Detailed Analysis of Global Business Factors and their Impact

This essay provides a comprehensive analysis of the global business environment, focusing on the impact of both micro and macro factors. It identifies key elements such as competition, suppliers, customers, political forces, economic conditions, social factors, and technological advancements, illustrating how these elements shape modern business practices. The essay further explores the importance of responsible, sustainable, and ethical management in relation to these factors, emphasizing the need for organizations and individuals to consider economic, environmental, and social aspects. It highlights the significance of ethical behavior, environmental protection, and cultural awareness in achieving long-term business success. The conclusion summarizes the critical role of external factors in influencing business operations and underscores the importance of proactive management to mitigate negative impacts and foster sustainable growth. The essay references relevant academic sources to support its arguments.

Individual Essay

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Identification of macro and micro environmental factors and the way in which both of them
have changes nature of modern business in global environment.................................................1
2. Reasons why it is important for individuals and organisations to manage responsibly,
sustainably and behave ethically in relation to macro factors.....................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Global business environment refers to the environment in which organisations conduct
their operational activities on international level. There are various macro as well as micro
factors that are affecting enterprises positively and negatively (Hill and Hernández-Requejo,
2018). These are political forces, competitors, suppliers, environment, economic conditions etc.
For all the organisations it is very important to manage these factors so that business can be
operated in effective manner. This report covers all the macro and micro elements that are
required to be considered by the individuals and companies for their betterment.
MAIN BODY
1. Identification of macro and micro environmental factors and the way in which both of them
have changes nature of modern business in global environment
There are various types of factors that are affecting businesses modern business in the
global environment. These are micro which includes competitors, suppliers, customers etc. and at
macro these can be segregated in political, economic, social and legal factors. Detailed
discussion of both of them is as follows:
Micro factors are influence the businesses directly and regularly. In current era there are
various elements that are affecting nature of modern business in the global environment.
Competition on the international level has been increased as all the organisations are trying to
expand their business in different geographic locations. It has results in large number of
competitors for business which is forcing companies to change their strategies to execute
business so that they can attain higher level of competitive advantage (Schmidheiny and
Timberlake, 2012). When an enterprise expands its business globally then suppliers also
influence them because as number of global businesses is increasing so the power of them is also
raising with it. They have changes the nature of modern businesses in global environment
because sales of a company depends upon goods that are bought from suppliers. Customers are
also resulting in change in the nature of modern business because preferences of them always
remain changing and organisations are required to modify their products accordingly.
Macro environment includes the general factors that may affect the operational and
executional efficiency of the enterprises. All of them leave indirectly and distantly influence of
the organisations. There are four main factors that are resulting in change in the nature of
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business at global environment. These are political, economic, social and technological.
Companies that are willing to expand their business at global level political forces affect their
business as they have to take all the policies that are imposed by government in to consideration
in order to successfully operate business. Economic conditions also change the nature of
businesses as fluctuation in inflation, deflation, taxation and interest rates may affect demand of
customers as it directly affect purchasing power of them (Kotabe, Helsen and Kotabe, 2018).
Social factors such as taste, preference, needs, education level and income of buyer may
influence the companies to change their nature as changes in processes are required to be made
according to clients. Technological enhancement results in change in the nature of businesses at
global level because international entities have to cope up with the international markets where
technology has been enhanced by the competitors.
2. Reasons why it is important for individuals and organisations to manage responsibly,
sustainably and behave ethically in relation to macro factors
It is very important for individuals and organisations to manage responsibly, sustainably
and behave ethically in relation to some factors in order to operate all the business activities
appropriately. All the factors are as follows:
It is known as the factor through which an organization can arrange capital and funds.
The organizations and individuals should be responsible in terms of economic activities of
company. These activities will help in preserving the funds of company. Apart from that, ethical
way and sustainability of company also impact on the operations. Sustainability is an important
factor for an organization. If an organization is not sustainable and ethical than it cannot survive
in its competitive market. The employees should behave ethically so that the working culture of
organization gets improved and increases the productivity.
The organizations should also be concerned about the environmental issues. These issues
will affect the working of an individual and organizations. The employee and organization
should follow the laws and regulations of environment protection this will help them in running
the functions smoothly. Apart from that, responsibility, sustainability and ethics also gets
improved with the help of this factor. Protecting the environment plays an ethical effort of the
company in terms of sustaining the company (Morrison, 2016).
Social factors are considered as a circumstances, characteristics and aspects which
influence as well as affects the manner the individuals and firm live and behave. The
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organisation should focus on social perception of customers such as taste, thinking ,views etc. In
order to make firm sustainable, responsible and ethical personal aspects of clients are necessary.
Cultural factors are the established beliefs, values, regulations, languages, tradition and
so on. Company should have the knowledge about the culture of all employees like different
religion, customs and many more so that they perform effectively. Also responsible to create
company sustainable, accountable as well as ethical each employees aspects of consumers are
essential.
CONCLUSION
From the above project report it has been concluded that there are various micro and
macro factors that may influence organisations to change their nature. These are competitors,
suppliers, political forces, customers, legal system etc. It is vital for individuals and organisations
to focus on external factors in order to reduce their negative impact on the business.
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REFERENCES
Books and Journals:
Hill, C. W. and Hernández-Requejo, W., 2018. Global business today. New York: McGraw-Hill
Irwin.
Schmidheiny, S. and Timberlake, L., 2012. Changing course: A global business perspective on
development and the environment (Vol. 1). MIT press.
Kotabe, M., Helsen, K. and Kotabe, M., 2018. Global marketing management. New York, NY:
Wiley.
Morrison, J., 2016. The international business environment: global and local marketplaces in a
changing world. Palgrave.
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