Difference Between Micro And Macro Environment

As managers invest their resources into their company it is prudent to conduct a proper analysis of the market. Particular attention must be given to the factors that can and to pose a threat to the longevity of their enterprise. Micro and macro environments are the two major forces that affect business decisions. A strategic prospective of each entity enables the marketers and the company by extension, to stay ahead of the competition.

The micro environment encompasses all the entities that affect the function ability of the enterprise. These include suppliers, marketing intermediaries, customers, competitors, and publics. Three of the above will be further explained.

Suppliers: can be viewed as the main artery, they supply the materials used in production. The larger the suppliers’ contribution to the business: the greater their impact on the business decisions. For instance an owner owns a fishing business “Fin-tastic Fish Shop”, where they provide fish fillets to local restaurants. The owner depends on eight fishermen from Gouyave who collectively own a large fishing boat. Unfortunately a major accident occurs and the boat is out of commission. The owner of Fin-tastic Fish shop is now left stranded and may have to depend on

The laws and government can implement regulations that can positively and or negatively impact the firm. A firm’s failure to comply with the set out regulations can lead to its demise. Capital Bank Grenada is an unfortunate example of a firm who did not meet or have the appropriated documentation; legal capacity to conduct business as a bank. Unawares to customers the bank was functioning illegally. Upon a failure to meet the demands of the depositors/customers; legal actions were ensued, resulting in the closing of the enterprise. For this reason, adherence to the laws set out allows the firm to build a reputable reputation essentially attracting