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Micro and Macro Environment Katlyne Jade P. Tabuete 12- Malikhain.

What is icpo Environment? The micro environment refers to the specific economic factors and conditions that directly affect individua Irms or industries within a particular market. These factors include supply and demand dynamics, production costs, pricing strategies, competition, consumer preferences, and regulations. Understanding the micro environment is crucial for firms to make strategic decisions and optimize their operations within their specific market context.

What is acro Environment? The macro env ronment refers to the broader economi factors and conditions that influence the overall economy andi act multiple industries and markets. These factors include tren s In economic growth, inflation, unemployment, fiscal and monetary policies, international trade, technological advancements, demographic changes, and environmental regulations. Analyzing t e macro environment helps economists and policymakers understand the bigger picture and formulate strategies to manage economic stability and growth at a national or global level..

Difference between Micro and Macro Environment Scope: Focuses on specific economic factors and conditions that directly affect individual firms or industries within a articular market. Factors: Includes factors such as supply and demand dynamics, production costs, ricing strategies, competition, consumer eferences, and regulations. Scope: Focuses on broader economic factors and conditions that influence the overall economy and impact multiple industries nd markets. Factors: Includes factors such as economic growth, inflation, unemployment, fiscal and monetary policies, international trade, technological dvancements, demographic changes, and vironmental regulations..

Nature OF Forces/ Elements OF Micro Environment Customers Consumer preferences, behavior, and purchasing power influence demand for products or services. Competitors Other firms offering similar products or services compete for market share, affecting pricing, product differentiation, and marketing strategies. Public Public opinion, perceptions, and attitudes towards a company or its products can influence its reputation and brand image. Suppliers Suppliers provide raw materials, components, or services necessary for production, impacting costs, quality, and availabilit.

Difference between Micro and Macro Environment Scope: Focuses on specific economic factors and conditions that directly affect individual firms or industries within a articular market. Factors: Includes factors such as supply and demand dynamics, production costs, ricing strategies, competition, consumer eferences, and regulations. Scope: Focuses on broader economic factors and conditions that influence the overall economy and impact multiple industries nd markets. Factors: Includes factors such as economic growth, inflation, unemployment, fiscal and monetary policies, international trade, technological dvancements, demographic changes, and vironmental regulations..

Ape factors in Micro and Macro Environment ape controllable. Micro The micro environment of the organization consists of those elements which are controllable by the management. Normally the micro environment does not affect all the companies in an industry in the same way, because the size, ca acit ca abilit and strate ies are different Macro These factors are uncontrollable and the organization is not capable of exercising any control over them. The macro environment can be broadly classified into an economic environment and a non-economic environment..

Influences of Micro and Macro Environment to Industry Micro Supplier Relationships Customer Demands Competitive Landscape Intermediaries Stakeholder Influence Macro • Economic Conditions • Political Environment • Social and Cultural Trends • Technological Developments • Globalization.

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