Business Context Report: Micro & Macro Environmental Factors Analysis

This report provides a detailed analysis of the business context, focusing on both micro and macro environmental factors within the global business environment. The report begins by defining and exploring the micro environment, including customers, competitors, and employees, highlighting their impact on business operations. It then delves into the macro environment, examining political, economic, social, technological, environmental, and legal factors and their influence on business strategies. The report further emphasizes the importance of managing businesses responsibly and sustainably, addressing social, cultural, economic, and environmental issues. It discusses the significance of ethical behavior and sustainability practices, advocating for solutions to mitigate environmental issues and promote economic and social welfare. The report concludes by summarizing the key findings and reinforcing the importance of understanding and adapting to the dynamic business context for long-term success. The report also makes use of illustrations and references various sources to support the analysis.

Context of Business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Micro and macro environmental factors in global environment ................................................1
Importance of manage responsibly and sustainably and behave ethically in terms of social,
cultural, economic and environmental issues .............................................................................4
CONCLUSION ..............................................................................................................................4
REFERENCES ...............................................................................................................................6

INTRODUCTION
Business context is the situations in which differentiated vocabulary is employed. This
can be single company and larger business community and special task. Due to advance
technology, it has become much easier to do business internationally (da Cunha Mattos and
et.al., 2014). This report will identify micro and macro environmental factors in changed nature
of modern business in the global environment. It will discuss reasons of importance of
sustainably and behave ethically in terms of social, cultural, economic and environmental issues.
MAIN BODY
Micro and macro environmental factors in global environment
Micro Environment:
Factors or elements in immediate areas of operations which affect performance and
decision making freedom. These factors involve competitors, consumers, distribution channels,
suppliers and public. Micro environment is operating of the firm.
Customers:
The main objective of company is to satisfy the needs and wants of the consumers. The
purpose of business is to please the consumers and earn the profits in return. The overall purpose
of business is to give the best goods and services to the consumers at the best prices. It is the
most important to listen to consumers and value their feedback in the global business
environment (Micro Environment, 2018). This micro environment factor has highly effected on
operations of business in global environment.
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Competitors:
All organizations have faced large level competition at the global business environment.
Therefore, businesses are continuously check on their competitors in the specific industry. In this
context, organizations must ensure that their products makes different and unique in the market
as compared to their competitors (Cheng, Yang and Sheu, 2014). All the companies have many
competitors which can highly effected on the performance and productivity in the industry.
Employees:
Labour and workers are one of the most essential factors of production of firm. Human
resources are important factor is the success or failure of the company. Therefore, organizations
must ensure that employing the accurate people which is the best suited companies of the vital
importance. In order to that, companies are highly invested in training and development to
improve the performance of employees within the businesses. Employees are keystone of every
organization.
Macro Environment:
Macro environment is the remote atmosphere of the company which is external
environment in which its exists (Yang and et.al., 2014). It is the large and unpredictable to
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Illustration 1: Micro Environment
Source: (Micro Environment. 2018)

control of these macro environment by the companies within the global business environment.
There are different factors such as political, social, economic, environment, legal and
technological within macro environment.
Political Factors:
International trade policy, taxation system, political stability etc. which are involved
within the political factors in global business environment. For example: there is high level of
taxes rate globally, so that it impacts negatively on operations of firm. If the government has
regulated free trade policy internationally, so that it effects positively on businesses.
Economic Factors:
Inflation rate, interest rate, economic structure as well as system etc. which are involved
in economic factors within the global business environment (Landskron and et.al., 2014). If the
inflation rate is increased in the global environment, so that it impact negatively on business. If
the population rate is decreased globally, so that it effects positively on business operations
globally.
Social Factors:
Changes trends, taste and preferences, income level, education etc. that are included in
social factors within the global business environment. If the consumer's income level is high, so
that their purchasing power is large level which impact positively on operations of global
business. If the trends and culture is changed, so that this effect negatively on sales of
international business.
Technological Factors:
Technology is continuously changing which is essential that businesses can keep up with
modifications. It involves goods, manufacturing procedures, techniques etc. The development of
technological can be large benefits for the companies (.Kumar and et.al., 2016). Due to outdated
technological development, some time company faced the threats within global environment.
This impact negatively on the operation of firm.
Environmental Factors:
Environmental regulation, carbon emission, green practices which are included in
environment factor within the international business environment. Therefore, businesses needs to
follow regulations and contributing in the environment issues.
Legal Factors:
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International labour, employment, consumer protection, anti-discrimination laws etc.
which are included in the legal factors within global environment. Therefore, all the firms must
have followed all regulations and laws within business for protecting the labour, employee and
consumers in the business globally.
Importance of manage responsibly and sustainably and behave ethically in terms of social,
cultural, economic and environmental issues
Sustainability is very important aspect which is followed by companies for resolving the
social, economic and environmental issues within the global business environment (Cappers,
2015). Sustainability is defined as meeting wants of present without flexibility the ability of
upcoming generation to meet them.
Social Issues:
Sustainability is the essential to business for solving the social issues. The sustainable
business must support and approval of their workers, stakeholder and people it operates in. The
social license is the poor concept within the pillar of sustainability. This concept is to secure and
maintain as well as treating workers, being good community members in both locally and
globally.
Economic Issues:
If the sustainability is followed by companies, so that it is the more beneficial and
profitable to them. Economic issues involve proper governance, managing risk, compliance
within the global business environment (da Cunha Mattos and et.al., 2014). With sustainability
strategies, inclusion of economic pillar and making profits which is possible by companies.
Environmental Issues:
Environmental issues carbon footprint, waste packaging, utilization of waters etc. In this
context, companies focus and attention on solving the overall issues which are effected on
environment globally. Therefore, companies are also focused on reducing the carbon footprint,
managing the waste globally which is more profitable for business globally (Cheng, Yang and
Sheu, 2014).
CONCLUSION
This report has summarised that micro factors such as competitors, consumers and
employees and macro environment like trade policy, technological development and consumer
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trends within the global business environment. It can be discussed that focus on stakeholder,
environmental issues and proper governance that are resolving by following sustainability
strategies through businesses globally.
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REFERENCES
Books and Journals
Cappers, R. T. J., 2015. Botanical macro-remains of vascular plants of the Heveskesklooster terp
(the Netherlands) as tools to characterize the past environment. Palaeohistoria, pp.107-
167.
Cheng, C. C., Yang, C. L. and Sheu, C., 2014. The link between eco-innovation and business
performance: a Taiwanese industry context. Journal of Cleaner Production, 64, pp.81-90.
da Cunha Mattos, T. and et.al., 2014. A formal representation for context-aware business
processes. Computers in Industry. 65(8). pp.1193-1214.
Kumar, V. and et.al., 2016. The nature of myeloid-derived suppressor cells in the tumor
microenvironment. Trends in immunology. 37(3). pp.208-220.
Landskron, G. and et.al., 2014. Chronic inflammation and cytokines in the tumor
microenvironment. Journal of immunology research, 2014.
Yang, Z. and et.al., 2014. Macro-/micro-environment-sensitive chemosensing and biological
imaging. Chemical Society Reviews. 43(13). pp.4563-4601.
Online
Micro Environment. 2018. [ONLINE]. Available through.:
<https://www.toppr.com/guides/business-environment/introduction-to-business-
environment/micro-environment/>.
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