Explain what is micro environment
The micro environment refers to the immediate environment surrounding a particular company or organization that directly affects its operations and activities. It consists of various factors and entities that have a direct impact on the company's ability to serve its customers and achieve its goals.
The micro environment includes the following components:
1. Customers: This refers to the target market or the people who buy or consume the company's products or services. Understanding customer needs, preferences, and behavior is essential for a company's success.
2. Suppliers: These are the entities that provide the necessary inputs, raw materials, or resources required for the production or delivery of the company's products or services. A company's relationship with its suppliers can significantly impact its operations and costs.
3. Competitors: Competitors are other organizations in the same industry offering similar products or services. Understanding the competitors' strategies, strengths, weaknesses, and market position is crucial for a company's success and competitive advantage.
4. Intermediaries: Intermediaries are the entities that help the company reach its target customers more effectively, such as distributors, wholesalers, or retailers. These intermediaries play a significant role in product distribution and marketing.
5. Publics: Publics refer to any group or individual with an interest or impact on the company's activities, such as media, government, community, or shareholders. Maintaining good relations with these publics is important for the company's reputation and image.
6. Internal stakeholders: Internal stakeholders include the employees, management, and shareholders of the company. The company's internal environment, including its organizational structure, culture, and policies, directly influences its overall effectiveness.
The micro environment is specific to each company and industry, and understanding and managing these factors effectively is essential for the company's success and performance in the marketplace.