Comparison Chart
| Basis for Comparison | Micro Environment | Macro Environment |
| Meaning | Micro environment is defined as the near ... | Macro environment refers to the general ... |
| Elements | COSMIC, i.e. Competitors, Organization i ... | PESTLE, i.e. Political, Economic, Socio- ... |
| Nature of elements | Specific | General |
| Are these factors controllable? | Yes, but to some extent only | No |
What are examples of micro environmental factors?
Micro and Macro Economic Analysis of Sony Entertainment
- Introduction. Sony is an example of the world’s most extensively known technology companies. ...
- Micro and Macro Economic Factors
- Macro Environmental factors. These factors might have a direct effect on the how Sony operates. ...
- Micro Environment. ...
What is the difference between a micro and macro environment?
- Suppliers are the ones who provide inputs to the business like raw material, equipment and so on.
- Competitors are the rivals, which compete with the firm in the market and resources as well.
- Marketing intermediaries may include wholesalers, distributors, and retailers that make a link between the firm and the customers.
What are the factors of micro environment?
What are the factors of micro environment?
- Competitors:
- Customers:
- Suppliers:
- Public:
- Marketing Intermediaries:
- Workers and Their Union:
What are the macro environmental factors?
What is Macro Environmental Analysis?
- Political Factors. Macro political environment analysis comprises of the political changes and the stand of a politician on a certain political issue.
- Economic Factors. ...
- Social Factors. ...
- Technology Factors. ...
- Legal Factors. ...
- Environmental Factors. ...
What are macro environmental factors?
Macro environment refers to the external forces within an economy. Macro environment factors like inflation, fiscal policy, monetary policy, consumer spending, GDP, and employment rates considerably affect business operations. Governments and institutions strategize policies based on these factors.
What is micro environment factors?
Micro Environmental factors It is a collection of forces or factors that are close to the organization and can influence the performance as well as the day to day activities of the firm. Six components of micro environment are: Company, Suppliers, Marketing Intermediaries, Competitors, General Public and the Customers.
What is micro and micro environment?
Microenvironment refers to the environment which is in direct contact with the business organization and can affect the routine activities of business straight away. It is associated with a small area in which the firm functions. The microenvironment is a collection of all the forces that are close to the firm.
What are the 6 macro environments?
The Macro Environment consists of six different forces. These are: Demographic, Economic, Political, Ecological, Socio-Cultural, and Technological forces. This can easily be remembered: the DESTEP model, also called DEPEST, helps to remember the different factors of the Macro Environment.
What are the 5 components of macro environment?
Macro Environment1] Socio-Cultural Environment. ... Browse more Topics under Introduction To Business Environment. ... 2] Technological Environment. ... 3] Economic Conditions of the Market. ... 4] Ecology and Physical Environment. ... 5] Political and Legal Factors.
How do macro and micro environmental factors affect organizational performance?
Micro-environment factors functioning revolve around the strengths and weaknesses of an organization which is internal to it. However, macro-environment factors are concerned about opportunities and threats in the external market of an organization.
Which of the following factor is a macro factor?
Examples of macroeconomic factors include economic outputs, unemployment rates, and inflation. These indicators of economic performance are closely monitored by governments, businesses and consumers alike.
What are the main differences between the Macroenvironment and the competitive environment?
The macro environment is a more general and overall view on the location that your company develops in; and how all the PESTLE factors influence your company. The competitive environment deals with your main competitors that try to win customers in the same market.
What are micro and macro environment factors?
Micro and Macro environment factors to be analyzed for companies. There are lot of factors that needs to be considered for carrying out any business. Organizations never exist or operate in "Vacuum". It operates in an environmental which is basically divided into two broad categories. The fist being the micro-environment and the second being ...
What is macro environment?
Macro Environmental factors. Macro environment refers to the major external and uncontrollable factors that influence the decision making of an organization. A company does not operate alone in its business environment, but operates in a larger context. It comprises of forces that provide opportunities, but at the same time also pose threats ...
What is the public in marketing?
The public refers to the group of people who have an actual or potential interest in company’s product or who can have an impact on the organizations ability to achieve its objective. There are seven types of publics identified in a company’s marketing environment which includes financial publics, media publics, government publics, citizen-action publics, internal publics, local publics and general public.
What is ecological condition?
It refers to the natural resources or physical environment that are required as inputs by marketers or which is affected by the marketing activities. The ecological conditions have become a crucial factor to consider as the environmental concerns have grown strongly in the recent years.
