Involvement of Environmental Factors in Business Activity

Involvement of environmental factors in business activity.
Introduction
Understanding the environment for business is vital to developing an organization
in some places. The environment influences every aspect of the organization, for
example by its nature, by location, by the variety of prices and products or services
provided. That is why it is useful and practical to understand the environmental
components of an organization. It is known that each business has its own environment
and its own factors. Environmental changes for organizations are on the one hand
opportunities for evolution and change for the better, and on the other hand can get
negative connotations, causing disastrous effects for the organization. This word,
business, and environment formation is in fact an interdependent relationship between
the two. There cannot be one without the other (Kotler, P. and Levy, S. (1969)
This report follows to explain what business environment is, what are the factors
who influence this environment and how to manage this environment to be successful
for any company and organization.
Importance of Business Environment
Why is this business environment important? Because it determines and helps

identify threats and opportunities. This environment helps companies and organizations
achieve success and meet the challenges they face. At the same time, this environment
helps businesses identify possible areas of expansion. This environment dynamizes
business and managers, as they improve their information, thoughtful, and skills to meet
the possible challenges they will face.
Micro environment
According to (Adler 2008) about the micro environment, he refers to the

environment that is directly related to the object of the organization. This environment
can immediately affect the object of activity through various factors such as suppliers,
competitors, customers, the company's marketing strategy, company employees,
culture. The micro environment is the environment in direct contact with the company,
while the macro environment does not fold on a company, it affects the societal level.
Customers: represents the key for the products and services. Without them the
company cannot survive because the company need to think what the people need and
offer them their needs. Employees represent also key point for the organization because
without them the product or the service can not be created. This part of the organization
needs much more attention than any other part because employees after customers
represent the backbone of that company. Also, suppliers represent another part of the
company, they provide the company and the business in general materials, they need to
carry out their manufacturing and production activities. (Francis D., Woodcock M 1990)
Another part of microenvironment is represented by shareholders. A shareholder is

a specific that finances into company’s business. They share of the company; therefore,
they have the right to vote on choices that affect the actions of business. Sometimes
shareholders may press the company to growth its incomes which in turn can harmfully
affect the long-term achievement of the business.
Opponents: Actions of a business adjust according to the actions and reactions of

competitors. This aspect should be known to a corporation as the upcoming profit or
revenue will only be driven when this factor is in control. Without these elements a
business could not work, it is not possible. At the time of creating a business, these
factors must be considered. Regardless of how they act, the organization must take
account of them and shape them in such a way as to bring major benefits.
Macro environment
According to Adler (2008, 16) as follows: It is the general environment within an
economy that has an impact on all organizations and business groups. Compared to the
micro economic environment found at the organization level, this environment is found
at the societal level, in the form of external factors that cannot be controlled by any
company. In general, when discussing this macroeconomic environment, the PESTLE
analysis is most often used. It includes politic, economic, social, techno logic, legal and
ethical factors. This environment is represented by a major external and uncontrollable
factor that influences an organization’s decision-making, strategies and performance.
When the macro environment is uncontrollable, the success of a company depends on
its adaptability to the environment.
The micro environment is the environment in direct contact with the company,
while the macro environment does not fold on a company, it affects the societal level.
The organization can even control micro factors while macro factors are generally
uncontrollable. To study the micro environment it is necessary to consider the
components of the company: employees, marketing strategy, competition, clients,
while for the macro environment the PESTLE analysis is used. (Adler, Nancy J.;
Gunderson, Allison; (2008)
Business environment
According to Kotler (Kotler, P. and Levy, S. (1969), a company that provides out
its enterprise in a market or an individual who carries out his business on his own and
obtains a profit, both must be aware of what is going on outside. The business
environment is constantly moving, dynamic, changing from day to day, a principle or
rule that has been used yesterday, tomorrow it will not have the same effect.
Periodically, it is necessary to consider the evolution and external factors that influence
the activity of the enterprise. These may be factors of an economic, social-cultural,
demographic, educational, religious, climate or relief nature and not only.
Corporate Social Responsibility of role of this.
A new concept has emerged, called corporate social responsibility. More and
more companies around the world have begun to be concerned about this. Colossal
investments are being made and this component has become part of the business
strategy of more companies. What can be said about corporate social responsibility is
that it comes in the form of a mechanism or form of control whereby most companies
maintain a set of legal, ethical, social and environmental standards. It takes the form of
a statement between companies, their business practices, and society. It is a concept
that defines the company's behavior in terms of internal or external regulations. That is
regulations that concern employees' working conditions or investment practices on the
company. An increasing number of companies worldwide have started promoting their
Corporate Social Responsibility strategies in response to greater pressure from
customers, the public and their investors, who expect them to act sustainability as well
as responsibly. (Gina Nason, 2016)
The last few years have brought increased CSR attention from companies. They
have begun to promote their social responsibility strategies as a response to increased
customer pressure or even on the part of various investors. For this concept, an exact
definition cannot be given, applying it differently, on a case-by-case basis, depending
on the field in which the companies operate. This concept has a broad scope of
applicability, ranging from human rights, labor and social security to climate change,
natural resource management or volunteer initiatives. In fact, to a certain extent, it
covered all commercial, social, political, human, environmental areas. (Herzberg F
1996).
Conclusion
In conclusion, the following can be mentioned. The business environment and the
environment are dynamic, changing from day to day. The environment through the
factors I have mentioned offers both opportunities and threats to organizations and
companies. These in turn need to know how to manage their micro factors (marketing
strategy, competition, product, employees). This can be done through good
management and critical situations and beyond. In turn, macro factors affect
organizations, but at this level they have little decision-making power, and they just do
not obey the rules.
As far as Corporate Social Responsibility is concerned, this method is a new way

to cope with external factors. This method is very applied lately and is also included in
the marketing strategy of numerous companies from different corners of the world.
References
1) Adler, Nancy J.; Gunderson, Allison; (2008); International dimensions of

organizational behavior; 5th Edition; Mason: Thomson Higher Education
2) Francis D., Woodcock M.: Unblocking Organizational Values, University
Associates, Inc., 1990.
3) Hofstede G., - Management of multicultural structures. The Software of Thinking,

Economics Publishing House, Bucharest, 1996.
4) Kotler, P. And Armstrong, G. (2013) Principles of Marketing. London: Prentice Hall.
5) Kotler, P. and Levy, S. (1969) ‘Broadening the concept of marketing’, Journal of

Marketing, vol. 33, no. 1, pp.10–15.
6) R. Dennison, Corporate culture and organizational effectiveness, J. Willey & Sons,
New York, 1990.

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Involvement of environmental factors in business activity.

Importance of Business Environment

Why is this business environment important? Because it determines and helps

According to (Adler 2008) about the micro environment, he refers to the

Another part of microenvironment is represented by shareholders. A shareholder is

Opponents: Actions of a business adjust according to the actions and reactions of

Corporate Social Responsibility of role of this.

As far as Corporate Social Responsibility is concerned, this method is a new way

1) Adler, Nancy J.; Gunderson, Allison; (2008); International dimensions of

3) Hofstede G., - Management of multicultural structures. The Software of Thinking,

5) Kotler, P. and Levy, S. (1969) ‘Broadening the concept of marketing’, Journal of

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