A Report on Micro and Macro Factors Influencing Business Operations

This report provides a comprehensive overview of the micro and macro environmental factors that significantly impact business operations. It delves into micro factors such as competitors, suppliers, and customers, highlighting their influence on a company's ability to thrive. The report further explores macro factors, including political, social, environmental, and technological aspects, emphasizing their role in shaping the business landscape. It also emphasizes the importance of ethical and sustainable practices in managing business operations, addressing social, cultural, economic, and environmental issues. The report underscores the need for organizations to adopt responsible management strategies to ensure long-term sustainability and profitability in a dynamic global environment. The report provides a detailed analysis of how companies can navigate these complexities to achieve success.

Context In Business

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Lo 1 Macro and micro environmental factors.............................................................................1
LO2 Identify the need for individuals and organisations to manage responsibly and sustainably
and behave ethically in relation to social, cultural, economic and environmental issues............2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
In present business scenario, global business environment is defined as the internal and
external condition in which business firm operate their operations at global level (Bell, Bryman
and Harley, 2018). In business environment there are also some macro and micro factors that
impact the effectiveness of business operation in negative and positive manner. Political, social,
economic, environmental, competitors and suppliers etc. are forces that impact the business of
enterprises.
In this report, all micro and macro drivers are discussed which are essential by an
individual and companies in order to operate business in meaningful manner.
MAIN BODY
Lo 1 Macro and micro environmental factors
In present era, it has been observed that large number of factors affect the business
operation of company at global and local level. Some of the micro forces involve supplier,
consumers, suppliers etc. and other macro factors are political, environmental, legal and social
factors that have influences the proficiency and profitability of company. There are described
underneath:
Micro factors:
Competitor: In general, it is defined as the contest or rivalry among two or more business firm,
individual or social groups etc. In economic, a competition is referred to be a circumstance in
which various business or economic entities seeks to obtain of an imperfect good by changing
the fundamentals of the marketing mix: product, price, place and promotion. In the dynamic
nature of business it is very important for an organisation to look into each aspect of the nature of
competitor business so that sustainability can be maintained at global level. For example, Tesco
wants to enter in the market of India then it is very important for them to consider the operation
of other companies within same industry that help them to survive well in market (Lankoski,
2016).
Supplier: In business term, a party that used to supply variety or specific goods and
services to companies. There are large numbers of supplier that help an organisation to fulfil the
requirement of raw material so that desired product can be produced as per the demands of
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customer. With the changing nature of business supplier have played crucial roles in order to
increase the profit of firm also run and manage operation at global level.
Customer: They are considering being the backbone for an enterprise that helps to
increase sales and build a strong brand value. Customer demands are not constant and keeps on
changing thus companies have to make proper analyse of their demands in order to produce
goods and satisfy them. For example, Tesco operate business at global level so it is important for
them to produce the goods that will satisfy their customer. This assist company to survive well in
dynamic environment of business at maintain good profit at global level.
Macro Factors:
Political: It is defined as those factors that is related to political forces that are shaped by
elected parties, regulatory that impact the decision making process of an organisation. For
example government policy, stability or instability in politic of nation, foreign trade policy etc. in
case if alternations are made in them it could impact the nature of business firm.
Social: These are human created manner of doing a thing which can impact, pressure or
force is individual to think in different manner such as population level, poverty rate, education
and income status. Businesses operating operation at global level have to consider these factors
have changes in these factors can impact the profit and productivity.
Environmental: These factors include ecological and environmental aspect like weather,
climate changes that may mainly affects the business activity (Maylor, Blackmon and Huemann,
2016). There is a proper need to make sure that these factors must be consider by companies in
order to operate business across nation. For example, Tesco must properly consider this factor in
order to produce product as per the climate of place so that sales can be increased and profit can
be improved in changing environment.
Technological: These factors play a huge part in business as it can impact both positively
and negatively on operation of entity. Nowadays it is very important for companies like Tesco to
produce new product with latest technology to make customer demands fulfil. This help to create
effective goodwill at marketplace and survive for long at global level.
LO2 Identify the need for individuals and organisations to manage responsibly and sustainably
and behave ethically in relation to social, cultural, economic and environmental issues
In present era, there are various issues such as cultural, social and environmental that can impact
the business performance of an organisation. Thus it is very important for management and
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companies to proper look into these issues in order to run business activity in specific manner
and responsible enough to remove the factors that can reduce the future sustainability. It is very
crucial for an individual manager of an organisation to behave ethically within organisation
context so that operation are run and managed in specific manner to increase overall profitability
at global level (Sprout and Sprout, 2015). Industries and large organisation have established a
structure of social responsibility that is personalised to their corporation atmosphere. It is
observed that social responsibility is preserved inside an enterprise that supports employees and
the environment to be held equally in order to manage and run business activity in changing
nature of business at global level. Preserving social responsibility inside an organisation ensures
the integrity of society and the environment are protected.
Maintaining social responsibility includes movements of an entity in a system that reduces social
impacts or damage to the environment. For instance, if there are plans to cut local supplies and
source from cheaper alternatives outside of the community, the socially responsible action might
be to phase in the change, or to assist local suppliers to find alternative markets.
CONCLUSION
From the above report, the conclusion is that an organisation are required to consider each
micro and macro factors in order to grow profitability and survive for long at global level. With
the dynamic nature of business it is very important for an individual and organisation to
responsible and behave ethically so that social, environmental issues can be overcome and
performance can be improved.
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REFERENCES
Books and Journals:
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university press.
Lankoski, L., 2016. Alternative conceptions of sustainability in a business context. Journal of
cleaner production, 139, pp.847-857.
Maylor, H., Blackmon, K. and Huemann, M., 2016. Researching business and management.
Macmillan International Higher Education.
Sprout, H. and Sprout, M., 2015. The context of environmental politics: unfinished business for
America's third century. University Press of Kentucky.
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