Context of Business

Global business environment can be defined as the set of micro as well as macro environmental factors which tends to have a crucial impact upon the functioning of companies operating within international market scenario. With the evolution of time, there have been constant changes that have been taking place within the conduct of business operations in global marketplace (Charfeddine, 2016). Thus, it becomes imperative for business entities to gain an insight into the environment and take strategic measures which can provide them a competitive advantage over rival firms. The following essay covers microenvironmental and macroenvironmental factors together with the influence upon the course of modern businesses. Also, it explores the reasons owing to which individuals as well as organisations behave ethically and socially.

Micro and macro environmental factors that changed nature of modern business in global environment

Business environment is a combination of various elements which are either associated with the internal or external environment of company. In this regard, it has been witnessed that changes take place within corporate world at a rapid pace and this persuades businesses to undertake measures which are aligned with the latest practices prevailing in marketplace. It is often noticed that changes within business environment generally are determined to be technological, economical, social and various other relevant trends. Owing to the high competition prevailing between companies operating within global market, it is essential for every organisation to conduct constant research upon the market, industry, customer behaviour etc. In order to design and develop such strategies which can render them a strategic edge over rivals in marketplace. In this context, managers as well as leaders of organisation, irrespective of its size and scale, keep on gaining knowledge of the macro and micro business environment so as to ensure their sustainability in modern corporate scenario for a long duration of time (Vasilcovschi and Georgescu, 2012). The factors of business environment which are under the control of leadership and management of conpany are referred to as the micro elements while the uncontrollable aspects are generally regarded as macro environmental aspects.

Micro-environmental aspects are those elements which possess a direct relationship with the operations as well as functioning of an organisation. These generally includes factors such as suppliers, competitors, customers, regulatory bodies, intermediaries etc. In this relation, customers are the most crucial micro environmental element for an entity as they are the ones for whom an organisation devises a strategy or tactic. Customers are regarded as God for entities and modern businesses operating within global environment are keen on adopting a customer centric approach so as to ensure that consumers remain satisfied with the products and services delivered by company. In this manner, modern business organisations like General Motors, ASDA, ALDI, LIDL strive to adopt such measures which possess the capability to retain a large base of customers and instill a sense of loyalty amidst them. Competitors are ascertained to be yet another significant element of micro environment which largely impacts upon the working of modern businesses (Hacioglu, Dincer and Celik, 2012). In today's era, every business organisation is keen on adopting such strategies which are ahead of the strategies and tactics being utilised by rival business firms. For this, it is necessary that global companies conduct a competitor analysis at regular intervals and gain knowledge of their values, strategies, mechanisms, frameworks etc.

Macro environmental factors refers to those external forces which are beyond the control and governance of modern businesses working in global environment. This constitute aspects like economical, social, legal, political, technological etc. In this relation, technological factors have a major impact upon the operations of modern businesses as these tend to persuade organisations to adopt the latest tools, techniques and technologies prevailing within global market place. The major emphasis is upon utilisation of advanced equipments and tools so as to gain a strategic edge over rivals and ensure a high stake within market (Burayidi, 2013). Economic factors such as inflation, interest rates, taxation policies also tend to have a great influence upon the functions of modern organisations such as Marks & Spencer, Tesco, ASDA as their course of action strive to differ as per the situations and scenarios prevailing in business environment.

Why is it important for individuals and organisations to manage responsibly, sustainably and ethically in relation to social, cultural, economic and environmental issues.

It is essentially significant for individuals and companies to behave in an ethical manner so as to make sure that their conduct is aligned with the Corporate Social Responsibility initiatives of enterprise. Every business that operates as a part of this society has an obligation towards community as they tend to procure resources from the society (Anıl, and Ficici, 2017). Thus, it is of utmost importance that business entities as well as individuals working within these organisations behave in an ethical and responsible manner and make sure that they do not indulge in any such activities which tend to hamper the goodwill and position of organisation in global market place. In this regard, company can indulge in social initiatives such as free education to poor people, free food to needy, shelter for homeless personnel etc. In this way, entity makes sure that their code of conduct and practice is as per the ethical and social requirements.

References

• 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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