Difference between macro and micro business?

Answer 1

Macro and micro environments both fall into the categories of environmental scanning. The general scope of environmental scanning is that it is a component of global environmental analysis. While analyses are typically carried out on the macroenvironment, the micro environment still has an important role to play. In summary, the macro environment is involved with the industries, companies, markets, clientsand competitors, while the micro environment can be represented by the suppliers, competitors and customers.

• Macro Environment

  The macro environment is typically segmented for the reasons of analysis. This analysis, commonly referred to as a PESTLE analysis, allows researchers to look at the main six environmental factors that affect a business. These factors are political, economical, technological, environmental, legal and social. Each of these factors indirectly affect the company but the company cannot control them. Instead the company is required to adapt to these factors in the most efficient way possible. The results of this analysis allow the company to see where their strengths are when adapting to the macro environment and where they could improve on their methods.

• Micro Environment

  This field of business deals with the specific environment of the enterprises. New patterns of organization and steering are required to be developed. These will give rise to impulses and mediate the associations, enterprises, science andintermediate institutions. Within the micro environment it is important that the layout of the physical infrastructure is focused on competitiveness.

Macro and micro environments play an important role within environmental scanning. Environmental scanning is then an important component of global environmental analysis. Global environmental analysis helps to consider business environments on a global scale. This analysis is reserved for businesses that have developed further than national and international level in order to compare to similar level competitors.