning of the operations at the
workplace this will help in carrying out of the operations and setting the ethical business
strategies and policies that will help in meeting the ethical, social and functional needs of the
organisation. The adaptability towards different social and cultural aspects that can influence the
performance of the firm will be followed that will lead to executing the business operations
(Vilnai-Yavetz and Gilboa, 2016). The identification of factors like improvement in purchasing
power of organisation, implementation of business innovation that will influence the operations
of the organisation. This will also influence the overall functionality of the individual and
organisation by impacting on their business strategies and carry out their operations, influencing
the social and cultural operations of the organisation.
Besides this, effective market research and following of global trade policies can be carried
out in order to ensure the suitable planning of their operations and meeting their operational
needs of the organisation. It also helps in handling of the economic issue. Besides this, use of the
organic and environment friendly products and raw material for the production of different
products and goods, cutting down the carbon footprint and increasing the usage of renewable
energy sources are few factors that will help in proper planning of the operations that will help in
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ensuring the ethical planning of the components within the enterprise (Zhu and Zolkiewski,
2015).
All these measures and polices will help in gaining the growth that supports in suitable
planning of the operations and hence, supports in carrying out the growth measures and ensuring
the suitable rise in ethical behaviour of the organisation and individual.
CONCLUSION
On the basis of the assessment this can be said that the proper of the micro and macro
environmental factors will influence the sales and overall ethical implementation of the CSR
measures within organisation that will lead to carrying out of the business operations with greater
efficiency. All these factors and elements help firm in carrying out the business and corporate
operations that supports in carrying out of operations which will help in suitable planning of
CSR measures and assists in carrying out the business operations.
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REFERENCES
Books and Journals
Domingo, L and et.al. 2015. The importance of understanding the business context when
planning eco-design activities. Journal of Industrial and Production Engineering. 32(1).
pp.3-11.
Song, R. and et.al., 2018, January. Towards improving context interpretation in the IoT
paradigm: a solution to integrate context information in process models. In Proceedings
of the 2018 2nd International Conference on Management Engineering, Software
Engineering and Service Sciences (pp. 223-228). ACM.
Vilnai-Yavetz, I. and Gilboa, S., 2016. Relating Hedonism and Business Context to Customer
Appearance. Services Marketing Quarterly. 37(3). pp.141-155.
Zeng, J and et.al., 2017. The impact of organizational context on hard and soft quality
management and innovation performance. International Journal of Production
Economics. 185. pp.240-251.
Zhu, X. and Zolkiewski, J., 2015. Exploring service failure in a business-to-business
context. Journal of Services Marketing. 29(5). pp.367-379.
Online
Corporate Social Responsibility. 2019. [Online]. Available through:
<https://ethicsunwrapped.utexas.edu/glossary/corporate-social-responsibility>
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