Analyzing Micro and Macro Environmental Factors in Global Business
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This essay delves into the micro and macro environmental factors that significantly influence modern businesses operating in the global environment. It examines how these factors, including political, legal, economic, social, and technological elements, reshape business operations, market strategies, and overall organizational structures. The essay highlights the importance of ethical conduct and corporate social responsibility (CSR) in navigating the complexities of global expansion, emphasizing the need for organizations and individuals to manage social, cultural, economic, and environmental issues responsibly. It also discusses the benefits of adopting CSR, such as improved public image, enhanced stakeholder relations, and contribution to sustainable development. The essay concludes by underscoring the crucial role of ethical and responsible business practices in ensuring long-term success and sustainability in the global marketplace.

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Table of Contents
INTRODUCTION...........................................................................................................................1
Main body........................................................................................................................................1
Micro and macro environmental factors that change nature of modern business in the global
environment............................................................................................................................1
Discussion of the importance and need..................................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4
INTRODUCTION...........................................................................................................................1
Main body........................................................................................................................................1
Micro and macro environmental factors that change nature of modern business in the global
environment............................................................................................................................1
Discussion of the importance and need..................................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
In the changing world, the way of businesses carried out is also changing that is because
of technological advancement. All the influences make easier for the organisation to operate
globally. The aim of the study is to identify micro and macro environment that influence the
business in global environment and will discuss the importance of behaving ethically by
individuals and organisation in relation to various issues
Main body
Micro and macro environmental factors that change nature of modern business in the global
environment
Many organisations are stepping ahead or plan to expand their businesses globally that
allow them to grab a wide population and market (Cipriano, 2018). There are different levels of
environmental influences including internal influences and external influences.
Macro environmental factors are responsible to bring change in the nature of business.
Various countries have different laws and regulations that influences industries the most.
Political and Legal factor in any country is the combination of three branches of the government-
Judiciary, Legislature and executive. It changes the nature of operating, way of doing business as
well as cost structure of the company (Crane and et. al., 2019). For instance; Laws and
regulations of different countries regarding the companies and businesses such as; company acts,
employment laws, etc. decides how modern businesses will operate globally with following all
the legal aspects and political elements. The nature of the modern organisation can affect by the
tax rates, inflation rates at global level. In the global environment, culture, belief, values and
norms of the local customers differ as per the country that change the nature of the organisation.
For example; demand, preference, taste of consumers of different countries can differ that decide
their product demand and change the nature of business in terms of productions and distribution
of the company's product by maintaining consumer's preference and with the aim of their needs
fulfilment. It plays a huge role in the functioning of the company. Change in social environment
at global level directly or indirectly effect the industry. Economic factor of the country involve
the inflation rate, unemployment rate that affect the organisation in global context. In the
planning of global expansion, organisation need to acquire the economic factor of the country
that change the nature of the businesses.
1
In the changing world, the way of businesses carried out is also changing that is because
of technological advancement. All the influences make easier for the organisation to operate
globally. The aim of the study is to identify micro and macro environment that influence the
business in global environment and will discuss the importance of behaving ethically by
individuals and organisation in relation to various issues
Main body
Micro and macro environmental factors that change nature of modern business in the global
environment
Many organisations are stepping ahead or plan to expand their businesses globally that
allow them to grab a wide population and market (Cipriano, 2018). There are different levels of
environmental influences including internal influences and external influences.
Macro environmental factors are responsible to bring change in the nature of business.
Various countries have different laws and regulations that influences industries the most.
Political and Legal factor in any country is the combination of three branches of the government-
Judiciary, Legislature and executive. It changes the nature of operating, way of doing business as
well as cost structure of the company (Crane and et. al., 2019). For instance; Laws and
regulations of different countries regarding the companies and businesses such as; company acts,
employment laws, etc. decides how modern businesses will operate globally with following all
the legal aspects and political elements. The nature of the modern organisation can affect by the
tax rates, inflation rates at global level. In the global environment, culture, belief, values and
norms of the local customers differ as per the country that change the nature of the organisation.
