Analysis of Micro and Macro Environmental Factors on Modern Business

This report provides a comprehensive analysis of the micro and macro environmental factors that significantly influence modern business operations within the global landscape. It begins by defining the global environment as the aggregation of factors impacting businesses, differentiating between micro-environmental factors (customers, competitors, suppliers) that can be influenced by the organization and macro-environmental factors (political, economic, social, and technological) that are external. The report then delves into how these factors have altered modern business practices, emphasizing the importance of understanding customer preferences, competitor strategies, and supplier relationships. Furthermore, it examines the impact of political and economic stability on business decisions. The report also highlights the importance of ethical considerations, corporate social responsibility, and sustainable practices for organizations and individuals operating within the global environment, emphasizing the need for ethical conduct and responsible behavior to ensure long-term sustainability. The report concludes by summarizing the critical role of understanding and adapting to these environmental factors for business success.

Context of Business

Table of Contents
INTRODUCTION...........................................................................................................................1
Determine micro and macro environmental factors that altered nature of modern business in
global environment......................................................................................................................1
Reasons for organisations and individuals managing responsibility, sustainability and ethical
behaving in respect to social, cultural, economic and environmental issues..............................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................5

INTRODUCTION
Global environment is defined as aggregation of macro and micro environment factors
which create significant impact on business (Anıl and Ficici, 2017). This report investigate micro
and macro environmental factors which leads to alteration in modern business which is in global
environment. It also contain purpose behind organisations and individuals who are behaving
responsibly, ethically and socially with respect to external environment.
Determine micro and macro environmental factors that altered nature of modern business in
global environment.
In present scenario, which is altering and competiting, modern businesses have relevant
impact of factors which exist within environment. This environment comprises of elements
which are under influence of management of organisation and also it contains elements which
cannot be influenced by authorities and powers of business. Factors which are influenced and
can be controlled are known as micro environmental factors. Whereas others are called macro
environment factors. With respect to global environment, these factors are combined together
which have relevant impact on modern business and result in alterations in activities and
functionalities of an organisation. These factors are elaborated below in terms of how these
factors have altered working of modern business in global environment:
Micro environment factors:
These factors have significant impact on working of modern business in terms of size,
capacity, capabilities and strategies. These elements may or may not be able to control effects of
these micro environmental elements. Certain micro environmental factors which effects modern
businesses are mentioned below:
Customers: Organisations which are present within global market environment are
working hard so that they can acquire adequate profits. They are trying to accomplish
preferences, demands and needs of their people (Burayidi, 2013). Organisations are looking
forward to create strategies by which they can enhance their sales profit instead of selling for
enhancing their volume of sales. Modern organisations like ASOS, ASDA, General Motors,
Samsung, Marriott International and many others are conducting marketing reseacrh so that they
can establish relationship with their customers and influence them to carry out purchase. Entities
are focussing on rendering products and services which will aid them to maximise satisfaction of
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their customers. Customers are the most importnat factor for the development and growth of the
business. As organisations expanded globally it is essential to know the demand of every
customer. Therefore in an era of modern business the marketers have to undergo researches to
evaluate the current needs of the customers.
Competitors: Organisations needs to consider certain things so that they can effectively
work within competitive environment in respect to modern business. In present context, whetehr
it is large or small organisation, they do not enjoy monopoly. In case of ordinary course of
business, an organisation confronts competition from different firms which have high affirmative
brand image within market and possess high stakes in marketplace (Charfeddine, 2016). An
example can be considered in this aspect to further understand: Washing machines of Samsung
faces high competition from organisations like LG, Videocon, etc. Due to this competency
among these organisations they implement different strategies which are unique and provide
them advantage within market with respect to rivalry in same field.It is very important to always
keep a track on the strategies of competitors to sustain in this business environment. As there are
technology changes, competitors use new and innoavtive equipments. So for doing business at
