Question

Briefly explain any four external factors of the micro environment of business.

Answer 1

1. Suppliers: Without a supplier, it is not possible to carry on the business.
2. Customers: Customers are another basic requirement to run a business. If no one is buying the products of your business, you will have to close its doors.
3. Marketing Intermediaries: Middlemen have a direct impact on your business operation. They could be your distributors, wholesalers and other related people.
4. Financiers: Typically, business owners take out a loan to get started and the growth of the business depends upon their ability to obtain additional loans.