Business Environment Analysis: Factors and Ethical Considerations

This report provides a comprehensive analysis of the business environment, focusing on the interplay of macro and micro environmental factors. It delves into how these factors, including economic, political, social, technological, legal, and environmental aspects, shape modern enterprises in a global context. The report highlights the importance of ethical behavior, sustainability, and corporate social responsibility in business operations. It discusses how individuals and organizations must manage their activities responsibly to address cultural, social, economic, and environmental issues. The analysis covers the impact of suppliers, customers, and competitors within the microenvironment and emphasizes the need for businesses to adapt and respond to external pressures. The report concludes by summarizing the key factors affecting business performance and emphasizing the significance of ethical considerations in achieving sustainable success.

Context of business

Table of Contents
INTRODUCTION............................................................................................................................3
MAIN BODY...................................................................................................................................3
Discuss about the macro and micro environmental factor that view, change the nature of
modern enterprise in the global environment..............................................................................3
Discuss the reason why it is important that individuals and organizations to manage the
responsibly, sustainability and behave ethically in relation to the cultural, social, economic and
environmental issues. ..................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES.................................................................................................................................7

INTRODUCTION
Business analyze is a process or method to identify the environment in which enterprise
operates. It is mainly scanning the environmental conditions and focus on the macro and micro
environment of business. It may depend on the individual and organization to handle the business
project effectively and efficiently. This report will discuss about the macro and micro
environmental that can view the change of nature in the world. Furthermore, This assignment
will describe the individuals and companies to manage the entire business related the responsibly,
sustainability and behave ethically in relation to economic, cultural, social and environmental
issues.
MAIN BODY
Discuss about the macro and micro environmental factor that view, change the nature of modern
enterprise in the global environment.
Every enterprise organization is a main part of business environment, within which it
operates in proper manner. There is no entity isolated due to many factors that closely surrounds
the business (Akhtar, 2018). It is also known as enterprise environment. It is broadly classified
into different ways such as micro environment and macro environment. Sometimes, it affects on
the working of particular project in the business and affects the functionality all entities of
business.
Macro environmental Factor-
Macro environment is a major uncontrollable and external factor that influence the
business organization for decision making which affects the performance and strategies. Every
country economy is integrated with the global economy in proper manner (Crane, Matten and
Spence, 2019). There are some internal trade relations, exports, imports and trade agreement
between the countries.
Political Factor-
The business has operates with the specified rules and regulation which requires for
managing or controlling the enterprise aspects. The different political system which affects or
dictated that how business will in proper manner. Trade agreements and treaties between the
different countries which makes the process is simpler but there are different type of barriers such
as tariffs, quotas and excessive duties etc.

Economic factor-
This type of factor is including the nature of economy and directions in which it is
progressive or availability of the resources to control the global marketplace. Organization has no
control over the economic environment due to capitalist economy, demand of supply chain etc.
The government has some control to implement a plans and strategies to handle the appropriate
rules and regulation which help for shape the industrial development of country.
Social Factor-
The Social environment and cultural environment in which an organization operates can
be major factor in terms of failure and success. There are different environmental factors that
dynamically impact on the global business such as cultural influences, belief and values
prevailing, social traditions etc. Social business concern about the society and community such as
corruption, amongest government officials etc.
Technology factor-
Technology usually refers to change the business advancement in terms of manufacturing
and production or good and services. It also improves the best way the product made and services
delivered in proper manner (Chen and et.al., 2018). It brings both threats and opportunities in the
global business which make the product better quality edge cut the competition, down costs and
also increase the production capacity.
Legal Factor-
Legal factor is an essential of business process to achieve the success. It must be needed
for organization to maintain the functionality of legal aspects that help for protect in the both
manufactures and customers. There are different concepts affects the business such as patent law,
royalties law and intellectual property rights. International legislation have great influence on the
enterprise of organizations.
Environmental factor-
It is important factor that impact on the business whereas it doesn't respond to the demand
of external environment by making the strategy and changing. It can be decline the performance
of business process (Huda and et.al., 2019). It is required for organization to aware about the
current environment and long term perspectives of future development.

