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Context of Business

University: University of Suffolk

  • Unit No: 7
  • Level: High school
  • Pages: 4 / Words 1064
  • Paper Type: Essay
  • Course Code: N/A
  • Downloads: 69
Question :

This assessment will cover the following questions:

  • Evaluate the dynamic and changing nature of business and the consideration of the future of organisations within the global business environment
  • Discuss the need for individuals and organisations to manage responsibly and sustainably and behave ethically in the context of social, cultural, economic, and environmental issues
  • Explain the development of relevant policies and strategies in a changing environment to meet stakeholder interests
  • Elaborate on the design and development of organisations.
Answer :
Organization Selected : N/A

INTRODUCTION

Global environment is defined as segregation of micro as well as macro environmental factors that creates a major influence on modern businesses. The activities in which products or services are exchanged with money is referred to as business (Anıl and Ficici, 2017). Rationale behind this is to earn profit. This report comprises of macro and micro environmental factors that has created alterations within the ways modern business operate their services in global environment. Along with this, it also contains rationale behind organisations and individuals behaving socially, ethically and responsibly within the external environment.

Main Body

Within rapidly evolving as well as competitive world, modern business is influenced by ample number of factors that prevail in environment where these entities furnish there services. This comprises components which can be controlled by management of firm and also those that might not be controllable as well as are confined to authorities & power of business. The factors which can be controlled are denoted by micro environmental while the one which are uncontrollable are referred to macro environmental factors. Within the global environment, aggregation of these factors creates impact on modern business and might result within alterations in operations and functions that are being carried out by an enterprise. These factors are illustrated here in context of global environment. Micro environment factors affect the working of modern business depending on their capacity, capabilities, strategies and size that may or may not be handled. These comprises of certain factors they are illustrated beneath.

Competitors, within competitive environment, modern business possess certain basic things which firms have to take into consideration while rendering their services. Within the corporate world, organisation faces competition from various firms those have affirmative brand image as well as possess higher stake within marketplace (Burayidi, 2013). For an instance, APPLE faces a high competition from Microsoft, Dell, Lenova and hp. Such kind of brand rivalry persuades modern businesses for adopting to unique as well as creative strategies which will provide them competitive edge among their rivals who render their services in same sector. Customers are the important entities which are present within global market environment who strives for earning profit via accomplishment of preferences, demands and needs of individuals. Firms now formulate the strategies by which they can carry have profitable sales rather than just increasing the volumes of their sales. Modern firms like ASDA, Samsung, General Motors, etc. Carry out tehri marketing activities for building up an effectual contact and create an impact on the ways services are purchased by their probable customers. Entities emphasise on delivery of such services and products which will enable them to gain satisfaction of their customers.

Suppliers are the business entities that functions like a part of modern economy for procurement or services or materials from vendors (Warkentin, Sugumaran and Sainsbury, 2012). They can be either business houses or even individuals which furnish firms with relevant resources which are required by modern businesses for rendering their day to day activities in efficient as well as efficacious manner. Now firms look probable suppliers and analyse them with respect to industry. Along with this, they will choose the one will be delivering enhanced sservices in terms of quality, warranties and cost. The contnious development will lead them to create a relevant influence on operations as well as functions of organisation.

Macro environmental factors have significant impact on companies performance (charfeddine, 2016). Some key elements of macro environment are political, economical, social, technological etc. Herein, below some key factors are mentioned along with its impact on companies performance: Political factor can be defined as a type of factor which consists detailed information regards to political relation of a nation with other countries, government rules & regulations etc. Eventually, it is essential for companies to comply their strategies and functions in accordance of political conditions. For example, this can be beneficial for companies if a nation's political relationship is good with rest of countries. It is so because due to this companies can expand their operations and activities across the nation. On the other hand, in the case when relation of United Kingdom is not better with rest of countries then this can be difficult for companies of UK to access in other countries due to poor political relations. In addition, business entities may face difficulties if they enter in new market of any country.

Economical factor comprises of various kinds of elements are included which are related to market of any country. In this, vital range of rates such as interest rate, exchange rate, inflation-deflation rate etc. are included. Any variation in these rates can affect companies' performance. This is so because if interest gets down then it becomes easier for business entities to acquire funds easily at lower cost as well as they become able to expand their operations (Hacioglu, Dincer and Celik, 2012). On the other side, if interest rate fluctuates and goes higher then companies can not get funds at lower cost. In addition, if exchange rate of a country fluctuates continuously then companies of that nation can not make international trade with ease. It is so because they may face lots of issues such as higher transaction cost of currency of one nation to another.

Reason for which companies should fulfil their responsibility towards society, business entities exist in the environment and get basic services from various sources. Hence, it becomes essential for companies to complete responsibility towards society and general public (Vasilcovschi and Georgescu, 2012). For this purpose business entities should implement corporate social responsibility model. According to this model, companies must provide job opportunities for general public who are capable as well should offer better products and services at lower cost. Along with they should pay their responsibilities towards employees by offering better and safe working en

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