global levle it is important to evaluate the plans of competitors an d be ahead of them always.
Suppliers: Entities which carry out their functioning within modern economy has to buy
services and raw materials from suppliers or vendors. They can be business houses or
individuals. These suppliers provide organisation with necessary resources which are essential
for modern business by which they can carry out their everyday functionalities and operations in
efficient and effectual way (Hacioglu, Dincer and Celik, 2012). At present organisations are
searching for possible suppliers, determine and identify various suppliers which are available
within specific industry. Suppliers who comprises of mix of quality, delivery reliability, low
cost, credit and warranties are selected by organisation. Consistent enhancement in suppliers
environment results in relevant impact on operations and functioning of organisation. The
companies should have a proper mananagement of suppliers of raw material. For every business
it is important to have a good management of suppliers and manufacturers for enhancing the
efficiency and productivity.
Macro environment factors:
These factors creates large impact on functioning and operations of modern businesses as
these factors comprises of external factors like political, economic, social and technological
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factors. These factors are illustrated below with their effect on modern business in global
environment:
Political factors: In this factor political conditions are taken into conditions of a
particular country and ways in which they can impact functionalities of organisation. It is
necessary for global business to identify stability in terms of politics and environment of country
in which organisation is looking forward to provide their services. An example can be taken to
elaborate this: suppose if organisation is looking to work in UK then they need to consider Brexit
as it has brought instability in political environment of nation. An organisation can establish
themselves in countries like Australia or Germany as they are political stable countries and they
have stability in their policies.The organisations will always look for the opportunity of
expanding their business in countries where there are less political influence in the establishment
of the organisation.
Economical factors: This is a factor which affect organisation in terms of economy of
specific country. Organisation must take a look in economic performance of particular country in
which they are willing to operate and how this factor will give favourable conditions to
organisation (Vasilcovschi and Georgescu, 2012). When any country is stable in terms of
economic growth then they will have more opportunities to establish themselves and do
investments in them. But if these countries are not doing economically well then, it will not be
good for organisations to invest there. It is necessary for organisation to identify economical
performance of different countries.
Reasons for organisations and individuals managing responsibility, sustainability and ethical
behaving in respect to social, cultural, economic and environmental issues.
In present scenario, organisation get their resources and raw materials from society. Thus
it is mandatory for employee's and organisation working to consider interest of population. It is
primary duty of organisation and business personal to take into consideration corporate social
responsibility as it depicts initiatives which are taken by organisation for betterment of society
and environment (Warkentin, Sugumaran and Sainsbury, 2012). Furthermore, organisations are
engaged in legal and ethical conduct, they need make sure that there are minimum government
interventions and also it is must to ensure that they are not involved in any kind of illegal
activities, penalised or are guilty for undertaking activities which they should not do.It is the
responsibility of the organisation to have an ethical behaviour followed at workplace. If teh
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comapny follows social factors of that place and implement them in the workplace it is good for
the growth and development of the company. The organisation has to take care of the economic,
environmental and cultural issues to be evaluated before implementing any rule or egulation in
the business context.
CONCLUSION
From above, it can be concluded that global business environment is composed of various
factors which impact functionalities and operations of modern business organisation.
Furthermore, it has been evaluated that it is prime responsibility of organisations and individuals
to have ethical conduct and they need to act responsibly so that they can ensure their sustain-
ability.
REFERENCES
Books & Journals
Anıl, A. R. and Ficici, A., 2017. The Emerging Market Manufacturing Business Groups
(EMBGs) and the Interplay between Innovation in Environmental Sustainability,
Digitalization, Internationalization and Corporate Governance Structures: The Case of
Turkish Holding Companies. Turkish Economic Review. 4(1). pp.55-65.
Burayidi, M. A., 2013. Downtowns: Revitalizing the centers of small urban communities.
Routledge.
Charfeddine, O. B., 2016. Business environment-aware management of service-based business
processes (Doctoral dissertation, Université Paris-Saclay).
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.
Vasilcovschi, N. and Georgescu, S., 2012. TRANSFORMATIONAL LEADERSHIP AND THE
ECONOMIC COMPETITIVENESS IN SHIPPING INDUSTRY TODAY. Analele
Universitatii Maritime Constanta. 13(17).
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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