Essay: The Impact of Micro and Macro Environments on Global Business

This essay delves into the micro and macro environmental factors that significantly influence modern global business operations. It begins by defining microenvironmental elements, such as competitors, suppliers, customers, and employees, and emphasizes their direct impact on organizational productivity and quality. The essay then transitions to macro environmental factors, utilizing the PESTLE model to analyze political, economic, social, technological, legal, and environmental aspects. It highlights how these external factors affect global businesses, using examples like Brexit's impact on Tesco and the importance of technology for HSBC. Furthermore, the essay explores the significance of corporate social responsibility (CSR) for both individuals and organizations, emphasizing ethical behavior and sustainable practices. It concludes by summarizing the challenges global businesses face due to internal and external factors and stresses the importance of ethical practices and environmental protection. The essay cites various academic sources to support its findings.

INDIVIDUAL ESSAY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Micro and macro environmental factors that changed nature of modern business in global
environment............................................................................................................................1
Reasons for individuals and organisations to manage responsibly, sustainably and behave
ethically..................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The study will be based on the assessment of micro and macro environment which can be
directly linked with its success. The report will be based on the operations of different
geographical area that can be directly linked with the factors. It will also describe the importance
of organizations and individuals in securing environmental, social, economic and cultural issues.
Micro and macro environmental factors that changed nature of modern business in global
environment
Micro environmental factors are the internal factors that affect the productivity and
quality of organizations' operations and employees. These factors can be assessed directly by the
application of certain specified models and approaches. Micro environment and related factors
need to be priorly determined to increase the sustainability of businesses. Large organizations
running at global level perform all strategic functions to evaluate its micro and macro
environment to receive high quality of working procedures.
 Competitors
Companies need to focus upon the nature of its competitors and their strengths to achieve high
level of sustainability in competitive market. Global businesses like Amazon, inhibits number of
competitors and it is continuously assessing its competitors which provide it strategic path way
to increase customers' loyalty. The competitors strategies will help in providing suitable idea
about the strategies and make significant changes accordingly (Hamilton and Webster, 2018)
 Suppliers
Suppliers are the back bone for organizations' operational activities and there must be a proper
assessment related to the selection of its suppliers. Companies or organizations with effective
chain of suppliers and distributors to attain significant profit margins and real time services to
customers. For example, suppliers will provide high quality raw material for the product
developmnet (Salvioni and Gennari, 2017)
 Customers
Customers are the principle factors that affect any global business in terms of its profit margins
and market reputation. Companies continuously offer variant provisions to increase customers'
satisfaction and loyalty. (Souto, 2015).
 Employees
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Employees are the asset of organizations and need to be strategically selected, promoted and
retained for receiving a pool of efficient people in organization. Global businesses are highly
dependent upon the effectiveness of its employees and workforce. Hence, organizations' success
highly depends on the selection, efficiency of employees (Apenko, 2017).
Apart from this, macro environmental factors that are the external elements may be
assessed by application of PESTLE model. It includes the analysis of all the external elements
affecting business environment.
Political factors
These factors are directly related with the alterations made by the government in existing
framework of any organization. For large global finance company like Tesco, there are number
of political factors that will affect its regular functioning (Hamilton and Webster, 2018). For
example an political factor like Brexit can cause the alterations in performance of the
organisation.
Economic factors
These factors highly influence the nature and growth of global businesses. Organizations
run at global level need to be highly attentive regarding the economy of different partner
countries (Salvatore, 2015). For example, international banks like HSBC need to consider the
economy of different countries and accordingly plan to design its policies and functions.
Social factors
These factors are highly affecting the business activities and functions at global level.