What is a competitor in marketing?
Competitors. Competitors are rivals who compete with the organization in market and resources as well. According to the marketing concept, a company needs to provide greater customer value and satisfaction that its competitors, in order to be successful.
What is marketing intermediary?
Marketing Intermediaries. The marketing intermediaries are also an important component for company’s overall value delivery network. They include those individuals or firms who help the company in promotion, sales and distribution of its goods to the final buyers.
What groups should be taken into account in marketing?
Various groups in an organization like the top management, finance, operations, human resourcing, research and development (R&D), account ing etc needs to be taken into account by the marketing management for designing the marketing plans. Marketing managers needs to work closely with them as that will help them to make decisions with broader ...
Micro Environmental Factors
Micro environments in retail is anything in the immediate environment including suppliers, customers, competitors, and stakeholders. Any government and other regulating body can be thought of as a stakeholder.
Macro Environmental Factors
Macro environments are often outside of the retailer’s control and are typically of a larger scale and are usually of an economic and industry viewpoint.
SWOT Analysis
In understanding micro and macro environments a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is commonly used in retail. Strengths and weaknesses are those internal factors impacting an organization while opportunities and threats are external factors that are outside of the organization’s control.
Why is SWOT analysis important?
The SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) is useful both for understanding the micro and the macro factors. The former two are internal and affect the very business, while the latter are external and not under the organization’s control.
What is macro environment?
The macro-environment is more general - it is the environment in the economy itself. It has an effect on how all business groups operate, perform, make decisions, and form strategies simultaneously. It is quite dynamic, which means that a business has to constantly track its changes.
What are the factors that make up the macro-environment?
The factors that make up the macro-environment are economic factors, demographic forces, technological factors, natural and physical forces, political and legal forces, and social and cultural forces.
What are the natural and physical forces that affect business?
Natural and physical forces. Every business must also take into account the very planet and its resources. There are those that can be renewed, such as forests and agricultural products, and those that cannot, such as coal, minerals, oil, and the like. Both are strongly related to production.
What happens if you sell your product through a third party reseller?
If let’s say, a certain retail seller has a strong reputation, it will pass on to your product.
What is the business environment?
In other words, an organization as such can never exist and operate “in a vacuum”. It is a part of a larger entity known as the business environment. In broad terms, this environment can be divided into two categories. The first one is the micro-environment.
What is your competition on the market?
Logically, every business that sells the same or a similar kind of product as you do is your competition on the market. So, their sale and marketing tactics matter to you a lot. You need to answer various questions, such as how their product and its price affects yours and how you can make use of that in order to gain an edge over them.
2. OVERVIEW OF THE COMPANY
Reliance fresh is one of the major food retailers in India with its branches spread all over India. They are in to main stream food production and distribution where they produce and distribute the foods of all types – from the raw materials to the final food products.
3.1. DEMOGRAPHIC
Any product should be completely focused on the customer, their needs and mostly dependent on where they live. For example people living in higher altitudes may not need air conditioners and trying to sell these AC machines over there will not be a good business.
3.2. ECONOMIC
The current down turn in the economy has a major effect on any companies which are in to the retail sector because they have a direct impact and people don’t have very good job offers and pay checks to spend more amount of money. Hence they should focus on producing goods at a very low cost and sell at competitive prices.
3.3. NATURAL AND SOCIOLOGICAL
Whenever marketing their products they will have to sell the products suiting to the taste of the customers in that particular location or region. Some people may like foods very spicy where as some may need foods which are mild. Hence they might need to alter their taste as per the customer needs. (Kazmi, A, 1997)
3.4. TECHNOLOGICAL
The current technologies used by them are out dated and they don’t have technologies like SAP to analyze about their customers. The recent products produced and sold by them were not up to date and were not matching the needs of their customers. Since the customer needs were not met with they failed in the market.
3.5. POLITICAL
The cost for the business in India is very less as the labor charges, fuel, transportation and the electricity are very less and they are looking for more increase in the trade. As more and more MNC’s are entering in to India the need foe the super markets and hyper markets are raising and they are looking in for more business opportunities.
3.6. CULTURE
When ever they are entering in to any country they have to concentrate on the cultural needs of the people. They must adopt separate strategies in different parts and always must ensure that they never hurt the feelings in any of their advertisement or any kind of campaign they are in to.