For example; demand, preference, taste of consumers of different countries can differ that decide
their product demand and change the nature of business in terms of productions and distribution
of the company's product by maintaining consumer's preference and with the aim of their needs
fulfilment. It plays a huge role in the functioning of the company. Change in social environment
at global level directly or indirectly effect the industry. Economic factor of the country involve
the inflation rate, unemployment rate that affect the organisation in global context. In the
planning of global expansion, organisation need to acquire the economic factor of the country
that change the nature of the businesses.
1
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Micro environmental factors generally are in relation to the company that can influence
and change the nature of enterprises (Crowther and Seifi, 2018). Micro environmental factors
affect the business regularly and directly. Micro environment is in direct contact with the
organisation and can affect the routine of activities of business straight away. Suppliers are the
one who provide inputs and raw materials to the businesses and are an important part of the
company's day to day operations. Number of supplier are connected to the company at global
level decides the flow of production of the company. If they depend on limited supplier that
affect the flow and nature and if the modern organisation have more number of supplier they
cannot affect with this factor. Customers are responsible for driving the sales of the company and
in global environment consumer's preferences, demands and needs differ that change the way of
organisational functioning (McWilliams, 2015). At global level organisation invests so much in
targeting consumers, enhance the awareness of them and attain their loyalty. Being more
customer oriented helps them in the new era of globalisation. Competition is everywhere and in
every business. The level of competition in the country and the environment can change the
perspective and operating behaviour of the company. Competition sometimes can be a positive
factor company that helps them in Churn demand.
Discussion of the importance and need
Social, cultural, economic and environmental issues are generally faced by every
organisation with motive to expand the business globally and if the organisation operates
internationally (Unit, 2015). Ethical and social responsibilities are vital issues for organisation as
well as for the individuals. Managing responsibly is an integrative approach to sustainability,
ethics and responsibilities that allows individuals in the organisation to deal competently with
such issues at global level. Ethics is a set of rules that defines what is right and what is wrong in
the way of operating.
Corporate Social Responsibilities is the continuing commitment by business to behave
ethically and contribute to the economic development while improving the quality of life the
individuals that work in the industry and society on the large level (Crowther and Seifi, 2018).
Corporate social responsibility is essential for the organisation as well as for the individuals;
Individuals and organisations should adopt CSR as it attracts green and ethical
investment. It is improving the public image of the company (McWilliams, 2015). It helps the
company to resolve social issues for instance; protest against aerosol sprays and allow them to
2
and change the nature of enterprises (Crowther and Seifi, 2018). Micro environmental factors
affect the business regularly and directly. Micro environment is in direct contact with the
organisation and can affect the routine of activities of business straight away. Suppliers are the
one who provide inputs and raw materials to the businesses and are an important part of the
company's day to day operations. Number of supplier are connected to the company at global
level decides the flow of production of the company. If they depend on limited supplier that
affect the flow and nature and if the modern organisation have more number of supplier they
cannot affect with this factor. Customers are responsible for driving the sales of the company and
in global environment consumer's preferences, demands and needs differ that change the way of
organisational functioning (McWilliams, 2015). At global level organisation invests so much in
targeting consumers, enhance the awareness of them and attain their loyalty. Being more
customer oriented helps them in the new era of globalisation. Competition is everywhere and in
every business. The level of competition in the country and the environment can change the
perspective and operating behaviour of the company. Competition sometimes can be a positive
factor company that helps them in Churn demand.
Discussion of the importance and need
Social, cultural, economic and environmental issues are generally faced by every
organisation with motive to expand the business globally and if the organisation operates
internationally (Unit, 2015). Ethical and social responsibilities are vital issues for organisation as
well as for the individuals. Managing responsibly is an integrative approach to sustainability,
ethics and responsibilities that allows individuals in the organisation to deal competently with
such issues at global level. Ethics is a set of rules that defines what is right and what is wrong in
the way of operating.
