BUSINESS ENVIRONMENT

THE MICRO AND MACRO ENVIRONMENT How Macro Environment Factors affect Business
Every business organization is a part of the business environment, within Economic Cycles
which it operates Companies are enormously sensitive to occurrence of changes in
It is broadly classified into two categories, i.e. micro an economy. 
environment, and macro environment. Social Factors
Definition of Micro Environment Organizations can be affected by demographics change and change
Microenvironment refers to the environment which is in direct contact with in customs.
the business organization and can affect the routine activities of Technological Factors
business straight away. Technological factors are those variables rely on current, available
Elements and change in technology.
Suppliers, Competitors, Marketing Intermediaries, Customers, the Firm Legal Factors
Itself. Organizations are very susceptible to change in laws and
Definition of Macro Environment interpretations done by courts.
The general environment within the economy that influences the
working, performance, decision making and strategy of all business groups Examples of Micro Environment Factors Affect Business
at the same time is known as Macro Environment. It is dynamic in nature. Customers
Therefore it keeps on changing. The customers are the central part of any business as they tend to
Elements attract and retain most of the customers to generate revenue.
Economic Environment, Physical Environment, Technological Competitors
Environment, Political-Legal Environment, Social-Cultural Environment The competitors of an organization can have a direct impact on
business strategies.
Key Differences Between Micro Environment and Macro Environment Employees
The following are the major difference between micro and macro Skilled employees can help an organization to achieve
environment: organizational goals and objectives
1. Microenvironment is the environment which is in immediate Suppliers
contact with the firm. The environment which is not specific to a Actions of a supplier can influence the business strategy, as they
particular firm but can influence the working of all the business provide the materials for production.
groups is known as Macro Environment. Shareholders
2. The factors of the microenvironment affect the particular business Shareholders of an organization have an influence as the company
only, but the macro environmental factors affect all the business want investors to increase for this they might make a decision to increase
entities. money by buoyant on stock market
3. The microenvironmental factors are controllable by the business. Media and Social Media
However, the macroeconomic variables are uncontrollable. If media will show positive aspect, this will increase the business
4. The elements of the microenvironment affect directly and regularly of organization and vice-versa.
to the firm which is just opposite in the case of the macro
environment.
5. The study of the microenvironment is described as COSMIC
analysis. Conversely, PESTLE Analysis is a study of the macro
environment.
 BASIS FOR MICRO ENVIRONMENT MACRO ENAVIRONMENT
Importance of Marketing Environment to a Marketer
1. Helps Understand Consumer Behavior COMPARISON
Understanding the marketing environment is vital in helping
marketers identify and recognize what customers want. Meaning Micro environment is defined as the Macro environment refers to the general
nearby environment, under which the environment, that can affect the working of all
2. Understand the competition
The company is able to survive and thrive in the competitive firm operates. business enterprises.
market by keeping a detailed eye on the competitors
3. Essential for planning Elements COSMIC, i.e. Competitors, PESTLE, i.e. Population & Demographic,
It also helps in planning of various marketing and promotional
Organization itself, Suppliers, Market, Economic, Socio-Cultural, Technological, Legal
strategies so as to match the offerings of the company to the current
Marketing environment. Intermediaries and Customers. & Political and Environmental.
4. Tap new trends
It is necessary for the brand to understand,
Nature oftap, and
elements Specific General
embrace the new trends that are ruling the market in order to stay
relevant and consistent amidst the changing dynamics
Are these factors Yes No
5. Keep a check on threats
controllable? the
Giving attention to the Importance of Marketing Environment,
company is able to keep a thorough check on the factors that can have a
negative impact on its business operations and act as an obstacle in its
Influence Directly and Regularly Indirectly and Distantly
trajectory of growth and success.

GROUP II
BALUYO, JOHN RUDOLF D.
BARTINA, PATRICIA
BELMES, GEFFREY
CALLOS, WENG
CANA, JOHN MARK
CAHILIG, ANGEL
DE GUZMAN, KYRENE