Difference Between Microenvironment And Macroenvironment

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What Is Microenvironment?

Micro environment refers to the environment which is in direct contact with company and affects the routine activities of business straight away. It is a collection of forces or factors that are close to the organization and can influence the performance as well as the day to day activities of the firm. Normally, the micro environment does not affect all the companies in an industry in the same way, because the size, capacity, capability and strategies are different. Major elements of micro environment are:

  • Customer
  • Competitors
  • Suppliers
  • Marketing intermediaries
  • Media
  • Employees
  • Shareholders
  • Public

What You Need To Know About Microenvironment

  • Microenvironment also referred to as internal environment refers to the forces operating in the market that are close or within the enterprise or firm and affect its ability to serve its customers directly.
  • Microenvironment includes all those factors which influence business and which are present within the business itself.
  • Elements of microenvironment include customer, competitors, and suppliers, marketing intermediaries, media, employees, shareholders, public etc.
  • Microenvironment factors are usually under the control of business.
  • The elements of microenvironment affect a firm both directly and regularly. They have an impact on marketing decisions.
  • The nature of the elements of microenvironment is that they are less complex and more specific. Generally industry specific factors.
  • Microenvironment factors may function in the form of strengths and weaknesses of an organization.
  • Normally, the micro environment does not affect all the companies in an industry in the same way, because the size, capacity, capability and strategies are different.

What Is Macroenvironment?

Macro environment refers to the major external and uncontrolled factors that influence the decision making of an organization. A company does not operate alone in its business environment, but operates in a larger context. It comprises of forces that provide opportunities, but at the same time also pose threats to the company. Major elements of Macroenvironment include:

  • Demographic factors
  • Economic factors
  • Technological factors
  •  Political factors
  • Natural factors
  • Social-cultural factors

What You Need To Know About Macroenvironment

  • Macroenvironment also refer to as external environment is the environment which is not specific to a particular firm but has the ability to influence the working of all the business groups.
  • Macroenvironment includes all those factors which influence business and exist outside the business.
  • Macroenvironment comprises of demographic forces, economic forces, technological forces, political forces, natural forces, social-cultural forces.
  • Macroenvironment factors are uncontrollable to a business.
  • Macroenvironment have an indirect impact on marketing on marketing decisions.
  • Elements of Macroenvironment are more complex and general. 
  • Macroenvironment factors may function in the form of opportunities and threats to the external market.
  • Normally, the macro environment affects all the companies in an industry in the same way.

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Difference Between Microenvironment And Macroenvironment In Tabular Form

BASIS OF COMPARISON MICROENVIRONMENT MACROENVIRONMENT
Description Microenvironment also referred to as internal environment refers to the forces operating in the market that are close or within the enterprise or firm and affect its ability to serve its customers directly.         Macroenvironment also refer to as external environment is the environment which is not specific to a particular firm but has the ability to influence the working of all the business groups.
Components Microenvironment includes all those factors which influence business and which are present within the business itself.   Macroenvironment includes all those factors which influence business and exist outside the business.  
Major Elements Elements of microenvironment include customer, competitors, and suppliers, marketing intermediaries, media, employees, shareholders, public etc.   Macroenvironment comprises of demographic forces, economic forces, technological forces, political forces, natural forces, social-cultural forces.  
Control Microenvironment factors are usually under the control of business.   Macroenvironment factors are uncontrollable to a business.  
Impact On Marketing Decisions The elements of microenvironment affect a firm both directly and regularly. They have an impact on marketing decisions.   Macroenvironment have an indirect impact on marketing on marketing decisions.  
Nature The nature of the elements of microenvironment is that they are less complex and more specific. Elements of Macroenvironment are more complex and general.   
Nature Microenvironment factors may function in the form of strengths and weaknesses of an organization.   Macroenvironment factors may function in the form of opportunities and threats to the external market.  
Effect Normally, the micro environment does not affect all the companies in an industry in the same way, because the size, capacity, capability and strategies are different.   Normally, the macro environment affects all the companies in an industry in the same way.  

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