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The business environment is the area in which businesses carry out their business by

offering goods or services to man. Regardless of the object of activity any economic agent has
in the business environment. This business environment can also be called a marketing
environment offering both opportunities and real dangers to economic agents. To avoid the
dangers or to take advantage of opportunities, any business must first know the components of
the business environment, how it is structured how it works and how business affairs business
can influence. The business environment knows two types of environment, an external
environment or a macro-environment that has specific elements and the internal environment
or the micro-environment that is represented by elements inside the enterprise. At the same
time, in the last years a new concept has begun to be more used and the consequences of it are
even presented by some companies. This is called corporate social responsibility, a concept that
although appeared in the middle of the nineteenth century, has been used predominantly since
the early 2000s.

The external environment or macro environment is the set of external forces and factors
that lie outside of an enterprise. In front of the macro environment, an enterprise can do nothing
to influence but just be prepared for what can happen. Some variables from the external
environment affect to some extent the actions of the enterprises and even their structure, being
unable to be mastered. What an enterprise can do in front of such factors is to monitor the
environment and prepare for the inevitability of change. The macro environment components
of an enterprise are known and understood through the PESTLE analysis. The components of
an enterprise's macro environment are technical, technological factors; management factors;
socio-cultural factors; natural ecological factors; political factors; demographic factors; legal
factors.

Next, a brief characterization of the elements of the macro environment and the role
they have are made.

First, the macroeconomic factors are represented by the market, the purchasing power,
the level and pace of economic development, the financial potential.

The second element of the macro environment is the technical and technological factors,
namely the technical level of the equipment’s, machines, equipment, installations provided to
enterprises in the country or abroad, the level of technologies used, the number and level of
licensed and licensed patents, the ability to document and innovation. The technical,
technological environment through all the specific factors influences the level of productivity,
production cost, production quality, profit level; in general, the company's final economic
results.

A third element is represented by management factors expressing the degree of


provision, organization, coordination, assessment of the environment insofar as in the
organizational and management framework created stimulates the staff of the enterprise to use
the possibilities of the environment.

Another element found in macro environment is the social represented in turn by: the
ratio of the urban population to the rural population; the level of development of education; the
level of health protection; the weight and quality of artistic cultural activities; mentality.

The political element is equally important and is found in the macro-world. In this group
can be included the pace of development of a branch, options on the share of private and public
property, lending policies, support of import-export, taxation. The higher the pace of
development, the more the business will be influenced favorably and vice versa.

Finally, the legal factors represent the set of legal regulations that directly or indirectly
target the activity of the enterprise. The most significant legal factors are laws, decrees,
government decisions, ordinances, ministerial orders, prefect's decisions that contain a series of
rules of law to which economic agents are responsible.

MICROENVIRONMENT AND INFLUENCE OF FACTORS ON BUSINESS


ACTIVITY

The microenvironment of the firm comprises all the components with which it enters
direct relationships dictated by the need to achieve its present and future goals. The
microenvironment components are commodity suppliers, service providers, labor suppliers,
customers, competition, public bodies

Suppliers of goods are represented by various economic agents who, based on


contractual relationships, provide the enterprise with the necessary resources for raw materials,
materials, equipment, machines, machinery etc.

Service providers are legal or physical persons who offer a wide range of services useful
to the company's business activity. Examples of service providers: transport companies,
telecommunications; advertising companies, banking services. Labor force suppliers are
environmental agencies that considerably influence the business activity due to the role of the
human factor in the work process.

Clients make up the circle of companies, institutions, and individuals who are offered
for consumption / use of goods, products made by the enterprise.

Ethics in business or as it is called, economic ethics is one of the forms of applied ethics
and is a set of directions and ethical standards that consider the behavior of managers in their
work at both individual and group level. This form of ethics outlines a structure of principles,
principles and rules that have been preserved over time and learned from one generation to the
next. Economic ethics also provide a good and successful business. The behavior of economic
agents illustrates strict adherence to philosophies such as full faith and honesty among agents,
equality in cooperation, and the fulfillment of contractual responsibilities; respecting accurately
all the obligations made; the mutual benefits and dangers involved. Accepting and observing
the instructions of financial ethics is, in fact, a problem of economic consciousness with a strong
impact on the crystallization of lawful norms. Their infringement makes an unfavorable
representation of the economic agents.

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