Question

Distinguish between micro and macro environment.

Answer 1

Basis of Distinction	Micro Environment	Macro Environment
Definition	Refers to the internal and immediate external factors that directly influence a business.	Refers to the broader external forces that affect not only the business but the entire industry and economy.
Nature of Influence	Direct and specific.	Indirect and general.
Components	Customers, suppliers, competitors, financiers, intermediaries, and publics.	Economic, social, technological, political, and legal forces.
Control by Firm	Somewhat controllable; firms can influence relationships with these elements.	Not controllable by the firm; must adapt to these conditions.
Scope	Narrow scope; specific to a particular business or industry.	Broad scope; affects all businesses in the economy.
Impact	Immediate and operational.	Strategic and long-term.
Examples	Supplier reliability, customer preferences, competitor strategies.	Inflation, technological advancement, political stability, changes in law.