Impact of Environment and Ethics on Global Business Operations

This essay examines the impact of micro and macro environmental factors on global business operations, emphasizing ethical considerations. It explores how suppliers, resellers, competition, and customers (micro factors), along with demographic, technological, and economic forces (macro factors), shape business strategies. The essay further analyzes the influence of social, cultural, and economic issues on ethical behavior, highlighting the importance of fair market practices, environmental responsibility, and building customer trust. The conclusion underscores the need for businesses and consumers to act ethically in response to environmental, economic, social, and cultural challenges, reflecting the dynamic nature of the global business environment.

Essay

Table of Contents
INTRODUCTION...........................................................................................................................1
EFFECT OF MICRO AND MACRO ENVIROMENTAL FACTORS..........................................1
SOCIAL, CULTURAL AND ECONOMICAL ISSUES IN RELATION WITH ETHICAL
BEHAVIOUR..................................................................................................................................2
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Every organisation is adapting the latest trend namely Globalisation for expanding their
business worldwide. It offers various new customers, business market, and high profitability for
the subsisting goods to expand (Salvatore, 2015). The cost of transportation also gets reduced
because of internationalization which is a key factor for the firm's growth. At present, it is quite
easy for any company to run its business globally due to resource availability and advanced
technology. Also, the ethics in business must not be avoided because it is an important
component for an organisation to flourish in the international market.
EFFECT OF MICRO AND MACRO ENVIROMENTAL FACTORS
Micro factors of environment are the internal forces that has the potential to exert
influence on the functioning of the firm. Below are the micro factors which has changed the
essence of the current business in the worldwide environment -
 Suppliers – This are the individuals who are responsible for the success or failure of an
enterprise. If the supplier provides low grade goods to the firm and it resell the products
to its customers than the reputation of the entity gets effected, that creates a huge damage
to the company . So, the supplier should be chosen carefully by the firm.
 Resellers – The resellers are the main source of distribution named as retailers or
wholesalers. They are the person who supports an organisation by promoting, selling and
distributing products to the end purchaser. The resellers can affect the entity either in
negative or in positive manner as per their practice of corporate social responsibility .
 Competition – As an organisation make its entry for expansion in the global market,it
have to face tough competition as the size of the market will be larger with an increase in
the competitors (Huhtala and et. Al 2014). By the use of latest technologies, the industry
can advance their goods so that loyalty of customers can be gained which helps in
building image of the brand. This helps the company to take a competitive move to
sustain for long term and to produce high profit.
 Customers – Total products manufactured by the organisation, are than used by the
customers. All goods produced by the firm should be made by considering preferences,
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demand and choice of the consumer. The profit of the company rely upon desire and
supply of quality products to their consumer.
Macro forces are those uncontrollable factors which affects the decisions made by the marketers
while formulating marketing strategies. Some of the macro factors are -
 Demographic forces – Age, region, sex, education, occupation etc. are the common
demographical factors which has a strong impact on different segments of market. The
population is divided by these forces into two parts. They are the market segments and
the target market (Tregear, 2015). Global market has numerous consumers of several age
groups with different taste. Factors of demography will make it easier to decide which
market segment will suit to which type of product. Thus, the organisation will be able to
provide right product to suitable person, which will satisfy the need of every consumer.
This results in increase in the profitability of the firm.
 Factors of Technology – Technological factors forms a critical influence in the internal
environment. Technology has designed the future of every business by minimising the
use of labour with maximising the use of modern machines. It emerges new opportunities
for marketers. But, new technology is replaced by the older ones (Blodgett, Hoitash and
Markelevich, 2014). So, the technological environment must be analysed closely before
the production process in order to compete in the market and to gain opportunities.
 Economic force – Unemployment, Demand and supply, inflation etc. are the economical
forces which has a strong influence on trade. Nowadays, every business aims at achieving
success and growth, which can be possible only by analysing the customers need and
process of production of an entity. The services and products provided should be of best
quality and cost effective so that it can satisfy more customer and run an organisation
successfully.
Thus, both the environmental forces plays a powerful role in changing the nature of modern
business environment.
SOCIAL, CULTURAL AND ECONOMICAL ISSUES IN RELATION
WITH ETHICAL BEHAVIOUR
Attitude, expectations, beliefs and culture of individuals living in a society comprises the
social environment. Each individual and association needs to study its socio cultural environment
before manufacturing a product. The produced commodity should satisfy the requirement of the
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society and should be of fair priced so that person of each segment can enhance their purchasing
power. Every business should develop fair market practices (Buckley, 2014). Goods
manufactured should be environment friendly which helps in reduction of pollution, which leads
to a healthy surroundings. Participation in the green house effect should be done to aim at
minimising the waste, which will decrease the initial cost and increase the good will of the
concern.
Trust of the customer is one of the basic issue that most of the organisation faces. It can
be obtained only by the firm's commitment to its the clients of not exercising any unfair issues
like price freezing, accounting fraud etc. This helps in reducing government interference which
also increases the brand image of the company. Ethical behaviour also creates coordination
among the workforce and to retain healthy human bond (Kerr and Perdikis, 2014).
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CONCLUSION
Thus, the micro and macro factors has a strong impact on the global environment which
changed the essence of current business. Because of these reasons, the company and the
customers need to be responsible and act ethical in connection to environment, economic, social
as well as cultural affairs.
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REFERENCES
Books & Journals
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