Question

List the internal and external factors that together constitute the micro environment?

Answer 1

Internal Factors (Within the Business):

1. Corporate Culture: Shared values, beliefs, and norms.
2. Mission and Objectives: The purpose and goals of the business.
3. Top Management Structure: Composition and effectiveness of leadership.
4. Power Structure: Distribution of decision-making authority.
5. Company Image and Brand Equity: Market perception and brand strength.
6. Human and Other Resources: Employee skills, motivation, and physical assets.

External Factors (Immediate External Stakeholders):

1. Customers: Individuals or organizations purchasing the business’s offerings.
2. Suppliers: Entities providing raw materials or inputs.
3. Competitors: Other firms offering similar products or services.
4. Marketing Intermediaries: Wholesalers, retailers, agents aiding in product distribution.
5. Financiers: Banks, investors, and financial institutions providing capital.
6. Publics: Groups such as media, NGOs, or local communities influencing public perception.