7. The micro-environment of a firm.

Micro-environment of a firm includes:

● Company
○ Management structure​
○ Employers skills and mix​
○ Resources​
○ Current strategy and success​
○ Management values and corporate culture​
● Publics
○ Groups of people who have an interest in the marketer’s ability to
achieve their objectives.​
● Suppliers
○ A supplier is a person or business that provides a product or service
to another entity. ​
● Customers
○ All parties to whom the firm may be selling: consumers, business,
reseller, government, non-commercial organizations. ​
● Intermediaries
○ It’s independent firms which assist in the flow of goods and
services from producers to end-users.​
● Competitors
○ Entity which is a rival against another. A company in the same
industry or a similar industry which offers a similar product or
service.​
MICRO ENVIRONMENT​
Micro environment is defined as the nearby
Meaning​ environment, under which the firm operates.​
COSMIC, i.e. Competitors, Organization itself,
Elements​
Suppliers, Market, Intermediaries and Customers.​
Nature of elements​ Specific​
Are these factors Yes​
controllable?​
Influence​ Directly and Regularly​

8. The macro-environment of a firm.

Macro-environment of a firm includes:
● Cultural forces
○ Living in different nations, people probably have different
perspectives of culture. This will shape the behavior, beliefs and
characteristics of consumers in marketplace.​Understanding
customers’ culture helps companies catch the trend of their making
decisions.​
 ● Demographic forces
○ Demography is the science of the human population. It researches
the information about size, location, age, gender, race, occupation
and so on.​Demographic forces are the most considerable ones
which marketers need to concern because it is related to people
who are the main targets of business.​
● Economic forces
○ The economic environment, which has a large effect on deciding
what kinds of products can exist in the market. The firms have to
research this force to assure their success in marketplace.​
Purchasing power depends on consumers’ income, savings, debt,
and credit availability as well as the price level. Also Economic
forces include situation on stock market, possible recession &
crisis.​
● Natural forces
○ Natural forces or Ecological forces are all things belong to the
nature & can influence the Company.​They are about the natural
resources which are needed as inputs by marketers or which are
affected by their marketing activities.​
● Technological forces
○ Natural forces or Ecological forces are all things belong to the
nature & can influence the Company.​They are about the natural
resources which are needed as inputs by marketers or which are
affected by their marketing activities.​
● Political forces
○ Political forces control most of the decisions of firms which
include laws, government agencies and pressure group that
influence the activities of companies in the society.​Firms use these
factors as the guidance for their businesses. In addition, political
situation in the country also influence the company.​
MACRO ENVIRONMENT​
Macro environment refers to the general environment, that
Meaning​ can affect the working of all business enterprises.​
PESTLE, i.e. Population & Demographic, Economic,
Elements​ Socio-Cultural, Technological, Legal & Political and
Environmental.​
Nature of elements​ General​
Are these factors No​
controllable?​
Influence​ Indirectly and Distantly​