Global Business Environment Analysis

This report analyzes the micro and macro environmental factors affecting modern businesses in a global context. It discusses the importance of responsible and ethical management practices, emphasizing Corporate Social Responsibility (CSR) as essential for sustainable business operations. The report concludes that understanding these factors is crucial for effective business strategy and operations.

CONTEXT OF
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
Identification of micro and macro environmental factors that changed nature of modern
business in global environment...................................................................................................1
Reasons for individuals and organisations managing responsibly, sustainably and behaving
ethically in relation to social, cultural, economic and environmental issues..............................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Global market includes both micro environment as well as macro environmrnt factors
that can have a major impact on the functioning of the business (Sacks and Melby, 2015). This
report analyse both micro and macro factors that can create a global environment change which
can effect the business operations in the global business environment platform. It also examine
the organisation and individual rationale approach towards behaving reponsibly, socially and
ethically towards these external environment changes.
Identification of micro and macro environmental factors that changed nature of modern business
in global environment
Due to the dynamic nature of the environment organisation have to deal with a number of
changes prevailing in the market (Moore and et. al., 2015). These factors comprises of both types
one which can be controlled by organisatin and another one which cannot be controlled by the
same. In order to survive in the modern economy company needs to develop startegies in rder to
cope with both types of changes. These factors and their impact and be further detailed below:
Micro Environment Factors
The effect of theses factors on the business depends upon the size, capcity and startegies
which these businesses will use in order to reduce the impact of these factors on their
performance. These are the factors which are covered under micro environmental factors of
modern businesses:
Competitors: In the modern economy the level of competiton is getting high day by day
no company can enjoy monoly in the corporate world. In the normal course of business a
company encounters competition that are focussed on increasing their market share by reducing
others.For instance: Amazon faces immense competition from a number of companies in market
such as Alibaba and flipkart (Sacks and Melby, 2015). Such strong brand rivalry forces a
company to adopt strategies that are unique so that they can gain competitive edge over rivals in
the industry.
Customers: Business entities work in the market to earn profit by fulfling customer
demands. Now days companies create strategies that can serve more profitability in terms of sale
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instead of just selling goods for the sake of increasing the sales volume. Modern organisation
such as Airtel, ASDA, Marriott International, Samsung functioning in different market segments
are conducting marketing activities in order to influence and attract large number of audience
(Utami and Lantu, 2014). They are focussing on providing such products and services that are
focussed on maximising customer satisfaction.
Suppliers: For producing goods and services it is important for organistons to obtain raw
material first from the vendors or suppliers. which can either be individuals or even business
houses. They provide resources to companies which are necessary to operate in the market on a
daily basis. Companies search suppliers how have the best mix of delivery, reliability, quality,
low cost, credit and warranties. The development within the supplier's environment can have a
major impact on the functioning of businesses.
Macro Environment Factors
These factors are the external factors which forms a great impact on the modern business
and the macro factors are the political, social, legal and technological factors which are defined
as follows:
Political Factors: The political factors includes the elements that are imposed by the
political condition of a particular nation and theor impact on the business operations. The
business organisations working on a global platform are required to analyse the political scenario
of that particluar nation in which they are planning their business operations (Hacioglu, Dincer
and Celik, 2012). For example, if a business organisation is planing to exapand their business in
Uk it must analyse the Brexit aspect and all other apects in their political environment.
Economical Factors: The economic conditions of a country has a great impact on
affecting the business operations. For example, economic stable countries will provide great
opportunities to business organisations to grow in effective manner in compared with the
unstable economic countries.
Technological factors: These factors impact the modern businesses in the global
environment as these factors are changing rapidly. The use of technological factors in the past
years were very less as compared to today's time as their use has increased with the assistance of
social media, artificial intelligence, etc. these factors helps in maintaining the business operations
in effective manner and helps in producing good quality items for the customers.
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Legal factors: These factors has a great impact on the business organisations as they
consists of rules and regulations which are constructed to execute the business operations in
appropriate manner.
Reasons for individuals and organisations managing responsibly, sustainably and behaving
ethically in relation to social, cultural, economic and environmental issues
The business organisation in todays world withdraw the required resources from the
society for the sole purpose of gaining profitability in the market so they are responsible to act
according to the interest of the public for effective functioning of the business functions in the
business environment. It is the basic responsibility of individuala and organisations to consider
Corporate Social Responsibily (CSR) as these show the actions taken by the organisations for the
betterment of environment and society to imporve their brand image and to attract more and
more customers (Warkentin, Sugumaran and Sainsbury, 2012). Further, by engaging in ethical
and legal conduct, entities ensure least governmental intervention and also make sure that they
are not publically held guilty or penalised for any undesirable undertaking of activities.
CONCLUSION
From the above mentioned report, it is concluded that the global business environment
includes micro and macro factors which has a impact on the business operations and functioning
of the modern business organisations. Also, it has been analysed that it is of prime significance
for individuals and businesses to adopt ethical conduct and act responsibly and sustainably. CSR
activity is mandatory for the business organisations and for individuals as well because the
government interference is more so to handle it with proper measures CSR activities are required
to be fulfilled.
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REFERENCES
Books and Journals
Sacks, D. L. and Melby, P. C., 2015. Animal models for the analysis of immune responses to
leishmaniasis. Current protocols in immunology. 108(1). pp.19-2.
Moore, S. A. and et. al., 2015. Effects of alpha-amylase reaction mechanisms on analysis of
resistant-starch contents. Carbohydrate polymers. 115. pp.465-471.
Sacks, D. L. and Melby, P. C., 2015. Animal models for the analysis of immune responses to
leishmaniasis. Current protocols in immunology. 108(1). pp.19-2.
Utami, R. M. and Lantu, D. C., 2014. Development competitiveness model for small-medium
enterprises among the creative industry in bandung. Procedia-Social and Behavioral
Sciences. 115. pp.305-323.
Hacioglu, U., Dincer, H. and Celik, I. E., 2012. Economic approach to conflict issue: Investment
in post-conflict situation for international business. International Journal of Business
Administration. 3(5). p.1.
Warkentin, M., Sugumaran, V. and Sainsbury, R., 2012. The role of intelligent agents and data
mining in electronic partnership management. Expert Systems with Applications.
39(18). pp.13277-13288
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