Micro environmental Factor-
Micro environment mainly consists of different participant in the organizations that effect
the entire performance. It includes competitors, public, Supplier, Marketing intermediaries etc.
This type of factor is directly linked with the organization than the macro factor (Pan, Chen and
Ning, 2018).
Supplier- It is important factor in micro environment of organization to supply the input
such as raw materials and other components of organization. It is reliable source of supply chain
to maintain the inventories causing the price increases. Sometimes, It is risky depend on the
single problem in the production that affect the business (Akram and Jamal, 2018).
Customers- Business organizations exists in market because of customers. Companies is
monitoring the activities of consumer for the business success. It may have various categorize of
customer such as individuals, commercial establishments, institution and government etc. It
depends on the single customer is often risky because sometimes, organization has poor
bargaining position.
Discuss the reason why it is important that individuals and organizations to manage the
responsibly, sustainability and behave ethically in relation to the cultural, social, economic
and environmental issues.
Sustainability, responsibly and ethical behave are important element in terms of macro
environment factor that requires managing and controlling in proper manner. It may causes the
entire functionality of business operations and functions.
Social responsibility help for organization to build a system in ethics and also take a
proper decision and actions towards the validated before the processing. In business organization,
Manager need to understand the moral values that can inherent tin the society between the right
and wrong (Yoruk, 2019). Every individual has responsibility to act in effective way which is
beneficial to the society. Ethics and Social responsibility are applies in both group capacities and
individual. It should be incorporated into the daily basis and particular ones that affects on the
business environment and culture.
Business has developed a system of social responsibility to maintain within organization
than worker and environment are held equal to the organization's economy. Ethical decision and
behavior are important approach that utilizing the decision which help for maintain and control

the legal aspects. Corporate Social responsibility focus on the organization value towards the
community of society.
CONCLUSION
As per discussion, it concluded that Business environment is important concept that
requires for managing and controlling the enterprise operations. Macro and micro environmental
are the concept that can change the business and nature of modern culture, environment
condition, legislation and social aspects. However, it helps for companies and individual to
manage the business activities and determine the performance that impact due to Macro
environment and micro environment factors in the global business. It summarised the factors that
affect the organization such as political, environmental, social, technology, legal, and economic
factors in modern business. Furthermore, It also describes that why ethics and social culture,
economics are important that help for business operations and functions.

REFERENCES
Books and Journals
Akhtar, M., 2018. Strategic performance management system in uncertain business environment:
An empirical study of the Indian oil industry. Business Process Management
Journal. 24(4). pp.923-942.
Pan, X., Chen, X. and Ning, L., 2018. The roles of macro and micro institutions in corporate
social responsibility (CSR) Evidence from listed firms in China. Management
Decision. 56(5). pp.955-971.
Akram, W. and Jamal, F.Q., 2018. AFFECTIVE MODELING OF INFORMATION
TECHNOLOGY (IT) PRACTICES TOWARDS BUSINESS ENVIRONMENT
COMPETITIVENESS IN SMALL AND MEDIUM ENTERPRISES
(SMES). CONTEMPORARY ISSUES IN BUSINESS & ECONOMICS (ICCIBE). p.508.
Yoruk, E., 2019. Entrepreneurial and intrapreneurial growth in Central and Eastern European
ventures driven by the fit between micro and macro level opportunity exploitation.
Chen, X. and et.al., 2018. Business Models for Social Innovation of Municipal Solid Waste
Recycling Companies: Comparison of Two Business Cases in Thailand and
Taiwan. Sustainability.10(4). p.1009.
Crane, A., Matten, D. and Spence, L. eds., 2019. Corporate social responsibility: Readings and
cases in a global context. Routledge.
Huda, M. and et.al., 2019. Towards Cooperative With Competitive Alliance: Insights Into
Performance Value in Social Entrepreneurship. In Creating Business Value and
Competitive Advantage With Social Entrepreneurship (pp. 294-317). IGI Global.