Report on Micro and Macro Environmental Factors in Global Business

This report provides an overview of the micro and macro environmental factors that influence the global business landscape. It delves into micro factors such as customers, suppliers, and competitors, highlighting their direct impact on business operations. The report also examines macro factors, including political, economic, social, technological, legal, and environmental aspects, using the PESTLE analysis framework. Furthermore, the report assesses the importance of individual and organizational responsibility in managing operations, emphasizing sustainability and ethical behavior in relation to social, environmental, and economic considerations. It concludes by summarizing the key findings and reinforcing the significance of these factors for business success and growth.

Context of Business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1. Discussing micro and macro environmental factors in the context of global business
environment................................................................................................................................1
2-Assessing importance of individual and organisation in relation to managing operations
responsibility , sustainability and behave ethically.....................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Business environment include internal factors (employees, manager and owner) and
external factor ( investors , political , technological factor , legal and social factors) that affect
the profits and operations. Present report based on micro and macro factor in context of global
business environment.
1. Discussing micro and macro environmental factors in the context of global business
environment
Micro factors
There are many micro factors which affect the business organisation trading globally in all
way as these are the factors which directly or indirectly affect the business organisation. Some
factors which are micro in nature includes customers, creditors, financial intermediaries,
government, shareholders, competitors, suppliers, owners, investors, etc. their performance
directly affect the global business.
 Customers are the king of the market and the business exist just because of the
customers so it is required by the organisation to satisfy the customers need and wants by
providing them quality products (Bull and et.al., 2016). The taste and preference of the
customer of different countries varies than the business have to keep in mind the taste dan
needs of the customers of all the different counties so that they will able to create brand
value and capture larger share in the market.
 Suppliers provide raw materials, human resource, components, technology etc. which are
required by the organisation for their further manufacturing process. Business depends on
the suppliers as their complete production depends on the supplied materials. If the
business is good at negotiating with the supplier than they will be able to purchase the
raw materials at affordable price and can earn good amount of profit by selling the goods
to different countries at cost plus margin.
 Market intermediaries are the supply chains which includes wholesalers, retailers and
commission agents which help the business to deliver their goods from one place to other
country. These channels help business to complete their performance of providing quality
goods and trading at global level.
 Competitors are the parties who introduce and selling the same kind of product which is
producing by the organisation. To win over the competitor it required to produce
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innovative product or adding some features in existing product so that customers get
attracted to the product and which help business in retaining their customers for long run.
Macro factors
pestle analysis
 Political factors- these are the factors that influence the organisation by the changes in the
government rules and regulations like changes in the tax rate and interest rate and change
in the guidelines of the law by the government.
 Economic factors- these are the factors that relates to the currency exchange rates and
changes in the prices and the inflation rate. It affects the business as increase in the prices
leads to inflation which reduces the purchasing power of the people as low income is
generated (Liefbroer and et.al., 2015).
 Social factors- these factors include the values, beliefs and the evolving lifestyle of the
environment that adversely and positively affects the enterprise in the sense that evolving
lifestyle leads to higher standard of living while hurting the sentiments by using a
controversial name affects the performance of the organisation.
 Technological factors- these are the factors that relates to the technological advancements
and the latest and innovative technology which influences the workers of the company as
they need to get proper training regarding the technology and company will face a huge
loss. It positively affects as company can expand its business by using creatine and
innovative technology.
 Legal factors- the legal factors states the laws and the legislations that the company has to
fulfil and need to work according to those laws and the legislations as given n the act like
safety act and human right act etc. it also affects negatively and positively to the firm's
image as if the enterprise doesn't implement the changes then it has to pay the penalties
and the reputation of the company get affected (Pestle analysis. Global business
environment, 2019). On the other hand if company implement and work as per the laws
then the goodwill of the company enhanced and grow in the market.
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 Environmental factors- these factors includes the climatic conditions and the ecological
balance which affects adversely as the environment is inevitable and the company needs
to check the changes time to time so that it runs with the changing environment and does
not face any uncertainty in the future. Corporations contributes to the environmental
projects so that it will positively impact the image of the business.
2-Assessing importance of individual and organisation in relation to managing operations
responsibility , sustainability and behave ethically
 Social issue – organisation have to consider all the social issues existed in the society in
which the organisation is existing. Organisation must follow all the ethics, policies and
society related policies made by the government as business is a part of the society and
following the social norms is the prior responsibility of any organisation..company
should provide the goods according to the needs and wants of the customers to retain the
customers for long term and marinating their brand value.
 Environmental issue-it is the responsibility of very organisation to formulate the
strategies and policies regarding the protection of the environment. Environment related
policies made by the government are need to be followed by the organisation so to
protect and prevalent environment from pollution caused by the company.
 Economic .various factors related to economy including inters rates, foreign exchange
rate, inflation carte, growth art etc directly and indirectly affect they business
organisation (Pestle analysis. Global business environment, 2019). They must consider
these factors before entering into any trade relation with others.
 Any change in foreign exchange rate leads top direct affection the profit margin and trade
relation of the business which resist the growth of the business.
 Cultural – different countries follows different cultures so enterprise need to focus on the
wide cultures so that it could capture a huge market share with large customer base and
due to that the profits of company increases at a global market. Different type of person
leads to innovative idea and skill so that will increase productivity (Phadermrod, Crowder
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and Wills, 2019). Culture leads to business succession and unique culture help to build
team to fulfil organisation goals and objective and boost employee's morale.
CONCLUSION
Above report summarised that global business environment in which micro factors like
managers, employees and macro factor like political factor , economic factor, social and legal
factor and advance technology affect the business operations. It also included that manage
responsibility , behave ethically is also essential in respect to social , environmental and
economic factor that important for organisation as well as individual that helps to increase profit
and growth of the company.
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REFERENCES
Books and Journals
Bull, J. W and et.al., 2016. Strengths, Weaknesses, Opportunities and Threats: A SWOT analysis
of the ecosystem services framework. Ecosystem services. 17. pp.99-111.
Liefbroer, A. C. and et.al, 2015. Reproductive decision-making in a macro-micro perspective: A
conceptual framework. In Reproductive decision-making in a macro-micro
perspective (pp. 1-15). Springer, Dordrecht.
Phadermrod, B., Crowder, R. M. and Wills, G. B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management. 44. pp.194-203.
Online
Pestle analysis. Global business environment. 2019. [Online]. Available through: <
https://www.izenbridge.com/blog/pestle-analysis-external-business-environment/ >
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