Organizations need to identify the needs of society, their lifestyles, demands and other elements
related to personal interests. For example, any global retail company like H&M manufacture its
range of products with an inclusion of study based on its target customers, their demands and
current trends. (Bell, Bryman and Harley, 2018)
Technological factors
Companies need to align their functions with developing technologies, there are number
of inventions which are being introduced to facilitate global business functions. Therefore,
organizations need to ensure that they have the most effective set of technological framework
and resources for performing efficient functions (Salvatore, 2015). Poor technological
framework within any organization highly affect its routine operations. For example, HSBC bank
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need to have highly uninterrupted and upgraded technologies to conduct all its statutory
transactions and assessments.
Legal factors
These factors include the provision for all the statutory policies that need to be adopted
by organizations to maintain its global business functions. These factors affect all type of
businesses either small or large. Organizations running at global level need to meet with all the
legal frameworks, employment laws, business related laws to conduct all its functions in an
uninterrupted way. (vom Brocke, Zelt and Schmiedel, 2016)
Environmental factors
These factors are commonly related with the basic elements of nature that may affect
global businesses. Unfavourable climatic conditions, lack of environmental resources may
disrupt the business activities of global companies (Chepkwei, 2019). Environmental factors
need to be secured and assessed by organization to establish high level of responsiveness towards
locality and also to develop prior settlement to manage environmental disruptions.
Reasons for individuals and organisations to manage responsibly, sustainably and behave
ethically
Global businesses and its employees are equally responsible to follow set of corporate
social responsibility to promote the standards of work ethics and values followed by it. Global
companies need to design strategic policies to control any social, cultural, economic and
environmental issues. Large organizations like Tesco, HSBC, Amazon all have maintained high
set of ethics at its workplaces by developing a systematic plan for its CSR activities.
Organization and individuals have become an elementary part for developing and promoting
country's culture. All organizations running at global level are serving local communities by
highly participating into charity programs. It is important for organizations to promote such
moral values and ethics.
Global businesses with an appropriate CSR framework promotes and motivate other local
and global businesses to consider elementary components of organizations. It mnay help to
develop local community interest to safeguard culture, promote healthy social engagement other
environmental considerations as well (Salvioni and Gennari, 2017). Organizations must develop
and circulate its set of workplace ethics to increase the value of implementing or performing
operations with integrity and honesty and trustworthiness.
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CONCLUSION
The report has summarized that global businesses are being facing a lot of issues in
competitive market due to external as well as internal factors. It has justified the fact that, large
organizations are highly dependent on its suppliers and channel of distributors for receiving
competitive framework. The report has also defined the importance of global business in
promotion of workplace ethics, environmental protection and other similar issues. Also, various
ethical, cultural, economic and environmental factors are been carried out within the form that
will help in improving performance of the firm.
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REFERENCES
Apenko, S., 2017. Human resource management of innovative projects in the context of business
strategy. Strategic Management. 22(1). pp.3-6.
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university press.
Chepkwei, A.K., 2019. Corporate Social Responsibility Strategy Implementation: A Global
Overview. International Journal of Business Strategies. 3(1). pp.55-74.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.Doh, J.P., Luthans, F. and Slocum, J., 2016. The world of global business 1965–
2015: Perspectives on the 50th anniversary issue of the Journal of World Business:
Introduction to the special issue.
Mburia, S.M., 2018. The Influence of Corporate Social Responsibility Initiatives on
Organizations’ Corporate Image(Doctoral dissertation, United States International
University-Africa).
Salvatore, D., 2015. Managerial economics in a global economy. OUP Catalogue.
Salvioni, D. and Gennari, F., 2017. CSR, sustainable value creation and shareholder relations.
Salvioni, DM & Gennari, F.(2017). CSR, Sustainable Value Creation and Shareholder
Relations, Symphonya. Emerging Issues in Management (symphonya. unimib. it). 1.
pp.36-49.
Souto, J.E., 2015. Business model innovation and business concept innovation as the context of
incremental innovation and radical innovation. Tourism Management. 51. pp.142-155.
vom Brocke, J., Zelt, S. and Schmiedel, T., 2016. On the role of context in business process
management. International Journal of Information Management. 36(3). pp.486-495.
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