What are the components of business environment?

1. Micro-environment:

It refers to all the factors which are specific to an organization and impart strengths or cause weaknesses of a strategic nature. These affect the organization on an immediate basis but are relatively controllable. These factors include the following:

a) Market

b) Organisation

c) Intermediaries

d) Suppliers

e) Consumer/Customer

2. Macro-environment:

It refers to all the factors which are common for all organisations, provide opportunities or pose threats to them and are relatively uncontrollable. The factors include the following:

a) Demographic environment

b) Economic environment

c) Political-legal cum Government environment

d) Socio-cultural environment

e) Technological environment

f) Competitive environment

g) Global environment


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