Impact of Micro and Macro Environmental Factors on Modern Business

This report examines the micro and macro environmental factors influencing modern business in the global environment. It begins by analyzing the SWOT (Strengths, Weaknesses, Opportunities, and Threats) and PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) factors that shape the business landscape. The report then delves into the importance of individuals and organizations managing responsibly, sustainably, and ethically, considering social, cultural, economic, and environmental issues. It emphasizes the significance of corporate social responsibility, positive work culture, and the role of businesses in economic development, social welfare, and environmental protection. The conclusion summarizes the positive and negative influences of micro and macro factors, emphasizing the role of ethical and responsible practices. The report is supported by references to relevant academic literature and online resources.

Report

Table of Contents
INTRODUCTION...........................................................................................................................1
Identify and discuss micro and macro environmental factors that changed nature of modern
business in the global environment.............................................................................................1
Important of individuals and organisations towards managing responsibly, sustainably and
behave ethically in relation to social, cultural, economic and environmental issues..................2
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Micro and macro factors analyse the market environment for business. With the help of
these factors individuals and organisations can identify the strength and weakness of its business
(Hamilton and Webster, 2018). This study will be based on report of business environment. This
report will examine the micro and macro environmental factors. It will discuss important of
individuals and organisations towards managing responsibly, sustainably and behave ethical.
Identify and discuss micro and macro environmental factors that changed nature of modern
business in the global environment.
In global environment there are micro and macro factors such as strength, weakness,
opportunity and threats that impact on business.
SWOT:
SWOT analysis describe the micro factors of business. It incudes strength, weakness,
opportunity and threats of weakness.
Strengths: It is internal and positive factor of any business. It describes the excels and
differ from the competition by loyal customers base, a strong brand names, unique technology, a
strong balance sheets. It is capabilities and resources for any business that can be sued in order to
gain competitive advantage. Strength includes cost advantage of proprietary, strong brand name.
For example Vodafone has huge brand mane with strong customers base.
Weaknesses: This factor help company to prevent business by identify the weaknesses. It
can prevent the positive output within projects are weakness. It has factors that like abundance of
rivalry within department, lack of funding, a weak intercommunication system. Weaknesses
derail the business before its start (He, 2018). Other weaknesses that can have in business are
poor reputation, weak brand name, ineffective and high cost structure.
Opportunities: opportunities are helpful in order to achieve business objectives. These
factor have vendors who want to work with company to gain objectives, market condition which
can make the task desirable for segment of markets, the positive perception of the business.
Apart from this additional opportunities are taking business courses, arrival of new technology,
unfulfilled customers demand.
Threats: These are external factors of business that affect the success of business or
business venture. It includes the negative public image, lack of vendors that are no available to
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provide raw material for products, no ready made market for the final product. Some other
factors that affects the business such as new regulation, trend changes, new substitute.
Pestle
Pestle is a macro factors that includes political, economical, social, technological, legal
and environmental factors.
Political: these factors control the extent to that government can influence the certain
industry or economy. For example if government impose the new duty or tax which can change
entire revenue of business (Purba, 2015). Political factors have fiscal policy, tax policy, trades
tariff etc.
Economic: These factors determine the performance of economy that directly impact the
business with long term effects. Foe example hike in the inflation rate of any economy can affect
the price and services of business. With that it can also affect the purchasing power of
consumers.
Social: These factors help business to analyse the social environment of the market. It
includes demographics, population analytics, cultural trends, social lifestyle etc. with help of
these factors business company can understand the customers and market better.
Technological: technological factors incudes innovation that impact on operations of
business favourably and unfavourably. Technological restore refer to research and development,
automation etc. with that it help business to analyse how customers would react to new trends
and technology and aware companies with amount of new technologies that market possesses.
Legal: these factors includes internal and external factors both. Some law and regulation
affect business environment in some countries and some policies impact company in order to
maintain themselves. For example safety standard, consumers law, labour law etc.
Environment: These factors includes all the causes that influenced by the surrounding
environment (Winter and Aier, 2015). It is crucial for business such as farming, tourism,
agriculture etc. for example climate changes can alert the trade of business and the way
consumers would react for certain changes in the market.
Important of individuals and organisations towards managing responsibly, sustainably and
behave ethically in relation to social, cultural, economic and environmental issues.
It is important for individuals and organist ions to be responsible towards society in order
to helping the environment, empowering women, trying to end poverty. For that it is crucial for
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organizations and individuals to corporate in social responsibility with their over all business
strategy. Being a socially responsible organization and individuals can make good image of its
brand. By making company image help them not for being financially profitable but socially
conscious as well (Winter and Aier, 2016). Being a social company creates competitive
immunity, it makes business of individuals or organizations more sustainable in the long time.
With that employees and consumer both demand their company to be socially responsible. It
impacts positively in the market and among customers as well.
For making positive image of organization or individuals it is important to make good
workplace. Positive work culture is an intangible ecosystem that build some places substantial.
Positive work culture creates good image of organizations or individuals in front of society and
in the market. It directly impacts the performance of employees within the organizations or
individuals. Encouraging environment enhance the skills, knowledge, and smartness of
employees. Positive work culture bring the best worker or employees even in unfavorable
circumstances.
Businesses are crucial for economy of any country. It increases the social welfare quite
clear. Organizations and individuals play important role in order to enhance the economy,
improving social welfare, decreasing poverty. Both individuals and organisations are responsible
for generate employment and income for labours, land, the owners of capitals and other
resources (Woitsch and Utz, 2015). With that customers also get the quality of goods and
services. Being responsible towards economy bring revenue to the government.
Making environmentally friendly business help organisations or individuals in order to
reduce the impact on environment and prevent natural resources. Use of natural resources and
recycles materials assist company to reduce resilience. Being responsible towards environment
is not benefits business but also save money of organisation. Reducing, avoiding, recycling and
reusing can lower the cost of individuals or organisations. For example some changes towards
environmentally friendly process can reduce the cost of company such bas reduce paper needs,
avoiding using unnecessary materials.
Being responsible toward social, economic, cultural and environmental issues make
positive image of organisations or individuals in the market. With that it helps to resolve all these
problems.
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CONCLUSION
From the above study it has been concluded that micro and macro factors can influence
the business positively or negatively both. These factors assisted business in order to take
competitive advantages. Being responsible of organisations or individuals for social, economic,
cultural and environmental issues help countries to resolve these problems.
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REFERENCES
Books and Journals
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
He, X., 2018, July. The Impact of Community Evironment on Multi-ethnic Embedded
Community--Taking Shuhan Street Community in Chengdu as an Example. In 3rd
International Conference on Contemporary Education, Social Sciences and Humanities
(ICCESSH 2018). Atlantis Press.
Purba, J.T., 2015. Strategic Innovation through Technology Readiness and Acceptance in
Implementing ICT for Corporate Sustainability. Proceedings. Presented in 12th
International annual symphosium on management, in Makassar March.
Winter, R. and Aier, S., 2015. 25 Design Science Research in Business Innovation. Business
Innovation: Das St. Galler Modell. p.475.
Winter, R. and Aier, S., 2016. Design science research in business innovation. In Business
Innovation: Das St. Galler Modell (pp. 475-498). Springer Gabler, Wiesbaden.
Woitsch, R. and Utz, W., 2015, November. Business Processes as a Service (BPaaS): A model-
based approach to align business with cloud offerings. In eChallenges e-2015
Conference (pp. 1-8). IEEE.
Online
Business Environment. 2019. [ONLINE] Available thought:
<https://www.toppr.com/guides/business-environment/>
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