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What are the micro and macro Business environment?

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Micro environment 

It is related to small areas or immediate periphery of an organisation. Micro-environment influences an organisation regularly and directly. 

Elements of Micro Environment


 As all businesses need customers, they should be Centred around customers. The firm's marketing plan should aim to attract and retain customers through products that meets their "wants and needs".


The market can move very quickly for example through a change in trading conditions, consumer behaviour or technological developments. As a business it is important to examine competitors' responses to these changes so that you can maximise the impact of your response.


Employees must be appointed with relevant skills and experience. This process starts in the recruitment phase and continues throughout the employment of an employee through ongoing training and promotions opportunities.


Suppliers provide businesses with the materials they need to carry out their business activities. A supplier's behaviour will directly impact the business it supplies. 

Macro environment 

It is that part of external environment which is largely external to the enterprise and thus beyond the direct influence and control of the organization, but which experts powerful influence over its functioning.

Elements of Micro Environment

Demographic Environment: 

The term demographic denotes the characteristics of population in a area, district, country or in the world. It includes factors such as race, age, income, educational attainment, asset ownership, home ownership, employment status and location.

Economic Environment:

Economic environment of business has reference to the broad characteristics of the economic system in which the business firm operates. The present day economic environment of business is a mixture of national and international environments.

Social-cultural Environment:

The social structure of a place gives an idea about the predominant culture and psychographics of the target audience. Organisations need to know if the area has a mixed population of various communities, for example, most metropolitan cities or it has a major share of a local population like the Marathi in Maharashtra, Bengalis in West Bengal, etc.

Technological Environment:

Technology has changed the way people communicate with the advent of the internet and telecommunication system. Technology has changed the ways of how Business operates now. This leading to many new business operations as well as making obsolete many existing systems.