Corporate Social Responsibilities is the continuing commitment by business to behave
ethically and contribute to the economic development while improving the quality of life the
individuals that work in the industry and society on the large level (Crowther and Seifi, 2018).
Corporate social responsibility is essential for the organisation as well as for the individuals;
Individuals and organisations should adopt CSR as it attracts green and ethical
investment. It is improving the public image of the company (McWilliams, 2015). It helps the
company to resolve social issues for instance; protest against aerosol sprays and allow them to
2
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better management and conservation of strategic assets in the global environment. To solve
social, economic and political problems of the country organisation is required to adopt CSR that
assist to government. Consumers are also attracted to socially responsible companies. CSR
promote gender equality and empower women that is a big problem in the society and ensure
environmental sustainability (Philipov and et. al., 2015).
It includes all the necessary laws, legislation and rules related to employees,
environment, legality, market relation, workforce rights, etc. and proper implementation of the
CSR allow industry to reduce the issues regarding social, environmental, economic (Unit, 2015).
CONCLUSION
From the above study it has been evaluated that external and internal factors are able to
influence the nature of functioning by the businesses. It may have positive effect as well as
negative effect on the operations and profitability of the industry. It also has been concluded that
individuals and organisations should manage social, cultural, economic and environmental issues
ethically, responsibly and sustainably. For overcoming the issues' organisation need to adapt
Corporate social responsibilities that is beneficial for the organisation and for the employees as
well.
3
social, economic and political problems of the country organisation is required to adopt CSR that
assist to government. Consumers are also attracted to socially responsible companies. CSR
promote gender equality and empower women that is a big problem in the society and ensure
environmental sustainability (Philipov and et. al., 2015).
It includes all the necessary laws, legislation and rules related to employees,
environment, legality, market relation, workforce rights, etc. and proper implementation of the
CSR allow industry to reduce the issues regarding social, environmental, economic (Unit, 2015).
CONCLUSION
From the above study it has been evaluated that external and internal factors are able to
influence the nature of functioning by the businesses. It may have positive effect as well as
negative effect on the operations and profitability of the industry. It also has been concluded that
individuals and organisations should manage social, cultural, economic and environmental issues
ethically, responsibly and sustainably. For overcoming the issues' organisation need to adapt
Corporate social responsibilities that is beneficial for the organisation and for the employees as
well.
3

REFERENCES
Books and Journals
Cipriano, N. A. A., 2018. The effects of internal and external factors in manufacturing industry
towards operational risk.. pdf.
Crane, A. and et. al., 2019. Corporate social responsibility: Readings and cases in a global
context. Routledge.
Crowther, D. and Seifi, S. eds., 2018. Redefining Corporate Social Responsibility. Emerald
Group Publishing.
McWilliams, A., 2015. Corporate social responsibility. Wiley encyclopedia of management.
pp.1-4.
Philipov, D. and et. al., 2015. Reproductive decision-making in a macro-micro perspective.
Dordrecht: Springer Netherlands.
Unit, B., 2015. Corporate social responsibility.
4
Books and Journals
Cipriano, N. A. A., 2018. The effects of internal and external factors in manufacturing industry
towards operational risk.. pdf.
Crane, A. and et. al., 2019. Corporate social responsibility: Readings and cases in a global
context. Routledge.
Crowther, D. and Seifi, S. eds., 2018. Redefining Corporate Social Responsibility. Emerald
Group Publishing.
McWilliams, A., 2015. Corporate social responsibility. Wiley encyclopedia of management.
pp.1-4.
Philipov, D. and et. al., 2015. Reproductive decision-making in a macro-micro perspective.
Dordrecht: Springer Netherlands.
Unit, B., 2015. Corporate social responsibility.
4
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